Why the Public Lost Its Taste for Pizza Hut

In the past, the popular pizza chain was the top choice for parents and children to indulge in its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.

Yet a declining number of diners are visiting the brand these days, and it is shutting down 50% of its UK outlets after being acquired following financial trouble for the second time this calendar year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – make a day of it.” But now, as a young adult, she states “it's fallen out of favor.”

In the view of a diner in her twenties, the very elements Pizza Hut has been known and loved for since it started in the UK in the seventies are now less appealing.

“How they do their buffet and their salad bar, it seems as if they are cutting corners and have reduced quality... They offer so much food and you're like ‘How?’”

As food prices have increased significantly, Pizza Hut's unlimited dining format has become quite costly to run. As have its restaurants, which are being reduced from a large number to 64.

The company, in common with competitors, has also experienced its costs rise. This spring, labor expenses increased due to rises in minimum wages and an rise in employer social security payments.

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

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

Although Pizza Hut has pickup and delivery through third-party apps, it is missing out to major competitors which specialize to off-premise dining.

“The rival chain has succeeded in leading the delivery market thanks to strong promotions and frequent offers that make customers feel like they're getting a bargain, when in reality the base costs are quite high,” says the analyst.

However for these customers it is acceptable to get their special meal sent directly.

“We predominantly have meals at home now rather than we eat out,” comments the female customer, matching latest data that show a drop in people going to informal dining spots.

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

Moreover, a further alternative to ordered-in pies: the cook-at-home oven pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, explains that not only have grocery stores been offering premium oven-ready pizzas for quite a while – some are even selling countertop ovens.

“Lifestyle changes are also contributing in the success of quick-service brands,” states the expert.

The rising popularity of protein-rich eating plans has increased sales at poultry outlets, while hitting sales of carb-heavy pizza, he notes.

Because people go out to eat not as often, they may prefer a more upscale outing, and Pizza Hut's retro theme with vinyl benches and red and white checked plastic table cloths can feel more retro than luxurious.

The rise of high-quality pizzerias” over the last 10 to 15 years, such as popular brands, has “completely altered the consumer view of what quality pizza is,” notes the culinary analyst.

“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she comments.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns a pizza van based in Suffolk comments: “It's not that lost interest in pizza – they just want improved value.”

Dan says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with changing preferences.

At an independent chain in Bristol, the proprietor says the pizza market is broadening but Pizza Hut has neglected to introduce anything new.

“Currently available are slice concepts, regional varieties, thin crust, fermented dough, wood-fired, rectangular – it's a delightful challenge for a pizza enthusiast to try.”

He 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 spread to its fresher, faster alternatives. To maintain its costly operations, it would have to charge more – which experts say is challenging at a time when personal spending are tightening.

The managing director of Pizza Hut's overseas branches said the rescue aimed “to protect our guest experience and retain staff where possible”.

He said its immediate priority was to keep running at the remaining 64 restaurants and takeaway hubs and to support colleagues through the change.

However with so much money going into operating its locations, it likely can't afford to invest too much in its takeaway operation because the sector is “complex and working with existing third-party platforms comes at a price”, experts say.

But, he adds, cutting its costs by withdrawing from competitive urban areas could be a effective strategy to evolve.

Shannon Jones
Shannon Jones

A passionate slot game enthusiast and strategist with over a decade of experience in the online gaming industry.