Why the Country Lost Interest in Its Appetite for Pizza Hut

In the past, Pizza Hut was the favorite for families and friends to feast on its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

Yet fewer patrons are frequenting the chain these days, and it is shutting down 50% of its British outlets after being rescued from insolvency for the second time this year.

It was common to visit 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.” However, at present, in her mid-twenties, she states “it's fallen out of favor.”

For young customer Martina, certain features Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now less appealing.

“How they do their buffet and their salad station, it appears that they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How can they?’”

Because ingredient expenses have soared, Pizza Hut's unlimited dining format has become very expensive to maintain. As have its outlets, which are being sliced from a large number to 64.

The chain, similar to other firms, has also experienced its costs go up. In April this year, labor expenses increased due to higher minimum pay and an higher rate of employer national insurance contributions.

Two diners explain they frequently dined at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.

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

Although Pizza Hut has pickup and delivery through delivery platforms, it is falling behind to larger chains which solely cater to the delivery sector.

“Another pizza company has managed to dominate the delivery market thanks to intensive advertising and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the original prices are on the higher side,” explains the specialist.

However for the couple it is justified to get their special meal delivered to their door.

“We predominantly have meals at home now instead of we eat out,” explains the female customer, matching latest data that show a decrease in people going to quick-service eateries.

Over the summer, quick-service eateries saw a notable decrease in patrons compared to the year before.

Moreover, a further alternative to pizza from eateries: the supermarket pizza.

Will Hawkley, senior partner at a major consultancy, explains that not only have grocery stores been providing high-quality oven-ready pizzas for years – some are even selling home-pizza ovens.

“Evolving preferences are also having an impact in the success of quick-service brands,” says the analyst.

The rising popularity of low-carb regimens has driven sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he notes.

As people go out to eat more rarely, they may look for a more upscale outing, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more old-fashioned than luxurious.

The “explosion of high-quality pizzerias” over the last decade and a half, including new entrants, has “completely altered the consumer view of what good pizza is,” says the food expert.

“A crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she states.
“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who runs Smokey Deez based in a regional area comments: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”

The owner says his mobile setup can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with evolving tastes.

According to a small pizza brand in a city in southwest England, owner Jack Lander says the industry is diversifying but Pizza Hut has failed to offer anything new.

“You now have by-the-slice options, London pizza, New Haven-style, artisan base, Neapolitan, deep-dish – it's a wonderful array for a pie fan to explore.”

The owner says Pizza Hut “should transform” as newer generations don't have any fond memories or attachment to the chain.

Gradually, Pizza Hut's customer base has been fragmented and spread to its fresher, faster alternatives. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is tough at a time when personal spending are decreasing.

A senior executive of Pizza Hut's international markets said the rescue aimed “to protect our dining experience and save employment where possible”.

The executive stated its first focus was to maintain service at the remaining 64 restaurants and off-premise points and to help employees through the restructure.

But with so much money going into running its restaurants, it may be unable to spend heavily in its delivery service because the market is “complicated and working with existing third-party platforms comes at a cost”, analysts say.

But, he adds, reducing expenses by leaving competitive urban areas could be a effective strategy to evolve.

Deborah Brooks
Deborah Brooks

A passionate writer and home enthusiast sharing insights on decor and travel from across the UK.