Why the Public Lost Its Appetite for Pizza Hut

Once, Pizza Hut was the top choice for parents and children to indulge in its unlimited dining experience, endless salad selection, and make-your-own dessert.

However not as many diners are choosing the restaurant these days, and it is shutting down half of its UK restaurants after being bought out of administration for the second occasion this 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 – make a day of it.” But now, in her mid-twenties, she states “it's no longer popular.”

According to 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it started in the UK in the seventies are now outdated.

“The manner in which they do their all-you-can-eat and their salad station, it seems as if they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How is that possible?’”

Since grocery costs have soared, Pizza Hut's buffet-style service has become very expensive to run. The same goes for its restaurants, which are being sliced from a large number to a smaller figure.

The chain, like many others, has also experienced its costs increase. This spring, labor expenses increased due to increases in the legal wage floor and an increase in employer taxes.

Two diners say they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

According to your choices, Pizza Hut and Domino's prices are comparable, says an industry analyst.

Even though Pizza Hut has off-premise options through external services, it is losing out to larger chains which solely cater to the delivery sector.

“Domino's has managed to dominate the delivery market thanks to aggressive marketing and ongoing discounts that make customers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” explains the analyst.

Yet for the couple it is acceptable to get their date night sent directly.

“We absolutely dine at home now more than we eat out,” comments Joanne, reflecting latest data that show a drop in people frequenting quick-service eateries.

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

There is also one more competitor to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, global lead for leisure at an advisory group, points out that not only have supermarkets been providing high-quality prepared pies for quite a while – some are even offering countertop ovens.

“Lifestyle changes are also playing a factor in the popularity of fast-food chains,” states Mr. Hawkley.

The growing trend of high protein diets has driven sales at grilled chicken brands, while reducing sales of dough-based meals, he adds.

Because people go out to eat not as often, they may seek out a more high-quality meal, and Pizza Hut's retro theme with vinyl benches and traditional décor can feel more retro than premium.

The growth of artisanal pizza places” over the last decade and a half, such as new entrants, has “dramatically shifted the public's perception of what excellent pie is,” explains the industry commentator.

“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's struggles,” she says.

“What person would spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

A mobile pizza vendor, who owns a small business based in a county in England says: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”

Dan says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it could not keep up with new customer habits.

According to Pizzarova in Bristol, the proprietor says the sector is expanding but Pizza Hut has failed to offer anything innovative.

“You now have individual slices, London pizza, new haven, artisan base, wood-fired, deep-dish – it's a delightful challenge for a pizza enthusiast to try.”

Jack says Pizza Hut “must rebrand” as the youth don't have any emotional connection or attachment to the brand.

Gradually, Pizza Hut's share has been divided and allocated to its more modern, agile competitors. To sustain its costly operations, it would have to raise prices – which experts say is difficult at a time when family finances are tightening.

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

He said its first focus was to continue operating at the remaining 64 restaurants and takeaway hubs and to support colleagues through the restructure.

Yet with large sums going into operating its locations, it may be unable to spend heavily in its delivery service because the industry is “complicated and using existing delivery apps comes at a cost”, experts say.

Still, experts suggest, reducing expenses by withdrawing from oversaturated towns and city centres could be a good way to evolve.