Why the Nation Turned Away from Its Appetite for the Pizza Hut Chain

Once, Pizza Hut was the go-to for groups and loved ones to enjoy its unlimited dining experience, endless salad selection, and self-serve ice-cream.

However fewer customers are frequenting the restaurant nowadays, and it is reducing half of its British restaurants after being rescued from insolvency for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she says “it's no longer popular.”

For young customer Martina, certain features Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now less appealing.

“The manner in which they do their buffet and their salad station, it seems as if they are cheapening on their quality and have lower standards... They're giving away so much food and you're like ‘How?’”

Since ingredient expenses have increased significantly, Pizza Hut's unlimited dining format has become very expensive to operate. Similarly, its restaurants, which are being sliced from 132 to 64.

The chain, similar to other firms, has also faced its costs go up. Earlier this year, staffing costs rose due to rises in minimum wages and an rise in employer taxes.

A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “from time to time”, but now they order in Domino's and think Pizza Hut is “too expensive”.

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

Although Pizza Hut provides pickup and delivery through third-party apps, it is missing out to larger chains which specialize to off-premise dining.

“The rival chain has managed to dominate the takeaway pizza sector thanks to strong promotions and frequent offers that make customers feel like they're getting a bargain, when in reality the base costs are relatively expensive,” says the specialist.

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

“We predominantly have meals at home now more than we eat out,” comments Joanne, reflecting latest data that show a decline in people going to casual and fast-food restaurants.

In the warmer season, casual and fast-food restaurants saw a 6% drop in patrons compared to last summer.

Moreover, one more competitor to ordered-in pies: the frozen or fresh pizza.

An industry leader, senior partner at an advisory group, points out that not only have grocery stores been selling premium ready-to-bake pizzas for a long time – some are even offering pizza-making appliances.

“Lifestyle changes are also contributing in the performance of quick-service brands,” comments Mr. Hawkley.

The growing trend of low-carb regimens has driven sales at poultry outlets, while hitting sales of high-carbohydrate options, he adds.

As people go out to eat less frequently, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more retro than upmarket.

The “explosion of high-quality pizzerias” over the last 10 to 15 years, for example popular brands, has “completely altered the general opinion of what good pizza is,” explains the food expert.

“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's caused Pizza Hut's decline,” she comments.
“What person would spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates a pizza van based in Suffolk explains: “The issue isn’t that stopped liking pizza – they just want improved value.”

The owner says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it could not keep up with changing preferences.

From the perspective of an independent chain in a UK location, owner Jack Lander says the sector is broadening but Pizza Hut has not provided anything new.

“There are now individual slices, London pizza, New Haven-style, fermented dough, Neapolitan, deep-dish – it's a wonderful array for a pie fan to discover.”

Jack says Pizza Hut “must rebrand” as newer generations don't have any fond memories or loyalty to the chain.

Gradually, Pizza Hut's market has been sliced up and spread to its more modern, agile alternatives. To keep up its high labor and location costs, it would have to raise prices – which industry analysts say is challenging at a time when family finances are shrinking.

A senior executive of Pizza Hut's global operations said the rescue aimed “to ensure our guest experience and protect jobs where possible”.

He said its immediate priority was to maintain service at the open outlets and takeaway hubs and to support colleagues through the restructure.

However with so much money going into operating its locations, it probably cannot to invest too much in its takeaway operation because the industry is “complicated and partnering with existing delivery apps comes at a price”, commentators say.

However, it's noted, lowering overhead by exiting crowded locations could be a good way to adjust.

Jesse Murphy
Jesse Murphy

A passionate writer and tech enthusiast sharing insights on innovation and personal development.