How the Public Lost Interest in Its Craving for Pizza Hut

Once, Pizza Hut was the go-to for parents and children to indulge in its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

But not as many diners are frequenting the chain these days, and it is reducing half of its British restaurants after being bought out of administration for the second time this year.

“We used to go Pizza Hut when I was a child,” says one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, aged 24, she says “it's not a thing anymore.”

In the view of young customer Martina, 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 bar, it seems as if they are lowering standards and have reduced quality... They provide so much food and you're like ‘How is that possible?’”

Since ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. The same goes for its outlets, which are being reduced from over 130 to 64.

The company, similar to other firms, has also faced its operating costs go up. Earlier this year, labor expenses rose due to higher minimum pay and an higher rate of employer social security payments.

A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “not good value”.

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

While Pizza Hut does offer takeaway and deliveries through third-party apps, it is falling behind to big rivals which solely cater to the delivery sector.

“Another pizza company has taken over the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make consumers feel like they're saving money, when in reality the base costs are on the higher side,” explains the analyst.

Yet for these customers it is justified to get their date night delivered to their door.

“We absolutely dine at home now more than we eat out,” explains one of the diners, matching recent statistics that show a decline in people frequenting informal dining spots.

During the summer months, quick-service eateries saw a notable decrease in diners compared to last summer.

Moreover, a further alternative to ordered-in pies: the supermarket pizza.

A hospitality expert, senior partner at a leading firm, points out that not only have supermarkets been offering premium oven-ready pizzas for a long time – some are even selling countertop ovens.

“Evolving preferences are also contributing in the performance of fast-food chains,” states the analyst.

The growing trend of protein-rich eating plans has increased sales at chicken shops, while hitting sales of high-carbohydrate options, he adds.

Since people go out to eat not as often, they may prefer a more upscale outing, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more retro than premium.

The rise of artisanal pizza places” over the last decade and a half, including new entrants, has “dramatically shifted the general opinion of what quality pizza is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she says.
“What person would spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
Dan Puddle, who runs a pizza van based in a regional area explains: “People haven’t stopped liking pizza – they just want improved value.”

Dan says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it could not keep up with evolving tastes.

At a small pizza brand in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has failed to offer anything innovative.

“You now have by-the-slice options, regional varieties, New Haven-style, fermented dough, Neapolitan, deep-dish – it's a heavenly minefield for a pizza enthusiast to try.”

Jack says Pizza Hut “should transform” as the youth don't have any sense of nostalgia or attachment to the company.

Over time, Pizza Hut's market has been divided and distributed to its more modern, agile rivals. To sustain its expensive staffing and restaurants, it would have to increase costs – which commentators say is tough at a time when personal spending are decreasing.

The managing director of Pizza Hut's overseas branches said the buyout aimed “to protect our dining experience and save employment where possible”.

He said its key goal was to continue operating at the remaining 64 restaurants and takeaway hubs and to assist staff through the change.

However with significant funds going into running its restaurants, 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 expense”, experts say.

Still, experts suggest, lowering overhead by exiting crowded locations could be a effective strategy to adapt.

Benjamin Floyd
Benjamin Floyd

A passionate DIY enthusiast and home renovation expert with over a decade of experience in sustainable building practices.