How the Nation Lost Interest in Its Appetite for the Pizza Hut Chain

Once, Pizza Hut was the top choice for families and friends to indulge in its unlimited dining experience, unlimited salad bar, and make-your-own dessert.

Yet a declining number of patrons are frequenting the chain nowadays, and it is reducing a significant portion of its British locations after being bought out of administration for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she states “it's fallen out of favor.”

According to 23-year-old Martina, the very elements Pizza Hut has been known and loved 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 cutting corners and have lower standards... They provide so much food and you're like ‘How can they?’”

Since food prices have soared, Pizza Hut's all-you-can-eat model has become very expensive to run. Similarly, its restaurants, which are being sliced from over 130 to a smaller figure.

The chain, like many others, has also experienced its expenses go up. In April this year, labor expenses increased due to increases in the legal wage floor and an increase in employer social security payments.

Two diners explain they would often visit at Pizza Hut for a date “from time to time”, but now they choose Domino's and think Pizza Hut is “not good value”.

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

While Pizza Hut has takeaway and deliveries through third-party apps, it is falling behind to larger chains which solely cater to off-premise dining.

“Domino's has succeeded in leading the delivery market thanks to strong promotions and frequent offers that make customers feel like they're saving money, when in reality the base costs are quite high,” says the expert.

However for these customers it is worth it to get their evening together delivered to their door.

“We definitely eat at home now more than we eat out,” says one of the diners, matching recent statistics that show a drop in people frequenting quick-service eateries.

Over the summer, casual and fast-food restaurants saw a 6% drop in diners compared to the previous year.

There is also another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.

A hospitality expert, global lead for leisure at a major consultancy, points out that not only have retailers been offering high-quality ready-to-bake pizzas for years – some are even promoting home-pizza ovens.

“Shifts in habits are also having an impact in the success of quick-service brands,” says Mr. Hawkley.

The rising popularity of protein-rich eating plans has boosted sales at poultry outlets, while hitting sales of high-carbohydrate options, he notes.

Since people go out to eat more rarely, they may look for a more premium experience, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more old-fashioned than luxurious.

The “explosion of premium pizza outlets” over the last 10 to 15 years, such as popular brands, has “dramatically shifted the general opinion of what good pizza is,” explains the industry commentator.

“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 resulted in Pizza Hut's downfall,” she states.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
Dan Puddle, who owns a small business based in Suffolk says: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

He says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it could not keep up with new customer habits.

From the perspective of Pizzarova in a city in southwest England, the proprietor says the industry is diversifying but Pizza Hut has failed to offer anything new.

“You now have slice concepts, London pizza, thin crust, artisan base, traditional Italian, rectangular – it's a delightful challenge for a pizza-loving consumer to try.”

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

Gradually, Pizza Hut's share has been divided and allocated to its fresher, faster alternatives. To keep up its expensive staffing and restaurants, it would have to charge more – which commentators say is challenging at a time when family finances are tightening.

The leadership of Pizza Hut's global operations said the rescue aimed “to protect our customer service and save employment where possible”.

The executive stated its key goal was to continue operating at the remaining 64 restaurants and delivery sites and to assist staff through the transition.

But with so much money going into operating its locations, it probably cannot to spend heavily in its takeaway operation because the market is “complex and working with existing delivery apps comes at a price”, analysts say.

Still, experts suggest, reducing expenses by withdrawing from crowded locations could be a effective strategy to adapt.

Leonard Hardy
Leonard Hardy

A seasoned journalist with a passion for uncovering stories that matter in Central Europe.