Why the Public Turned Away from Its Craving for the Pizza Hut Chain

At one time, Pizza Hut was the top choice for families and friends to feast on its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.

However a declining number of customers are frequenting the restaurant currently, and it is reducing a significant portion of its British locations after being acquired following financial trouble for the second time this year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” However, at present, as a young adult, she comments “it's not a thing anymore.”

According to 23-year-old Martina, certain features Pizza Hut has been recognized for since it started in the UK in the seventies are now less appealing.

“The manner in which they do their buffet and their salad station, it appears that they are cheapening on their quality and have reduced quality... They offer so much food and you're like ‘How?’”

Because food prices have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. As have its restaurants, which are being reduced from 132 to 64.

The chain, in common with competitors, has also experienced its expenses go up. In April this year, labor expenses increased due to higher minimum pay and an increase in employer taxes.

A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “every now and then”, but now they order in a rival chain and think Pizza Hut is “not good value”.

Based on your selection, Pizza Hut and Domino's prices are similar, notes a culinary author.

Although Pizza Hut does offer takeaway and deliveries through external services, it is falling behind to larger chains which specialize to off-premise dining.

“Another pizza company has managed to dominate the off-premise pizza industry thanks to aggressive marketing and frequent offers that make shoppers feel like they're finding a good deal, when in reality the original prices are relatively expensive,” notes the specialist.

But for the couple it is acceptable to get their evening together delivered to their door.

“We predominantly have meals at home now instead of we eat out,” says the female customer, reflecting current figures that show a decline in people going to casual and fast-food restaurants.

Over the summer, quick-service eateries saw a 6% drop in customers compared to the year before.

Additionally, another rival to pizza from eateries: the supermarket pizza.

An industry leader, head of leisure and hospitality at a leading firm, notes that not only have retailers been offering high-quality oven-ready pizzas for quite a while – some are even selling pizza-making appliances.

“Evolving preferences are also playing a factor in the performance of quick-service brands,” states the analyst.

The growing trend of protein-rich eating plans has boosted sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he adds.

Because people go out to eat more rarely, they may look for a more premium experience, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than premium.

The growth of artisanal pizza places” over the last several years, such as popular brands, has “dramatically shifted the consumer view of what excellent pie is,” notes the culinary analyst.

“A crisp, airy, digestible pizza 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 struggles,” she states.

“Why would anyone 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 less than ten pounds at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

An independent operator, who owns a pizza van based in Suffolk says: “It's not that fallen out of love with pizza – they just want improved value.”

Dan says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.

From the perspective of Pizzarova in a city in southwest England, owner Jack Lander says the industry is broadening but Pizza Hut has failed to offer anything fresh.

“There are now by-the-slice options, regional varieties, New Haven-style, artisan base, traditional Italian, Detroit – it's a heavenly minefield for a pizza-loving consumer to discover.”

The owner says Pizza Hut “must rebrand” as younger people don't have any emotional connection or allegiance to the brand.

Over time, Pizza Hut's market has been fragmented and distributed to its more modern, agile alternatives. To keep up its high labor and location costs, it would have to increase costs – which commentators say is challenging at a time when personal spending are tightening.

The managing director of Pizza Hut's international markets said the acquisition aimed “to protect our dining experience and retain staff where possible”.

It was explained its immediate priority was to keep running at the open outlets and takeaway hubs 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 industry is “difficult and using existing external services comes at a cost”, experts say.

Still, experts suggest, cutting its costs by leaving competitive urban areas could be a smart move to adapt.