How the Country Lost Its Craving for the Pizza Hut Chain

Once, Pizza Hut was the favorite for parents and children to enjoy its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.

Yet a declining number of diners are frequenting the brand currently, and it is reducing a significant portion of its British locations after being rescued from insolvency for the second instance this year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she comments “it's no longer popular.”

For a diner in her twenties, certain features Pizza Hut has been famous for since it started in the UK in the seventies are now outdated.

“The way they do their all-you-can-eat and their salad station, it seems as if they are cutting corners and have reduced quality... They provide so much food and you're like ‘How?’”

Since grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to run. As have its outlets, which are being reduced from 132 to 64.

The chain, similar to other firms, has also faced its costs go up. Earlier this year, labor expenses jumped due to higher minimum pay and an increase in employer taxes.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.

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

Although Pizza Hut has off-premise options through third-party apps, it is missing out to larger chains which specialize to off-premise dining.

“The rival chain has succeeded in leading the delivery market thanks to intensive advertising and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” notes the expert.

But for these customers it is acceptable to get their evening together brought to their home.

“We absolutely dine at home now rather than we eat out,” says the female customer, reflecting recent statistics that show a drop in people going to quick-service eateries.

During the summer months, quick-service eateries saw a notable decrease in customers compared to the year before.

Moreover, another rival to pizza from eateries: the frozen or fresh pizza.

Will Hawkley, senior partner at a leading firm, explains that not only have grocery stores been offering high-quality ready-to-bake pizzas for years – some are even promoting home-pizza ovens.

“Evolving preferences are also having an impact in the popularity of quick-service brands,” comments the expert.

The increased interest of high protein diets has increased sales at poultry outlets, while hitting sales of dough-based meals, he notes.

Since people visit restaurants not as often, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more retro than premium.

The rise of premium pizza outlets” over the last decade and a half, including boutique chains, has “fundamentally changed the general opinion of what quality pizza is,” explains the culinary analyst.

“A crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she says.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns a pizza van based in Suffolk explains: “People haven’t stopped liking pizza – they just want better pizza for their money.”

He says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut had difficulty because it could not keep up with changing preferences.

According to an independent chain in Bristol, the proprietor says the pizza market is broadening but Pizza Hut has not provided anything fresh.

“You now have individual slices, artisanal styles, New Haven-style, artisan base, wood-fired, deep-dish – it's a heavenly minefield for a pizza enthusiast to explore.”

He says Pizza Hut “should transform” as newer generations don't have any fond memories or allegiance to the brand.

Gradually, Pizza Hut's customer base has been sliced up and spread to its trendier, more nimble competitors. To maintain its costly operations, it would have to charge more – which industry analysts say is tough at a time when family finances are shrinking.

The leadership of Pizza Hut's overseas branches said the acquisition aimed “to ensure our guest experience and retain staff where possible”.

He said its immediate priority was to continue operating at the open outlets and delivery sites and to support colleagues through the change.

Yet with so much money going into running its restaurants, it probably cannot to invest too much in its delivery service because the industry is “difficult and using existing third-party platforms comes at a price”, experts say.

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

Todd Kelly
Todd Kelly

A seasoned gaming journalist with over a decade of experience covering online casinos and slot innovations across the UK.