How the Public Lost Its Appetite for Pizza Hut

In the past, the popular pizza chain was the favorite for families and friends to indulge in its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

But fewer customers are visiting the restaurant nowadays, and it is closing a significant portion of its UK locations after being rescued from insolvency for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, as a young adult, she states “it's not a thing anymore.”

In the view of young customer Martina, the very elements Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now less appealing.

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

Since grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to operate. Similarly, its locations, which are being reduced from a large number to a smaller figure.

The company, like many others, has also faced its expenses rise. Earlier this year, staffing costs increased due to increases in the legal wage floor and an higher rate of employer national insurance contributions.

Two diners mention they frequently dined at Pizza Hut for a date “every now and then”, but now they choose another pizza brand and think Pizza Hut is “not good value”.

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

Even though Pizza Hut provides takeaway and deliveries through delivery platforms, it is falling behind to larger chains which focus exclusively to the delivery sector.

“The rival chain has taken over the delivery market thanks to aggressive marketing and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the base costs are relatively expensive,” says the expert.

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

“We absolutely dine at home now more than we eat out,” comments the female customer, matching latest data that show a decrease in people going to quick-service eateries.

Over the summer, informal dining venues saw a 6% drop in diners compared to the previous year.

Additionally, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.

An industry leader, global lead for leisure at an advisory group, notes that not only have grocery stores been providing premium ready-to-bake pizzas for a long time – some are even promoting countertop ovens.

“Shifts in habits are also having an impact in the popularity of casual eateries,” says the expert.

The growing trend of high protein diets has driven sales at chicken shops, while reducing sales of high-carbohydrate options, he adds.

Since people go out to eat more rarely, they may prefer a more premium experience, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more retro than premium.

The “explosion of high-quality pizzerias” over the last 10 to 15 years, such as popular brands, has “completely altered the general opinion of what quality pizza is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she comments.
“What person would spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns a pizza van based in a county in England comments: “It's not that lost interest in pizza – they just want better pizza for their money.”

The owner says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

From the perspective of a small pizza brand in a UK location, the proprietor says the pizza market is expanding but Pizza Hut has failed to offer anything innovative.

“There are now by-the-slice options, artisanal styles, thin crust, sourdough, traditional Italian, deep-dish – it's a heavenly minefield for a pie fan to discover.”

The owner says Pizza Hut “should transform” as newer generations don't have any fond memories or attachment to the chain.

In recent years, Pizza Hut's market has been fragmented and spread to its fresher, faster rivals. To maintain its high labor and location costs, it would have to raise prices – which experts say is tough at a time when household budgets are tightening.

A senior executive of Pizza Hut's global operations said the acquisition aimed “to protect our guest experience and protect jobs where possible”.

It was explained its first focus was to continue operating at the open outlets and off-premise points and to assist staff through the restructure.

But with significant funds going into maintaining its outlets, it may be unable to spend heavily in its takeaway operation because the market is “difficult and using existing external services comes at a expense”, analysts say.

However, it's noted, cutting its costs by leaving oversaturated towns and city centres could be a effective strategy to adjust.

Erik Middleton
Erik Middleton

A seasoned business strategist with over 15 years of experience in market analysis and corporate growth, passionate about sharing actionable insights.