How the Country Lost Interest in Its Craving for Pizza Hut

At one time, Pizza Hut was the favorite for parents and children to indulge in its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

But not as many customers are choosing the brand nowadays, and it is closing a significant portion of its UK outlets after being bought out of administration for the second occasion this calendar year.

“We used to go 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 states “it's fallen out of favor.”

For a diner in her twenties, the very elements Pizza Hut has been recognized for since it opened in the UK in the 1970s are now outdated.

“The way they do their all-you-can-eat and their salad bar, it feels like they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How?’”

Because ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. As have its restaurants, which are being sliced from over 130 to 64.

The chain, similar to other firms, has also seen its expenses go up. Earlier this year, labor expenses jumped due to increases in the legal wage floor and an higher rate of employer social security payments.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “every now and then”, but now they choose another pizza brand and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's rates are close, says a culinary author.

While Pizza Hut provides off-premise options through external services, it is falling behind to major competitors which focus exclusively to the delivery sector.

“The rival chain has managed to dominate the delivery market thanks to strong promotions and constantly running deals that make consumers feel like they're getting a bargain, when in reality the base costs are relatively expensive,” says the analyst.

However for these customers it is justified to get their evening together brought to their home.

“We absolutely dine at home now instead of we eat out,” comments the female customer, matching latest data that show a decrease in people visiting casual and fast-food restaurants.

During the summer months, quick-service eateries saw a 6% drop in patrons compared to the previous year.

Moreover, another rival to ordered-in pies: the cook-at-home oven pizza.

A hospitality expert, head of leisure and hospitality at a major consultancy, points out that not only have retailers been providing good-standard prepared pies for years – some are even selling pizza-making appliances.

“Evolving preferences are also having an impact in the success of fast-food chains,” says Mr. Hawkley.

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

Since people dine out not as often, they may seek out a more premium experience, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more retro than luxurious.

The “explosion of premium pizza outlets” over the last 10 to 15 years, such as new entrants, has “completely altered the public's perception of what good pizza is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she comments.
“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who runs Smokey Deez based in a regional area says: “The issue isn’t that lost interest in pizza – they just want improved value.”

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

According to a small pizza brand in a UK location, the proprietor says the pizza market is diversifying but Pizza Hut has neglected to introduce anything innovative.

“Currently available are slice concepts, London pizza, thin crust, fermented dough, wood-fired, rectangular – it's a heavenly minefield for a pie fan to discover.”

The owner says Pizza Hut “must rebrand” as the youth don't have any emotional connection or loyalty to the brand.

Over time, Pizza Hut's market has been sliced up and allocated to its fresher, faster competitors. To keep up its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is difficult at a time when household budgets are shrinking.

A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to safeguard our customer service and save employment where possible”.

He said its first focus was to maintain service at the remaining 64 restaurants and off-premise points and to support colleagues through the restructure.

However with so much money going into running its restaurants, it may be unable to allocate significant resources in its delivery service because the sector is “complicated and partnering with existing third-party platforms comes at a expense”, experts say.

Still, experts suggest, reducing expenses by leaving oversaturated towns and city centres could be a good way to adjust.

Diana Foster
Diana Foster

A tech enthusiast and digital artist with a passion for blending creativity and code in innovative projects.