Why the Public Lost Its Appetite for Pizza Hut

Once, Pizza Hut was the favorite for groups and loved ones to indulge in its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

Yet not as many customers are frequenting the chain currently, and it is closing a significant portion of its British restaurants after being acquired following financial trouble for the second instance this calendar year.

I remember going Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she says “it's not a thing anymore.”

According to young customer Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the 1970s are now outdated.

“The way they do their buffet and their salad bar, it feels like they are cutting corners and have inferior offerings... They provide so much food and you're like ‘How can they?’”

As grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to maintain. As have its restaurants, which are being sliced from over 130 to just over 60.

The company, similar to other firms, has also faced its operating costs go up. This spring, staffing costs increased due to increases in the legal wage floor and an rise in employer social security payments.

Two diners explain they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “too expensive”.

According to your selection, Pizza Hut and Domino's rates are close, explains a culinary author.

Even though Pizza Hut does offer off-premise options through third-party apps, it is falling behind to big rivals which solely cater to the delivery sector.

“The rival chain has taken over the off-premise pizza industry thanks to strong promotions and frequent offers that make shoppers feel like they're saving money, when in reality the original prices are quite high,” says the expert.

But for these customers it is acceptable to get their date night brought to their home.

“We absolutely dine at home now instead of we eat out,” comments Joanne, matching latest data that show a decrease in people visiting informal dining spots.

During the summer months, casual and fast-food restaurants saw a six percent decline in customers compared to the previous year.

There is also another rival to ordered-in pies: the supermarket pizza.

An industry leader, head of leisure and hospitality at a major consultancy, notes that not only have grocery stores been offering good-standard prepared pies for years – some are even selling countertop ovens.

“Evolving preferences are also playing a factor in the popularity of casual eateries,” comments the analyst.

The growing trend of low-carb regimens has boosted sales at grilled chicken brands, while reducing sales of dough-based meals, he notes.

As people visit restaurants less frequently, they may look for a more upscale outing, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than luxurious.

The “explosion of artisanal pizza places” over the last decade and a half, including popular brands, has “dramatically shifted the consumer view of what excellent pie is,” notes the food expert.

“A thin, flavorful, gentle crust with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she states.
“Who would choose to spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who runs Smokey Deez based in a county in England explains: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

He says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with changing preferences.

At an independent chain in a UK location, the proprietor says the pizza market is broadening but Pizza Hut has not provided anything fresh.

“You now have by-the-slice options, regional varieties, New Haven-style, fermented dough, Neapolitan, Detroit – it's a delightful challenge for a pizza-loving consumer to try.”

He says Pizza Hut “must rebrand” as younger people don't have any fond memories or attachment to the company.

Over time, Pizza Hut's market has been sliced up and distributed to its trendier, more nimble competitors. To maintain its costly operations, it would have to charge more – which experts say is challenging at a time when household budgets are decreasing.

The leadership of Pizza Hut's global operations said the rescue aimed “to ensure our dining experience and retain staff where possible”.

It was explained its immediate priority was to keep running at the remaining 64 restaurants and off-premise points and to assist staff through the transition.

Yet with so much money going into maintaining its outlets, it may be unable to spend heavily in its delivery service because the market is “difficult and partnering with existing external services comes at a price”, commentators say.

But, he adds, lowering overhead by leaving competitive urban areas could be a smart move to adapt.

Janice Perez
Janice Perez

A tech-savvy e-commerce enthusiast with a passion for simplifying digital transactions and sharing actionable insights.