How the Public Lost Interest in Its Appetite for Pizza Hut

At one time, the popular pizza chain was the top choice for groups and loved ones to enjoy its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

However a declining number of patrons are visiting the brand these days, and it is closing a significant portion of its UK restaurants after being bought out of administration for the second time this calendar year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she says “it's not a thing anymore.”

For young customer Martina, the very elements Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now not-so-hot.

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

As food prices have increased significantly, Pizza Hut's unlimited dining format has become quite costly to maintain. As have its restaurants, which are being reduced from a large number to a smaller figure.

The company, in common with competitors, has also experienced its operating costs rise. In April this year, labor expenses increased due to rises in minimum wages and an increase in employer social security payments.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “not good value”.

Based on your selection, Pizza Hut and Domino's prices are similar, says an industry analyst.

While Pizza Hut provides off-premise options through external services, it is missing out to larger chains which specialize to off-premise dining.

“Domino's has taken over the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make consumers feel like they're saving money, when in reality the original prices are quite high,” explains the expert.

However for Chris and Joanne it is worth it to get their date night sent directly.

“We definitely eat at home now rather than we eat out,” explains Joanne, matching latest data that show a drop in people frequenting casual and fast-food restaurants.

During the summer months, informal dining venues saw a notable decrease in patrons compared to the year before.

Additionally, a further alternative to ordered-in pies: the supermarket pizza.

A hospitality expert, head of leisure and hospitality at an advisory group, points out that not only have retailers been providing high-quality prepared pies for a long time – some are even selling pizza-making appliances.

“Shifts in habits are also having an impact in the performance of fast-food chains,” comments Mr. Hawkley.

The rising popularity of high protein diets has driven sales at chicken shops, while affecting sales of dough-based meals, he notes.

Since people visit restaurants less frequently, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more dated than luxurious.

The “explosion of premium pizza outlets” over the last several years, including new entrants, has “fundamentally changed the public's perception of what quality pizza is,” says the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she states.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who operates a small business based in Suffolk explains: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”

He says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it could not keep up with changing preferences.

According to an independent chain in a city in southwest England, owner Jack Lander says the sector is diversifying but Pizza Hut has failed to offer anything innovative.

“There are now slice concepts, artisanal styles, New Haven-style, sourdough, Neapolitan, deep-dish – it's a wonderful array for a pie fan to try.”

The owner says Pizza Hut “should transform” as newer generations don't have any fond memories or allegiance to the chain.

Over time, Pizza Hut's share has been fragmented and distributed to its fresher, faster competitors. To maintain its high labor and location costs, it would have to raise prices – which industry analysts say is tough at a time when household budgets are decreasing.

A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to ensure our customer service and save employment where possible”.

The executive stated its immediate priority was to continue operating at the surviving locations and off-premise points and to support colleagues through the change.

But with large sums going into running its restaurants, it probably cannot to spend heavily in its takeaway operation because the industry is “difficult and partnering with existing external services comes at a price”, experts say.

However, it's noted, cutting its costs by leaving oversaturated towns and city centres could be a good way to adjust.

Kathryn Mann
Kathryn Mann

Seasoned gaming analyst and enthusiast with a passion for high-stakes casino reviews and strategies.