How the Public Lost Interest in Its Craving for Pizza Hut

At one time, the popular pizza chain was the go-to for groups and loved ones to feast on its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.

But not as many diners are visiting the restaurant currently, and it is shutting down 50% of its UK restaurants after being bought out of administration for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” says a young adult. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, as a young adult, she says “it's not a thing anymore.”

In the view of 23-year-old Martina, certain features Pizza Hut has been known and loved for since it launched in the UK in the seventies are now outdated.

“The manner in which they do their buffet and their salad bar, it seems as if they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How can they?’”

As grocery costs have soared, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. Similarly, its locations, which are being reduced from 132 to just over 60.

The business, like many others, has also experienced its operating costs rise. In April this year, labor expenses rose due to increases in the legal wage floor and an higher rate of employer taxes.

Two diners explain they frequently dined at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “very overpriced”.

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

Even though Pizza Hut provides off-premise options through delivery platforms, it is losing out to major competitors which solely cater to this market.

“Another pizza company has taken over the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the standard rates are quite high,” notes the specialist.

However for the couple it is acceptable to get their special meal delivered to their door.

“We predominantly have meals at home now rather than we eat out,” says the female customer, reflecting recent statistics that show a drop in people visiting casual and fast-food restaurants.

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

There is also one more competitor to ordered-in pies: the frozen or fresh pizza.

Will Hawkley, global lead for leisure at a leading firm, explains that not only have grocery stores been offering good-standard oven-ready pizzas for a long time – some are even offering pizza-making appliances.

“Shifts in habits are also playing a factor in the performance of casual eateries,” says the expert.

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

Because people visit restaurants less frequently, they may prefer a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more old-fashioned than upmarket.

The “explosion of high-quality pizzerias” over the last several years, for example popular brands, has “completely altered the consumer view of what quality pizza is,” notes the industry commentator.

“A light, fresh, easy-to-digest product 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.

“What person would spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?

“It's a no-brainer.”

An independent operator, who operates Smokey Deez based in Suffolk says: “People haven’t stopped liking pizza – they just want better pizza for their money.”

Dan says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.

At an independent chain in Bristol, owner Jack Lander says the sector is broadening but Pizza Hut has neglected to introduce anything new.

“You now have individual slices, regional varieties, thin crust, fermented dough, Neapolitan, rectangular – it's a heavenly minefield for a pizza enthusiast to try.”

The owner says Pizza Hut “needs to reinvent itself” as the youth don't have any fond memories or allegiance to the company.

Gradually, Pizza Hut's market has been fragmented and distributed to its more modern, agile alternatives. To sustain its high labor and location costs, it would have to increase costs – which commentators say is tough at a time when household budgets are decreasing.

The managing director of Pizza Hut's global operations said the rescue aimed “to safeguard our dining experience and save employment where possible”.

It was explained its key goal was to maintain service at the open outlets and delivery sites and to support colleagues through the restructure.

Yet with so much money going into maintaining its outlets, it probably cannot to invest too much in its takeaway operation because the market is “complex and partnering with existing external services comes at a price”, experts say.

However, it's noted, lowering overhead by withdrawing from oversaturated towns and city centres could be a effective strategy to evolve.