Why the Public Lost Its Craving for the Pizza Hut Chain

At one time, the popular pizza chain was the top choice for groups and loved ones to indulge in its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.

However not as many patrons are visiting the chain nowadays, and it is shutting down half of its British locations after being rescued from insolvency for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, aged 24, she comments “it's not a thing anymore.”

For 23-year-old Martina, certain features Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now outdated.

“How they do their all-you-can-eat and their salad bar, it feels like they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How can they?’”

Since grocery costs have risen sharply, Pizza Hut's buffet-style service has become very expensive to maintain. Similarly, its outlets, which are being cut from over 130 to 64.

The chain, in common with competitors, has also faced its expenses rise. Earlier this year, staffing costs jumped due to increases in the legal wage floor and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “every now and then”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.

Depending on your selection, Pizza Hut and Domino's rates are similar, notes a culinary author.

While Pizza Hut provides pickup and delivery through external services, it is missing out to major competitors which focus exclusively to off-premise dining.

“The rival chain has taken over the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the base costs are on the higher side,” notes the analyst.

Yet for the couple it is justified to get their special meal sent directly.

“We predominantly have meals at home now instead of we eat out,” explains the female customer, echoing recent statistics that show a drop in people visiting quick-service eateries.

Over the summer, informal dining venues saw a 6% drop in patrons compared to last summer.

Additionally, another rival to ordered-in pies: the frozen or fresh pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, notes that not only have grocery stores been providing premium ready-to-bake pizzas for quite a while – some are even promoting pizza-making appliances.

“Shifts in habits are also playing a factor in the performance of quick-service brands,” states the expert.

The rising popularity of high protein diets has increased sales at poultry outlets, while hitting sales of dough-based meals, he continues.

Because people dine out not as often, they may look for a more high-quality meal, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more retro than luxurious.

The “explosion of artisanal pizza places” over the last decade and a half, such as new entrants, has “completely altered the general opinion of what excellent pie is,” says the industry commentator.

“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 struggles,” she comments.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who owns a small business based in Suffolk comments: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

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

According to a small pizza brand in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has failed to offer anything innovative.

“There are now individual slices, London pizza, New Haven-style, fermented dough, Neapolitan, rectangular – it's a heavenly minefield for a pizza-loving consumer to try.”

The owner says Pizza Hut “needs to reinvent itself” as the youth don't have any sense of nostalgia or loyalty to the company.

Over time, Pizza Hut's customer base has been divided and allocated to its trendier, more nimble alternatives. To maintain its costly operations, it would have to increase costs – which commentators say is challenging at a time when household budgets are decreasing.

The leadership of Pizza Hut's international markets said the buyout aimed “to safeguard our customer service and protect jobs where possible”.

It was explained its first focus was to keep running at the open outlets and delivery sites and to support colleagues through the restructure.

However with so much money going into running its restaurants, it may be unable to allocate significant resources in its off-premise division because the market is “difficult and working with existing external services comes at a cost”, experts say.

However, it's noted, cutting its costs by withdrawing from crowded locations could be a good way to evolve.

Connie Kirk
Connie Kirk

A tech enthusiast and writer passionate about emerging technologies and their impact on society.