Why the Country Lost Its Appetite for the Pizza Hut Chain

In the past, Pizza Hut was the favorite for groups and loved ones to feast on its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

But fewer customers are visiting the restaurant these days, and it is closing half of its British locations after being rescued from insolvency for the second instance this year.

“We used to go Pizza Hut when I was a child,” explains a young adult. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, as a young adult, she comments “it's no longer popular.”

According to a diner in her twenties, the very elements Pizza Hut has been famous for since it opened in the UK in the seventies are now less appealing.

“The way they do their all-you-can-eat and their salad station, it seems as if they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”

As ingredient expenses have increased significantly, Pizza Hut's unlimited dining format has become quite costly to run. The same goes for its outlets, which are being reduced from a large number to just over 60.

The business, in common with competitors, has also seen its expenses increase. Earlier this year, staffing costs increased due to higher minimum pay and an increase in employer taxes.

Two diners explain they frequently dined at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.

Depending on your choices, Pizza Hut and Domino's rates are comparable, notes a culinary author.

While Pizza Hut has pickup and delivery through external services, it is missing out to major competitors which specialize to off-premise dining.

“Domino's has succeeded in leading the off-premise pizza industry thanks to strong promotions and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the original prices are quite high,” notes the specialist.

But for Chris and Joanne it is acceptable to get their special meal brought to their home.

“We predominantly have meals at home now rather than we eat out,” comments one of the diners, reflecting latest data that show a drop in people going to quick-service eateries.

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

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

Will Hawkley, senior partner at a leading firm, notes that not only have retailers been selling premium ready-to-bake pizzas for a long time – some are even offering countertop ovens.

“Shifts in habits are also contributing in the performance of fast-food chains,” says Mr. Hawkley.

The rising popularity of high protein diets has increased sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he adds.

As people visit restaurants not as often, they may look for a more premium experience, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more old-fashioned than luxurious.

The rise of artisanal pizza places” over the last decade and a half, including new entrants, has “fundamentally changed the public's perception of what good pizza is,” explains the culinary analyst.

“A thin, flavorful, gentle crust 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 struggles,” she states.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who owns Smokey Deez based in a county in England explains: “People haven’t stopped liking pizza – they just want improved value.”

Dan says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it could not keep up with changing preferences.

From the perspective of an independent chain in Bristol, the proprietor says the industry is broadening but Pizza Hut has failed to offer anything fresh.

“Currently available are by-the-slice options, regional varieties, new haven, sourdough, Neapolitan, rectangular – it's a wonderful array for a pizza enthusiast to explore.”

He says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or attachment to the chain.

Gradually, Pizza Hut's market has been sliced up and distributed to its trendier, more nimble rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is tough at a time when family finances are shrinking.

The managing director of Pizza Hut's global operations said the buyout aimed “to safeguard our guest experience and retain staff where possible”.

The executive stated its immediate priority was to maintain service at the open outlets and delivery sites and to support colleagues through the transition.

But with large sums going into running its restaurants, it probably cannot to allocate significant resources in its delivery service because the industry is “complicated and working with existing third-party platforms comes at a price”, experts say.

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

Maria Reilly
Maria Reilly

A tech enthusiast and writer with a passion for exploring emerging technologies and sharing knowledge.