Why the Public Turned Away from Its Appetite for the Pizza Hut Chain
Once, Pizza Hut was the go-to for families and friends to feast on its unlimited dining experience, endless salad selection, and ice cream with toppings.
Yet not as many diners are visiting the chain nowadays, and it is closing a significant portion of its UK restaurants after being bought out of administration for the second time this year.
“We used to go Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's no longer popular.”
For young customer Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the 1970s are now outdated.
“How they do their all-you-can-eat and their salad bar, it feels like they are cheapening on their quality and have lower standards... They're giving away so much food and you're like ‘How?’”
Because grocery costs have soared, Pizza Hut's all-you-can-eat model has become quite costly to operate. Similarly, its restaurants, which are being sliced from a large number to a smaller figure.
The company, similar to other firms, has also experienced its expenses increase. This spring, staffing costs jumped due to higher minimum pay and an increase in employer national insurance contributions.
A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.
Based on your choices, Pizza Hut and Domino's rates are close, notes an industry analyst.
While Pizza Hut does offer off-premise options through third-party apps, it is falling behind to larger chains which solely cater to the delivery sector.
“Domino's has succeeded in leading the delivery market thanks to aggressive marketing and frequent offers that make customers feel like they're finding a good deal, when in reality the original prices are relatively expensive,” notes the specialist.
However for the couple it is worth it to get their evening together brought to their home.
“We predominantly have meals at home now rather than we eat out,” explains Joanne, matching latest data that show a decrease in people frequenting quick-service eateries.
During the summer months, casual and fast-food restaurants saw a six percent decline in diners compared to last summer.
There is also another rival to restaurant and takeaway pizzas: the supermarket pizza.
A hospitality expert, head of leisure and hospitality at a leading firm, notes that not only have grocery stores been selling premium oven-ready pizzas for quite a while – some are even offering home-pizza ovens.
“Evolving preferences are also having an impact in the performance of quick-service brands,” comments the expert.
The rising popularity of high protein diets has increased sales at chicken shops, while affecting sales of high-carbohydrate options, he adds.
As people dine out more rarely, they may prefer a more upscale outing, and Pizza Hut's retro theme with booth seating and traditional décor can feel more old-fashioned than upmarket.
The growth of artisanal pizza places” over the last several years, such as new entrants, has “completely altered the general opinion of what good pizza is,” notes the culinary analyst.
“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, 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 franchise when you can get a stunning, expertly crafted classic pizza 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 says: “People haven’t stopped liking pizza – they just want better pizza for their money.”
He says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.
At a small pizza brand in a UK location, the proprietor says the pizza market is expanding but Pizza Hut has neglected to introduce anything innovative.
“You now have by-the-slice options, London pizza, thin crust, fermented dough, traditional Italian, rectangular – it's a heavenly minefield for a pie fan to explore.”
He says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or allegiance to the brand.
Over time, Pizza Hut's market has been fragmented and allocated to its fresher, faster rivals. To keep up its costly operations, it would have to charge more – which industry analysts say is tough at a time when family finances are decreasing.
The leadership of Pizza Hut's international markets said the rescue aimed “to ensure our customer service and protect jobs where possible”.
The executive stated its first focus was to continue operating at the surviving locations and delivery sites and to support colleagues through the transition.
But with significant funds going into operating its locations, it probably cannot to spend heavily in its takeaway operation because the industry is “complex and working with existing third-party platforms comes at a cost”, analysts say.
Still, experts suggest, lowering overhead by exiting crowded locations could be a smart move to adjust.