How the Country Lost Its Appetite for Pizza Hut

Once, the popular pizza chain was the favorite for groups and loved ones to indulge in its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.

But fewer customers are frequenting the chain currently, and it is shutting down half of its UK outlets after being rescued from insolvency for the second instance this calendar year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's not a thing anymore.”

In the view of a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now less appealing.

“The way they do their buffet and their salad station, it seems as if they are lowering standards and have reduced quality... They offer so much food and you're like ‘How?’”

As grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. Similarly, its outlets, which are being reduced from a large number to just over 60.

The business, like many others, has also faced its operating costs increase. Earlier this year, staffing costs jumped due to increases in the legal wage floor and an higher rate of employer national insurance contributions.

Two diners explain they frequently dined at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “too expensive”.

According to your order, Pizza Hut and Domino's rates are comparable, notes a culinary author.

Although Pizza Hut has off-premise options through external services, it is losing out to larger chains which focus exclusively to the delivery sector.

“Another pizza company has taken over the delivery market 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 quite high,” explains the analyst.

Yet for these customers it is acceptable to get their special meal sent directly.

“We predominantly have meals at home now rather than we eat out,” comments the female customer, reflecting recent statistics that show a drop in people going to informal dining spots.

During the summer months, quick-service eateries saw a six percent decline in diners compared to last summer.

There is also another rival to ordered-in pies: the supermarket pizza.

A hospitality expert, head of leisure and hospitality at an advisory group, points out that not only have grocery stores been offering high-quality ready-to-bake pizzas for years – some are even selling countertop ovens.

“Shifts in habits are also playing a factor in the success of casual eateries,” says the analyst.

The growing trend of protein-rich eating plans has boosted sales at grilled chicken brands, while affecting sales of dough-based meals, he adds.

Since people visit restaurants not as often, they may look for a more high-quality meal, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more dated than upmarket.

The “explosion of premium pizza outlets” over the last decade and a half, for example popular brands, has “fundamentally changed the general opinion of what quality pizza is,” says the industry commentator.

“A thin, flavorful, gentle crust with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she says.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who owns a pizza van based in a regional area comments: “It's not that lost interest in pizza – they just want better pizza for their money.”

He says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it failed to adapt with new customer habits.

According to Pizzarova in a city in southwest England, the founder says the sector is expanding but Pizza Hut has neglected to introduce anything new.

“Currently available are slice concepts, London pizza, thin crust, fermented dough, wood-fired, deep-dish – it's a heavenly minefield for a pizza-loving consumer to try.”

He says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or attachment to the company.

Gradually, Pizza Hut's customer base has been sliced up and distributed to its fresher, faster rivals. To maintain its costly operations, it would have to charge more – which industry analysts say is challenging at a time when household budgets are tightening.

A senior executive of Pizza Hut's international markets said the buyout aimed “to safeguard our dining experience and protect jobs where possible”.

The executive stated its first focus was to continue operating at the remaining 64 restaurants and delivery sites and to assist staff through the change.

However with so much money going into operating its locations, it likely can't afford to invest too much in its takeaway operation because the market is “complex and partnering with existing third-party platforms comes at a cost”, analysts say.

But, he adds, reducing expenses by leaving crowded locations could be a good way to evolve.

Joshua Jones
Joshua Jones

A tech enthusiast and community leader passionate about Microsoft solutions and digital collaboration.