How the Public Lost Interest in Its Taste for Pizza Hut

In the past, the popular pizza chain was the top choice for families and friends to indulge in its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

But fewer diners are choosing the brand currently, and it is shutting down a significant portion of its British outlets after being rescued from insolvency for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” explains Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she comments “it's fallen out of favor.”

In the view of a diner in her twenties, certain features Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now less appealing.

“How they do their buffet and their salad station, it feels like they are lowering standards and have lower standards... They offer 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 outlets, which are being cut from 132 to 64.

The company, like many others, has also seen its operating costs increase. In April this year, labor expenses increased due to higher minimum pay and an rise in employer social security payments.

A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “from time to time”, but now they choose Domino's and think Pizza Hut is “too expensive”.

Based on your selection, Pizza Hut and Domino's rates are close, explains a food expert.

Even though Pizza Hut does offer takeaway and deliveries through delivery platforms, it is missing out to big rivals which specialize to this market.

“Domino's has succeeded in leading the delivery market thanks to strong promotions and frequent offers that make consumers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” says the analyst.

But for Chris and Joanne it is acceptable to get their special meal delivered to their door.

“We definitely eat at home now instead of we eat out,” says Joanne, reflecting current figures that show a drop in people visiting informal dining spots.

Over the summer, casual and fast-food restaurants saw a six percent decline in patrons compared to last summer.

Moreover, one more competitor to restaurant and takeaway pizzas: the supermarket pizza.

A hospitality expert, global lead for leisure at a major consultancy, notes that not only have supermarkets been providing premium ready-to-bake pizzas for years – some are even offering countertop ovens.

“Lifestyle changes are also playing a factor in the popularity of casual eateries,” states Mr. Hawkley.

The rising popularity of protein-rich eating plans has driven sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he notes.

Because people visit restaurants more rarely, they may look for a more upscale outing, and Pizza Hut's classic look with booth seating and traditional décor can feel more old-fashioned than upmarket.

The “explosion of artisanal pizza places” over the last decade and a half, including boutique chains, has “completely altered the consumer view of what quality pizza is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's downfall,” she states.

“Why would anyone spend a high price on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?

“The decision is simple.”

An independent operator, who operates a pizza van based in a regional area comments: “The issue isn’t that stopped liking pizza – they just want improved value.”

The owner says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it could not keep up with new customer habits.

According to a small pizza brand in Bristol, the founder says the sector is broadening but Pizza Hut has not provided anything innovative.

“You now have slice concepts, artisanal styles, thin crust, sourdough, wood-fired, Detroit – it's a delightful challenge for a pie fan to discover.”

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

Gradually, Pizza Hut's market has been fragmented and allocated to its trendier, more nimble rivals. To keep up its high labor and location costs, it would have to raise prices – which experts say is challenging at a time when household budgets are tightening.

The leadership of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and retain staff where possible”.

He said its first focus was to maintain service at the surviving locations and delivery sites and to help employees through the change.

Yet with so much money going into running its restaurants, it probably cannot to spend heavily in its off-premise division because the market is “complicated and using existing third-party platforms comes at a cost”, experts say.

But, he adds, lowering overhead by exiting competitive urban areas could be a effective strategy to evolve.