Why the Public Lost Its Taste for Pizza Hut

At one time, Pizza Hut was the go-to for parents and children to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.

However fewer customers are choosing the chain these days, and it is shutting down a significant portion of its British outlets after being bought out of administration for the second instance this calendar year.

“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she states “it's fallen out of favor.”

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

“How they do their all-you-can-eat and their salad station, it feels like they are lowering standards and have lower standards... They provide so much food and you're like ‘How is that possible?’”

Since ingredient expenses have increased significantly, Pizza Hut's unlimited dining format has become very expensive to operate. The same goes for its locations, which are being reduced from 132 to 64.

The chain, similar to other firms, has also faced its expenses increase. This spring, employee wages jumped due to rises in minimum wages and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.

Based on your selection, Pizza Hut and Domino's costs are similar, notes a food expert.

Even though Pizza Hut does offer pickup and delivery through delivery platforms, it is missing out to larger chains which specialize to the delivery sector.

“Another pizza company has managed to dominate the takeaway pizza sector thanks to aggressive marketing and frequent offers that make consumers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” says the expert.

Yet for Chris and Joanne it is justified to get their special meal sent directly.

“We absolutely dine at home now instead of we eat out,” explains Joanne, matching latest data that show a decrease in people visiting quick-service eateries.

Over the summer, informal dining venues saw a six percent decline in diners compared to the previous year.

There is also a further alternative to ordered-in pies: the frozen or fresh pizza.

An industry leader, senior partner at a leading firm, points out that not only have supermarkets been providing premium oven-ready pizzas for years – some are even selling countertop ovens.

“Lifestyle changes are also contributing in the success of fast-food chains,” says the analyst.

The increased interest of high protein diets has increased sales at poultry outlets, while affecting sales of carb-heavy pizza, he adds.

As people dine out not as often, they may seek out a more upscale outing, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more dated than upmarket.

The rise of artisanal pizza places” over the last several years, including popular brands, has “fundamentally changed the public's perception of what quality pizza is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's downfall,” she comments.

“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many traditional pizzerias around the country?

“It's a no-brainer.”

Dan Puddle, who operates a small business based in a regional area says: “It's not that stopped liking pizza – they just want higher quality at a fair price.”

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

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

“You now have by-the-slice options, London pizza, New Haven-style, artisan base, traditional Italian, deep-dish – it's a delightful challenge for a pizza enthusiast to explore.”

Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or allegiance to the brand.

In recent years, Pizza Hut's customer base has been sliced up and spread to its trendier, more nimble rivals. To keep up its costly operations, it would have to charge more – which commentators say is difficult at a time when personal spending are shrinking.

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

He said its key goal was to keep running at the open outlets and delivery sites and to assist staff through the transition.

However with significant funds going into operating its locations, it probably cannot to allocate significant resources in its off-premise division because the sector is “difficult and partnering with existing external services comes at a expense”, analysts say.

But, he adds, reducing expenses by exiting crowded locations could be a effective strategy to evolve.