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

Once, the popular pizza chain was the favorite for groups and loved ones to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.

Yet a declining number of patrons are visiting the chain these days, and it is shutting down half of its UK outlets after being bought out of administration for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she states “it's not a thing anymore.”

According to a diner in her twenties, certain features Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now not-so-hot.

“How they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have inferior offerings... They're giving away so much food and you're like ‘How is that possible?’”

Since food prices have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to operate. The same goes for its outlets, which are being sliced from 132 to a smaller figure.

The chain, like many others, has also experienced its operating costs go up. In April this year, labor expenses jumped due to increases in the legal wage floor and an increase in employer taxes.

A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's rates are close, says a food expert.

While Pizza Hut provides off-premise options through third-party apps, it is losing out to big rivals which solely cater to off-premise dining.

“The rival chain has managed to dominate the takeaway pizza sector thanks to strong promotions and frequent offers that make consumers feel like they're finding a good deal, when in reality the base costs are quite high,” explains the specialist.

But for these customers it is acceptable to get their special meal brought to their home.

“We absolutely dine at home now more than we eat out,” says one of the diners, matching recent statistics that show a drop in people visiting informal dining spots.

Over the summer, informal dining venues saw a 6% drop in customers compared to the previous year.

Additionally, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.

A hospitality expert, senior partner at a leading firm, points out that not only have grocery stores been offering premium ready-to-bake pizzas for years – some are even promoting home-pizza ovens.

“Shifts in habits are also playing a factor in the performance of quick-service brands,” states Mr. Hawkley.

The increased interest of protein-rich eating plans has driven sales at poultry outlets, while reducing sales of dough-based meals, he notes.

Since people dine out less frequently, they may prefer a more premium experience, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more retro than premium.

The “explosion of high-quality pizzerias” over the last several years, including new entrants, has “completely altered the general opinion of what quality pizza is,” notes the culinary analyst.

“A thin, flavorful, gentle crust with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she says.
“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many real Italian restaurants around the country?
“The decision is simple.”
An independent operator, who owns Smokey Deez based in a regional area comments: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.

From the perspective of a small pizza brand in a city in southwest England, the proprietor says the pizza market is broadening but Pizza Hut has neglected to introduce anything fresh.

“There are now slice concepts, London pizza, thin crust, sourdough, traditional Italian, rectangular – it's a delightful challenge for a pie fan to discover.”

The owner says Pizza Hut “must rebrand” as younger people don't have any fond memories or allegiance to the chain.

In recent years, Pizza Hut's share has been fragmented and allocated to its trendier, more nimble rivals. To sustain its costly operations, it would have to charge more – which experts say is challenging at a time when personal spending are tightening.

The leadership of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and retain staff where possible”.

It was explained its first focus was to continue operating at the surviving locations and takeaway hubs and to support colleagues through the transition.

But with large sums going into maintaining its outlets, it probably cannot to invest too much in its off-premise division because the industry is “difficult and partnering with existing third-party platforms comes at a expense”, experts say.

Still, experts suggest, lowering overhead by withdrawing from competitive urban areas could be a effective strategy to adjust.

Adam Morgan
Adam Morgan

Tech enthusiast and digital strategist with a passion for driving innovation and helping businesses thrive in the digital age.