Why the Nation Lost Interest in Its Appetite for Pizza Hut

At one time, the popular pizza chain was the favorite for families and friends to indulge in its unlimited dining experience, endless salad selection, and self-serve ice-cream.

Yet a declining number of customers are choosing the restaurant currently, and it is shutting down 50% of its UK locations after being acquired following financial trouble for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she states “it's not a thing anymore.”

For young customer Martina, some of the very things Pizza Hut has been famous for since it started in the UK in the 1970s are now not-so-hot.

“How they do their all-you-can-eat 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 ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. Similarly, its outlets, which are being cut from 132 to a smaller figure.

The chain, like many others, has also faced its costs increase. In April this year, employee wages increased due to higher minimum pay and an higher rate of employer national insurance contributions.

Two diners say they used to go at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

Based on your order, Pizza Hut and Domino's costs are close, says an industry analyst.

While Pizza Hut has off-premise options through third-party apps, it is losing out to major competitors which focus exclusively to this market.

“Domino's has taken over the delivery market thanks to aggressive marketing and frequent offers that make shoppers feel like they're saving money, when in reality the original prices are relatively expensive,” notes the analyst.

Yet for Chris and Joanne it is acceptable to get their date night brought to their home.

“We absolutely dine at home now more than we eat out,” says Joanne, matching current figures that show a decline in people frequenting quick-service eateries.

In the warmer season, informal dining venues saw a six percent decline in customers compared to the year before.

Additionally, a further alternative to pizza from eateries: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at a major consultancy, notes that not only have supermarkets been selling high-quality ready-to-bake pizzas for quite a while – some are even offering home-pizza ovens.

“Shifts in habits are also playing a factor in the performance of fast-food chains,” comments Mr. Hawkley.

The increased interest of high protein diets has driven sales at grilled chicken brands, while hitting sales of dough-based meals, he continues.

Since people dine out less frequently, they may prefer a more upscale outing, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than upmarket.

The growth of high-quality pizzerias” over the last 10 to 15 years, for example new entrants, has “fundamentally changed the general opinion of what good pizza is,” notes the industry commentator.

“A light, fresh, easy-to-digest product with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she comments.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who runs a pizza van based in a regional area says: “People haven’t stopped liking pizza – they just want improved value.”

The owner says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

At an independent chain in a city in southwest England, owner Jack Lander says the pizza market is expanding but Pizza Hut has not provided anything fresh.

“You now have individual slices, artisanal styles, New Haven-style, artisan base, wood-fired, rectangular – it's a heavenly minefield for a pie fan to try.”

He says Pizza Hut “must rebrand” as younger people don't have any fond memories or allegiance to the chain.

In recent years, Pizza Hut's share has been divided and spread to its fresher, faster rivals. To sustain its expensive staffing and restaurants, it would have to charge more – which commentators say is challenging at a time when household budgets are tightening.

The managing director of Pizza Hut's international markets said the buyout aimed “to protect our customer service and save employment where possible”.

He said its first focus was to continue operating at the open outlets and takeaway hubs and to support colleagues through the transition.

But with large sums going into operating its locations, it probably cannot to allocate significant resources in its delivery service because the sector is “complex and using existing external services comes at a price”, commentators say.

But, he adds, lowering overhead by exiting oversaturated towns and city centres could be a good way to adapt.

Kara Ryan
Kara Ryan

An environmental scientist and avid hiker passionate about sharing sustainable practices and nature exploration.