How the Public Turned Away from Its Craving for Pizza Hut

Once, Pizza Hut was the favorite for families and friends to enjoy its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.

However fewer patrons are visiting the restaurant nowadays, and it is closing a significant portion of its British outlets after being acquired following financial trouble for the second occasion this year.

I remember going Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she comments “it's no longer popular.”

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the very elements Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now outdated.

“The manner in which they do their buffet and their salad station, it seems as if they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How can they?’”

As grocery costs have risen sharply, Pizza Hut's buffet-style service has become quite costly to run. The same goes for its restaurants, which are being reduced from a large number to a smaller figure.

The chain, like many others, has also faced its costs rise. This spring, employee wages increased due to rises in minimum wages and an higher rate of employer national insurance contributions.

A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.

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

Although Pizza Hut has takeaway and deliveries through delivery platforms, it is missing out to big rivals which solely cater to off-premise dining.

“Domino's has taken over the off-premise pizza industry thanks to strong promotions and frequent offers that make consumers feel like they're saving money, when in reality the original prices are relatively expensive,” explains the specialist.

But for Chris and Joanne it is acceptable to get their date night delivered to their door.

“We predominantly have meals at home now instead of we eat out,” says the female customer, reflecting latest data that show a decline in people visiting informal dining spots.

During the summer months, quick-service eateries saw a six percent decline in customers compared to the year before.

There is also another rival to pizza from eateries: the supermarket pizza.

Will Hawkley, global lead for leisure at a leading firm, notes that not only have grocery stores been providing premium oven-ready pizzas for quite a while – some are even selling pizza-making appliances.

“Evolving preferences are also contributing in the success of quick-service brands,” says Mr. Hawkley.

The increased interest of high protein diets has driven sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he notes.

Because people go out to eat more rarely, they may prefer a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more retro than upmarket.

The rise of premium pizza outlets” over the last several years, such as boutique chains, has “fundamentally changed the public's perception of what good pizza is,” notes the food expert.

“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 resulted in Pizza Hut's struggles,” she comments.
“Why would anyone spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates Smokey Deez based in Suffolk explains: “It's not that stopped liking pizza – they just want improved value.”

He says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it could not keep up with new customer habits.

According to a small pizza brand in Bristol, the proprietor says the pizza market is diversifying but Pizza Hut has not provided anything new.

“You now have slice concepts, regional varieties, new haven, sourdough, traditional Italian, rectangular – it's a wonderful array for a pie fan to discover.”

The owner says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or attachment to the chain.

In recent years, Pizza Hut's market has been divided and allocated to its fresher, faster alternatives. To keep up its high labor and location costs, it would have to charge more – which commentators say is difficult at a time when household budgets are decreasing.

The leadership of Pizza Hut's international markets said the buyout aimed “to ensure our dining experience and protect jobs where possible”.

He said its first focus was to maintain service at the open outlets and off-premise points and to help employees through the change.

Yet with large sums going into maintaining its outlets, it likely can't afford to invest too much in its delivery service because the market is “complicated and using existing external services comes at a cost”, analysts say.

However, it's noted, reducing expenses by leaving crowded locations could be a good way to adjust.

Ryan Warner
Ryan Warner

A certified financial planner with over 15 years of experience in retirement strategies and pension management.

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