Why the Public Lost Interest in Its Appetite for the Pizza Hut Chain

At one time, Pizza Hut was the top choice for families and friends to indulge in its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.

But not as many customers are frequenting the chain these days, and it is shutting down a significant portion of its UK outlets after being rescued from insolvency for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she says “it's no longer popular.”

In the view of 23-year-old Martina, certain features Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now not-so-hot.

“How they do their all-you-can-eat and their salad bar, it feels like they are cheapening on their quality and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”

Because ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become very expensive to run. The same goes for its restaurants, which are being sliced from over 130 to 64.

The chain, like many others, has also seen its costs go up. In April this year, labor expenses increased due to rises in minimum wages and an increase in employer taxes.

Chris, 36, and Joanne, 29 explain they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “too expensive”.

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

While Pizza Hut has pickup and delivery through third-party apps, it is missing out to larger chains which focus exclusively to the delivery sector.

“Another pizza company has succeeded in leading the delivery market thanks to aggressive marketing and ongoing discounts that make customers feel like they're finding a good deal, when in reality the base costs are quite high,” explains the specialist.

Yet for the couple it is acceptable to get their evening together brought to their home.

“We predominantly have meals at home now more than we eat out,” comments the female customer, matching recent statistics that show a decrease in people going to informal dining spots.

In the warmer season, quick-service eateries saw a notable decrease in diners compared to the previous year.

Additionally, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.

An industry leader, senior partner at a major consultancy, points out that not only have retailers been selling good-standard oven-ready pizzas for a long time – some are even promoting countertop ovens.

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

The growing trend of protein-rich eating plans has driven sales at poultry outlets, while hitting sales of high-carbohydrate options, he adds.

As people visit restaurants more rarely, they may seek out a more high-quality meal, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more old-fashioned than luxurious.

The “explosion of high-quality pizzerias” over the last 10 to 15 years, including boutique chains, has “dramatically shifted the consumer view of what good pizza is,” explains the industry commentator.

“A light, fresh, easy-to-digest product 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 comments.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who runs Smokey Deez based in Suffolk comments: “It's not that lost interest in pizza – they just want better pizza for their money.”

He says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.

At a small pizza brand in a UK location, owner Jack Lander says the pizza market is broadening but Pizza Hut has not provided anything innovative.

“Currently available are by-the-slice options, artisanal styles, New Haven-style, sourdough, traditional Italian, Detroit – it's a wonderful array for a pie fan to explore.”

The owner says Pizza Hut “must rebrand” as the youth don't have any emotional connection or allegiance to the brand.

Gradually, Pizza Hut's market has been divided and allocated to its more modern, agile rivals. To sustain its expensive staffing and restaurants, it would have to charge more – which experts say is difficult at a time when personal spending are shrinking.

The managing director of Pizza Hut's overseas branches said the buyout aimed “to safeguard our guest experience and retain staff where possible”.

The executive stated its first focus was to keep running at the open outlets and takeaway hubs and to help employees through the restructure.

However with significant funds going into running its restaurants, it likely can't afford to allocate significant resources in its off-premise division because the industry is “complicated and partnering with existing external services comes at a cost”, analysts say.

But, he adds, lowering overhead by leaving crowded locations could be a effective strategy to evolve.

Rachel Edwards
Rachel Edwards

Certified spinning instructor and fitness blogger passionate about helping others achieve their health goals through dynamic workouts.