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

Once, the popular pizza chain was the top choice for families and friends to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.

But fewer customers are visiting the chain these days, and it is shutting down 50% of its UK restaurants after being acquired following financial trouble for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, aged 24, she states “it's no longer popular.”

In the view of young customer Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the 1970s are now less appealing.

“The way they do their all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How can they?’”

As grocery costs have increased significantly, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. Similarly, its restaurants, which are being cut from over 130 to a smaller figure.

The company, like many others, has also faced its expenses go up. In April this year, employee wages rose due to increases in the legal wage floor and an rise in employer taxes.

Two diners mention they frequently dined at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.

Depending on your selection, Pizza Hut and Domino's rates are comparable, notes a food expert.

While Pizza Hut does offer off-premise options through external services, it is losing out to big rivals which focus exclusively to this market.

“Domino's has succeeded in leading the off-premise pizza industry thanks to intensive advertising and frequent offers that make shoppers feel like they're finding a good deal, when in reality the original prices are on the higher side,” notes the analyst.

Yet 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,” says one of the diners, matching current figures that show a decline in people going to informal dining spots.

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

There is also one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, senior partner at a major consultancy, points out that not only have grocery stores been providing high-quality oven-ready pizzas for years – some are even promoting pizza-making appliances.

“Shifts in habits are also contributing in the success of casual eateries,” states the analyst.

The growing trend of protein-rich eating plans has boosted sales at chicken shops, while reducing sales of high-carbohydrate options, he continues.

Because people go out to eat more rarely, they may seek out a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more old-fashioned than premium.

The rise of premium pizza outlets” over the last decade and a half, for example boutique chains, has “completely altered the consumer view of what quality pizza is,” explains the food expert.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she comments.
“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
Dan Puddle, who operates a pizza van based in Suffolk explains: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”

The owner says his flexible operation can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.

According to a small pizza brand in a city in southwest England, the founder says the pizza market is diversifying but Pizza Hut has failed to offer anything new.

“There are now slice concepts, London pizza, new haven, artisan base, wood-fired, Detroit – it's a delightful challenge for a pie fan to discover.”

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

Gradually, Pizza Hut's market has been sliced up and distributed to its trendier, more nimble rivals. To keep up its expensive staffing and restaurants, it would have to increase costs – which experts say is tough at a time when personal spending are tightening.

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

It was explained its immediate priority was to continue operating at the remaining 64 restaurants and off-premise points and to support colleagues through the restructure.

However with large sums going into operating its locations, it probably cannot to invest too much in its takeaway operation because the sector is “difficult and working with existing third-party platforms comes at a cost”, analysts say.

But, he adds, lowering overhead by exiting oversaturated towns and city centres could be a effective strategy to adjust.

Lauren Wells
Lauren Wells

A passionate chef and food writer specializing in Venetian cuisine, sharing authentic recipes and cultural stories.