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

At one time, Pizza Hut was the favorite for parents and children to indulge in its unlimited dining experience, endless salad selection, and self-serve ice-cream.

However fewer customers are frequenting the chain these days, and it is closing a significant portion of its UK locations after being rescued from insolvency for the second time this year.

“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she states “it's fallen out of favor.”

According to a diner in her twenties, some of the very things Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now less appealing.

“The way they do their buffet and their salad bar, it feels like they are lowering standards and have reduced quality... They provide so much food and you're like ‘How is that possible?’”

As grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to run. Similarly, its restaurants, which are being sliced from 132 to just over 60.

The chain, like many others, has also seen its operating costs go up. This spring, staffing costs jumped due to rises in minimum wages and an increase in employer taxes.

Chris, 36, and Joanne, 29 explain they used to go at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “very overpriced”.

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

While Pizza Hut has takeaway and deliveries through delivery platforms, it is losing out to larger chains which focus exclusively to the delivery sector.

“The rival chain has succeeded in leading the off-premise pizza industry thanks to strong promotions and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” explains the specialist.

But for the couple it is justified to get their special meal sent directly.

“We definitely eat at home now rather than we eat out,” says Joanne, matching latest data that show a drop in people frequenting casual and fast-food restaurants.

In the warmer season, casual and fast-food restaurants saw a six percent decline in diners compared to the previous year.

Moreover, one more competitor to pizza from eateries: the frozen or fresh pizza.

An industry leader, global lead for leisure at a major consultancy, points out that not only have grocery stores been offering good-standard oven-ready pizzas for a long time – some are even selling countertop ovens.

“Evolving preferences are also playing a factor in the performance of casual eateries,” says the analyst.

The growing trend of low-carb regimens has driven sales at chicken shops, while reducing sales of carb-heavy pizza, he adds.

Because people go out to eat not as often, they may look for a more upscale outing, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more retro than premium.

The growth of artisanal pizza places” over the last several years, including popular brands, has “dramatically shifted the public's perception of what good pizza is,” says the culinary analyst.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she says.
“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a stunning, expertly crafted traditional pie 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 owns Smokey Deez based in a county in England explains: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”

The owner says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut struggled because it could not keep up with evolving tastes.

According to an independent chain in a UK location, the founder says the industry is diversifying but Pizza Hut has not provided anything new.

“Currently available are by-the-slice options, artisanal styles, thin crust, fermented dough, traditional Italian, rectangular – it's a wonderful array for a pizza enthusiast to try.”

The owner says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or attachment to the chain.

Gradually, Pizza Hut's customer base has been fragmented and spread to its trendier, more nimble competitors. To maintain its high labor and location costs, it would have to charge more – which experts say is tough at a time when household budgets are decreasing.

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

He said its first focus was to maintain service at the remaining 64 restaurants and delivery sites and to support colleagues through the change.

However with significant funds going into operating its locations, it probably cannot to allocate significant resources in its off-premise division because the sector is “complicated and using existing external services comes at a cost”, analysts say.

But, he adds, lowering overhead by withdrawing from competitive urban areas could be a smart move to evolve.

Jason Barnett
Jason Barnett

A passionate writer and traveler, Evelyn shares insights from her global journeys and personal experiences to inspire others.