How the Public Turned Away from Its Taste for the Pizza Hut Chain

At one time, the popular pizza chain was the top choice for groups and loved ones to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.

But fewer customers are visiting the chain nowadays, and it is shutting down 50% of its UK restaurants after being acquired following financial trouble for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's no longer popular.”

For 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twenties, certain features Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now outdated.

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

Because grocery costs have increased significantly, Pizza Hut's buffet-style service has become quite costly to maintain. As have its outlets, which are being cut from a large number to 64.

The company, like many others, has also seen its expenses go up. This spring, labor expenses jumped due to rises in minimum wages and an rise in employer social security payments.

Two diners say 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 order, Pizza Hut and Domino's rates are close, notes an industry analyst.

Although Pizza Hut does offer takeaway and deliveries through external services, it is missing out to big rivals which specialize to this market.

“Another pizza company has managed to dominate the off-premise pizza industry thanks to intensive advertising and constantly running deals that make customers feel like they're saving money, when in reality the standard rates are on the higher side,” notes the analyst.

Yet for the couple it is justified to get their evening together brought to their home.

“We definitely eat at home now more than we eat out,” says one of the diners, matching latest data that show a drop in people going to informal dining spots.

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

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

A hospitality expert, head of leisure and hospitality at an advisory group, notes that not only have supermarkets been selling high-quality ready-to-bake pizzas for quite a while – some are even promoting pizza-making appliances.

“Lifestyle changes are also having an impact in the performance of quick-service brands,” comments the expert.

The rising popularity of high protein diets has increased sales at poultry outlets, while reducing sales of high-carbohydrate options, he adds.

As people go out to eat less frequently, they may look for a more upscale outing, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more retro than premium.

The rise of high-quality pizzerias” over the last decade and a half, such as popular brands, has “completely altered the consumer view of what good pizza is,” explains the industry commentator.

“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she says.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates a small business based in a county in England explains: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

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

From the perspective of Pizzarova in a UK location, the proprietor says the industry is broadening but Pizza Hut has not provided anything new.

“There are now by-the-slice options, artisanal styles, new haven, sourdough, Neapolitan, rectangular – it's a wonderful array for a pie fan to explore.”

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

Gradually, Pizza Hut's market has been fragmented and distributed to its more modern, agile competitors. To keep up its expensive staffing and restaurants, it would have to charge more – which industry analysts say is difficult at a time when family finances are decreasing.

The managing director of Pizza Hut's global operations said the rescue aimed “to protect our customer service and protect jobs where possible”.

It was explained its immediate priority was to maintain service at the open outlets and delivery sites and to help employees through the transition.

Yet with large sums going into operating its locations, it probably cannot to spend heavily in its delivery service because the industry is “difficult and partnering with existing external services comes at a expense”, analysts say.

However, it's noted, reducing expenses by leaving crowded locations could be a smart move to adapt.

William Park
William Park

A tech enthusiast and digital strategist with a passion for exploring emerging technologies and their impact on society.