Why the Public Turned Away from Its Craving for the Pizza Hut Chain

At one time, the popular pizza chain was the go-to for groups and loved ones to enjoy its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.

But fewer patrons are frequenting the restaurant these days, and it is reducing half of its British outlets after being rescued from insolvency for the second time this calendar year.

“We used to go Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she states “it's fallen out of favor.”

In the view of a diner in her twenties, the very elements Pizza Hut has been recognized for since it launched in the UK in the 1970s are now less appealing.

“How they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

Because grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to run. The same goes for its restaurants, which are being cut from 132 to 64.

The business, like many others, has also faced its operating costs increase. Earlier this year, staffing costs rose due to increases in the legal wage floor and an rise in employer taxes.

Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “every now and then”, but now they order in a rival chain and think Pizza Hut is “too expensive”.

Based on your choices, Pizza Hut and Domino's costs are comparable, says an industry analyst.

While Pizza Hut provides takeaway and deliveries through delivery platforms, it is missing out to big rivals which specialize to this market.

“Another pizza company has succeeded in leading the off-premise pizza industry thanks to strong promotions and constantly running deals that make shoppers feel like they're saving money, when in reality the standard rates are on the higher side,” says the specialist.

But for Chris and Joanne it is acceptable to get their special meal sent directly.

“We predominantly have meals at home now instead of we eat out,” comments one of the diners, matching recent statistics that show a decrease in people going to informal dining spots.

During the summer months, casual and fast-food restaurants saw a notable decrease in customers compared to last summer.

Additionally, one more competitor to ordered-in pies: the supermarket pizza.

A hospitality expert, head of leisure and hospitality at an advisory group, notes that not only have retailers been offering high-quality oven-ready pizzas for quite a while – some are even promoting home-pizza ovens.

“Evolving preferences are also contributing in the popularity of casual eateries,” states the analyst.

The increased interest of protein-rich eating plans has increased sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he adds.

Since people go out to eat not as often, they may seek out a more premium experience, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more dated than premium.

The rise of premium pizza outlets” over the last 10 to 15 years, such as new entrants, has “dramatically shifted the consumer view of what quality pizza is,” says the industry commentator.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she states.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns Smokey Deez based in a regional area comments: “People haven’t stopped liking pizza – they just want improved value.”

Dan says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it failed to adapt with changing preferences.

According to an independent chain in Bristol, owner Jack Lander says the pizza market is diversifying but Pizza Hut has not provided anything new.

“There are now individual slices, London pizza, New Haven-style, artisan base, traditional Italian, rectangular – it's a heavenly minefield for a pizza enthusiast to discover.”

He says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or attachment to the chain.

In recent years, Pizza Hut's share has been divided and allocated to its fresher, faster competitors. To maintain its expensive staffing and restaurants, it would have to raise prices – which commentators say is tough at a time when household budgets are tightening.

The managing director of Pizza Hut's overseas branches said the rescue aimed “to safeguard our customer service and save employment where possible”.

He said its first focus was to keep running at the surviving locations and off-premise points and to help employees through the transition.

But with significant funds going into running its restaurants, it probably cannot to allocate significant resources in its delivery service because the industry is “difficult and partnering with existing external services comes at a expense”, analysts say.

However, it's noted, reducing expenses by exiting oversaturated towns and city centres could be a effective strategy to adapt.

Kristi Conway
Kristi Conway

A tech enthusiast and UX designer with over a decade of experience in creating user-centered digital products and sharing insights on emerging technologies.