Why the Public Turned Away from Its Craving for the Pizza Hut Chain

Once, the popular pizza chain was the go-to for groups and loved ones to indulge in its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

Yet not as many patrons are choosing the chain nowadays, and it is shutting down a significant portion of its UK locations after being acquired following financial trouble for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she states “it's fallen out of favor.”

In the view of a diner in her twenties, the very elements Pizza Hut has been recognized for since it started in the UK in the 1970s are now not-so-hot.

“The manner in which they do their buffet and their salad bar, it seems as if they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How is that possible?’”

Since grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to operate. Similarly, its locations, which are being sliced from a large number to just over 60.

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

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

According to your choices, Pizza Hut and Domino's costs are similar, says a culinary author.

Although Pizza Hut has off-premise options through external services, it is missing out to big rivals which specialize to the delivery sector.

“Domino's has managed to dominate the takeaway pizza sector thanks to intensive advertising and frequent offers that make consumers feel like they're getting a bargain, when in reality the base costs are on the higher side,” says the expert.

However for these customers it is worth it to get their date night delivered to their door.

“We absolutely dine at home now rather than we eat out,” comments one of the diners, echoing latest data that show a decline in people frequenting casual and fast-food restaurants.

In the warmer season, quick-service eateries saw a six percent decline in customers compared to the year before.

Additionally, one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, head of leisure and hospitality at a major consultancy, explains that not only have supermarkets been providing good-standard oven-ready pizzas for years – some are even offering home-pizza ovens.

“Shifts in habits are also having an impact in the success of quick-service brands,” says Mr. Hawkley.

The increased interest of high protein diets has boosted sales at grilled chicken brands, while affecting sales of dough-based meals, he continues.

Because people dine out less frequently, they may look for a more upscale outing, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more retro than luxurious.

The growth of premium pizza outlets” over the last 10 to 15 years, for example boutique chains, has “completely altered the general opinion of what good pizza is,” says 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 nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who owns a small business based in a regional area explains: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

The owner says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it was unable to evolve with new customer habits.

At a small pizza brand in a city in southwest England, owner Jack Lander says the sector is broadening but Pizza Hut has neglected to introduce anything innovative.

“Currently available are individual slices, regional varieties, new haven, fermented dough, Neapolitan, Detroit – it's a heavenly minefield for a pizza enthusiast to try.”

Jack says Pizza Hut “should transform” as newer generations don't have any emotional connection or allegiance to the brand.

In recent years, Pizza Hut's customer base has been sliced up and allocated to its trendier, more nimble competitors. To maintain its high labor and location costs, it would have to charge more – which experts say is difficult at a time when personal spending are shrinking.

A senior executive of Pizza Hut's international markets said the rescue aimed “to safeguard our customer service and protect jobs where possible”.

The executive stated its immediate priority was to maintain service at the surviving locations and takeaway hubs and to support colleagues through the restructure.

But with significant funds going into maintaining its outlets, it may be unable to invest too much in its takeaway operation because the industry is “complicated and working with existing third-party platforms comes at a expense”, analysts say.

But, he adds, cutting its costs by exiting competitive urban areas could be a good way to evolve.

Ryan Brown
Ryan Brown

A tech enthusiast and writer passionate about exploring the future of innovation and sharing insights on emerging trends.