Why the Nation Turned Away from Its Appetite for the Pizza Hut Chain

At one time, the popular pizza chain was the go-to for families and friends to feast on its unlimited dining experience, endless salad selection, and make-your-own dessert.

Yet a declining number of diners are frequenting the brand nowadays, and it is closing 50% of its British locations after being bought out of administration for the second time this year.

I remember going Pizza Hut when I was a child,” notes a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she says “it's no longer popular.”

In the view of a diner in her twenties, some of the very things Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now outdated.

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

Because grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. The same goes for its outlets, which are being sliced from over 130 to a smaller figure.

The business, in common with competitors, has also seen its costs go up. Earlier this year, staffing costs rose due to higher minimum pay and an rise in employer national insurance contributions.

Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “every now and then”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.

Based on your selection, Pizza Hut and Domino's costs are comparable, explains a culinary author.

Even though Pizza Hut does offer off-premise options through external services, it is missing out to larger chains which solely cater to the delivery sector.

“Domino's has succeeded in leading the delivery market thanks to aggressive marketing and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” explains the analyst.

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

“We predominantly have meals at home now instead of we eat out,” says Joanne, reflecting latest data that show a drop in people going to casual and fast-food restaurants.

During the summer months, informal dining venues saw a notable decrease in patrons compared to last summer.

Additionally, one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

A hospitality expert, senior partner at an advisory group, notes that not only have grocery stores been selling high-quality ready-to-bake pizzas for years – some are even promoting countertop ovens.

“Shifts in habits are also having an impact in the success of fast-food chains,” comments the analyst.

The increased interest of low-carb regimens has driven sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he adds.

As people visit restaurants more rarely, they may seek out a more upscale outing, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more dated than luxurious.

The rise of artisanal pizza places” over the last several years, for example new entrants, has “fundamentally changed the consumer view of what good pizza is,” explains the industry commentator.

“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she states.
“What person would spend a high price on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who runs a small business based in a regional area explains: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with changing preferences.

From the perspective of Pizzarova in a city in southwest England, the founder says the industry is expanding but Pizza Hut has failed to offer anything innovative.

“There are now by-the-slice options, regional varieties, new haven, sourdough, Neapolitan, Detroit – it's a heavenly minefield for a pizza enthusiast to try.”

He says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or loyalty to the brand.

Over time, Pizza Hut's market has been divided and distributed to its trendier, more nimble rivals. To keep up its expensive staffing and restaurants, it would have to charge more – which experts say is tough at a time when family finances are shrinking.

The managing director of Pizza Hut's international markets said the buyout aimed “to safeguard our dining experience and save employment where possible”.

He said its key goal was to maintain service at the open outlets and off-premise points and to support colleagues through the change.

However with so much money going into operating its locations, it probably cannot to spend heavily in its delivery service because the market is “complex and partnering with existing third-party platforms comes at a expense”, experts say.

But, he adds, lowering overhead by exiting competitive urban areas could be a good way to evolve.

Allison Houston
Allison Houston

A seasoned workplace consultant with over a decade of experience in optimizing office dynamics and boosting team performance through innovative solutions.