How the Public Lost Its Appetite for Pizza Hut

Once, the popular pizza chain was the top choice for groups and loved ones to indulge in its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.

Yet fewer patrons are frequenting the chain these days, and it is shutting down a significant portion of its British outlets after being bought out of administration for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she states “it's not a thing anymore.”

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

“How they do their all-you-can-eat and their salad station, it feels like they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How can they?’”

As food prices have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. As have its restaurants, which are being cut from over 130 to 64.

The business, in common with competitors, has also experienced its costs increase. This spring, staffing costs rose due to higher minimum pay and an increase in employer national insurance contributions.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.

According to your choices, Pizza Hut and Domino's rates are similar, says a food expert.

Although Pizza Hut does offer off-premise options through delivery platforms, it is missing out to major competitors which solely cater to off-premise dining.

“Domino's has succeeded in leading the delivery market thanks to aggressive marketing and frequent offers that make customers feel like they're getting a bargain, when in reality the base costs are quite high,” says the expert.

However for Chris and Joanne it is worth it to get their date night delivered to their door.

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

Over the summer, informal dining venues saw a notable decrease in patrons compared to the previous year.

Additionally, one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, global lead for leisure at an advisory group, points out that not only have retailers been selling good-standard prepared pies for a long time – some are even selling home-pizza ovens.

“Shifts in habits are also contributing in the success of casual eateries,” states the analyst.

The increased interest of low-carb regimens has boosted sales at chicken shops, while reducing sales of carb-heavy pizza, he adds.

Because people go out to eat less frequently, they may seek out a more upscale outing, and Pizza Hut's retro theme with booth seating and traditional décor can feel more old-fashioned than luxurious.

The “explosion of high-quality pizzerias” over the last several years, including popular brands, has “completely altered the consumer view of what good pizza is,” explains the food expert.

“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she states.

“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many authentic Italian pizzerias around the country?

“It's an easy choice.”

Dan Puddle, who operates Smokey Deez based in a county in England comments: “It's not that stopped liking pizza – they just want better pizza for their money.”

The owner says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with new customer habits.

At a small pizza brand in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.

“You now have by-the-slice options, artisanal styles, thin crust, fermented dough, traditional Italian, deep-dish – it's a heavenly minefield for a pizza-loving consumer to explore.”

He says Pizza Hut “should transform” as younger people don't have any emotional connection or loyalty to the company.

Gradually, Pizza Hut's share has been fragmented and allocated to its fresher, faster rivals. To keep up its costly operations, it would have to raise prices – which industry analysts say is challenging at a time when household budgets are shrinking.

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

He said its first focus was to keep running at the open outlets and delivery sites and to support colleagues through the restructure.

Yet with so much money going into running its restaurants, it may be unable to invest too much in its takeaway operation because the sector is “complex and using existing external services comes at a expense”, commentators say.

But, he adds, lowering overhead by exiting crowded locations could be a effective strategy to adapt.