Why the Public Lost Interest in Its Taste for the Pizza Hut Chain

In the past, the popular pizza chain was the top choice for groups and loved ones to enjoy its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.

However a declining number of customers are choosing the chain nowadays, and it is shutting down half of its British outlets after being rescued from insolvency for the second instance this year.

It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she states “it's fallen out of favor.”

According to a diner in her twenties, the very elements Pizza Hut has been famous for since it started in the UK in the mid-20th century are now outdated.

“The way 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 offer so much food and you're like ‘How is that possible?’”

As ingredient expenses have increased significantly, Pizza Hut's unlimited dining format has become very expensive to run. As have its outlets, which are being sliced from 132 to a smaller figure.

The chain, similar to other firms, has also faced its expenses rise. This spring, employee wages increased due to higher minimum pay and an higher rate of employer social security payments.

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

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

Even though Pizza Hut provides off-premise options through third-party apps, it is missing out to big rivals which specialize to off-premise dining.

“Domino's has managed to dominate the off-premise pizza industry thanks to strong promotions and frequent offers that make customers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” explains the expert.

But for the couple it is acceptable to get their date night sent directly.

“We absolutely dine at home now instead of we eat out,” explains Joanne, echoing recent statistics that show a drop in people frequenting casual and fast-food restaurants.

In the warmer season, quick-service eateries saw a notable decrease in patrons compared to the year before.

Additionally, another rival to pizza from eateries: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, notes that not only have supermarkets been offering premium ready-to-bake pizzas for years – some are even selling pizza-making appliances.

“Shifts in habits are also contributing in the popularity of fast-food chains,” says Mr. Hawkley.

The rising popularity of high protein diets has driven sales at chicken shops, while reducing sales of carb-heavy pizza, he continues.

Because people go out to eat more rarely, they may seek out a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than premium.

The growth of high-quality pizzerias” over the last several years, for example popular brands, has “fundamentally changed the consumer view of what good pizza is,” says the industry commentator.

“A crisp, airy, digestible pizza with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she states.
“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns Smokey Deez based in a county in England comments: “People haven’t lost interest in pizza – they just want better pizza for their money.”

The owner says his flexible operation can offer gourmet pizza 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 Bristol, the proprietor says the sector is expanding but Pizza Hut has not provided anything fresh.

“Currently available are slice concepts, London pizza, new haven, sourdough, Neapolitan, rectangular – it's a wonderful array for a pizza enthusiast to try.”

He says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or allegiance to the chain.

In recent years, Pizza Hut's customer base has been fragmented and spread to its fresher, faster rivals. To keep up its expensive staffing and restaurants, it would have to charge more – which experts say is difficult at a time when family finances are decreasing.

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

It was explained its immediate priority was to continue operating at the remaining 64 restaurants and takeaway hubs and to help employees through the restructure.

But with so much money going into running its restaurants, it may be unable to allocate significant resources in its delivery service because the market is “complex and using existing external services comes at a price”, commentators say.

Still, experts suggest, cutting its costs by withdrawing from competitive urban areas could be a good way to adapt.

Keith Hernandez
Keith Hernandez

A seasoned traveler and digital nomad sharing insights on remote work, cultural experiences, and minimalist living across the globe.