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

At one time, Pizza Hut was the favorite for families and friends to feast on its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

However not as many patrons are visiting the restaurant these days, and it is reducing 50% of its British restaurants after being bought out of administration for the second occasion this year.

I remember going Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she says “it's no longer popular.”

For 23-year-old Martina, the very elements Pizza Hut has been recognized for since it launched in the UK in the mid-20th century are now not-so-hot.

“The way they do their buffet and their salad station, it feels like they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”

Since food prices have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. As have its outlets, which are being sliced from over 130 to a smaller figure.

The business, like many others, has also seen its costs rise. This spring, employee wages increased due to rises in minimum wages and an increase in employer social security payments.

Two diners explain they used to go at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.

According to your choices, Pizza Hut and Domino's costs are comparable, notes a culinary author.

While Pizza Hut provides takeaway and deliveries through delivery platforms, it is falling behind to larger chains which solely cater to this market.

“Domino's has taken over the off-premise pizza industry thanks to intensive advertising and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” says the analyst.

But for Chris and Joanne it is worth it to get their evening together delivered to their door.

“We definitely eat at home now rather than we eat out,” says one of the diners, matching current figures that show a drop in people visiting informal dining spots.

Over the summer, quick-service eateries saw a six percent decline in diners compared to the year before.

Moreover, another rival to ordered-in pies: the cook-at-home oven pizza.

Will Hawkley, senior partner at a leading firm, explains that not only have retailers been providing premium oven-ready pizzas for a long time – some are even selling pizza-making appliances.

“Evolving preferences are also having an impact in the performance of casual eateries,” says the expert.

The growing trend of high protein diets has driven sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he notes.

As people go out to eat not as often, they may seek out a more high-quality meal, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more old-fashioned than luxurious.

The growth of high-quality pizzerias” over the last several years, including new entrants, has “fundamentally changed the general opinion of what quality pizza is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she states.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who operates a pizza van based in a county in England comments: “It's not that fallen out of love with pizza – they just want improved value.”

Dan says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with changing preferences.

At a small pizza brand in a city in southwest England, owner Jack Lander says the industry is broadening but Pizza Hut has failed to offer anything innovative.

“You now have by-the-slice options, London pizza, new haven, sourdough, Neapolitan, rectangular – it's a delightful challenge for a pie fan to try.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any fond memories or attachment to the company.

Gradually, Pizza Hut's customer base has been fragmented and distributed to its trendier, more nimble rivals. To maintain its high labor and location costs, it would have to increase costs – which commentators say is challenging at a time when household budgets are shrinking.

A senior executive of Pizza Hut's overseas branches said the buyout aimed “to protect our dining experience and save employment where possible”.

He said its immediate priority was to continue operating at the surviving locations and off-premise points and to assist staff through the change.

But with large sums going into operating its locations, it probably cannot to spend heavily in its delivery service because the industry is “difficult and using existing third-party platforms comes at a price”, experts say.

However, it's noted, reducing expenses by exiting crowded locations could be a good way to evolve.

Christine Boyle
Christine Boyle

A certified nutritionist and wellness coach passionate about helping others achieve balance through natural health practices.