Why the Public Lost Interest in Its Taste for the Pizza Hut Chain

At one time, Pizza Hut was the favorite for parents and children to enjoy its unlimited dining experience, endless salad selection, and self-serve ice-cream.

Yet not as many customers are visiting the restaurant currently, and it is shutting down half of its UK outlets after being acquired following financial trouble for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she says “it's no longer popular.”

According to young customer Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the seventies are now outdated.

“How they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How is that possible?’”

As food prices have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. Similarly, its restaurants, which are being sliced from a large number to 64.

The company, like many others, has also faced its expenses go up. In April this year, staffing costs increased due to higher minimum pay and an higher rate of employer social security payments.

Two diners mention they frequently dined at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “too expensive”.

Based on your choices, Pizza Hut and Domino's prices are comparable, notes an industry analyst.

While Pizza Hut has off-premise options through delivery platforms, it is missing out to big rivals which focus exclusively to the delivery sector.

“Domino's has managed to dominate the delivery market thanks to intensive advertising and frequent offers that make consumers feel like they're saving money, when in reality the standard rates are relatively expensive,” says the analyst.

However for these customers it is acceptable to get their date night sent directly.

“We absolutely dine at home now rather than we eat out,” explains the female customer, echoing current figures that show a decrease in people frequenting casual and fast-food restaurants.

During the summer months, casual and fast-food restaurants saw a notable decrease in customers compared to the previous year.

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

Will Hawkley, head of leisure and hospitality at an advisory group, notes that not only have retailers been providing high-quality prepared pies for years – some are even promoting countertop ovens.

“Lifestyle changes are also playing a factor in the success of casual eateries,” comments Mr. Hawkley.

The increased interest of protein-rich eating plans has driven sales at chicken shops, while reducing sales of dough-based meals, he adds.

As people visit restaurants more rarely, they may seek out a more premium experience, and Pizza Hut's retro theme with vinyl benches and traditional décor can feel more old-fashioned than premium.

The rise of artisanal pizza places” over the last 10 to 15 years, such as popular brands, has “completely altered the public's perception of what excellent pie is,” explains the industry commentator.

“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she comments.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a chain 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.”
An independent operator, who runs Smokey Deez based in a regional area explains: “The issue isn’t that lost interest in pizza – they just want improved value.”

He says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.

From the perspective of a small pizza brand in a UK location, the proprietor says the industry is diversifying but Pizza Hut has not provided anything innovative.

“There are now by-the-slice options, regional varieties, thin crust, fermented dough, Neapolitan, deep-dish – it's a wonderful array for a pie fan to explore.”

The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or attachment to the company.

Over time, Pizza Hut's share has been divided and allocated to its fresher, faster rivals. To maintain its expensive staffing and restaurants, it would have to increase costs – which experts say is challenging at a time when household budgets are shrinking.

The managing director of Pizza Hut's overseas branches said the buyout aimed “to ensure our customer service and protect jobs where possible”.

It was explained its first focus was to continue operating at the surviving locations and off-premise points and to assist staff through the restructure.

However with large sums going into maintaining its outlets, it likely can't afford to spend heavily 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 leaving oversaturated towns and city centres could be a good way to evolve.

Ricardo Parks
Ricardo Parks

A passionate writer and life coach dedicated to empowering others through positive psychology and actionable advice.