Why the Public Lost Interest in Its Appetite for the Pizza Hut Chain
Once, the popular pizza chain was the go-to for parents and children to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.
Yet a declining number of diners are choosing the restaurant nowadays, and it is closing a significant portion of its British outlets after being bought out of administration for the second time this calendar year.
It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, aged 24, she says “it's no longer popular.”
For 23-year-old Martina, certain features Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now less appealing.
“The way they do their all-you-can-eat and their salad bar, it feels like they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How can they?’”
Because food prices have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. As have its outlets, which are being sliced from 132 to a smaller figure.
The business, like many others, has also experienced its costs go up. This spring, employee wages jumped due to higher minimum pay and an increase in employer taxes.
Two diners explain they would often visit at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “not good value”.
Depending on your selection, Pizza Hut and Domino's prices are comparable, says an industry analyst.
While Pizza Hut does offer off-premise options through external services, it is missing out to big rivals which solely cater to the delivery sector.
“Domino's has managed to dominate the off-premise pizza industry thanks to intensive advertising and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” explains the specialist.
Yet for these customers it is worth it to get their special meal sent directly.
“We predominantly have meals at home now rather than we eat out,” comments one of the diners, matching current figures that show a decline in people visiting informal dining spots.
Over the summer, quick-service eateries saw a notable decrease in patrons compared to the previous year.
There is also a further alternative to ordered-in pies: the supermarket pizza.
A hospitality expert, head of leisure and hospitality at an advisory group, points out that not only have grocery stores been offering good-standard prepared pies for years – some are even promoting home-pizza ovens.
“Lifestyle changes are also contributing in the success of casual eateries,” comments the analyst.
The growing trend of high protein diets has driven sales at grilled chicken brands, while affecting sales of dough-based meals, he notes.
Because people visit restaurants less frequently, they may prefer a more premium experience, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more retro than premium.
The growth of high-quality pizzerias” over the last decade and a half, such as boutique chains, has “dramatically shifted the consumer view of what good pizza is,” notes the industry commentator.
“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she says.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made 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 Suffolk comments: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”
Dan says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.
At Pizzarova in a city in southwest England, the proprietor says the industry is broadening but Pizza Hut has failed to offer anything new.
“Currently available are individual slices, regional varieties, new haven, fermented dough, traditional Italian, Detroit – it's a delightful challenge for a pizza-loving consumer to discover.”
The owner says Pizza Hut “should transform” as newer generations don't have any sense of nostalgia or loyalty to the brand.
In recent years, Pizza Hut's share has been sliced up and distributed to its trendier, more nimble rivals. To sustain its high labor and location costs, it would have to increase costs – which industry analysts say is difficult at a time when family finances are decreasing.
The leadership of Pizza Hut's overseas branches said the acquisition aimed “to safeguard our customer service and retain staff where possible”.
The executive stated its first focus was to keep running at the open outlets and delivery sites and to support colleagues through the restructure.
But with significant funds going into maintaining its outlets, it likely can't afford to allocate significant resources in its off-premise division because the sector is “complex and working with existing delivery apps comes at a cost”, experts say.
However, it's noted, cutting its costs by leaving competitive urban areas could be a effective strategy to adapt.