How the Public Lost Its Appetite for Pizza Hut

In the past, Pizza Hut was the favorite for groups and loved ones to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.

However fewer customers are frequenting the chain nowadays, and it is shutting down 50% of its UK outlets after being bought out of administration for the second time this year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she states “it's fallen out of favor.”

According to a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it started in the UK in the seventies are now not-so-hot.

“How they do their all-you-can-eat and their salad station, it feels like they are cheapening on their quality and have lower standards... They're giving away so much food and you're like ‘How?’”

Because ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become quite costly to maintain. Similarly, its locations, which are being reduced from 132 to a smaller figure.

The company, similar to other firms, has also faced its costs go up. Earlier this year, staffing costs rose due to higher minimum pay and an rise in employer social security payments.

Chris, 36, and Joanne, 29 explain they used to go at Pizza Hut for a date “every now and then”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.

Based on your selection, Pizza Hut and Domino's costs are close, says a culinary author.

Although Pizza Hut does offer pickup and delivery through delivery platforms, it is falling behind to major competitors which solely cater to this market.

“The rival chain has succeeded in leading the delivery market thanks to intensive advertising and ongoing discounts that make shoppers feel like they're saving money, when in reality the base costs are on the higher side,” says the specialist.

However for the couple it is worth it to get their evening together delivered to their door.

“We predominantly have meals at home now instead of we eat out,” explains the female customer, reflecting latest data that show a drop in people visiting casual and fast-food restaurants.

During the summer months, quick-service eateries saw a notable decrease in diners compared to the year before.

Moreover, a further alternative to restaurant and takeaway pizzas: the supermarket pizza.

An industry leader, senior partner at a leading firm, points out that not only have supermarkets been providing premium ready-to-bake pizzas for quite a while – some are even selling countertop ovens.

“Evolving preferences are also having an impact in the performance of fast-food chains,” comments the expert.

The growing trend of protein-rich eating plans has driven sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he notes.

Because people go out to eat more rarely, they may look for a more upscale outing, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more dated than luxurious.

The “explosion of artisanal pizza places” over the last 10 to 15 years, including popular brands, has “fundamentally changed the general opinion of what quality pizza is,” says the food expert.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she comments.

“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand 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?

“The decision is simple.”

Dan Puddle, who operates a pizza van based in a county in England comments: “It's not that stopped liking pizza – they just want improved value.”

Dan says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with changing preferences.

From the perspective of Pizzarova in Bristol, the proprietor says the pizza market is expanding but Pizza Hut has not provided anything fresh.

“Currently available are slice concepts, artisanal styles, new haven, artisan base, wood-fired, deep-dish – it's a delightful challenge for a pizza enthusiast to discover.”

The owner says Pizza Hut “should transform” as the youth don't have any fond memories or allegiance to the chain.

Over time, Pizza Hut's customer base has been fragmented and allocated to its fresher, faster rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which commentators say is challenging at a time when family finances are shrinking.

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

The executive stated its first focus was to keep running at the surviving locations and off-premise points and to help employees through the change.

Yet with so much money going into operating its locations, it may be unable to spend heavily in its off-premise division because the market is “complex and partnering with existing external services comes at a cost”, commentators say.

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