Why the Public Lost Its Craving for the Pizza Hut Chain

Once, the popular pizza chain was the top choice for families and friends to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

Yet not as many patrons are choosing the chain nowadays, and it is reducing half of its UK restaurants after being acquired following financial trouble for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she states “it's fallen out of favor.”

In the view of a diner in her twenties, the very elements Pizza Hut has been famous for since it started in the UK in the seventies are now outdated.

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

As grocery costs have soared, Pizza Hut's buffet-style service has become very expensive to maintain. Similarly, its outlets, which are being sliced from a large number to a smaller figure.

The chain, similar to other firms, has also seen its operating costs rise. In April this year, staffing costs jumped due to higher minimum pay and an rise in employer social security payments.

A couple in their thirties and twenties say they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “too expensive”.

Based on your order, Pizza Hut and Domino's rates are close, notes an industry analyst.

While Pizza Hut does offer off-premise options through delivery platforms, it is falling behind to big rivals which specialize to the delivery sector.

“Another pizza company has succeeded in leading the delivery market thanks to strong promotions and frequent offers that make shoppers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” explains the specialist.

However for these customers it is justified to get their date night brought to their home.

“We absolutely dine at home now more than we eat out,” explains the female customer, matching latest data that show a decline in people going to casual and fast-food restaurants.

Over the summer, casual and fast-food restaurants saw a 6% drop in patrons compared to the year before.

Moreover, one more competitor to ordered-in pies: the frozen or fresh pizza.

An industry leader, global lead for leisure at an advisory group, explains that not only have supermarkets been providing premium oven-ready pizzas for a long time – some are even offering home-pizza ovens.

“Shifts in habits are also contributing in the performance of casual eateries,” says Mr. Hawkley.

The rising popularity of high protein diets has boosted sales at chicken shops, while affecting sales of carb-heavy pizza, he adds.

Since people visit restaurants less frequently, they may prefer a more upscale outing, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more dated than premium.

The “explosion of premium pizza outlets” over the last 10 to 15 years, including boutique chains, has “dramatically shifted the consumer view of what quality pizza is,” explains the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she says.
“Who would choose to spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
Dan Puddle, who operates a small business based in a county in England explains: “People haven’t lost interest in pizza – they just want improved value.”

He says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with changing preferences.

From the perspective of Pizzarova in a UK location, the proprietor says the industry is diversifying but Pizza Hut has neglected to introduce anything innovative.

“You now have individual slices, regional varieties, thin crust, artisan base, Neapolitan, Detroit – it's a delightful challenge for a pizza enthusiast to try.”

Jack says Pizza Hut “should transform” as newer generations don't have any fond memories or attachment to the chain.

Gradually, Pizza Hut's share has been divided and spread to its trendier, more nimble competitors. To sustain its expensive staffing and restaurants, it would have to charge more – which experts say is tough at a time when family finances are shrinking.

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

It was explained its immediate priority was to continue operating at the surviving locations and off-premise points and to help employees through the transition.

Yet with significant funds going into running its restaurants, it may be unable to spend heavily in its off-premise division because the industry is “difficult and working with existing third-party platforms comes at a price”, experts say.

Still, experts suggest, reducing expenses by withdrawing from competitive urban areas could be a smart move to evolve.

Trevor Rangel
Trevor Rangel

Elara is a passionate gamer and tech enthusiast, known for her in-depth game analyses and engaging community content.