How the Public Lost Interest in Its Taste for the Pizza Hut Chain

In the past, Pizza Hut was the top choice for families and friends to feast on its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.

Yet not as many patrons are choosing the chain 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,” notes Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, in her mid-twenties, she says “it's not a thing anymore.”

In the view of young customer Martina, certain features 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 all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have lower standards... They're giving away so much food and you're like ‘How is that possible?’”

Since food prices have increased significantly, Pizza Hut's unlimited dining format has become very expensive to run. Similarly, its outlets, which are being cut from a large number to a smaller figure.

The business, in common with competitors, has also faced its expenses rise. This spring, employee wages increased due to increases in the legal wage floor and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “too expensive”.

According to your order, Pizza Hut and Domino's costs are similar, says a food expert.

Even though Pizza Hut does offer off-premise options through external services, it is falling behind to major competitors which specialize to off-premise dining.

“The rival chain has taken over the takeaway pizza sector thanks to intensive advertising and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the base costs are on the higher side,” notes the expert.

However for these customers it is justified to get their special meal delivered to their door.

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

In the warmer season, casual and fast-food restaurants saw a 6% drop in diners compared to the previous year.

Moreover, another rival to restaurant and takeaway pizzas: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at a major consultancy, notes that not only have retailers been offering good-standard oven-ready pizzas for quite a while – some are even promoting pizza-making appliances.

“Lifestyle changes are also contributing in the performance of fast-food chains,” states the analyst.

The growing trend of protein-rich eating plans has increased sales at poultry outlets, while affecting sales of dough-based meals, he continues.

As people dine out more rarely, they may seek out a more premium experience, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more retro than premium.

The growth of premium pizza outlets” over the last decade and a half, such as new entrants, has “dramatically shifted the public's perception of what excellent pie is,” notes the industry commentator.

“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she states.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who runs a pizza van based in a county in England explains: “It's not that lost interest in pizza – they just want improved value.”

He says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.

According to a small pizza brand in a UK location, the proprietor says the industry is broadening but Pizza Hut has failed to offer anything new.

“There are now slice concepts, regional varieties, thin crust, fermented dough, wood-fired, rectangular – it's a heavenly minefield for a pizza-loving consumer to discover.”

The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or loyalty to the brand.

In recent years, Pizza Hut's share has been divided and spread to its fresher, faster competitors. To maintain its high labor and location costs, it would have to charge more – which commentators say is challenging at a time when household budgets are decreasing.

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

The executive stated its first focus was to continue operating at the open outlets and takeaway hubs and to support colleagues through the transition.

But with large sums going into maintaining its outlets, it probably cannot to spend heavily in its off-premise division because the market is “complex and partnering with existing delivery apps comes at a price”, experts say.

However, it's noted, reducing expenses by leaving oversaturated towns and city centres could be a effective strategy to adjust.

Natalie Douglas
Natalie Douglas

A seasoned product reviewer with a passion for uncovering the best gadgets and gear for everyday life.