Why the Public Turned Away from Its Taste for Pizza Hut

Once, the popular pizza chain was the top choice for parents and children to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.

But a declining number of diners are choosing the brand currently, and it is closing half of its British restaurants after being acquired following financial trouble for the second instance this year.

“We used to go Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she says “it's not a thing anymore.”

In the view of a diner in her twenties, certain features Pizza Hut has been famous for since it started in the UK in the 1970s are now outdated.

“The manner in which they do their all-you-can-eat and their salad bar, it feels like they are cutting corners and have lower standards... They provide so much food and you're like ‘How?’”

Because ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to maintain. As have its outlets, which are being cut from over 130 to just over 60.

The chain, similar to other firms, has also experienced its expenses increase. This spring, employee wages rose due to increases in the legal wage floor and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “from time to time”, but now they choose Domino's and think Pizza Hut is “too expensive”.

Depending on your order, Pizza Hut and Domino's rates are close, explains an industry analyst.

Even though Pizza Hut has takeaway and deliveries through delivery platforms, it is losing out to larger chains which solely cater to the delivery sector.

“The rival chain has taken over the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the base costs are on the higher side,” says the analyst.

However for Chris and Joanne it is acceptable to get their special meal delivered to their door.

“We absolutely dine at home now rather than we eat out,” comments one of the diners, matching latest data that show a drop in people visiting informal dining spots.

Over the summer, quick-service eateries saw a six percent decline in customers compared to the previous year.

Moreover, another rival to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, senior partner at a major consultancy, explains that not only have retailers been selling high-quality oven-ready pizzas for years – some are even promoting countertop ovens.

“Evolving preferences are also contributing in the performance of fast-food chains,” states the expert.

The increased interest of protein-rich eating plans has driven sales at grilled chicken brands, while reducing sales of dough-based meals, he continues.

Since people go out to eat more rarely, they may seek out a more upscale outing, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than luxurious.

The growth of premium pizza outlets” over the last several years, for example popular brands, has “dramatically shifted the general opinion of what good pizza is,” says the food expert.

“A light, fresh, easy-to-digest product with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she comments.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who runs a pizza van based in a county in England says: “People haven’t fallen out of love with pizza – they just want improved value.”

Dan says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.

According to a small pizza brand in a city in southwest England, the proprietor says the pizza market is expanding but Pizza Hut has neglected to introduce anything innovative.

“Currently available are slice concepts, London pizza, thin crust, sourdough, traditional Italian, rectangular – it's a wonderful array for a pie fan to try.”

The owner says Pizza Hut “should transform” as newer generations don't have any fond memories or loyalty to the company.

In recent years, Pizza Hut's customer base has been divided and distributed to its fresher, faster rivals. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is tough at a time when personal spending are tightening.

A senior executive of Pizza Hut's international markets said the buyout aimed “to safeguard our dining experience and retain staff where possible”.

It was explained its key goal was to maintain service at the open outlets and off-premise points and to assist staff through the transition.

But with significant funds going into operating its locations, it probably cannot to spend heavily in its off-premise division because the industry is “complex and working with existing external services comes at a price”, experts say.

Still, experts suggest, reducing expenses by withdrawing from competitive urban areas could be a smart move to adjust.

Martin Dawson
Martin Dawson

A passionate travel writer and local expert dedicated to uncovering Pisa's natural beauty and sharing insights for memorable outdoor experiences.