Why the Public Turned Away from Its Appetite for the Pizza Hut Chain

At one time, Pizza Hut was the favorite for groups and loved ones to indulge in its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

However fewer diners are frequenting the chain currently, and it is shutting down half of its British outlets after being bought out of administration for the second time this calendar year.

“We used to go Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she says “it's fallen out of favor.”

According to a diner in her twenties, the very elements Pizza Hut has been famous for since it started in the UK in the mid-20th century are now less appealing.

“The way they do their all-you-can-eat and their salad station, it seems as if they are cutting corners and have lower standards... They offer so much food and you're like ‘How can they?’”

Since food prices have risen sharply, Pizza Hut's unlimited dining format has become very expensive to operate. Similarly, its restaurants, which are being reduced from 132 to a smaller figure.

The chain, in common with competitors, has also seen its expenses rise. In April this year, employee wages increased due to increases in the legal wage floor and an higher rate of employer social security payments.

Two diners say they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

Based on your choices, Pizza Hut and Domino's prices are similar, says an industry analyst.

While Pizza Hut has takeaway and deliveries through external services, it is missing out to big rivals which focus exclusively to the delivery sector.

“Domino's has taken over the off-premise pizza industry thanks to intensive advertising 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.

Yet for the couple it is worth it to get their evening together brought to their home.

“We predominantly have meals at home now more than we eat out,” explains Joanne, reflecting recent statistics that show a decrease in people visiting casual and fast-food restaurants.

In the warmer season, quick-service eateries saw a notable decrease in patrons compared to the previous year.

There is also a further alternative to ordered-in pies: the cook-at-home oven pizza.

Will Hawkley, head of leisure and hospitality at an advisory group, notes that not only have supermarkets been offering good-standard prepared pies for quite a while – some are even promoting home-pizza ovens.

“Evolving preferences are also having an impact in the performance of fast-food chains,” comments the expert.

The growing trend of low-carb regimens has increased sales at chicken shops, while reducing sales of carb-heavy pizza, he notes.

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

The growth of high-quality pizzerias” over the last several years, for example popular brands, has “fundamentally changed the general opinion of what excellent pie is,” says 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. This, in my view, is what's led to Pizza Hut's downfall,” she comments.

“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many real Italian restaurants around the country?

“The decision is simple.”

A mobile pizza vendor, who operates Smokey Deez based in a county in England comments: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”

He says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.

According to a small pizza brand in a city in southwest England, the founder says the sector is diversifying but Pizza Hut has failed to offer anything innovative.

“You now have individual slices, artisanal styles, new haven, sourdough, wood-fired, rectangular – it's a wonderful array for a pie fan to try.”

Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or loyalty to the brand.

Over time, Pizza Hut's market has been sliced up and spread to its fresher, faster alternatives. To maintain its costly operations, it would have to raise prices – which industry analysts say is tough at a time when household budgets are decreasing.

The leadership of Pizza Hut's international markets said the rescue aimed “to protect our dining experience and retain staff where possible”.

The executive stated its first focus was to continue operating at the open outlets and off-premise points and to assist staff through the transition.

But with so much money going into maintaining its outlets, it may be unable to allocate significant resources in its takeaway operation because the market is “complicated and partnering with existing external services comes at a cost”, analysts say.

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