How the Public Turned Away from Its Appetite for Pizza Hut

In the past, Pizza Hut was the go-to for parents and children to indulge in its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

Yet a declining number of diners are choosing the brand these days, and it is shutting down a significant portion of its UK restaurants after being rescued from insolvency for the second time this calendar year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's no longer popular.”

According to a diner in her twenties, the very elements Pizza Hut has been known and loved for since it launched in the UK in the seventies are now outdated.

“The way they do their all-you-can-eat and their salad bar, it appears that they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How can they?’”

Because food prices have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. As have its restaurants, which are being cut from 132 to just over 60.

The company, similar to other firms, has also faced its expenses rise. This spring, employee wages increased due to higher minimum pay and an increase in employer national insurance contributions.

Two diners explain they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.

Depending on your selection, Pizza Hut and Domino's prices are similar, notes a culinary author.

While Pizza Hut does offer takeaway and deliveries through delivery platforms, it is missing out to big rivals which focus exclusively to off-premise dining.

“The rival chain has managed to dominate the delivery market thanks to strong promotions and constantly running deals that make customers feel like they're getting a bargain, when in reality the original prices are on the higher side,” explains the expert.

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

“We predominantly have meals at home now instead of we eat out,” comments one of the diners, reflecting latest data that show a decrease in people going to quick-service eateries.

Over the summer, casual and fast-food restaurants saw a notable decrease in patrons compared to last summer.

Additionally, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, global lead for leisure at an advisory group, notes that not only have supermarkets been selling premium oven-ready pizzas for a long time – some are even promoting pizza-making appliances.

“Lifestyle changes are also contributing in the popularity of quick-service brands,” comments the analyst.

The rising popularity of low-carb regimens has increased sales at chicken shops, while hitting sales of dough-based meals, he continues.

Because people visit restaurants less frequently, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more retro than luxurious.

The rise of premium pizza outlets” over the last decade and a half, for example boutique chains, has “dramatically shifted the general opinion of what excellent pie is,” notes the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's caused Pizza Hut's decline,” she comments.

“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing 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 an easy choice.”

An independent operator, who owns a small business based in Suffolk explains: “It's not that lost interest in pizza – they just want improved value.”

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.

From the perspective of an independent chain in Bristol, owner Jack Lander says the pizza market is broadening but Pizza Hut has failed to offer anything new.

“Currently available are individual slices, London pizza, thin crust, artisan base, Neapolitan, deep-dish – it's a heavenly minefield for a pizza enthusiast to discover.”

Jack says Pizza Hut “should transform” as newer generations don't have any emotional connection or allegiance to the chain.

In recent years, Pizza Hut's share has been fragmented and distributed to its fresher, faster alternatives. To sustain its expensive staffing and restaurants, it would have to charge more – which commentators say is tough at a time when family finances are shrinking.

The leadership of Pizza Hut's international markets said the buyout aimed “to protect our dining experience and save employment where possible”.

It was explained its first focus was to continue operating at the open outlets and delivery sites and to support colleagues through the change.

Yet with large sums going into operating its locations, it likely can't afford to spend heavily in its takeaway operation because the market is “complex and partnering with existing delivery apps comes at a expense”, experts say.

However, it's noted, reducing expenses by leaving competitive urban areas could be a good way to adapt.