Why the Public Lost Its Craving for the Pizza Hut Chain

In the past, the popular pizza chain was the go-to for groups and loved ones to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.

But not as many patrons are choosing the chain currently, and it is shutting down half of its UK restaurants after being rescued from insolvency for the second time this calendar year.

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

According to 23-year-old Martina, the very elements Pizza Hut has been famous for since it started in the UK in the 1970s are now not-so-hot.

“The manner in which they do their buffet and their salad bar, it feels like they are lowering standards and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

As grocery costs have soared, Pizza Hut's unlimited dining format has become quite costly to run. As have its outlets, which are being cut from a large number to a smaller figure.

The business, like many others, has also experienced its costs rise. In April this year, employee wages jumped due to higher minimum pay and an increase in employer social security payments.

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

Based on your selection, Pizza Hut and Domino's prices are similar, notes a food expert.

Although Pizza Hut has takeaway and deliveries through delivery platforms, it is missing out to larger chains which focus exclusively to off-premise dining.

“The rival chain has managed to dominate the delivery market thanks to aggressive marketing and constantly running deals that make customers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” explains the specialist.

But for these customers it is justified to get their special meal brought to their home.

“We absolutely dine at home now instead of we eat out,” explains Joanne, reflecting latest data that show a drop in people visiting casual and fast-food restaurants.

During the summer months, informal dining venues saw a six percent decline in customers compared to the previous year.

There is also one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

A hospitality expert, senior partner at an advisory group, explains that not only have retailers been providing good-standard oven-ready pizzas for a long time – some are even offering countertop ovens.

“Evolving preferences are also contributing in the success of quick-service brands,” states Mr. Hawkley.

The growing trend of low-carb regimens has driven sales at chicken shops, while affecting sales of high-carbohydrate options, he continues.

Because people dine out less frequently, they may look for a more upscale outing, and Pizza Hut's retro theme with vinyl benches and nostalgic table settings can feel more old-fashioned than luxurious.

The “explosion of high-quality pizzerias” over the last decade and a half, including new entrants, has “fundamentally changed the public's perception of what excellent pie is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she says.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who operates Smokey Deez based in a regional area says: “The issue isn’t that lost interest in pizza – they just want improved value.”

The owner says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it could not keep up with changing preferences.

According to an independent chain in Bristol, owner Jack Lander says the pizza market is broadening but Pizza Hut has failed to offer anything fresh.

“Currently available are individual slices, artisanal styles, New Haven-style, fermented dough, traditional Italian, rectangular – it's a wonderful array for a pizza enthusiast to try.”

Jack says Pizza Hut “should transform” as younger people don't have any emotional connection or attachment to the brand.

Over time, Pizza Hut's market has been divided and distributed to its fresher, faster alternatives. To sustain its costly operations, it would have to increase costs – which experts say is challenging at a time when personal spending are shrinking.

The leadership of Pizza Hut's overseas branches said the rescue aimed “to protect our guest experience and save employment where possible”.

He said its first focus was to continue operating at the surviving locations and off-premise points and to support colleagues through the restructure.

However with large sums going into maintaining its outlets, it probably cannot to spend heavily in its takeaway operation because the market is “complicated and working with existing third-party platforms comes at a cost”, experts say.

Still, experts suggest, reducing expenses by withdrawing from oversaturated towns and city centres could be a good way to evolve.

Kenneth Brooks
Kenneth Brooks

Automotive enthusiast and expert with over a decade of experience in car sales and market analysis.