How the Public Turned Away from Its Taste for the Pizza Hut Chain

In the past, the popular pizza chain was the go-to for families and friends to indulge in its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.

Yet not as many customers are choosing the chain currently, and it is shutting down 50% 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,” explains one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she states “it's no longer popular.”

For 23-year-old Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now outdated.

“The way 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 offer so much food and you're like ‘How?’”

Because food prices have risen sharply, Pizza Hut's unlimited dining format has become increasingly pricey to run. As have its locations, which are being cut from 132 to 64.

The business, like many others, has also experienced its costs rise. This spring, employee wages jumped due to rises in minimum wages and an higher rate of employer taxes.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “not good value”.

Depending on your order, Pizza Hut and Domino's rates are similar, notes a culinary author.

Even though Pizza Hut provides off-premise options through external services, it is falling behind to larger chains which solely cater to off-premise dining.

“Domino's has managed to dominate the off-premise pizza industry thanks to strong promotions and constantly running deals that make customers feel like they're finding a good deal, when in reality the original prices are quite high,” explains the expert.

But for Chris and Joanne it is worth it to get their special meal brought to their home.

“We definitely eat at home now instead of we eat out,” explains one of the diners, matching latest data that show a decline in people frequenting quick-service eateries.

Over the summer, quick-service eateries saw a notable decrease in customers compared to the year before.

Additionally, another rival to pizza from eateries: the cook-at-home oven pizza.

Will Hawkley, head of leisure and hospitality at a major consultancy, notes that not only have grocery stores been offering good-standard ready-to-bake pizzas for years – some are even offering countertop ovens.

“Evolving preferences are also having an impact in the success of casual eateries,” says the expert.

The rising popularity of high protein diets has boosted sales at poultry outlets, while hitting sales of high-carbohydrate options, he adds.

As people dine out not as often, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more retro than premium.

The growth of artisanal pizza places” over the last 10 to 15 years, for example boutique chains, has “dramatically shifted the consumer view of what good pizza is,” notes the culinary analyst.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she says.
“What person would spend a high price on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who operates a small business based in a county in England says: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.

According to an independent chain in Bristol, the proprietor says the industry is expanding but Pizza Hut has not provided anything new.

“You now have slice concepts, London pizza, thin crust, artisan base, wood-fired, Detroit – it's a heavenly minefield for a pie fan to discover.”

Jack says Pizza Hut “must rebrand” as younger people don't have any fond memories or allegiance to the chain.

Over time, Pizza Hut's customer base has been fragmented and distributed to its fresher, faster competitors. To maintain its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is tough at a time when personal spending are decreasing.

The managing director of Pizza Hut's international markets said the rescue aimed “to ensure our dining experience and save employment where possible”.

It was explained its immediate priority was to continue operating at the open outlets and delivery sites and to assist staff through the transition.

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

Still, experts suggest, reducing expenses by leaving competitive urban areas could be a effective strategy to evolve.

Brandon Roberson
Brandon Roberson

A seasoned sports analyst and betting enthusiast with over a decade of experience in the industry.

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