Why the Country Lost Its Taste for the Pizza Hut Chain

Once, Pizza Hut was the favorite for families and friends to feast on its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.

But fewer patrons are frequenting the restaurant nowadays, and it is reducing 50% of its UK restaurants after being rescued from insolvency 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.” However, at present, in her mid-twenties, she states “it's no longer popular.”

According to young customer Martina, the very elements Pizza Hut has been known and loved for since it launched in the UK in the seventies are now not-so-hot.

“The way they do their all-you-can-eat and their salad bar, it feels like they are lowering standards and have inferior offerings... They're giving away so much food and you're like ‘How?’”

Since grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. Similarly, its outlets, which are being reduced from over 130 to 64.

The business, like many others, has also seen its expenses increase. In April this year, staffing costs increased due to higher minimum pay and an higher rate of employer social security payments.

Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “very overpriced”.

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

While Pizza Hut has pickup and delivery through third-party apps, it is falling behind to big rivals which specialize to this market.

“The rival chain has managed to dominate the takeaway pizza sector thanks to strong promotions and ongoing discounts that make customers feel like they're saving money, when in reality the original prices are on the higher side,” notes the specialist.

However for these customers it is justified to get their special meal brought to their home.

“We predominantly have meals at home now more than we eat out,” explains one of the diners, reflecting latest data that show a decrease in people going to quick-service eateries.

Over the summer, casual and fast-food restaurants saw a six percent decline in patrons compared to last summer.

There is also one more competitor to ordered-in pies: the frozen or fresh pizza.

A hospitality expert, global lead for leisure at a leading firm, notes that not only have retailers been providing premium oven-ready pizzas for quite a while – some are even selling pizza-making appliances.

“Evolving preferences are also playing a factor in the popularity of casual eateries,” states the expert.

The growing trend of protein-rich eating plans has driven sales at poultry outlets, while hitting sales of carb-heavy pizza, he notes.

Because people dine out not as often, they may seek out a more upscale outing, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more retro than premium.

The “explosion of premium pizza outlets” over the last 10 to 15 years, such as new entrants, has “completely altered the general opinion of what good pizza is,” says the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she states.
“What person would spend a high price 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?
“It's a no-brainer.”
A mobile pizza vendor, who owns Smokey Deez based in a regional area explains: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with evolving tastes.

According to an independent chain in a city in southwest England, the founder says the industry is broadening but Pizza Hut has failed to offer anything new.

“You now have individual slices, London pizza, thin crust, fermented dough, Neapolitan, rectangular – it's a wonderful array for a pizza-loving consumer to explore.”

Jack says Pizza Hut “must rebrand” as the youth don't have any fond memories or allegiance to the company.

Gradually, Pizza Hut's customer base has been fragmented and allocated to its trendier, more nimble alternatives. To sustain its costly operations, it would have to raise prices – which commentators say is tough at a time when family finances are shrinking.

A senior executive of Pizza Hut's global operations said the rescue aimed “to ensure our dining experience 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 support colleagues through the transition.

But with large sums going into running its restaurants, it likely can't afford to allocate significant resources in its off-premise division because the market is “complex and working with existing third-party platforms comes at a cost”, commentators say.

But, he adds, lowering overhead by leaving crowded locations could be a smart move to adjust.

Christine Perez
Christine Perez

A passionate writer and mindfulness coach dedicated to helping others unlock their creative potential and live intentionally.