Why the Public Lost Interest in Its Appetite for Pizza Hut

At one time, the popular pizza chain was the favorite for parents and children to feast on its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.

However a declining number of customers are visiting the chain nowadays, and it is shutting down 50% of its UK locations after being bought out of administration for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” says a young adult. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she comments “it's not a thing anymore.”

According to 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now less appealing.

“The way they do their all-you-can-eat and their salad station, it feels like they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How can they?’”

Because ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become quite costly to operate. As have its restaurants, which are being cut from over 130 to just over 60.

The company, like many others, has also experienced its operating costs increase. Earlier this year, staffing costs increased due to increases in the legal wage floor and an rise in employer national insurance contributions.

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

Depending on your order, Pizza Hut and Domino's rates are close, notes a food expert.

Even though Pizza Hut provides off-premise options through external services, it is losing out to major competitors which solely cater to off-premise dining.

“Domino's has succeeded in leading the takeaway pizza sector thanks to strong promotions and frequent offers that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” says the analyst.

However for the couple it is acceptable to get their date night brought to their home.

“We definitely eat at home now more than we eat out,” explains Joanne, matching current figures that show a decrease in people going to informal dining spots.

During the summer months, quick-service eateries saw a 6% drop in diners compared to the previous year.

There is also one more competitor to ordered-in pies: the frozen or fresh pizza.

Will Hawkley, senior partner at an advisory group, points out that not only have supermarkets been providing high-quality oven-ready pizzas for years – some are even promoting countertop ovens.

“Lifestyle changes are also having an impact in the performance of fast-food chains,” states the expert.

The rising popularity of low-carb regimens has boosted sales at poultry outlets, while hitting sales of dough-based meals, he adds.

As people go out to eat less frequently, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more dated than luxurious.

The rise of premium pizza outlets” over the last decade and a half, such as popular brands, has “completely altered the consumer view of what quality pizza is,” explains the food expert.

“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she states.

“What person would spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

An independent operator, who operates Smokey Deez based in a regional area comments: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.

At Pizzarova in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.

“There are now slice concepts, London pizza, thin crust, artisan base, traditional Italian, deep-dish – it's a wonderful array for a pizza-loving consumer to discover.”

He says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or loyalty to the company.

Over time, Pizza Hut's share has been divided and allocated to its fresher, faster competitors. To sustain its costly operations, it would have to charge more – which experts say is tough at a time when household budgets are decreasing.

A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to protect our dining experience and retain staff where possible”.

He said its immediate priority was to maintain service at the remaining 64 restaurants and off-premise points and to help employees through the restructure.

Yet with so much money going into operating its locations, it probably cannot to spend heavily in its off-premise division because the industry is “complicated and partnering with existing delivery apps comes at a price”, analysts say.

But, he adds, cutting its costs by leaving oversaturated towns and city centres could be a good way to evolve.