Why the Public Turned Away from Its Appetite for the Pizza Hut Chain

Once, Pizza Hut was the favorite for parents and children to feast on its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

But fewer diners are frequenting the brand currently, and it is closing half of its UK outlets after being acquired following financial trouble for the second time this year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she states “it's not a thing anymore.”

In the view of 23-year-old Martina, certain features Pizza Hut has been recognized for since it opened 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 bar, it feels like they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How is that possible?’”

Because grocery costs have soared, Pizza Hut's unlimited dining format has become quite costly to maintain. The same goes for its outlets, which are being sliced from 132 to just over 60.

The company, similar to other firms, has also faced its expenses increase. This spring, staffing costs increased due to rises in minimum wages and an increase in employer taxes.

Two diners say they used to go at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.

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

Even though Pizza Hut has pickup and delivery through delivery platforms, it is falling behind to big rivals which specialize to this market.

“Another pizza company has taken over the takeaway pizza sector thanks to intensive advertising and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the standard rates are quite high,” notes the expert.

But for Chris and Joanne it is worth it to get their evening together sent directly.

“We absolutely dine at home now instead of we eat out,” comments the female customer, reflecting latest data that show a drop in people frequenting casual and fast-food restaurants.

In the warmer season, casual and fast-food restaurants saw a notable decrease in patrons compared to the year before.

There is also another rival to ordered-in pies: the supermarket pizza.

A hospitality expert, head of leisure and hospitality at a leading firm, points out that not only have supermarkets been offering premium oven-ready pizzas for years – some are even promoting pizza-making appliances.

“Shifts in habits are also having an impact in the performance of fast-food chains,” states Mr. Hawkley.

The rising popularity of low-carb regimens has increased sales at grilled chicken brands, while reducing sales of dough-based meals, he adds.

Since people visit restaurants less frequently, they may seek out a more premium experience, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more dated than premium.

The rise of high-quality pizzerias” over the last several years, for example boutique chains, has “dramatically shifted the general opinion of what excellent pie is,” explains the food expert.

“A thin, flavorful, gentle crust with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's led to Pizza Hut's downfall,” she says.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who operates a small business based in a county in England explains: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

According to Pizzarova in Bristol, the founder says the sector is broadening but Pizza Hut has failed to offer anything fresh.

“You now have individual slices, regional varieties, thin crust, artisan base, wood-fired, rectangular – it's a wonderful array for a pizza enthusiast to discover.”

Jack says Pizza Hut “should transform” as younger people don't have any fond memories or allegiance to the brand.

Gradually, Pizza Hut's share has been sliced up and allocated to its fresher, faster alternatives. To keep up its costly operations, it would have to raise prices – which industry analysts say is difficult at a time when personal spending 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”.

It was explained its key goal was to maintain service at the surviving locations and takeaway hubs and to support colleagues through the change.

But with significant funds going into operating its locations, it probably cannot to invest too much in its off-premise division because the industry is “complicated and using existing external services comes at a cost”, experts say.

But, he adds, lowering overhead by leaving oversaturated towns and city centres could be a effective strategy to adapt.

Peter Hernandez
Peter Hernandez

A licensed esthetician with over 10 years of experience in skincare and beauty treatments, passionate about helping clients achieve radiant skin.