How the Public Lost Its Craving for Pizza Hut

At one time, the popular pizza chain was the go-to for families and friends to enjoy its unlimited dining experience, endless salad selection, and make-your-own dessert.

But fewer customers are frequenting the restaurant currently, and it is reducing half of its UK locations after being rescued from insolvency for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she says “it's fallen out of favor.”

For 23-year-old Martina, some of the very things Pizza Hut has been recognized for since it opened in the UK in the seventies are now outdated.

“How they do their buffet and their salad station, it seems as if they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”

Since grocery costs have soared, Pizza Hut's buffet-style service has become very expensive to maintain. Similarly, its outlets, which are being cut from a large number to a smaller figure.

The company, in common with competitors, has also faced its operating costs rise. This spring, labor expenses jumped due to rises in minimum wages and an increase in employer taxes.

Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's costs are similar, says a food expert.

Even though Pizza Hut has pickup and delivery through third-party apps, it is losing out to major competitors which focus exclusively to this market.

“Another pizza company has succeeded in leading the takeaway pizza sector thanks to strong promotions and constantly running deals that make customers feel like they're saving money, when in reality the base costs are quite high,” notes the specialist.

However for Chris and Joanne it is worth it to get their date night delivered to their door.

“We definitely eat at home now rather than we eat out,” explains one of the diners, reflecting current figures that show a decline in people going to quick-service eateries.

Over the summer, informal dining venues saw a 6% drop in diners compared to last summer.

Additionally, one more competitor to pizza from eateries: the supermarket pizza.

Will Hawkley, senior partner at a leading firm, explains that not only have grocery stores been selling premium prepared pies for quite a while – some are even promoting countertop ovens.

“Shifts in habits are also contributing in the performance of quick-service brands,” comments the analyst.

The increased interest of low-carb regimens has driven sales at chicken shops, while reducing sales of dough-based meals, he adds.

Since people go out to eat more rarely, they may look for a more premium experience, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more retro than luxurious.

The rise of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “completely altered the public's perception of what quality pizza is,” says the food expert.

“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she states.

“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many traditional pizzerias around the country?

“It's an easy choice.”

A mobile pizza vendor, who owns a small business based in Suffolk comments: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

The owner says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

At a small pizza brand in a UK location, the founder says the industry is broadening but Pizza Hut has failed to offer anything new.

“There are now individual slices, artisanal styles, New Haven-style, sourdough, Neapolitan, Detroit – it's a heavenly minefield for a pie fan to try.”

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

Gradually, Pizza Hut's customer base has been fragmented and distributed to its fresher, faster alternatives. To sustain its expensive staffing and restaurants, it would have to raise prices – which commentators say is difficult at a time when family finances are tightening.

The managing director of Pizza Hut's global operations said the acquisition aimed “to ensure our guest experience and protect jobs where possible”.

It was explained its immediate priority was to maintain service at the open outlets and delivery sites and to support colleagues through the transition.

But with significant funds going into operating its locations, it may be unable to invest too much in its takeaway operation because the market is “complex and using existing delivery apps comes at a cost”, analysts say.

However, it's noted, cutting its costs by leaving competitive urban areas could be a smart move to adjust.