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

At one time, the popular pizza chain was the go-to for groups and loved ones to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.

Yet a declining number of diners are choosing the brand currently, and it is closing half of its UK outlets after being bought out of administration for the second time this year.

It was common to visit Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, as a young adult, she states “it's fallen out of favor.”

According to 23-year-old Martina, the very elements Pizza Hut has been recognized for since it launched in the UK in the seventies are now less appealing.

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

As grocery costs have soared, Pizza Hut's buffet-style service has become increasingly pricey to run. As have its outlets, which are being sliced from a large number to 64.

The company, like many others, has also experienced its operating costs increase. Earlier this year, employee wages jumped due to rises in minimum wages and an higher rate of employer taxes.

Two diners say they would often visit at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.

According to your selection, Pizza Hut and Domino's costs are close, says an industry analyst.

While Pizza Hut has off-premise options through third-party apps, it is missing out to major competitors which specialize to this market.

“Another pizza company has taken over the delivery market thanks to intensive advertising and ongoing discounts that make customers feel like they're getting a bargain, when in reality the base costs are on the higher side,” notes the specialist.

However for Chris and Joanne it is acceptable to get their date night sent directly.

“We definitely eat at home now more than we eat out,” comments Joanne, echoing current figures that show a decrease in people going to quick-service eateries.

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

There is also a further alternative to ordered-in pies: the supermarket pizza.

Will Hawkley, global lead for leisure at a leading firm, points out that not only have retailers been offering high-quality ready-to-bake pizzas for a long time – some are even promoting countertop ovens.

“Lifestyle changes are also contributing in the performance of fast-food chains,” says Mr. Hawkley.

The rising popularity of high protein diets has boosted sales at grilled chicken brands, while affecting sales of dough-based meals, he notes.

Because people dine out more rarely, they may prefer a more upscale outing, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more old-fashioned than luxurious.

The rise of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “fundamentally changed the consumer view of what good pizza is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,” she comments.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“It's an easy choice.”
A mobile pizza vendor, who runs a pizza van based in a county in England comments: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.

At an independent chain in Bristol, the founder says the industry is diversifying but Pizza Hut has failed to offer anything fresh.

“There are now individual slices, artisanal styles, New Haven-style, sourdough, wood-fired, Detroit – it's a delightful challenge for a pizza enthusiast to try.”

He says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or loyalty to the brand.

In recent years, Pizza Hut's share has been fragmented and allocated to its more modern, agile rivals. To maintain its high labor and location costs, it would have to raise prices – which experts say is challenging at a time when family finances are tightening.

The managing director of Pizza Hut's global operations said the acquisition aimed “to ensure our dining experience and retain staff where possible”.

He said its first focus was to maintain service at the surviving locations and delivery sites and to assist staff through the restructure.

However with significant funds going into operating its locations, it likely can't afford to invest too much in its takeaway operation because the sector is “difficult and partnering with existing delivery apps comes at a cost”, experts say.

Still, experts suggest, cutting its costs by exiting competitive urban areas could be a smart move to evolve.

Jamie Johnson
Jamie Johnson

A travel enthusiast and local expert in Italian tourism, sharing insights on car rentals and exploring hidden gems in Tuscany.