How the Public Turned Away from Its Craving for Pizza Hut

Once, the popular pizza chain was the favorite for parents and children to feast on its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

But not as many customers are visiting the chain nowadays, and it is shutting down half of its British locations after being acquired following financial trouble for the second time this year.

I remember going Pizza Hut when I was a child,” explains a young adult. “It was a regular outing, you'd go on a Sunday – make a day of it.” However, at present, as a young adult, she comments “it's no longer popular.”

For a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now outdated.

“How they do their all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How?’”

Since grocery costs have increased significantly, Pizza Hut's unlimited dining format has become quite costly to maintain. The same goes for its restaurants, which are being cut from 132 to just over 60.

The chain, like many others, has also faced its operating costs increase. This spring, staffing costs jumped due to rises in minimum wages and an higher rate of employer taxes.

Two diners explain they would often visit at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

Depending on your choices, Pizza Hut and Domino's rates are close, says a culinary author.

Although Pizza Hut has takeaway and deliveries through third-party apps, it is falling behind to larger chains which solely cater to off-premise dining.

“Another pizza company has taken over the delivery market thanks to strong promotions and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” notes the analyst.

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

“We absolutely dine at home now rather than we eat out,” says the female customer, reflecting current figures that show a drop in people frequenting casual and fast-food restaurants.

During the summer months, quick-service eateries saw a six percent decline in diners compared to the year before.

There is also another rival to ordered-in pies: the frozen or fresh pizza.

An industry leader, senior partner at an advisory group, notes that not only have grocery stores been selling premium oven-ready pizzas for years – some are even selling pizza-making appliances.

“Shifts in habits are also having an impact in the popularity of casual eateries,” says the analyst.

The rising popularity of low-carb regimens has increased sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he continues.

Since people dine out more rarely, they may look for a more premium experience, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more retro than premium.

The growth of high-quality pizzerias” over the last several years, such as popular brands, has “fundamentally changed the public's perception of what good pizza is,” notes the industry commentator.

“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's downfall,” she states.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who runs a small business based in Suffolk says: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

The owner says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it could not keep up with evolving tastes.

According to Pizzarova in a city in southwest England, owner Jack Lander says the sector is diversifying but Pizza Hut has neglected to introduce anything fresh.

“You now have by-the-slice options, regional varieties, thin crust, artisan base, Neapolitan, rectangular – it's a wonderful array for a pizza-loving consumer to discover.”

He says Pizza Hut “should transform” as newer generations don't have any fond memories or loyalty to the brand.

In recent years, Pizza Hut's customer base has been divided and allocated to its trendier, more nimble alternatives. To keep up its high labor and location costs, it would have to charge more – which commentators say is tough at a time when family finances are shrinking.

The managing director of Pizza Hut's overseas branches said the acquisition aimed “to protect our guest experience and retain staff where possible”.

The executive stated its first focus was to continue operating at the remaining 64 restaurants and off-premise points and to help employees through the restructure.

But with large sums going into running its restaurants, it likely can't afford to invest too much in its takeaway operation because the market is “complicated and working with existing delivery apps comes at a price”, experts say.

Still, experts suggest, lowering overhead by leaving competitive urban areas could be a effective strategy to adapt.

Misty Hanson
Misty Hanson

A passionate traveler and writer sharing insights from years of exploring the UK's hidden gems and popular spots.