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

Once, Pizza Hut was the go-to for families and friends to enjoy its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

But fewer customers are visiting the brand nowadays, and it is shutting down 50% of its UK restaurants after being bought out of administration for the second instance this year.

“We used to go Pizza Hut when I was a child,” says Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, 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 recognized for since it opened in the UK in the seventies are now less appealing.

“The manner in which they do their all-you-can-eat and their salad bar, it appears that they are cutting corners and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

Because grocery costs have risen sharply, Pizza Hut's buffet-style service has become very expensive to maintain. The same goes for its outlets, which are being reduced from 132 to 64.

The business, in common with competitors, has also seen its expenses rise. Earlier this year, staffing costs increased due to rises in minimum wages and an higher rate of employer social security payments.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

According to your choices, Pizza Hut and Domino's prices are comparable, says a culinary author.

While Pizza Hut provides pickup and delivery through external services, it is falling behind to major competitors which solely cater to off-premise dining.

“Another pizza company has managed to dominate the delivery market thanks to strong promotions and frequent offers that make shoppers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” explains the analyst.

But for the couple it is worth it to get their special meal brought to their home.

“We definitely eat at home now more than we eat out,” explains Joanne, echoing recent statistics that show a decline in people visiting quick-service eateries.

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

Additionally, another rival to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at a major consultancy, explains that not only have retailers been offering premium prepared pies for years – some are even promoting pizza-making appliances.

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

The growing trend of low-carb regimens has boosted sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he adds.

Since people visit restaurants less frequently, they may look for a more upscale outing, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more retro than upmarket.

The “explosion of high-quality pizzerias” over the last 10 to 15 years, including new entrants, has “dramatically shifted the general opinion of what excellent pie is,” explains the culinary analyst.

“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's downfall,” she comments.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who runs Smokey Deez based in a county in England explains: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

Dan says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with changing preferences.

At a small pizza brand in a UK location, the founder says the sector is broadening but Pizza Hut has failed to offer anything new.

“You now have slice concepts, artisanal styles, new haven, artisan base, traditional Italian, rectangular – it's a heavenly minefield for a pizza enthusiast to try.”

The owner says Pizza Hut “must rebrand” as younger people don't have any fond memories or loyalty to the company.

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

A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to safeguard our dining experience and protect jobs where possible”.

It was explained its key goal was to keep running at the open outlets and takeaway hubs and to help employees through the change.

Yet with large sums going into operating its locations, it probably cannot to invest too much in its takeaway operation because the sector is “complicated and using existing external services comes at a cost”, analysts say.

However, it's noted, reducing expenses by withdrawing from crowded locations could be a good way to evolve.

Rebecca Peters
Rebecca Peters

Tech enthusiast and writer with a passion for exploring how emerging technologies shape our future.