How the Country Lost Its Craving for Pizza Hut

In the past, Pizza Hut was the top choice for families and friends to feast on its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.

But fewer customers are visiting the brand these days, and it is reducing a significant portion of its British outlets after being rescued from insolvency for the second instance this calendar year.

“We used to go Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she says “it's fallen out of favor.”

According to a diner in her twenties, the very elements Pizza Hut has been known and loved for since it launched in the UK in the seventies are now outdated.

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

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

The business, in common with competitors, has also seen its operating costs go up. In April this year, labor expenses rose due to increases in the legal wage floor and an rise in employer social security payments.

Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “too expensive”.

According to your selection, Pizza Hut and Domino's rates are comparable, explains a culinary author.

Even though Pizza Hut provides off-premise options through third-party apps, it is losing out to larger chains which solely cater to off-premise dining.

“Another pizza company has succeeded in leading the delivery market thanks to intensive advertising and frequent offers that make consumers feel like they're saving money, when in reality the original prices are quite high,” explains the analyst.

But for the couple it is worth it to get their date night sent directly.

“We absolutely dine at home now rather than we eat out,” says one of the diners, reflecting current figures that show a decline in people going to informal dining spots.

In the warmer season, informal dining venues saw a 6% drop in diners compared to the previous year.

There is also another rival to pizza from eateries: the supermarket pizza.

A hospitality expert, global lead for leisure at a major consultancy, points out that not only have retailers been providing high-quality ready-to-bake pizzas for a long time – some are even selling countertop ovens.

“Lifestyle changes are also contributing in the performance of quick-service brands,” states the expert.

The rising popularity of high protein diets has boosted sales at chicken shops, while reducing sales of dough-based meals, he continues.

As people go out to eat less frequently, they may prefer 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 old-fashioned than upmarket.

The “explosion of artisanal pizza places” over the last 10 to 15 years, for example popular brands, has “dramatically shifted the consumer view of what quality pizza is,” explains the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's resulted in Pizza Hut's struggles,” she states.
“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates Smokey Deez based in Suffolk explains: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

The owner says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.

At Pizzarova in a UK location, the founder says the industry is diversifying but Pizza Hut has neglected to introduce anything innovative.

“Currently available are individual slices, London pizza, thin crust, fermented dough, Neapolitan, Detroit – it's a delightful challenge for a pie fan to discover.”

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

In recent years, Pizza Hut's market has been divided and spread to its fresher, faster competitors. To maintain its costly operations, it would have to increase costs – which experts say is difficult at a time when personal spending are shrinking.

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

The executive stated its immediate priority was to maintain service at the open outlets and delivery sites and to assist staff through the restructure.

But with significant funds going into operating its locations, it probably cannot to allocate significant resources in its delivery service because the industry is “complicated and partnering with existing external services comes at a cost”, analysts say.

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

Deborah Hall
Deborah Hall

Tech enthusiast and lifestyle blogger passionate about sharing innovative ideas and personal experiences to inspire others.