Why the Nation Turned Away from Its Taste for Pizza Hut

In the past, Pizza Hut was the go-to for parents and children to enjoy its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

Yet fewer diners are frequenting the chain nowadays, and it is reducing 50% of its British outlets after being acquired following financial trouble for the second time this calendar year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, as a young adult, she comments “it's not a thing anymore.”

According to 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now not-so-hot.

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

Because ingredient expenses have soared, Pizza Hut's buffet-style service has become very expensive to operate. Similarly, its outlets, which are being sliced from 132 to just over 60.

The company, similar to other firms, has also faced its costs increase. Earlier this year, labor expenses increased due to rises in minimum wages and an higher rate of employer taxes.

A couple in their thirties and twenties explain they would often visit at Pizza Hut for a date “occasionally”, but now they order in Domino's and think Pizza Hut is “too expensive”.

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

Even though Pizza Hut does offer off-premise options through delivery platforms, it is falling behind to larger chains which solely cater to off-premise dining.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the base costs are on the higher side,” explains the expert.

Yet for the couple it is acceptable to get their evening together sent directly.

“We absolutely dine at home now rather than we eat out,” says Joanne, matching current figures that show a decline in people visiting informal dining spots.

Over the summer, quick-service eateries saw a 6% drop in customers compared to the year before.

Additionally, one more competitor to pizza from eateries: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at a leading firm, points out that not only have supermarkets been offering high-quality ready-to-bake pizzas for years – some are even offering countertop ovens.

“Evolving preferences are also having an impact in the success of quick-service brands,” comments Mr. Hawkley.

The increased interest of high protein diets has increased sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he continues.

Because people go out to eat more rarely, they may look for a more upscale outing, and Pizza Hut's retro theme with booth seating and traditional décor can feel more retro than upmarket.

The “explosion of artisanal pizza places” over the last decade and a half, such as boutique chains, has “dramatically shifted the consumer view of what excellent pie is,” says the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she states.
“What person would spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
Dan Puddle, who owns a pizza van based in a county in England says: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”

He says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with new customer habits.

According to an independent chain in a city in southwest England, owner Jack Lander says the sector is diversifying but Pizza Hut has failed to offer anything fresh.

“You now have by-the-slice options, artisanal styles, New Haven-style, artisan base, wood-fired, Detroit – it's a delightful challenge for a pizza enthusiast to try.”

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

Gradually, Pizza Hut's share has been divided and spread to its fresher, faster rivals. To sustain its high labor and location costs, it would have to raise prices – which industry analysts say is tough at a time when household budgets are decreasing.

A senior executive of Pizza Hut's global operations said the buyout aimed “to ensure our customer service and protect jobs where possible”.

The executive stated its immediate priority was to continue operating at the remaining 64 restaurants and off-premise points and to help employees through the restructure.

Yet with large sums going into operating its locations, it probably cannot to invest too much in its off-premise division because the sector is “difficult and working with existing delivery apps comes at a expense”, analysts say.

However, it's noted, cutting its costs by withdrawing from oversaturated towns and city centres could be a good way to adapt.

Nathan Harris
Nathan Harris

A certified mindfulness coach and writer passionate about helping others achieve mental clarity and emotional balance through simple practices.