Why the Public Turned Away from Its Craving for Pizza Hut

Once, the popular pizza chain was the favorite for families and friends to enjoy its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

However not as many patrons are frequenting the brand nowadays, and it is closing 50% of its British locations after being acquired following financial trouble for the second occasion this year.

“We used to go Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, as a young adult, she says “it's no longer popular.”

According to 23-year-old Martina, the very elements Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now less appealing.

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

As food prices have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. The same goes for its restaurants, which are being sliced from a large number to just over 60.

The business, in common with competitors, has also seen its costs increase. This spring, labor expenses rose due to rises in minimum wages and an rise in employer social security payments.

A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “very overpriced”.

Based on your selection, Pizza Hut and Domino's rates are comparable, notes a culinary author.

Although Pizza Hut provides off-premise options through third-party apps, it is losing out to major competitors which specialize to the delivery sector.

“Domino's has succeeded in leading the delivery market thanks to intensive advertising and ongoing discounts that make shoppers feel like they're saving money, when in reality the base costs are quite high,” says the analyst.

But for Chris and Joanne it is justified to get their special meal brought to their home.

“We absolutely dine at home now more than we eat out,” explains one of the diners, matching latest data that show a drop in people going to quick-service eateries.

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

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

A hospitality expert, global lead for leisure at a leading firm, points out that not only have retailers been selling high-quality oven-ready pizzas for a long time – some are even promoting home-pizza ovens.

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

The rising popularity of low-carb regimens has increased sales at poultry outlets, while hitting sales of dough-based meals, he continues.

As people go out to eat less frequently, they may look for a more premium experience, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more retro than premium.

The growth of artisanal pizza places” over the last several years, including boutique chains, has “dramatically shifted the consumer view of what quality pizza is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's caused Pizza Hut's downfall,” she comments.
“What person would spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who runs a pizza van based in a regional area says: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with changing preferences.

At a small pizza brand in a city in southwest England, the founder says the industry is diversifying but Pizza Hut has not provided anything innovative.

“Currently available are individual slices, regional varieties, New Haven-style, artisan base, Neapolitan, deep-dish – it's a heavenly minefield for a pizza-loving consumer to try.”

He says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or loyalty to the chain.

Over time, Pizza Hut's customer base has been sliced up and allocated to its fresher, faster rivals. To keep up its expensive staffing and restaurants, it would have to raise prices – which commentators say is tough at a time when personal spending are tightening.

The leadership of Pizza Hut's overseas branches said the acquisition aimed “to ensure our dining experience and retain staff where possible”.

He said its immediate priority was to keep running at the remaining 64 restaurants and delivery sites and to support colleagues through the restructure.

But with significant funds going into operating its locations, it may be unable to invest too much in its delivery service because the industry is “difficult and partnering with existing delivery apps comes at a price”, analysts say.

But, he adds, reducing expenses by exiting crowded locations could be a effective strategy to evolve.

Linda Reed
Linda Reed

A seasoned business strategist with over 15 years of experience in corporate consulting and leadership development.