Why the Public Lost Its Appetite for the Pizza Hut Chain

At one time, the popular pizza chain was the favorite for families and friends to feast on its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

Yet a declining number of customers are visiting the brand currently, and it is reducing a significant portion of its UK locations after being acquired following financial trouble for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, as a young adult, she says “it's fallen out of favor.”

According to young customer Martina, certain features Pizza Hut has been famous for since it opened in the UK in the seventies 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 reduced quality... They're giving away so much food and you're like ‘How?’”

Since food prices have increased significantly, Pizza Hut's buffet-style service has become quite costly to maintain. As have its locations, which are being reduced from 132 to 64.

The business, like many others, has also faced its expenses go up. This spring, labor expenses rose due to rises in minimum wages and an higher rate of employer national insurance contributions.

Two diners say they frequently dined 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”.

According to your choices, Pizza Hut and Domino's prices are similar, explains a food expert.

Even though Pizza Hut provides pickup and delivery through external services, it is falling behind to larger chains which solely cater to this market.

“Domino's has taken over the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the base costs are quite high,” says the analyst.

Yet for the couple it is worth it to get their date night delivered to their door.

“We predominantly have meals at home now more than we eat out,” comments the female customer, matching recent statistics that show a decrease in people frequenting quick-service eateries.

During the summer months, informal dining venues saw a notable decrease in diners compared to the year before.

Moreover, a further alternative to restaurant and takeaway pizzas: the frozen or fresh pizza.

A hospitality expert, senior partner at an advisory group, points out that not only have retailers been offering high-quality ready-to-bake pizzas for a long time – some are even offering home-pizza ovens.

“Evolving preferences are also having an impact in the success of casual eateries,” says the analyst.

The rising popularity of protein-rich eating plans has boosted sales at grilled chicken brands, while hitting sales of dough-based meals, he adds.

Since people visit restaurants less frequently, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more old-fashioned than luxurious.

The growth of artisanal pizza places” over the last 10 to 15 years, including boutique chains, has “fundamentally changed the consumer view of what good pizza is,” explains the food expert.

“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she states.
“What person would spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
An independent operator, who runs a pizza van based in a regional area comments: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

Dan says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.

According to Pizzarova in a UK location, the proprietor says the sector is expanding but Pizza Hut has not provided anything new.

“Currently available are slice concepts, artisanal styles, new haven, sourdough, wood-fired, rectangular – it's a delightful challenge for a pizza-loving consumer to explore.”

The owner says Pizza Hut “must rebrand” as the youth don't have any emotional connection or loyalty to the company.

Gradually, Pizza Hut's customer base has been divided and allocated to its fresher, faster alternatives. To keep up its costly operations, it would have to increase costs – which commentators say is tough at a time when family finances are tightening.

The leadership of Pizza Hut's global operations said the acquisition aimed “to safeguard our dining experience and save employment where possible”.

The executive stated its key goal was to keep running at the open outlets and delivery sites and to help employees through the transition.

Yet with large sums going into operating its locations, it may be unable to allocate significant resources in its delivery service because the sector is “complex and using existing external services comes at a expense”, analysts say.

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

Jeffrey Ryan
Jeffrey Ryan

Elisa is a travel enthusiast and property manager with a passion for showcasing Italian culture through comfortable accommodations.