Why the Public Lost Its Appetite for the Pizza Hut Chain

At one time, Pizza Hut was the go-to for families and friends to enjoy its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.

However fewer patrons are choosing the brand nowadays, and it is reducing 50% of its British locations after being rescued from insolvency for the second time this year.

I remember going Pizza Hut when I was a child,” says Prudence. “It was like a family thing, 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.”

In the view of 23-year-old Martina, the very elements 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 seems as if they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How?’”

As food prices have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to run. Similarly, its locations, which are being sliced from over 130 to a smaller figure.

The business, similar to other firms, has also faced its costs go up. Earlier this year, staffing costs increased due to increases in the legal wage floor and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 mention they would often visit at Pizza Hut for a date “occasionally”, but now they order in Domino's and think Pizza Hut is “not good value”.

Depending on your order, Pizza Hut and Domino's costs are similar, notes a culinary author.

Even though Pizza Hut does offer pickup and delivery through delivery platforms, it is missing out to big rivals which specialize to off-premise dining.

“Another pizza company has taken over the delivery market thanks to aggressive marketing and constantly running deals that make consumers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” explains the expert.

But for the couple it is justified to get their date night delivered to their door.

“We predominantly have meals at home now rather than we eat out,” says Joanne, matching recent statistics that show a decrease in people visiting informal dining spots.

Over the summer, informal dining venues saw a 6% drop in diners compared to the previous year.

Additionally, one more competitor to pizza from eateries: the cook-at-home oven pizza.

An industry leader, global lead for leisure at a leading firm, notes that not only have supermarkets been selling good-standard ready-to-bake pizzas for a long time – some are even promoting home-pizza ovens.

“Lifestyle changes are also having an impact in the popularity of fast-food chains,” says the expert.

The growing trend of low-carb regimens has boosted sales at grilled chicken brands, while hitting sales of dough-based meals, he adds.

As people dine out less frequently, they may look for a more upscale outing, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more dated than upmarket.

The rise of artisanal pizza places” over the last decade and a half, for example new entrants, has “completely altered the general opinion of what excellent pie is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she says.
“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who owns a small business based in a regional area explains: “It's not that stopped liking pizza – they just want better pizza for their money.”

The owner says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it could not keep up with new customer habits.

From the perspective of a small pizza brand in a city in southwest England, owner Jack Lander says the industry is diversifying but Pizza Hut has failed to offer anything fresh.

“You now have individual slices, artisanal styles, new haven, sourdough, Neapolitan, rectangular – it's a delightful challenge for a pie fan to explore.”

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

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

A senior executive of Pizza Hut's international markets said the buyout aimed “to ensure our customer service and retain staff where possible”.

He said its key goal was to maintain service at the remaining 64 restaurants and delivery sites and to assist staff through the change.

But with so much money going into operating its locations, it may be unable to spend heavily in its takeaway operation because the sector is “complicated and working with existing third-party platforms comes at a cost”, commentators say.

However, it's noted, cutting its costs by leaving competitive urban areas could be a effective strategy to evolve.

Jessica Powers
Jessica Powers

A passionate wellness coach and writer dedicated to helping others find joy in everyday life through mindful practices.