How the Public Lost Its Appetite for the Pizza Hut Chain

At one time, the popular pizza chain was the favorite for groups and loved ones to enjoy its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

Yet not as many diners are visiting the brand currently, and it is shutting down 50% of its British restaurants after being bought out of administration for the second instance this year.

“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, aged 24, she comments “it's fallen out of favor.”

According to 23-year-old Martina, the very elements Pizza Hut has been famous for since it started in the UK in the mid-20th century are now outdated.

“The manner in which they do their buffet and their salad station, it appears that they are cutting corners and have lower standards... They offer so much food and you're like ‘How?’”

Since ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to maintain. The same goes for its locations, which are being cut from over 130 to a smaller figure.

The company, similar to other firms, has also seen its operating costs go up. In April this year, labor expenses rose due to higher minimum pay and an higher rate of employer social security payments.

A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “occasionally”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

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

Although Pizza Hut provides off-premise options through external services, it is missing out to major competitors which solely cater to the delivery sector.

“Another pizza company has managed to dominate the delivery market thanks to strong promotions and constantly running deals that make consumers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” notes the analyst.

But for these customers it is worth it to get their evening together brought to their home.

“We definitely eat at home now instead of we eat out,” comments one of the diners, echoing latest data that show a drop in people visiting informal dining spots.

During the summer months, quick-service eateries saw a six percent decline in customers compared to last summer.

Moreover, a further alternative to pizza from eateries: the frozen or fresh pizza.

Will Hawkley, global lead for leisure at a leading firm, points out that not only have grocery stores been selling premium prepared pies for quite a while – some are even selling pizza-making appliances.

“Evolving preferences are also contributing in the success of fast-food chains,” comments the analyst.

The growing trend of high protein diets has boosted sales at poultry outlets, while hitting sales of dough-based meals, he notes.

Since people dine out not as often, they may look for a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more dated than premium.

The growth of high-quality pizzerias” over the last 10 to 15 years, including popular brands, has “fundamentally changed the public's perception of what quality pizza is,” says the industry commentator.

“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she states.
“What person would spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns a pizza van based in a county in England says: “It's not that lost interest in pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

From the perspective of an independent chain in a city in southwest England, the proprietor says the sector is diversifying but Pizza Hut has failed to offer anything innovative.

“Currently available are individual slices, London pizza, thin crust, fermented dough, wood-fired, rectangular – it's a delightful challenge for a pizza-loving consumer to discover.”

He says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or allegiance to the brand.

Over time, Pizza Hut's customer base has been sliced up and distributed 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 leadership of Pizza Hut's global operations said the acquisition aimed “to protect our dining experience and retain staff where possible”.

The executive stated its key goal was to maintain service at the surviving locations and delivery sites and to help employees through the restructure.

However with so much money going into maintaining its outlets, it may be unable to spend heavily in its off-premise division because the market is “difficult and partnering with existing delivery apps comes at a price”, commentators say.

Still, experts suggest, cutting its costs by leaving crowded locations could be a good way to evolve.

Kevin Baker
Kevin Baker

A passionate music enthusiast and cultural commentator with a knack for uncovering hidden gems in the arts scene.