Why the Public Lost Interest in Its Taste for Pizza Hut

At one time, the popular pizza chain was the top choice for families and friends to enjoy its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.

However fewer diners are frequenting the brand nowadays, and it is closing half of its UK restaurants after being rescued from insolvency for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” However, at present, as a young adult, she comments “it's not a thing anymore.”

In the view of a diner in her twenties, the very elements Pizza Hut has been recognized for since it launched in the UK in the 1970s are now less appealing.

“The way they do their buffet and their salad bar, it appears that they are cheapening on their quality and have lower standards... They're giving away so much food and you're like ‘How?’”

Since ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become very expensive to maintain. As have its outlets, which are being cut from a large number to just over 60.

The business, like many others, has also seen its expenses rise. In April this year, labor expenses jumped due to increases in the legal wage floor and an increase in employer social security payments.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.

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

While Pizza Hut provides pickup and delivery through delivery platforms, it is missing out to big rivals which focus exclusively to this market.

“Another pizza company has taken over the off-premise pizza industry thanks to strong promotions and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” explains the analyst.

However for these customers it is worth it to get their evening together brought to their home.

“We predominantly have meals at home now instead of we eat out,” says Joanne, matching recent statistics that show a decline in people frequenting informal dining spots.

During the summer months, casual and fast-food restaurants saw a six percent decline in diners compared to last summer.

Moreover, one more competitor to ordered-in pies: the cook-at-home oven pizza.

Will Hawkley, senior partner at a major consultancy, points out that not only have retailers been providing premium prepared pies for quite a while – some are even selling pizza-making appliances.

“Evolving preferences are also having an impact in the popularity of quick-service brands,” comments the expert.

The growing trend of high protein diets has driven sales at chicken shops, while reducing sales of high-carbohydrate options, he notes.

As people go out to eat not as often, they may prefer a more premium experience, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more retro than upmarket.

The growth of artisanal pizza places” over the last decade and a half, such as popular brands, has “completely altered the general opinion of what good pizza is,” says the industry commentator.

“A light, fresh, easy-to-digest product with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she says.
“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who owns a pizza van based in a county in England comments: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”

Dan says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut struggled because it could not keep up with new customer habits.

From the perspective of a small pizza brand in Bristol, the proprietor says the industry is broadening but Pizza Hut has not provided anything new.

“Currently available are by-the-slice options, London pizza, New Haven-style, artisan base, wood-fired, Detroit – it's a wonderful array for a pie fan to explore.”

He says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or attachment to the company.

In recent years, Pizza Hut's market has been sliced up and distributed to its trendier, more nimble alternatives. To keep up its expensive staffing and restaurants, it would have to increase costs – which commentators say is difficult at a time when personal spending are tightening.

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

It was explained its immediate priority was to maintain service at the remaining 64 restaurants and off-premise points and to assist staff through the restructure.

However with large sums going into operating its locations, it likely can't afford to invest too much in its off-premise division because the market is “difficult and working with existing third-party platforms comes at a cost”, commentators say.

But, he adds, lowering overhead by leaving competitive urban areas could be a effective strategy to adjust.

Jennifer Massey
Jennifer Massey

Tech enthusiast and software developer with a passion for AI and open-source projects, sharing insights from years of industry experience.