Why the Public Turned Away from Its Craving for Pizza Hut

At one time, Pizza Hut was the go-to for parents and children to feast on its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.

Yet not as many diners are visiting the restaurant these days, and it is reducing a significant portion of its British restaurants after being rescued from insolvency for the second time this calendar year.

“We used to go Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she says “it's not a thing anymore.”

For 23-year-old Martina, some of the very things Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now not-so-hot.

“How they do their buffet and their salad station, it appears that they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How?’”

Because food prices have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to operate. The same goes for its restaurants, which are being sliced from a large number to 64.

The chain, like many others, has also faced its operating costs go up. Earlier this year, employee wages rose due to rises in minimum wages and an increase in employer social security payments.

Two diners mention they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “too expensive”.

According to your selection, Pizza Hut and Domino's rates are comparable, notes an industry analyst.

While Pizza Hut provides off-premise options through external services, it is missing out to major competitors which focus exclusively to off-premise dining.

“Another pizza company has taken over the takeaway pizza sector thanks to strong promotions and constantly running deals that make shoppers feel like they're saving money, when in reality the original prices are relatively expensive,” says the specialist.

Yet for the couple it is worth it to get their date night brought to their home.

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

Over the summer, casual and fast-food restaurants saw a 6% drop in patrons compared to the previous year.

Additionally, another rival to pizza from eateries: the frozen or fresh pizza.

A hospitality expert, senior partner at a major consultancy, explains that not only have grocery stores been selling good-standard prepared pies for a long time – some are even selling countertop ovens.

“Lifestyle changes are also contributing in the success of quick-service brands,” comments Mr. Hawkley.

The growing trend of low-carb regimens has increased sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he adds.

As people go out to eat less frequently, they may seek out a more upscale outing, and Pizza Hut's retro theme with vinyl benches and traditional décor can feel more old-fashioned than upmarket.

The “explosion of premium pizza outlets” over the last several years, for example boutique chains, has “dramatically shifted the consumer view of what excellent pie is,” explains the industry commentator.

“A light, fresh, easy-to-digest product with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she states.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who runs a small business based in a regional area comments: “It's not that lost interest in pizza – they just want better pizza for their money.”

The owner says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it was unable to evolve with changing preferences.

At an independent chain in a city in southwest England, the proprietor says the sector is broadening but Pizza Hut has not provided anything fresh.

“There are now by-the-slice options, regional varieties, thin crust, sourdough, wood-fired, Detroit – it's a heavenly minefield for a pizza-loving consumer to explore.”

The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or allegiance to the brand.

In recent years, Pizza Hut's market has been divided and spread to its fresher, faster alternatives. To maintain its costly operations, it would have to charge more – which commentators say is challenging at a time when personal spending are decreasing.

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

The executive stated its first focus was to maintain service at the surviving locations 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 spend heavily in its takeaway operation because the market is “difficult and working with existing delivery apps comes at a price”, experts say.

But, he adds, lowering overhead by withdrawing from oversaturated towns and city centres could be a smart move to adapt.

Christine Brown
Christine Brown

A blockchain enthusiast and financial analyst with over a decade of experience in crypto markets and decentralized technologies.