How the Public Lost Its Taste for the Pizza Hut Chain

At one time, Pizza Hut was the go-to for families and friends to feast on its unlimited dining experience, endless salad selection, and self-serve ice-cream.

But a declining number of customers are visiting the chain currently, and it is shutting down half of its British restaurants after being rescued from insolvency for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she says “it's not a thing anymore.”

According to a diner in her twenties, some of the very things Pizza Hut has been recognized for since it opened in the UK in the 1970s are now not-so-hot.

“How they do their buffet and their salad station, it appears that they are cheapening on their quality and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”

As grocery costs have soared, Pizza Hut's buffet-style service has become quite costly to maintain. Similarly, its locations, which are being sliced from a large number to 64.

The business, similar to other firms, has also seen its operating costs go up. Earlier this year, staffing costs jumped due to higher minimum pay and an increase in employer taxes.

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

Depending on your selection, Pizza Hut and Domino's costs are similar, explains an industry analyst.

While Pizza Hut has pickup and delivery through delivery platforms, it is falling behind to larger chains which focus exclusively to off-premise dining.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to strong promotions and ongoing discounts that make consumers feel like they're saving money, when in reality the original prices are on the higher side,” notes the analyst.

Yet for these customers it is acceptable to get their evening together delivered to their door.

“We definitely eat at home now more than we eat out,” explains one of the diners, echoing recent statistics that show a drop in people visiting informal dining spots.

During the summer months, quick-service eateries saw a 6% drop in diners compared to last summer.

Moreover, another rival to pizza from eateries: the frozen or fresh pizza.

Will Hawkley, global lead for leisure at an advisory group, points out that not only have grocery stores been providing good-standard ready-to-bake pizzas for quite a while – some are even offering home-pizza ovens.

“Shifts in habits are also playing a factor in the performance of quick-service brands,” comments the expert.

The rising popularity of protein-rich eating plans has boosted sales at poultry outlets, while hitting sales of carb-heavy pizza, he notes.

Because people dine out not as often, they may prefer a more upscale outing, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more retro than premium.

The growth of high-quality pizzerias” over the last 10 to 15 years, such as boutique chains, has “completely altered the public's perception of what good pizza is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she comments.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who owns Smokey Deez based in a regional area comments: “People haven’t stopped liking pizza – they just want improved value.”

The owner says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.

At an independent chain in a UK location, owner Jack Lander says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.

“You now have by-the-slice options, regional varieties, new haven, artisan base, wood-fired, rectangular – it's a wonderful array for a pie fan to explore.”

Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any sense of nostalgia or attachment to the chain.

Gradually, Pizza Hut's market has been sliced up and spread to its trendier, more nimble rivals. To maintain its costly operations, it would have to raise prices – which commentators say is difficult at a time when personal spending are decreasing.

A senior executive of Pizza Hut's international markets said the buyout aimed “to ensure our customer service and save employment where possible”.

It was explained its key goal was to continue operating at the remaining 64 restaurants and takeaway hubs and to support colleagues through the transition.

Yet with significant funds going into running its restaurants, it may be unable to invest too much in its delivery service because the sector is “complex and partnering with existing third-party platforms comes at a cost”, experts say.

But, he adds, cutting its costs by leaving crowded locations could be a good way to evolve.

Michael Miller
Michael Miller

Digital media strategist with over a decade of experience in content creation and brand storytelling.

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