How the Public Lost Its Craving for Pizza Hut

Once, Pizza Hut was the top choice for groups and loved ones to feast on its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

But a declining number of patrons are visiting the restaurant currently, and it is shutting down 50% of its British locations after being acquired following financial trouble for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she comments “it's fallen out of favor.”

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 not-so-hot.

“The manner in which they do their buffet and their salad station, it appears that they are lowering standards and have lower standards... They provide so much food and you're like ‘How is that possible?’”

Because grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. As have its restaurants, which are being cut from 132 to just over 60.

The chain, similar to other firms, has also faced its costs increase. Earlier this year, employee wages increased due to increases in the legal wage floor and an rise in employer social security payments.

Two diners mention they frequently dined at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

According to your selection, Pizza Hut and Domino's costs are similar, says a food expert.

While Pizza Hut has takeaway and deliveries through delivery platforms, it is losing out to larger chains which solely cater 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 standard rates are relatively expensive,” explains the analyst.

However for Chris and Joanne it is acceptable to get their evening together sent directly.

“We definitely eat at home now rather than we eat out,” explains the female customer, matching latest data that show a decline in people going to informal dining spots.

Over the summer, casual and fast-food restaurants saw a notable decrease in patrons compared to last summer.

Additionally, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, senior partner at an advisory group, points out that not only have supermarkets been providing high-quality prepared pies for years – some are even selling pizza-making appliances.

“Shifts in habits are also playing a factor in the popularity of fast-food chains,” comments the expert.

The increased interest of high protein diets has increased sales at chicken shops, while affecting sales of dough-based meals, he adds.

Since people dine out less frequently, they may seek out a more premium experience, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more old-fashioned than premium.

The rise of artisanal pizza places” over the last several years, for example boutique chains, has “dramatically shifted the consumer view of what good pizza is,” says the food expert.

“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she states.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who runs Smokey Deez based in Suffolk explains: “People haven’t fallen out of love with pizza – they just want improved value.”

The owner says his flexible operation can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it failed to adapt with changing preferences.

According to Pizzarova in Bristol, the proprietor says the sector is expanding but Pizza Hut has not provided anything fresh.

“You now have individual slices, regional varieties, new haven, sourdough, Neapolitan, rectangular – it's a delightful challenge for a pizza enthusiast to explore.”

The owner says Pizza Hut “must rebrand” as younger people don't have any emotional connection or allegiance to the chain.

Gradually, Pizza Hut's customer base has been fragmented and distributed to its fresher, faster competitors. To maintain its costly operations, it would have to charge more – which commentators say is difficult at a time when personal spending are decreasing.

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

It was explained its key goal was to keep running at the open outlets and delivery sites and to support colleagues through the change.

Yet with significant funds going into maintaining its outlets, it may be unable to allocate significant resources in its takeaway operation because the industry is “complicated and partnering with existing external services comes at a cost”, analysts say.

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

Cindy Lucas
Cindy Lucas

Travel and gaming enthusiast with a passion for exploring casino cultures worldwide.