How the Public Lost Its Appetite for Pizza Hut

At one time, the popular pizza chain was the favorite for groups and loved ones to feast on its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

But a declining number of patrons are visiting the brand currently, and it is shutting down half of its British outlets after being bought out of administration for the second time this year.

It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she says “it's no longer popular.”

For a diner in her twenties, certain features Pizza Hut has been recognized for since it started in the UK in the seventies are now outdated.

“How they do their buffet and their salad bar, it feels like they are lowering standards and have lower standards... They offer so much food and you're like ‘How?’”

Because grocery costs have increased significantly, Pizza Hut's buffet-style service has become quite costly to run. The same goes for its outlets, which are being sliced from over 130 to a smaller figure.

The company, in common with competitors, has also experienced its costs go up. Earlier this year, labor expenses jumped due to higher minimum pay and an increase in employer national insurance contributions.

Two diners mention they would often visit at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.

According to your order, Pizza Hut and Domino's rates are similar, says an industry analyst.

While Pizza Hut provides off-premise options through third-party apps, it is missing out to big rivals which focus exclusively to off-premise dining.

“Another pizza company has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make consumers feel like they're saving money, when in reality the standard rates are on the higher side,” notes the expert.

But for the couple it is acceptable to get their evening together sent directly.

“We predominantly have meals at home now more than we eat out,” explains the female customer, echoing current figures that show a decrease in people going to informal dining spots.

During the summer months, quick-service eateries saw a 6% drop in customers compared to last summer.

There is also another rival to pizza from eateries: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at a leading firm, points out that not only have supermarkets been offering good-standard prepared pies for a long time – some are even selling countertop ovens.

“Lifestyle changes are also playing a factor in the performance of quick-service brands,” says the analyst.

The growing trend of low-carb regimens has boosted sales at grilled chicken brands, while affecting sales of dough-based meals, he adds.

Since people go out to eat not as often, they may look for a more high-quality meal, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more retro than luxurious.

The “explosion of high-quality pizzerias” over the last decade and a half, for example new entrants, has “fundamentally changed the general opinion of what excellent pie is,” notes the industry commentator.

“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she comments.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a stunning, expertly crafted Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns a pizza van based in Suffolk comments: “People haven’t lost interest in pizza – they just want improved value.”

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

At an independent chain in a UK location, owner Jack Lander says the pizza market is diversifying but Pizza Hut has failed to offer anything new.

“You now have individual slices, London pizza, thin crust, artisan base, traditional Italian, Detroit – it's a delightful challenge for a pizza-loving consumer to discover.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or attachment to the chain.

In recent years, Pizza Hut's share has been sliced up and spread to its trendier, more nimble competitors. To keep up its costly operations, it would have to charge more – which commentators say is challenging at a time when personal spending are shrinking.

The managing director of Pizza Hut's international markets said the acquisition aimed “to ensure our guest experience and save employment where possible”.

He said its immediate priority was to keep running at the surviving locations and off-premise points and to support colleagues through the change.

However with significant funds going into running its restaurants, it probably cannot to allocate significant resources in its delivery service because the sector is “difficult and working with existing third-party platforms comes at a expense”, experts say.

Still, experts suggest, reducing expenses by exiting oversaturated towns and city centres could be a effective strategy to evolve.

Anthony Chavez
Anthony Chavez

A passionate traveler and writer documenting journeys across the UK and beyond, sharing insights and tips for memorable road trips.