How the Public Turned Away from Its Appetite for Pizza Hut

Once, the popular pizza chain was the favorite for families and friends to indulge in its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.

But a declining number of patrons are choosing the restaurant currently, and it is shutting down a significant portion of its British locations after being bought out of administration for the second time this year.

“We used to go Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she comments “it's fallen out of favor.”

In the view of a diner in her twenties, certain features Pizza Hut has been recognized for since it launched in the UK in the mid-20th century are now outdated.

“The manner in which they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have reduced quality... They provide so much food and you're like ‘How can they?’”

Because food prices have soared, Pizza Hut's buffet-style service has become quite costly to operate. As have its restaurants, which are being sliced from a large number to a smaller figure.

The chain, like many others, has also seen its costs rise. In April this year, staffing costs increased due to higher minimum pay and an higher rate of employer social security payments.

A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “from time to time”, but now they order in Domino's and think Pizza Hut is “very overpriced”.

Depending on your selection, Pizza Hut and Domino's costs are comparable, explains a culinary author.

Even though Pizza Hut has off-premise options through third-party apps, it is falling behind to major competitors which focus exclusively to the delivery sector.

“Another pizza company has taken over the delivery market thanks to strong promotions and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” notes the expert.

But for the couple it is justified to get their date night delivered to their door.

“We absolutely dine at home now instead of we eat out,” comments the female customer, echoing latest data that show a drop in people frequenting quick-service eateries.

In the warmer season, informal dining venues saw a six percent decline in patrons compared to the previous year.

Moreover, a further alternative to pizza from eateries: the supermarket pizza.

A hospitality expert, global lead for leisure at a leading firm, explains that not only have grocery stores been providing good-standard prepared pies for years – some are even selling pizza-making appliances.

“Evolving preferences are also contributing in the popularity of casual eateries,” states Mr. Hawkley.

The growing trend of high protein diets has driven sales at poultry outlets, while hitting sales of carb-heavy pizza, he notes.

Because people dine out more rarely, they may seek out a more premium experience, and Pizza Hut's retro theme with vinyl benches and red and white checked plastic table cloths can feel more dated than upmarket.

The growth of artisanal pizza places” over the last 10 to 15 years, such as new entrants, has “completely altered the public's perception of what quality pizza is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she says.
“Why would anyone spend £17.99 on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who owns Smokey Deez based in a regional area comments: “People haven’t lost interest in pizza – they just want better pizza for their money.”

Dan says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it failed to adapt with changing preferences.

According to an independent chain in Bristol, the founder says the industry is diversifying but Pizza Hut has failed to offer anything new.

“There are now individual slices, artisanal styles, thin crust, fermented dough, traditional Italian, Detroit – it's a wonderful array for a pizza enthusiast to explore.”

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

Gradually, Pizza Hut's share has been divided and spread to its more modern, agile competitors. To maintain its expensive staffing and restaurants, it would have to raise prices – which experts say is tough at a time when household budgets are tightening.

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

He said its key goal was to maintain service at the surviving locations and off-premise points and to support colleagues through the restructure.

But with large sums going into running its restaurants, it probably cannot to allocate significant resources in its off-premise division because the market is “complex and using existing external services comes at a expense”, experts say.

But, he adds, reducing expenses by exiting crowded locations could be a smart move to evolve.

Mark Castro
Mark Castro

A seasoned entrepreneur and startup advisor with over a decade of experience in tech innovation and business growth.