Why the Public Lost Its Taste for Pizza Hut

Once, Pizza Hut was the go-to for groups and loved ones to feast on its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

Yet a declining number of patrons are choosing the restaurant nowadays, and it is reducing 50% of its British outlets after being acquired following financial trouble for the second instance this 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 – spend the whole day there.” But now, as a young adult, she states “it's not a thing anymore.”

For young customer Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the 1970s are now less appealing.

“How they do their buffet and their salad station, it feels like they are cheapening on their quality and have reduced quality... They provide so much food and you're like ‘How can they?’”

Since grocery costs have risen sharply, Pizza Hut's buffet-style service has become quite costly to operate. Similarly, its outlets, which are being reduced from a large number to 64.

The chain, in common with competitors, has also experienced its costs rise. This spring, staffing costs jumped due to rises in minimum wages and an increase in employer taxes.

A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.

Based on your choices, Pizza Hut and Domino's prices are comparable, explains a food expert.

Although Pizza Hut provides off-premise options through third-party apps, it is missing out to big rivals which focus exclusively to the delivery sector.

“Another pizza company has succeeded in leading the delivery market thanks to strong promotions and frequent offers that make customers feel like they're saving money, when in reality the base costs are quite high,” notes the analyst.

However for the couple it is worth it to get their date night delivered to their door.

“We predominantly have meals at home now more than we eat out,” comments Joanne, reflecting latest data that show a drop in people going to quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a six percent decline in diners compared to the previous year.

There is also another rival to ordered-in pies: the supermarket pizza.

Will Hawkley, senior partner at a leading firm, notes that not only have grocery stores been providing high-quality ready-to-bake pizzas for a long time – some are even selling home-pizza ovens.

“Lifestyle changes are also having an impact in the popularity of quick-service brands,” states the analyst.

The increased interest of high protein diets has driven sales at chicken shops, while reducing sales of high-carbohydrate options, he continues.

As people visit restaurants more rarely, they may seek out a more high-quality meal, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more dated than premium.

The rise of artisanal pizza places” over the last 10 to 15 years, including popular brands, has “fundamentally changed the general opinion of what quality pizza is,” notes the industry commentator.

“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's decline,” she says.
“What person would spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who runs Smokey Deez based in a regional area says: “It's not that stopped liking pizza – they just want improved value.”

He says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

According to a small pizza brand in a city in southwest England, owner Jack Lander says the sector is expanding but Pizza Hut has not provided anything new.

“Currently available are individual slices, London pizza, new haven, artisan base, Neapolitan, Detroit – it's a heavenly minefield for a pizza enthusiast to discover.”

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

In recent years, Pizza Hut's customer base has been fragmented and allocated to its fresher, faster rivals. To sustain its high labor and location costs, it would have to raise prices – which experts say is challenging at a time when personal spending are shrinking.

A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to protect our guest experience and save employment where possible”.

He said its immediate priority was to continue operating at the remaining 64 restaurants and off-premise points and to assist staff through the transition.

Yet with so much money going into operating its locations, it may be unable to allocate significant resources in its delivery service because the industry is “complicated and working with existing external services comes at a expense”, analysts say.

However, it's noted, reducing expenses by withdrawing from crowded locations could be a effective strategy to evolve.

Ashley Fletcher
Ashley Fletcher

Certified nutritionist and wellness coach passionate about helping others achieve optimal health through sustainable habits.