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

Once, Pizza Hut was the top choice for families and friends to feast on its unlimited dining experience, endless salad selection, and self-serve ice-cream.

But a declining number of diners are visiting the restaurant currently, and it is reducing half of its British outlets after being bought out of administration for the second instance this calendar year.

I remember going Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's no longer popular.”

For 23-year-old Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the seventies are now outdated.

“The way they do their all-you-can-eat and their salad station, it appears that they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How can they?’”

Since grocery costs have soared, Pizza Hut's unlimited dining format has become increasingly pricey to run. Similarly, its locations, which are being sliced from a large number to just over 60.

The chain, like many others, has also experienced its costs go up. Earlier this year, labor expenses rose due to higher minimum pay and an rise in employer social security payments.

A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “too expensive”.

Based on your choices, Pizza Hut and Domino's costs are close, explains an industry analyst.

While Pizza Hut has takeaway and deliveries through delivery platforms, it is falling behind to big rivals which solely cater to off-premise dining.

“The rival chain has succeeded in leading the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're saving money, when in reality the original prices are quite high,” explains the analyst.

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

“We predominantly have meals at home now rather than we eat out,” comments the female customer, matching latest data that show a drop in people going to informal dining spots.

In the warmer season, quick-service eateries saw a six percent decline in diners compared to the year before.

Moreover, another rival to ordered-in pies: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, notes that not only have grocery stores been selling high-quality ready-to-bake pizzas for a long time – some are even promoting countertop ovens.

“Evolving preferences are also contributing in the performance of fast-food chains,” comments the expert.

The rising popularity of protein-rich eating plans has increased sales at poultry outlets, while reducing sales of high-carbohydrate options, he notes.

Because people visit restaurants more rarely, they may prefer a more premium experience, and Pizza Hut's classic look 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 decade and a half, such as popular brands, has “fundamentally changed the public's perception of what excellent pie is,” explains the industry commentator.

“A crisp, airy, digestible pizza with a carefully curated additions, 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 states.
“Who would choose to spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“The decision is simple.”
An independent operator, who owns a pizza van based in Suffolk says: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”

He says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it failed to adapt with evolving tastes.

From the perspective of Pizzarova in a UK location, owner Jack Lander says the industry is diversifying but Pizza Hut has not provided anything innovative.

“There are now individual slices, London pizza, thin crust, fermented dough, wood-fired, rectangular – it's a heavenly minefield for a pizza enthusiast to discover.”

He says Pizza Hut “should transform” as the youth don't have any emotional connection or loyalty to the company.

Over time, Pizza Hut's share has been fragmented and spread to its fresher, faster alternatives. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is challenging at a time when personal spending are shrinking.

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

The executive stated its first focus was to keep running at the open outlets and off-premise points and to support colleagues through the change.

Yet with so much money going into operating its locations, it probably cannot to invest too much in its off-premise division because the sector is “complex and working with existing third-party platforms comes at a price”, commentators say.

However, it's noted, reducing expenses by leaving crowded locations could be a smart move to evolve.

Samantha Clayton
Samantha Clayton

A passionate traveler and writer who has explored over 50 countries, sharing insights and stories to inspire wanderlust in others.