Why the Public Lost Interest in Its Appetite for Pizza Hut

Once, Pizza Hut was the top choice for groups and loved ones to enjoy its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.

However not as many customers are visiting the brand currently, and it is closing a significant portion of its UK restaurants after being acquired following financial trouble for the second instance this year.

It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was a regular outing, you'd go on a Sunday – make a day of it.” But now, aged 24, she says “it's no longer popular.”

For a diner in her twenties, the very elements Pizza Hut has been recognized for since it launched in the UK in the 1970s are now outdated.

“The way they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have lower standards... They offer so much food and you're like ‘How?’”

As food prices have risen sharply, Pizza Hut's unlimited dining format has become quite costly to maintain. The same goes for its restaurants, which are being cut from over 130 to just over 60.

The chain, similar to other firms, has also seen its operating costs increase. In April this year, staffing costs rose due to rises in minimum wages and an increase in employer social security payments.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

Based on your selection, Pizza Hut and Domino's rates are similar, says an industry analyst.

Even though Pizza Hut provides pickup and delivery through delivery platforms, it is falling behind to larger chains which solely cater to the delivery sector.

“Another pizza company has taken over the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make customers feel like they're getting a bargain, when in reality the base costs are on the higher side,” notes the analyst.

Yet for the couple it is worth it to get their date night sent directly.

“We predominantly have meals at home now instead of we eat out,” says Joanne, echoing current figures that show a decline in people going to casual and fast-food restaurants.

During the summer months, quick-service eateries saw a six percent decline in customers compared to last summer.

There is also one more competitor to pizza from eateries: the cook-at-home oven pizza.

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

“Evolving preferences are also contributing in the success of quick-service brands,” states the expert.

The increased interest of protein-rich eating plans has increased sales at grilled chicken brands, while affecting sales of dough-based meals, he notes.

Because people go out to eat more rarely, they may prefer a more premium experience, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more dated than luxurious.

The growth of high-quality pizzerias” over the last decade and a half, for example new entrants, has “fundamentally changed the general opinion of what quality pizza is,” says the food expert.

“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she comments.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who operates a small business based in Suffolk says: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”

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

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

“There are now slice concepts, regional varieties, thin crust, sourdough, traditional Italian, rectangular – it's a heavenly minefield for a pizza enthusiast to discover.”

He says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or allegiance to the brand.

Over time, Pizza Hut's customer base has been divided and distributed to its more modern, agile rivals. To sustain its costly operations, it would have to charge more – which commentators say is challenging at a time when personal spending are tightening.

A senior executive of Pizza Hut's international markets said the rescue aimed “to safeguard our guest experience and save employment where possible”.

It was explained its immediate priority was to maintain service at the remaining 64 restaurants and off-premise points and to assist staff through the transition.

But with so much money going into maintaining its outlets, it likely can't afford to invest too much in its delivery service because the industry is “complex and using existing third-party platforms comes at a expense”, commentators say.

Still, experts suggest, cutting its costs by leaving competitive urban areas could be a effective strategy to evolve.

Thomas Martinez
Thomas Martinez

A tech-savvy writer passionate about simplifying complex topics for everyday readers, with a background in digital media.