How the Nation Turned Away from Its Appetite for Pizza Hut

Once, Pizza Hut was the top choice for groups and loved ones to enjoy its unlimited dining experience, endless salad selection, and ice cream with toppings.

However not as many diners are choosing the chain these days, and it is shutting down 50% of its British restaurants after being acquired following financial trouble for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, as a young adult, she states “it's no longer popular.”

According to 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now outdated.

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

Since grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to run. The same goes for its locations, which are being sliced from over 130 to a smaller figure.

The chain, like many others, has also experienced its operating costs go up. In April this year, staffing costs increased due to rises in minimum wages and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

Depending on your selection, Pizza Hut and Domino's prices are comparable, says a food expert.

Although Pizza Hut has pickup and delivery through third-party apps, it is missing out to major competitors which solely cater to the delivery sector.

“Domino's has managed to dominate the delivery market thanks to strong promotions and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” notes the analyst.

However for the couple it is worth it to get their date night delivered to their door.

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

During the summer months, quick-service eateries saw a six percent decline in diners compared to last summer.

Additionally, one more competitor to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, senior partner at an advisory group, explains that not only have retailers been selling high-quality prepared pies for years – some are even selling countertop ovens.

“Shifts in habits are also playing a factor in the performance of casual eateries,” comments Mr. Hawkley.

The rising popularity of protein-rich eating plans has driven sales at poultry outlets, while hitting sales of dough-based meals, he notes.

Because people go out to eat not as often, they may look for a more premium experience, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more old-fashioned than luxurious.

The growth of premium pizza outlets” over the last decade and a half, for example popular brands, has “fundamentally changed the general opinion of what good pizza is,” explains the food expert.

“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she comments.
“Why would anyone spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who runs a small business based in a regional area explains: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it was unable to evolve with new customer habits.

At Pizzarova in a city in southwest England, the founder says the industry is broadening but Pizza Hut has not provided anything fresh.

“Currently available are by-the-slice options, London pizza, thin crust, artisan base, traditional Italian, deep-dish – it's a heavenly minefield for a pizza enthusiast to discover.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or allegiance to the chain.

Over time, Pizza Hut's share has been divided and distributed to its more modern, agile rivals. To maintain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is difficult at a time when family finances are tightening.

The leadership of Pizza Hut's overseas branches said the buyout aimed “to protect our dining experience and protect jobs where possible”.

He said its first focus was to maintain service at the open outlets and delivery sites and to support colleagues through the restructure.

However with large sums going into running its restaurants, it probably cannot to allocate significant resources in its off-premise division because the industry is “complicated and partnering with existing external services comes at a cost”, commentators say.

Still, experts suggest, cutting its costs by exiting oversaturated towns and city centres could be a good way to evolve.

David Sanders
David Sanders

Digital marketing strategist with over 10 years of experience in SEO and content creation, passionate about helping businesses thrive online.