Why the Public Turned Away from Its Craving for the Pizza Hut Chain

In the past, the popular pizza chain was the favorite for parents and children to feast on its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.

However not as many customers are frequenting the brand these days, and it is shutting down half of its British locations after being rescued from insolvency for the second time this calendar year.

I remember going Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she states “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Martina, certain features Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now outdated.

“The way they do their all-you-can-eat and their salad station, it appears that they are cheapening on their quality and have reduced quality... They provide so much food and you're like ‘How is that possible?’”

As ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become quite costly to maintain. As have its outlets, which are being reduced from 132 to just over 60.

The chain, similar to other firms, has also faced its costs go up. This spring, labor expenses jumped due to rises in minimum wages and an higher rate of employer national insurance contributions.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

Depending on your choices, Pizza Hut and Domino's prices are close, explains a culinary author.

Although Pizza Hut does offer pickup and delivery through external services, it is falling behind to big rivals which specialize to this market.

“The rival chain has managed to dominate the off-premise pizza industry thanks to intensive advertising and frequent offers that make shoppers feel like they're finding a good deal, when in reality the base costs are quite high,” says the specialist.

But for Chris and Joanne it is justified to get their evening together sent directly.

“We absolutely dine at home now more than we eat out,” comments Joanne, matching latest data that show a decrease in people frequenting quick-service eateries.

Over the summer, quick-service eateries saw a notable decrease in customers compared to the year before.

Moreover, one more competitor to restaurant and takeaway pizzas: the supermarket pizza.

An industry leader, head of leisure and hospitality at an advisory group, points out that not only have retailers been offering premium oven-ready pizzas for quite a while – some are even offering countertop ovens.

“Shifts in habits are also having an impact in the performance of quick-service brands,” comments the expert.

The rising popularity of low-carb regimens has boosted sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he continues.

Since people go out to eat not as often, they may prefer a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more retro than upmarket.

The growth of artisanal pizza places” over the last decade and a half, such as popular brands, has “fundamentally changed the general opinion of what quality pizza is,” explains the industry commentator.

“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she states.
“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many real Italian restaurants around the country?
“The decision is simple.”
Dan Puddle, who runs a pizza van based in a regional area explains: “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 evolving tastes.

According to an independent chain in a UK location, the proprietor says the pizza market is diversifying but Pizza Hut has not provided anything fresh.

“Currently available are by-the-slice options, London pizza, new haven, fermented dough, traditional Italian, rectangular – it's a delightful challenge for a pizza enthusiast to explore.”

The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any emotional connection or attachment to the brand.

In recent years, Pizza Hut's customer base has been divided and spread to its more modern, agile rivals. To sustain its high labor and location costs, it would have to raise prices – which industry analysts say is challenging at a time when household budgets are shrinking.

A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to safeguard our guest experience and protect jobs where possible”.

The executive stated its immediate priority was to continue operating at the remaining 64 restaurants and takeaway hubs and to support colleagues through the change.

But with significant funds going into operating its locations, it probably cannot to invest too much in its delivery service because the industry is “complex and partnering with existing third-party platforms comes at a price”, experts say.

However, it's noted, cutting its costs by exiting competitive urban areas could be a good way to adapt.

Katie Martinez
Katie Martinez

Digital marketing specialist with over 10 years of experience, passionate about helping businesses thrive online through data-driven strategies.