How the Public Turned Away from Its Craving for Pizza Hut

In the past, Pizza Hut was the go-to for parents and children to enjoy its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

But a declining number of customers are visiting the restaurant currently, and it is closing a significant portion of its UK restaurants after being rescued from insolvency for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she comments “it's no longer popular.”

According to a diner in her twenties, certain features Pizza Hut has been recognized for since it started in the UK in the 1970s are now outdated.

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

Because grocery costs have risen sharply, Pizza Hut's buffet-style service has become quite costly to maintain. Similarly, its locations, which are being sliced from 132 to a smaller figure.

The business, like many others, has also faced its operating costs go up. In April this year, staffing costs rose due to higher minimum pay and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “every now and then”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

Depending on your order, Pizza Hut and Domino's costs are comparable, says a food expert.

Even though Pizza Hut provides takeaway and deliveries through external services, it is falling behind to major competitors which focus exclusively to this market.

“Another pizza company has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make consumers feel like they're saving money, when in reality the standard rates are on the higher side,” says the expert.

However for these customers it is justified to get their special meal delivered to their door.

“We absolutely dine at home now more than we eat out,” says Joanne, matching latest data that show a decline in people going to casual and fast-food restaurants.

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

There is also another rival to pizza from eateries: the cook-at-home oven pizza.

Will Hawkley, global lead for leisure at a major consultancy, points out that not only have retailers been offering premium oven-ready pizzas for a long time – some are even selling pizza-making appliances.

“Lifestyle changes are also having an impact in the success of casual eateries,” states Mr. Hawkley.

The increased interest of protein-rich eating plans has boosted sales at chicken shops, while affecting sales of high-carbohydrate options, he adds.

Since people go out to eat less frequently, they may prefer a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more dated than premium.

The rise of artisanal pizza places” over the last 10 to 15 years, such as popular brands, has “fundamentally changed the public's perception of what quality pizza is,” says the food expert.

“A thin, flavorful, gentle crust with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she comments.
“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
Dan Puddle, who runs a small business based in a regional area comments: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”

He says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with changing preferences.

According to Pizzarova in Bristol, the founder says the sector is broadening but Pizza Hut has failed to offer anything fresh.

“You now have individual slices, regional varieties, New Haven-style, fermented dough, traditional Italian, Detroit – it's a wonderful array for a pie fan to explore.”

He says Pizza Hut “must rebrand” as the youth don't have any fond memories or allegiance to the brand.

In recent years, Pizza Hut's market has been divided and allocated to its fresher, faster rivals. To sustain its expensive staffing and restaurants, it would have to charge more – which commentators say is challenging at a time when household budgets are tightening.

A senior executive of Pizza Hut's global operations said the buyout aimed “to protect our dining experience and retain staff where possible”.

The executive stated its immediate priority was to continue operating at the open outlets and delivery sites and to assist staff through the change.

Yet with significant funds going into maintaining its outlets, it may be unable to invest too much in its off-premise division because the sector is “difficult and partnering with existing external services comes at a expense”, analysts say.

But, he adds, cutting its costs by leaving oversaturated towns and city centres could be a good way to adapt.

David Peters
David Peters

A tech enthusiast and writer passionate about emerging technologies and their impact on society.