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

At one time, the popular pizza chain was the favorite for groups and loved ones to enjoy its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.

But not as many patrons are visiting the brand nowadays, and it is shutting down a significant portion of its UK locations after being acquired following financial trouble for the second instance this year.

It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she comments “it's no longer popular.”

For 23-year-old Martina, certain features Pizza Hut has been famous for since it started in the UK in the mid-20th century are now less appealing.

“The manner in which they do their all-you-can-eat and their salad station, it seems as if they are cheapening on their quality and have reduced quality... They're giving away so much food and you're like ‘How?’”

Since grocery costs have soared, Pizza Hut's all-you-can-eat model has become quite costly to operate. As have its outlets, which are being reduced from 132 to a smaller figure.

The business, similar to other firms, has also seen its operating costs go up. In April this year, staffing costs rose due to increases in the legal wage floor and an higher rate of employer taxes.

Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from another pizza brand and think Pizza Hut is “very overpriced”.

According to your selection, Pizza Hut and Domino's prices are comparable, explains a food expert.

Even though Pizza Hut does offer takeaway and deliveries through third-party apps, it is losing out to big rivals which focus exclusively to off-premise dining.

“Domino's has taken over the off-premise pizza industry thanks to strong promotions and constantly running deals that make consumers feel like they're finding a good deal, when in reality the base costs are quite high,” says the specialist.

However for Chris and Joanne it is justified to get their evening together brought to their home.

“We predominantly have meals at home now more than we eat out,” says one of the diners, reflecting current figures that show a decrease in people going to quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a six percent decline in patrons compared to the previous year.

Moreover, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, global lead for leisure at a major consultancy, points out that not only have supermarkets been selling premium ready-to-bake pizzas for quite a while – some are even offering home-pizza ovens.

“Evolving preferences are also playing a factor in the success of fast-food chains,” states the analyst.

The increased interest of protein-rich eating plans has boosted sales at chicken shops, while affecting sales of dough-based meals, he continues.

Since people go out to eat more rarely, they may look for a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than premium.

The growth of premium pizza outlets” over the last several years, including popular brands, has “completely altered the general opinion of what quality pizza is,” notes the culinary analyst.

“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she states.

“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?

“The decision is simple.”

An independent operator, who operates a pizza van based in Suffolk comments: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

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

From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the sector is broadening but Pizza Hut has not provided anything innovative.

“Currently available are individual slices, artisanal styles, New Haven-style, artisan base, traditional Italian, deep-dish – it's a wonderful array for a pizza enthusiast to explore.”

The owner says Pizza Hut “should transform” as the youth don't have any sense of nostalgia or attachment to the brand.

Over time, Pizza Hut's customer base has been fragmented and distributed to its trendier, more nimble rivals. To sustain its costly operations, it would have to increase costs – which commentators say is tough at a time when household budgets are tightening.

A senior executive of Pizza Hut's global operations said the acquisition aimed “to protect our guest experience and protect jobs where possible”.

He said its first focus was to keep running at the surviving locations and off-premise points and to support colleagues through the transition.

But with significant funds going into maintaining its outlets, it likely can't afford to allocate significant resources in its off-premise division because the sector is “complicated and using existing third-party platforms comes at a price”, experts say.

However, it's noted, cutting its costs by exiting oversaturated towns and city centres could be a good way to adapt.