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

In the past, the popular pizza chain was the favorite for parents and children to feast on its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.

But fewer diners are choosing the restaurant nowadays, and it is reducing 50% of its UK outlets after being bought out of administration for the second time this calendar year.

“We used to go 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.” But now, in her mid-twenties, she comments “it's fallen out of favor.”

According to young customer Martina, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the 1970s are now outdated.

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

Since grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to operate. As have its restaurants, which are being cut from over 130 to a smaller figure.

The business, similar to other firms, has also seen its operating costs go up. In April this year, labor expenses jumped due to rises in minimum wages and an rise in employer taxes.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.

Depending on your selection, Pizza Hut and Domino's costs are similar, notes an industry analyst.

While Pizza Hut has off-premise options through third-party apps, it is losing out to larger chains which solely cater to the delivery sector.

“The rival chain has succeeded in leading the delivery market thanks to aggressive marketing and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” explains the specialist.

However for the couple it is acceptable to get their special meal brought to their home.

“We definitely eat at home now more than we eat out,” says the female customer, reflecting latest data that show a decrease in people going to quick-service eateries.

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

There is also another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, senior partner at a leading firm, points out that not only have supermarkets been selling premium oven-ready pizzas for quite a while – some are even selling pizza-making appliances.

“Lifestyle changes are also having an impact in the popularity of casual eateries,” says Mr. Hawkley.

The rising popularity of protein-rich eating plans has increased sales at chicken shops, while hitting sales of high-carbohydrate options, he notes.

Since people dine out more rarely, they may look for a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more old-fashioned than premium.

The growth of artisanal pizza places” over the last decade and a half, such as new entrants, has “completely altered the general opinion of what excellent pie is,” says the food expert.

“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 resulted in Pizza Hut's decline,” she says.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns Smokey Deez based in Suffolk says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”

The owner says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.

At Pizzarova in Bristol, owner Jack Lander says the sector is broadening but Pizza Hut has not provided anything innovative.

“You now have by-the-slice options, London pizza, thin crust, fermented dough, traditional Italian, deep-dish – it's a delightful challenge for a pizza enthusiast to try.”

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

Over time, Pizza Hut's customer base has been fragmented and distributed to its more modern, agile competitors. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is tough at a time when household budgets are decreasing.

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

He said its first focus was to maintain service at the remaining 64 restaurants and delivery sites and to help employees through the transition.

Yet with significant funds going into maintaining its outlets, it probably cannot to allocate significant resources in its takeaway operation because the sector is “complicated and working with existing third-party platforms comes at a expense”, experts say.

Still, experts suggest, lowering overhead by withdrawing from oversaturated towns and city centres could be a good way to adapt.

Alex Duarte
Alex Duarte

A passionate writer and digital enthusiast with a knack for storytelling and sharing actionable insights.