Why the Country Lost Its Taste for Pizza Hut

At one time, Pizza Hut was the favorite for parents and children to feast on its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

Yet not as many diners are frequenting the chain these days, and it is shutting down a significant portion of its British restaurants after being bought out of administration for the second time this year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's no longer popular.”

In the view of a diner in her twenties, some of the very things Pizza Hut has been recognized for since it launched in the UK in the mid-20th century are now not-so-hot.

“The way they do their all-you-can-eat and their salad bar, it seems as if they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How is that possible?’”

As grocery costs have soared, Pizza Hut's unlimited dining format has become quite costly to maintain. The same goes for its restaurants, which are being cut from over 130 to a smaller figure.

The business, in common with competitors, has also seen its operating costs rise. This spring, employee wages rose due to higher minimum pay and an increase in employer social security payments.

A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “every now and then”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

Depending on your selection, Pizza Hut and Domino's rates are similar, explains a culinary author.

While Pizza Hut has off-premise options through third-party apps, it is missing out to major competitors which focus exclusively to this market.

“Domino's has taken over the takeaway pizza sector thanks to aggressive marketing and frequent offers that make customers feel like they're getting a bargain, when in reality the base costs are on the higher side,” notes the expert.

However for these customers it is acceptable to get their date night delivered to their door.

“We absolutely dine at home now rather than we eat out,” comments Joanne, matching current figures that show a drop in people going to quick-service eateries.

Over the summer, casual and fast-food restaurants saw a six percent decline in customers compared to the year before.

Moreover, a further alternative to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at an advisory group, notes that not only have retailers been offering premium prepared pies for quite a while – some are even offering home-pizza ovens.

“Evolving preferences are also contributing in the performance of fast-food chains,” says the expert.

The growing trend of low-carb regimens has driven sales at poultry outlets, while affecting sales of high-carbohydrate options, he continues.

Since people visit restaurants not as often, they may prefer a more upscale outing, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more dated than luxurious.

The “explosion of premium pizza outlets” over the last 10 to 15 years, for example new entrants, has “completely altered the general opinion of what quality pizza is,” explains the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she states.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand when you can get a stunning, expertly crafted Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns a small business based in Suffolk explains: “People haven’t stopped liking pizza – they just want better pizza for their money.”

Dan says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it could not keep up with changing preferences.

At an independent chain in a city in southwest England, owner Jack Lander says the sector is diversifying but Pizza Hut has not provided anything fresh.

“Currently available are individual slices, London pizza, New Haven-style, fermented dough, traditional Italian, Detroit – it's a delightful challenge for a pizza enthusiast to discover.”

He says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or loyalty to the company.

Gradually, Pizza Hut's customer base has been sliced up and distributed to its more modern, agile competitors. To keep up its costly operations, it would have to raise prices – which industry analysts say is tough at a time when personal spending are shrinking.

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

The executive stated its first focus was to continue operating at the remaining 64 restaurants and off-premise points and to support colleagues through the change.

However with significant funds going into maintaining its outlets, it may be unable to allocate significant resources in its takeaway operation because the market is “difficult and partnering with existing external services comes at a expense”, experts say.

Still, experts suggest, lowering overhead by withdrawing from oversaturated towns and city centres could be a smart move to adapt.

Mary Mccarty
Mary Mccarty

Tech enthusiast and writer with a passion for emerging technologies and their impact on society.