How the Public Lost Its Taste for the Pizza Hut Chain

In the past, Pizza Hut was the go-to for parents and children to indulge in its unlimited dining experience, unlimited salad bar, and make-your-own dessert.

However fewer diners are choosing the chain currently, and it is shutting down 50% of its British locations after being bought out of administration for the second instance this calendar year.

I remember going Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she states “it's not a thing anymore.”

For young customer Martina, the very elements Pizza Hut has been famous for since it started in the UK in the seventies are now not-so-hot.

“How they do their buffet and their salad bar, it appears that they are cheapening on their quality and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”

Because grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to run. The same goes for its restaurants, which are being sliced from over 130 to 64.

The company, similar to other firms, has also experienced its costs go up. In April this year, staffing costs rose due to increases in the legal wage floor and an rise in employer taxes.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.

Based on your selection, Pizza Hut and Domino's costs are similar, explains an industry analyst.

Even though Pizza Hut has pickup and delivery through delivery platforms, it is missing out to big rivals which solely cater to the delivery sector.

“Domino's has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are relatively expensive,” explains the expert.

However for Chris and Joanne it is acceptable to get their special meal delivered to their door.

“We predominantly have meals at home now instead of we eat out,” says one of the diners, matching current figures that show a decline in people visiting casual and fast-food restaurants.

During the summer months, casual and fast-food restaurants saw a notable decrease in diners compared to the year before.

Moreover, a further alternative to ordered-in pies: the supermarket pizza.

Will Hawkley, global lead for leisure at an advisory group, points out that not only have grocery stores been offering premium oven-ready pizzas for a long time – some are even promoting home-pizza ovens.

“Shifts in habits are also playing a factor in the performance of fast-food chains,” comments the analyst.

The growing trend of protein-rich eating plans has boosted sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he continues.

As people go out to eat more rarely, they may seek out a more upscale outing, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more old-fashioned than luxurious.

The rise of premium pizza outlets” over the last 10 to 15 years, for example new entrants, has “completely altered the consumer view of what good pizza is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's led to Pizza Hut's downfall,” she says.
“Who would choose to spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie 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 county in England explains: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

He says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it failed to adapt with new customer habits.

At a small pizza brand in a city in southwest England, the founder says the sector is expanding but Pizza Hut has neglected to introduce anything innovative.

“You now have slice concepts, London pizza, thin crust, fermented dough, traditional Italian, Detroit – it's a heavenly minefield for a pizza-loving consumer to explore.”

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

In recent years, Pizza Hut's share has been fragmented and allocated to its more modern, agile rivals. To sustain its costly operations, it would have to increase costs – which industry analysts say is difficult at a time when personal spending are tightening.

A senior executive of Pizza Hut's international markets said the acquisition aimed “to safeguard our dining experience and save employment where possible”.

The executive stated its immediate priority was to continue operating at the surviving locations and takeaway hubs and to support colleagues through the change.

However with large sums going into running its restaurants, it may be unable to spend heavily in its takeaway operation because the industry is “complex and partnering with existing third-party platforms comes at a price”, experts say.

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

Frank Flores
Frank Flores

A passionate gaming enthusiast with over a decade of experience in online slots, sharing insights to help players succeed.