Why the Public Lost Interest in Its Craving for Pizza Hut

At one time, the popular pizza chain was the top choice for families and friends to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

Yet not as many customers are visiting the chain these days, and it is reducing half of its UK outlets after being acquired following financial trouble for the second instance this calendar year.

I remember going Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she says “it's fallen out of favor.”

According to a diner in her twenties, the very elements Pizza Hut has been recognized for since it launched in the UK in the 1970s are now not-so-hot.

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

As ingredient expenses have increased significantly, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. The same goes for its restaurants, which are being cut from over 130 to 64.

The company, similar to other firms, has also faced its costs go up. This spring, employee wages rose due to rises in minimum wages 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 “occasionally”, but now they order in Domino's and think Pizza Hut is “too expensive”.

According to your choices, Pizza Hut and Domino's rates are close, says a food expert.

Although Pizza Hut has off-premise options through external services, it is losing out to major competitors which focus exclusively to off-premise dining.

“Another pizza company has succeeded in leading the off-premise pizza industry thanks to strong promotions and constantly running deals that make customers feel like they're getting a bargain, when in reality the base costs are quite high,” explains the specialist.

But for Chris and Joanne it is acceptable to get their special meal delivered to their door.

“We definitely eat at home now more than we eat out,” comments one of the diners, reflecting recent statistics that show a drop in people frequenting quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a six percent decline in customers compared to last summer.

There is also one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

A hospitality expert, head of leisure and hospitality at an advisory group, explains that not only have retailers been offering high-quality oven-ready pizzas for years – some are even offering countertop ovens.

“Shifts in habits are also playing a factor in the performance of quick-service brands,” comments the analyst.

The increased interest of protein-rich eating plans has driven sales at chicken shops, while hitting sales of high-carbohydrate options, he continues.

Because people visit restaurants more rarely, they may look for a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more old-fashioned than upmarket.

The rise of artisanal pizza places” over the last 10 to 15 years, such as popular brands, has “dramatically shifted the public's perception of what quality pizza is,” says the food expert.

“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she comments.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“The decision is simple.”
An independent operator, who operates Smokey Deez based in a regional area explains: “People haven’t lost interest in pizza – they just want improved value.”

He says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut struggled because it could not keep up with new customer habits.

At Pizzarova in a UK location, owner Jack Lander says the pizza market is expanding but Pizza Hut has neglected to introduce anything fresh.

“You now have slice concepts, regional varieties, new haven, fermented dough, wood-fired, Detroit – it's a wonderful array for a pie fan to try.”

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

Over time, Pizza Hut's share has been divided and allocated to its trendier, more nimble alternatives. To sustain its costly operations, it would have to increase costs – which industry analysts say is challenging at a time when household budgets are shrinking.

A senior executive of Pizza Hut's international markets said the buyout aimed “to ensure our guest experience and retain staff where possible”.

He said its first focus was to continue operating at the remaining 64 restaurants and delivery sites and to support colleagues through the transition.

Yet with large sums going into maintaining its outlets, it probably cannot to allocate significant resources in its takeaway operation because the sector is “difficult and working with existing external services comes at a cost”, commentators say.

But, he adds, reducing expenses by exiting oversaturated towns and city centres could be a smart move to adjust.

Michael Bush
Michael Bush

A passionate interior designer and lifestyle blogger with over a decade of experience in creating beautiful, functional spaces.