Why the Public Turned Away from Its Taste for Pizza Hut

Once, the popular pizza chain was the favorite for groups and loved ones to feast on its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

But not as many diners are frequenting the chain currently, and it is closing half of its British locations after being bought out of administration for the second instance this calendar year.

“We used to go Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she says “it's not a thing anymore.”

In the view of 23-year-old Martina, certain features Pizza Hut has been recognized for since it started in the UK in the 1970s are now less appealing.

“How they do their all-you-can-eat and their salad station, it feels like they are cheapening on their quality and have reduced quality... They provide so much food and you're like ‘How can they?’”

Since food prices have increased significantly, Pizza Hut's all-you-can-eat model has become quite costly to maintain. As have its outlets, which are being sliced from 132 to 64.

The chain, similar to other firms, has also faced its expenses rise. This spring, staffing costs rose due to rises in minimum wages and an rise in employer national insurance contributions.

Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “every now and then”, but now they order in a rival chain and think Pizza Hut is “not good value”.

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

Even though Pizza Hut has off-premise options through delivery platforms, it is falling behind to major competitors which specialize to the delivery sector.

“Another pizza company has taken over the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the base costs are quite high,” explains the expert.

Yet for the couple it is worth it to get their special meal brought to their home.

“We absolutely dine at home now instead of we eat out,” explains Joanne, echoing recent statistics that show a decline in people going to casual and fast-food restaurants.

In the warmer season, informal dining venues saw a six percent decline in patrons compared to the previous year.

There is also a further alternative to pizza from eateries: the supermarket pizza.

An industry leader, senior partner at a major consultancy, explains that not only have supermarkets been providing high-quality ready-to-bake pizzas for years – some are even selling pizza-making appliances.

“Evolving preferences are also contributing in the success of quick-service brands,” comments the analyst.

The increased interest of protein-rich eating plans has increased sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he notes.

Because people visit restaurants more rarely, they may seek out a more premium experience, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more retro than upmarket.

The rise of high-quality pizzerias” over the last 10 to 15 years, for example new entrants, has “dramatically shifted the general opinion of what excellent pie is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she comments.
“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who owns a pizza van based in a regional area says: “People haven’t lost interest in pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.

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

“You now have by-the-slice options, regional varieties, thin crust, fermented dough, Neapolitan, Detroit – it's a wonderful array for a pizza-loving consumer to discover.”

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

Gradually, Pizza Hut's market has been sliced up and distributed to its more modern, agile competitors. To sustain its costly operations, it would have to charge more – which industry analysts say is challenging at a time when household budgets are tightening.

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

The executive stated its first focus was to keep running at the remaining 64 restaurants and delivery sites and to help employees through the transition.

But with significant funds going into operating its locations, it likely can't afford to allocate significant resources in its takeaway operation because the market is “complex and partnering with existing third-party platforms comes at a price”, experts say.

Still, experts suggest, cutting its costs by withdrawing from competitive urban areas could be a effective strategy to adapt.

Amber Miller
Amber Miller

A passionate nutritionist and food blogger dedicated to promoting wellness through fresh, sustainable eating habits.