Why the Country Lost Interest in Its Appetite for Pizza Hut

In the past, the popular pizza chain was the favorite for families and friends to enjoy its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

However a declining number of customers are frequenting the chain nowadays, and it is shutting down half of its UK outlets after being acquired following financial trouble for the second time this 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 – turn it into an event.” But now, as a young adult, she says “it's fallen out of favor.”

For 23-year-old Martina, some of the very things Pizza Hut has been famous for since it started in the UK in the mid-20th century are now less appealing.

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

As ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to run. The same goes for its restaurants, which are being sliced from a large number to just over 60.

The chain, in common with competitors, has also faced its operating costs increase. This spring, staffing costs increased due to rises in minimum wages and an increase in employer social security payments.

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

According to your choices, Pizza Hut and Domino's rates are close, explains an industry analyst.

Although Pizza Hut has pickup and delivery through delivery platforms, it is missing out to major competitors which focus exclusively to off-premise dining.

“The rival chain has managed to dominate the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're saving money, when in reality the original prices are quite high,” says the specialist.

However for these customers it is justified to get their special meal delivered to their door.

“We absolutely dine at home now more than we eat out,” explains one of the diners, echoing recent statistics 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 diners compared to the previous year.

There is also a further alternative to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, senior partner at a leading firm, explains that not only have grocery stores been offering high-quality oven-ready pizzas for years – some are even promoting countertop ovens.

“Lifestyle changes are also contributing in the popularity of casual eateries,” states the analyst.

The increased interest of high protein diets has increased sales at chicken shops, while reducing sales of high-carbohydrate options, he continues.

As people dine out not as often, they may prefer a more high-quality meal, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more dated than upmarket.

The rise of premium pizza outlets” over the last decade and a half, including boutique chains, has “completely altered the consumer view of what quality pizza is,” explains the culinary analyst.

“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she states.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
An independent operator, who owns a small business based in a regional area says: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

Dan says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it could not keep up with changing preferences.

From the perspective of an independent chain in Bristol, owner Jack Lander says the industry is expanding but Pizza Hut has failed to offer anything new.

“There are now by-the-slice options, artisanal styles, New Haven-style, fermented dough, traditional Italian, Detroit – it's a heavenly minefield for a pizza-loving consumer to discover.”

The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or allegiance to the brand.

In recent years, Pizza Hut's customer base has been sliced up and allocated to its fresher, faster competitors. To sustain its expensive staffing and restaurants, it would have to increase costs – which commentators say is difficult at a time when personal spending are shrinking.

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

It was explained its key goal was to maintain service at the remaining 64 restaurants and takeaway hubs and to help employees through the restructure.

But with significant funds going into running its restaurants, it probably cannot to invest too much in its off-premise division because the market is “complicated and working with existing third-party platforms comes at a cost”, experts say.

However, it's noted, cutting its costs by leaving oversaturated towns and city centres could be a good way to evolve.

Kaitlyn Roberts
Kaitlyn Roberts

A passionate writer and lifestyle enthusiast sharing curated content on fashion, travel, and wellness from a UK perspective.