How the Country Lost Its Craving for Pizza Hut

Once, Pizza Hut was the go-to for groups and loved ones to feast on its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.

Yet fewer customers are choosing the restaurant nowadays, and it is shutting down half of its British outlets after being rescued from insolvency for the second occasion this year.

“We used to go Pizza Hut when I was a child,” says a young adult. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she says “it's not a thing anymore.”

In the view of a diner in her twenties, the very elements Pizza Hut has been famous for since it started in the UK in the 1970s are now not-so-hot.

“The way they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”

Since ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become very expensive to operate. The same goes for its outlets, which are being reduced from 132 to 64.

The company, similar to other firms, has also experienced its expenses rise. Earlier this year, staffing costs increased due to increases in the legal wage floor and an rise in employer national insurance contributions.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “too expensive”.

According to your order, Pizza Hut and Domino's costs are comparable, says an industry analyst.

While Pizza Hut provides takeaway and deliveries through third-party apps, it is falling behind to big rivals which specialize to this market.

“Another pizza company has taken over the delivery market thanks to aggressive marketing and ongoing discounts that make consumers feel like they're saving money, when in reality the standard rates are on the higher side,” explains the expert.

But for these customers it is worth it to get their evening together sent directly.

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

During the summer months, informal dining venues saw a notable decrease in diners compared to the previous year.

Moreover, a further alternative to restaurant and takeaway pizzas: the supermarket pizza.

An industry leader, senior partner at a leading firm, points out that not only have retailers been selling premium prepared pies for quite a while – some are even promoting countertop ovens.

“Lifestyle changes are also playing a factor in the success of casual eateries,” states Mr. Hawkley.

The increased interest of low-carb regimens has boosted sales at grilled chicken brands, while affecting sales of dough-based meals, he notes.

As people go out to eat less frequently, they may seek out a more upscale outing, and Pizza Hut's classic look with booth seating and traditional décor can feel more dated than luxurious.

The growth of artisanal pizza places” over the last decade and a half, including boutique chains, has “completely altered the general opinion of what excellent pie is,” notes the food expert.

“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she states.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many traditional pizzerias around the country?
“The decision is simple.”
An independent operator, who operates Smokey Deez based in a county in England explains: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

The owner says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.

From the perspective of an independent chain in a city in southwest England, the founder says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.

“You now have by-the-slice options, London pizza, new haven, artisan base, wood-fired, rectangular – it's a delightful challenge for a pizza-loving consumer to explore.”

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

In recent years, Pizza Hut's market has been divided and allocated to its trendier, more nimble rivals. To sustain its costly operations, it would have to increase costs – which experts say is tough at a time when personal spending are tightening.

The managing director of Pizza Hut's international markets said the buyout aimed “to protect our guest experience and retain staff where possible”.

It was explained its first focus was to keep running at the remaining 64 restaurants and delivery sites and to support colleagues through the restructure.

Yet with significant funds going into running its restaurants, it may be unable to allocate significant resources in its off-premise division because the market is “complex and working with existing delivery apps comes at a expense”, experts say.

However, it's noted, reducing expenses by withdrawing from competitive urban areas could be a good way to adapt.

Donna Jordan
Donna Jordan

A seasoned gaming enthusiast and content creator with a passion for sharing expert advice on online entertainment and casino trends.