How the Public Lost Its Craving for the Pizza Hut Chain

In the past, Pizza Hut was the go-to for families and friends to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.

However a declining number of diners are visiting the brand these days, and it is closing a significant portion of its British locations after being rescued from insolvency for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she comments “it's fallen out of favor.”

In the view of a diner in her twenties, certain features Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now not-so-hot.

“The manner in which they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have inferior offerings... They offer so much food and you're like ‘How?’”

Because ingredient expenses have soared, Pizza Hut's unlimited dining format has become increasingly pricey to operate. As have its outlets, which are being reduced from a large number to a smaller figure.

The business, like many others, has also faced its expenses go up. In April this year, labor expenses increased due to rises in minimum wages and an higher rate of employer social security payments.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “too expensive”.

According to your choices, Pizza Hut and Domino's prices are close, 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.

“Domino's has taken over the takeaway pizza sector thanks to intensive advertising and constantly running deals that make consumers feel like they're saving money, when in reality the standard rates are relatively expensive,” notes the analyst.

However for these customers it is justified to get their date night delivered to their door.

“We absolutely dine at home now rather than we eat out,” comments the female customer, matching current figures that show a drop in people going to casual and fast-food restaurants.

Over the summer, quick-service eateries saw a 6% drop in diners compared to the previous year.

There is also a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, senior partner at an advisory group, explains that not only have grocery stores been selling high-quality prepared pies for a long time – some are even offering home-pizza ovens.

“Lifestyle changes are also playing a factor in the success of casual eateries,” states the expert.

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

As people go out to eat less frequently, they may look for a more high-quality meal, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more retro than luxurious.

The rise of high-quality pizzerias” over the last several years, for example popular brands, has “completely altered the public's perception of what quality pizza is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's resulted in Pizza Hut's decline,” she says.
“What person would spend a high price on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
An independent operator, who runs a small business based in a county in England says: “People haven’t fallen out of love with pizza – they just want improved value.”

Dan says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with new customer habits.

From the perspective of a small pizza brand in a city in southwest England, the founder says the industry is broadening but Pizza Hut has neglected to introduce anything new.

“You now have slice concepts, artisanal styles, New Haven-style, sourdough, wood-fired, deep-dish – it's a delightful challenge for a pizza-loving consumer to explore.”

Jack says Pizza Hut “must rebrand” as younger people don't have any sense of nostalgia or attachment to the chain.

In recent years, Pizza Hut's customer base has been sliced up and spread to its fresher, faster rivals. To keep up its costly operations, it would have to charge more – which experts say is difficult at a time when family finances are decreasing.

The leadership of Pizza Hut's international markets said the buyout aimed “to ensure our dining experience and protect jobs where possible”.

It was explained its first focus was to maintain service at the open outlets and takeaway hubs and to help employees through the change.

But with significant funds going into running its restaurants, it may be unable to spend heavily in its takeaway operation because the industry is “complicated and partnering with existing third-party platforms comes at a expense”, commentators say.

But, he adds, cutting its costs by leaving competitive urban areas could be a effective strategy to adjust.

Austin Vaughn
Austin Vaughn

A passionate travel writer and Venice local, sharing insider knowledge and love for Italian culture.