How the Public Lost Its Taste for the Pizza Hut Chain

In the past, the popular pizza chain was the favorite for groups and loved ones to enjoy its unlimited dining experience, endless salad selection, and make-your-own dessert.

Yet a declining number of patrons are visiting the restaurant nowadays, and it is shutting down 50% of its British locations after being acquired following financial trouble for the second time this calendar year.

“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she comments “it's not a thing anymore.”

For a diner in her twenties, the very elements Pizza Hut has been famous for since it launched in the UK in the seventies are now outdated.

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

As ingredient expenses have soared, Pizza Hut's buffet-style service has become very expensive to operate. As have its restaurants, which are being cut from over 130 to a smaller figure.

The chain, similar to other firms, has also seen its costs rise. Earlier this year, employee wages jumped due to higher minimum pay and an rise in employer taxes.

Chris, 36, and Joanne, 29 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 “very overpriced”.

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

Although Pizza Hut has pickup and delivery through third-party apps, it is missing out to major competitors which solely cater to off-premise dining.

“Domino's has managed to dominate the takeaway pizza sector 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,” says the analyst.

However for these customers it is worth it to get their evening together brought to their home.

“We definitely eat at home now instead of we eat out,” explains one of the diners, echoing current figures that show a decline in people frequenting casual and fast-food restaurants.

In the warmer season, casual and fast-food restaurants saw a notable decrease in customers compared to last summer.

There is also one more competitor to ordered-in pies: the cook-at-home oven pizza.

Will Hawkley, head of leisure and hospitality at a major consultancy, points out that not only have supermarkets been offering good-standard ready-to-bake pizzas for quite a while – some are even selling pizza-making appliances.

“Shifts in habits are also having an impact in the success of casual eateries,” states the analyst.

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

Because people dine out more rarely, they may look for a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more dated than luxurious.

The growth of high-quality pizzerias” over the last decade and a half, such as boutique chains, has “completely altered the public's perception of what quality pizza is,” says the food expert.

“A light, fresh, easy-to-digest product 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 decline,” she states.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?
“It's an easy choice.”
A mobile pizza vendor, who operates a pizza van based in Suffolk says: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

Dan says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.

According to Pizzarova in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has failed to offer anything fresh.

“You now have slice concepts, London pizza, thin crust, artisan base, Neapolitan, Detroit – it's a wonderful array for a pie fan to explore.”

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

Gradually, Pizza Hut's market has been fragmented and allocated to its fresher, faster alternatives. To keep up its costly operations, it would have to raise prices – which experts say is challenging at a time when family finances are tightening.

A senior executive of Pizza Hut's global operations said the acquisition aimed “to ensure our customer service and retain staff where possible”.

It was explained its immediate priority was to keep running at the open outlets and takeaway hubs and to help employees through the restructure.

But with significant funds going into operating its locations, it probably cannot to spend heavily in its takeaway operation because the market is “difficult and partnering with existing third-party platforms comes at a cost”, analysts say.

However, it's noted, reducing expenses by exiting competitive urban areas could be a effective strategy to adapt.

Jill Singleton
Jill Singleton

A seasoned civil engineer with over 15 years of experience in infrastructure projects and a passion for sustainable building practices.