How the Public Lost Interest in Its Taste for Pizza Hut

In the past, Pizza Hut was the top choice for groups and loved ones to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

Yet a declining number of customers are frequenting the restaurant nowadays, and it is shutting down half of its UK outlets after being acquired following financial trouble for the second instance this calendar year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she comments “it's no longer popular.”

According to a diner in her twenties, certain features Pizza Hut has been famous for since it opened in the UK in the seventies are now not-so-hot.

“The manner in which they do their buffet and their salad station, it appears that they are cheapening on their quality and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

Because food prices have risen sharply, Pizza Hut's unlimited dining format has become quite costly to run. Similarly, its outlets, which are being reduced from a large number to a smaller figure.

The company, in common with competitors, has also seen its expenses rise. In April this year, employee wages increased due to higher minimum pay and an rise in employer national insurance contributions.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

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

While Pizza Hut provides pickup and delivery through external services, it is falling behind to big rivals which focus exclusively to this market.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and frequent offers that make customers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” notes the analyst.

However for Chris and Joanne it is acceptable to get their date night brought to their home.

“We definitely eat at home now rather than we eat out,” explains one of the diners, echoing latest data that show a drop in people going to casual and fast-food restaurants.

Over the summer, quick-service eateries saw a notable decrease in diners compared to the previous year.

There is also another rival to ordered-in pies: the frozen or fresh pizza.

An industry leader, global lead for leisure at a leading firm, explains that not only have grocery stores been selling high-quality oven-ready pizzas for a long time – some are even offering home-pizza ovens.

“Lifestyle changes are also having an impact in the performance of quick-service brands,” states the expert.

The rising popularity of high protein diets has driven sales at poultry outlets, while hitting sales of dough-based meals, he adds.

Because people go out to eat more rarely, they may seek out a more high-quality meal, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more dated than luxurious.

The growth of high-quality pizzerias” over the last 10 to 15 years, including boutique chains, has “fundamentally changed the public's perception of what good pizza 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 caused Pizza Hut's struggles,” she comments.

“Why would anyone spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for a lower price at one of the many traditional pizzerias around the country?

“It's an easy choice.”

An independent operator, who owns Smokey Deez based in a regional area comments: “People haven’t lost interest in pizza – they just want improved value.”

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

At a small pizza brand in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has failed to offer anything new.

“There are now by-the-slice options, artisanal styles, New Haven-style, artisan base, traditional Italian, deep-dish – it's a heavenly minefield for a pizza-loving consumer to try.”

He says Pizza Hut “must rebrand” as the youth don't have any fond memories or allegiance to the company.

In recent years, Pizza Hut's share has been fragmented and distributed to its fresher, faster competitors. To keep up 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 acquisition aimed “to safeguard our guest experience and protect jobs where possible”.

It was explained its immediate priority was to continue operating at the open outlets and delivery sites and to help employees through the restructure.

However with so much money going into running its restaurants, it may be unable to invest too much in its off-premise division because the market is “complex and using existing third-party platforms comes at a expense”, experts say.

But, he adds, lowering overhead by withdrawing from oversaturated towns and city centres could be a good way to adapt.