Why the Public Lost Its Taste for Pizza Hut

In the past, the popular pizza chain was the favorite for groups and loved ones to indulge in its all-you-can-eat buffet, endless salad selection, and make-your-own dessert.

But not as many patrons are visiting the chain nowadays, and it is reducing a significant portion of its UK 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 Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she states “it's not a thing anymore.”

For 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the 1970s are now not-so-hot.

“How they do their buffet and their salad station, it seems as if they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How can they?’”

Because ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become increasingly pricey to operate. The same goes for its restaurants, which are being cut from 132 to just over 60.

The business, like many others, has also experienced its expenses rise. This spring, employee wages increased due to increases in the legal wage floor and an rise in employer social security payments.

A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “not good value”.

According to your choices, Pizza Hut and Domino's prices are similar, notes a culinary author.

Although Pizza Hut provides pickup and delivery through delivery platforms, it is losing out to major competitors which solely cater to this market.

“Another pizza company has succeeded in leading the delivery market thanks to aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the base costs are relatively expensive,” explains the analyst.

But for Chris and Joanne it is acceptable to get their evening together delivered to their door.

“We absolutely dine at home now more than we eat out,” says Joanne, matching latest data that show a drop in people visiting informal dining spots.

During the summer months, casual and fast-food restaurants saw a 6% drop in customers compared to last summer.

Additionally, a further alternative to ordered-in pies: the supermarket pizza.

An industry leader, global lead for leisure at an advisory group, explains that not only have retailers been providing premium ready-to-bake pizzas for years – some are even promoting home-pizza ovens.

“Evolving preferences are also playing a factor in the performance of casual eateries,” states the expert.

The rising popularity of low-carb regimens has boosted sales at poultry outlets, while reducing sales of dough-based meals, he notes.

Because people dine out more rarely, they may prefer a more premium experience, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more dated than upmarket.

The “explosion of artisanal pizza places” over the last several years, for example popular brands, has “dramatically shifted the consumer view of what quality pizza is,” explains the industry commentator.

“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's downfall,” she comments.

“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a stunning, expertly crafted classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?

“It's a no-brainer.”

An independent operator, who operates a small business based in Suffolk says: “The issue isn’t that stopped liking pizza – they just want improved value.”

He says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.

At a small pizza brand in Bristol, the founder says the industry is diversifying but Pizza Hut has neglected to introduce anything fresh.

“There are now by-the-slice options, artisanal styles, new haven, fermented dough, traditional Italian, Detroit – it's a heavenly minefield for a pizza-loving consumer to discover.”

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

Over time, Pizza Hut's market has been divided and spread to its trendier, more nimble rivals. To sustain its high labor and location costs, it would have to increase costs – which experts say is challenging at a time when personal spending are decreasing.

The leadership of Pizza Hut's international markets said the buyout aimed “to ensure our guest experience and protect jobs where possible”.

It was explained its key goal was to continue operating at the remaining 64 restaurants and off-premise points and to support colleagues through the change.

However with large sums going into running its restaurants, it probably cannot to spend heavily in its takeaway operation because the market is “complicated and partnering with existing third-party platforms comes at a cost”, experts say.

But, he adds, reducing expenses by leaving competitive urban areas could be a effective strategy to adjust.