Why the Public Lost Interest in Its Craving for Pizza Hut

In the past, Pizza Hut was the top choice for groups and loved ones to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.

Yet fewer diners are visiting the chain nowadays, and it is closing half of its British restaurants after being acquired following financial trouble for the second instance this calendar year.

“We used to go Pizza Hut when I was a child,” explains 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 fallen out of favor.”

According to 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now less appealing.

“How they do their all-you-can-eat and their salad station, it appears that they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How?’”

Because food prices have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. As have its locations, which are being reduced from over 130 to 64.

The business, like many others, has also experienced its operating costs rise. This spring, staffing costs rose due to rises in minimum wages and an rise in employer social security payments.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.

According to your selection, Pizza Hut and Domino's rates are comparable, says a culinary author.

Even though Pizza Hut has takeaway and deliveries through delivery platforms, it is missing out to larger chains which specialize to the delivery sector.

“Another pizza company has succeeded in leading the off-premise pizza industry thanks to strong promotions and ongoing discounts that make shoppers feel like they're saving money, when in reality the base costs are quite high,” says the specialist.

But for the couple it is acceptable to get their date night brought to their home.

“We definitely eat at home now rather than we eat out,” comments the female customer, reflecting recent statistics that show a decrease in people going to quick-service eateries.

During the summer months, quick-service eateries saw a notable decrease in diners compared to the previous year.

Moreover, a further alternative to ordered-in pies: the frozen or fresh pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, notes that not only have retailers been offering good-standard oven-ready pizzas for quite a while – some are even offering pizza-making appliances.

“Lifestyle changes are also playing a factor in the performance of casual eateries,” says the expert.

The increased interest of high protein diets has driven sales at grilled chicken brands, while affecting sales of dough-based meals, he adds.

Because people dine out not as often, they may prefer a more premium experience, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more old-fashioned than luxurious.

The “explosion of artisanal pizza places” over the last several years, including popular brands, has “dramatically shifted the consumer view of what quality pizza is,” explains the culinary analyst.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she says.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
An independent operator, who owns a pizza van based in a regional area explains: “People haven’t fallen out of love with pizza – they just want improved value.”

Dan says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.

At a small pizza brand in Bristol, owner Jack Lander says the industry is expanding but Pizza Hut has not provided anything innovative.

“You now have by-the-slice options, regional varieties, new haven, sourdough, wood-fired, deep-dish – it's a heavenly minefield for a pizza-loving consumer to try.”

Jack says Pizza Hut “should transform” as younger people don't have any fond memories or loyalty to the company.

Gradually, Pizza Hut's customer base has been divided and spread to its fresher, faster alternatives. To maintain its high labor and location costs, it would have to increase costs – which commentators say is challenging at a time when household budgets are decreasing.

A senior executive of Pizza Hut's international markets said the acquisition aimed “to protect our dining experience and retain staff where possible”.

The executive stated its immediate priority was to keep running at the surviving locations and off-premise points and to support colleagues through the restructure.

But with large sums going into operating its locations, it may be unable to spend heavily in its off-premise division because the market is “complicated and working with existing third-party platforms comes at a price”, analysts say.

Still, experts suggest, reducing expenses by exiting crowded locations could be a good way to adjust.

Rachel Mathis
Rachel Mathis

A tech enthusiast and writer passionate about exploring the intersection of innovation and daily life.