How the Public Lost Interest in Its Taste for Pizza Hut

At one time, Pizza Hut was the top choice for families and friends to feast on its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

But a declining number of customers are frequenting the chain these days, and it is shutting down a significant portion of its British restaurants 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 a tradition, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she says “it's not a thing anymore.”

According to 23-year-old Martina, the very elements Pizza Hut has been famous for since it started in the UK in the mid-20th century are now less appealing.

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

Since grocery costs have increased significantly, Pizza Hut's buffet-style service has become very expensive to maintain. Similarly, its outlets, which are being sliced from over 130 to just over 60.

The business, like many others, has also experienced its costs rise. In April this year, labor expenses rose due to rises in minimum wages and an rise in employer national insurance contributions.

Two diners mention they frequently dined at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “very overpriced”.

Depending on your selection, Pizza Hut and Domino's prices are close, notes a food expert.

Although Pizza Hut has off-premise options through external services, it is missing out to major competitors which solely cater to off-premise dining.

“The rival chain has managed to dominate the delivery market thanks to intensive advertising and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” explains the analyst.

But for the couple it is justified to get their date night delivered to their door.

“We predominantly have meals at home now rather than we eat out,” explains the female customer, matching current figures that show a decrease in people visiting informal dining spots.

During the summer months, informal dining venues saw a 6% drop in patrons compared to the year before.

Moreover, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, global lead for leisure at an advisory group, points out that not only have grocery stores been offering good-standard prepared pies for years – some are even offering pizza-making appliances.

“Lifestyle changes are also contributing in the performance of fast-food chains,” states the expert.

The growing trend of high protein diets has increased sales at chicken shops, while reducing sales of high-carbohydrate options, he continues.

Because people dine out not as often, they may seek out a more premium experience, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than upmarket.

The rise of premium pizza outlets” over the last decade and a half, for example popular brands, has “dramatically shifted the consumer view of what excellent pie is,” says the industry commentator.

“A light, fresh, easy-to-digest product with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she comments.
“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who runs a small business based in a regional area comments: “The issue isn’t that stopped liking pizza – they just want improved value.”

He says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut struggled because it could not keep up with new customer habits.

According to an independent chain in a UK location, the founder says the pizza market is broadening but Pizza Hut has not provided anything fresh.

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

Jack says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or loyalty to the company.

Gradually, Pizza Hut's market has been fragmented and distributed to its fresher, faster competitors. To sustain its high labor and location costs, it would have to raise prices – which commentators say is tough at a time when personal spending are shrinking.

The leadership of Pizza Hut's overseas branches said the acquisition aimed “to ensure our customer service and retain staff where possible”.

It was explained its key goal was to maintain service at the open outlets and off-premise points and to help employees through the restructure.

However with so much money going into operating its locations, it may be unable to spend heavily in its delivery service because the industry is “difficult and using existing external services comes at a price”, experts say.

Still, experts suggest, reducing expenses by leaving oversaturated towns and city centres could be a smart move to evolve.

Adam Burns
Adam Burns

An avid hiker and nature photographer with a passion for exploring Sardinia's hidden gems and sharing travel insights.