How the Country Lost Its Taste for Pizza Hut

At one time, the popular pizza chain was the top choice for parents and children to indulge in its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

However a declining number of customers are choosing the chain currently, and it is shutting down half of its British outlets after being bought out of administration for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she says “it's no longer popular.”

According to a diner in her twenties, certain features Pizza Hut has been famous for since it opened in the UK in the 1970s are now less appealing.

“How they do their all-you-can-eat and their salad station, it appears that they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How can they?’”

Since ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become increasingly pricey to operate. The same goes for its outlets, which are being cut from a large number to a smaller figure.

The chain, similar to other firms, has also faced its expenses go up. Earlier this year, employee wages increased due to rises in minimum wages and an increase in employer social security payments.

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

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

While Pizza Hut has off-premise options through external services, it is losing out to big rivals 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 consumers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” notes the expert.

Yet for Chris and Joanne it is worth it to get their special meal sent directly.

“We absolutely dine at home now rather than we eat out,” comments one of the diners, matching recent statistics that show a decrease in people going to quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a notable decrease in diners compared to last summer.

There is also a further alternative to restaurant and takeaway pizzas: the supermarket pizza.

A hospitality expert, global lead for leisure at a leading firm, explains that not only have supermarkets been offering premium oven-ready pizzas for quite a while – some are even selling home-pizza ovens.

“Lifestyle changes are also having an impact in the popularity of fast-food chains,” comments Mr. Hawkley.

The increased interest of high protein diets has increased sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he adds.

Since people dine out more rarely, they may look for a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more retro than luxurious.

The rise of artisanal pizza places” over the last several years, such as boutique chains, has “completely altered the public's perception of what good pizza is,” explains the industry commentator.

“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 resulted in Pizza Hut's downfall,” she says.
“What person would spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns a pizza van based in Suffolk says: “It's not that lost interest in pizza – they just want higher quality at a fair price.”

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

From the perspective of an independent chain in a UK location, owner Jack Lander says the sector is broadening but Pizza Hut has neglected to introduce anything fresh.

“You now have slice concepts, London pizza, new haven, fermented dough, Neapolitan, deep-dish – it's a heavenly minefield for a pizza-loving consumer to explore.”

Jack says Pizza Hut “should transform” as younger people don't have any emotional connection or loyalty to the chain.

Over time, Pizza Hut's customer base has been fragmented and allocated to its fresher, faster rivals. To keep up its costly operations, it would have to increase costs – which industry analysts say is challenging at a time when household budgets are decreasing.

A senior executive of Pizza Hut's overseas branches said the buyout aimed “to ensure our guest experience and save employment where possible”.

He said its immediate priority was to continue operating at the open outlets and off-premise points and to assist staff through the restructure.

But with large sums going into running its restaurants, it may be unable to invest too much in its delivery service because the market is “difficult and partnering with existing third-party platforms comes at a price”, experts say.

Still, experts suggest, lowering overhead by exiting crowded locations could be a effective strategy to adapt.

Erika Hutchinson
Erika Hutchinson

A seasoned IT professional with over a decade of experience in cybersecurity and network infrastructure, passionate about helping businesses thrive through technology.