How the Public Lost Its Taste for Pizza Hut

Once, the popular pizza chain was the go-to for groups and loved ones to feast on its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.

However not as many patrons are choosing the restaurant currently, and it is reducing half of its British outlets after being rescued from insolvency for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, aged 24, she says “it's no longer popular.”

For a diner in her twenties, certain features Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now outdated.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 seems as if they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How is that possible?’”

Because grocery costs have soared, Pizza Hut's buffet-style service has become very expensive to maintain. As have its locations, which are being sliced from 132 to just over 60.

The company, like many others, has also experienced its operating costs increase. In April this year, labor expenses rose due to rises in minimum wages 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 choose another pizza brand and think Pizza Hut is “very overpriced”.

Based on your selection, Pizza Hut and Domino's costs are close, notes an industry analyst.

Even though Pizza Hut provides takeaway and deliveries through external services, it is missing out to big rivals which solely cater to this market.

“Domino's has taken over the off-premise pizza industry thanks to strong promotions and ongoing discounts that make customers feel like they're saving money, when in reality the base costs are on the higher side,” explains the specialist.

But for the couple it is justified to get their special meal brought to their home.

“We definitely eat at home now rather than we eat out,” says the female customer, matching latest data that show a drop in people going to casual and fast-food restaurants.

During the summer months, casual and fast-food restaurants saw a six percent decline in patrons compared to the previous year.

Moreover, a further alternative to ordered-in pies: the frozen or fresh pizza.

An industry leader, senior partner at a major consultancy, explains that not only have grocery stores been selling premium ready-to-bake pizzas for a long time – some are even selling home-pizza ovens.

“Lifestyle changes are also contributing in the popularity of quick-service brands,” states the analyst.

The rising popularity of low-carb regimens has boosted sales at chicken shops, while affecting sales of carb-heavy pizza, he continues.

Because people go out to eat less frequently, they may look for a more premium experience, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more old-fashioned than premium.

The rise of high-quality pizzerias” over the last several years, for example new entrants, has “fundamentally changed the public's perception of what quality pizza is,” explains 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. That, arguably, is what's resulted in Pizza Hut's struggles,” she says.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who operates a pizza van based in a county in England comments: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”

Dan says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.

At Pizzarova in Bristol, the founder says the sector is expanding but Pizza Hut has not provided anything new.

“You now have slice concepts, regional varieties, thin crust, sourdough, traditional Italian, Detroit – it's a heavenly minefield for a pizza enthusiast to discover.”

Jack says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or attachment to the company.

Gradually, Pizza Hut's market has been divided and spread to its fresher, faster alternatives. To maintain its expensive staffing and restaurants, it would have to charge more – which commentators say is difficult at a time when household budgets are tightening.

The leadership of Pizza Hut's global operations said the acquisition aimed “to safeguard our guest experience and retain staff where possible”.

He said its immediate priority was to continue operating at the surviving locations and off-premise points and to support colleagues through the change.

But with so much money going into operating its locations, it may be unable to invest too much in its delivery service because the industry is “difficult and working with existing delivery apps comes at a price”, analysts say.

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

Wendy Diaz
Wendy Diaz

Award-winning novelist and writing coach passionate about helping writers find their unique voice and succeed in the publishing world.