How the Public Turned Away from Its Taste for the Pizza Hut Chain

Once, Pizza Hut was the top choice for groups and loved ones to feast on its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.

Yet a declining number of customers are frequenting the brand currently, and it is shutting down half of its UK outlets after being rescued from insolvency for the second time this year.

I remember going Pizza Hut when I was a child,” says one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, aged 24, she states “it's no longer popular.”

According to 23-year-old Martina, some of the very things Pizza Hut has been famous for since it opened in the UK in the seventies are now not-so-hot.

“How they do their all-you-can-eat and their salad bar, 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 is that possible?’”

Since grocery costs have soared, Pizza Hut's buffet-style service has become quite costly to operate. As have its outlets, which are being sliced from 132 to 64.

The company, in common with competitors, has also seen its operating costs rise. In April this year, labor expenses increased due to higher minimum pay and an higher rate of employer social security payments.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “every now and then”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's prices are comparable, says a food expert.

Although Pizza Hut provides off-premise options through third-party apps, it is missing out to big rivals which focus exclusively to this market.

“Another pizza company has succeeded in leading the delivery market thanks to strong promotions and ongoing discounts that make customers feel like they're getting a bargain, when in reality the base costs are quite high,” notes the specialist.

Yet for the couple it is acceptable to get their evening together sent directly.

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

During the summer months, casual and fast-food restaurants saw a six percent decline in customers compared to last summer.

Additionally, another rival to restaurant and takeaway pizzas: the supermarket pizza.

Will Hawkley, global lead for leisure at a major consultancy, explains that not only have supermarkets been providing good-standard prepared pies for years – some are even selling pizza-making appliances.

“Evolving preferences are also contributing in the performance of quick-service brands,” comments the analyst.

The growing trend of high protein diets has increased sales at poultry outlets, while reducing sales of high-carbohydrate options, he notes.

As people dine out not as often, they may prefer a more premium experience, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more retro than luxurious.

The rise of premium pizza outlets” over the last decade and a half, such as popular brands, has “completely altered the general opinion of what excellent pie is,” explains the industry commentator.

“A thin, flavorful, gentle crust with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she comments.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns a pizza van based in a county in England says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”

The owner says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it could not keep up with changing preferences.

According to Pizzarova in Bristol, the proprietor says the sector is diversifying but Pizza Hut has not provided anything fresh.

“Currently available are by-the-slice options, London pizza, new haven, sourdough, traditional Italian, rectangular – it's a wonderful array for a pie fan to discover.”

Jack says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or loyalty to the brand.

Over time, Pizza Hut's market has been sliced up and distributed to its fresher, faster rivals. To keep up its costly operations, it would have to increase costs – which commentators say is challenging at a time when household budgets are decreasing.

The leadership of Pizza Hut's overseas branches said the acquisition aimed “to safeguard our customer service and protect jobs where possible”.

It was explained its first focus was to continue operating at the open outlets and off-premise points and to help employees through the restructure.

However with so much money going into running its restaurants, it may be unable to invest too much in its off-premise division because the industry is “complicated and working with existing external services comes at a price”, analysts say.

However, it's noted, reducing expenses by withdrawing from oversaturated towns and city centres could be a smart move to adapt.

Jacob Cox
Jacob Cox

A seasoned entrepreneur and startup advisor with over a decade of experience in venture capital and business development.