How the Country Lost Its Taste for Pizza Hut

In the past, Pizza Hut was the top choice for groups and loved ones to enjoy its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

But a declining number of diners are choosing the chain these days, and it is closing 50% of its UK restaurants after being rescued from insolvency for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, as a young adult, she states “it's fallen out of favor.”

In the view of 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 bar, it appears that they are lowering standards and have reduced quality... They offer so much food and you're like ‘How can they?’”

As grocery costs have increased significantly, Pizza Hut's buffet-style service has become very expensive to maintain. As have its locations, which are being reduced from over 130 to a smaller figure.

The chain, like many others, has also experienced its costs increase. In April this year, labor expenses rose due to increases in the legal wage floor and an increase in employer social security payments.

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

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

Although Pizza Hut does offer takeaway and deliveries through external services, it is losing out to larger chains which solely cater to the delivery sector.

“The rival chain has succeeded in leading the delivery market thanks to intensive advertising and ongoing discounts that make customers feel like they're getting a bargain, when in reality the original prices are quite high,” says the expert.

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

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

Over the summer, informal dining venues saw a six percent decline in customers compared to last summer.

Moreover, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, senior partner at a major consultancy, explains that not only have retailers been providing premium ready-to-bake pizzas for a long time – some are even promoting pizza-making appliances.

“Lifestyle changes are also playing a factor in the popularity of quick-service brands,” says the expert.

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

As people visit restaurants more rarely, they may prefer a more upscale outing, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more dated than upmarket.

The rise of artisanal pizza places” over the last 10 to 15 years, such as new entrants, has “fundamentally changed the consumer view of what excellent pie is,” says the food expert.

“A thin, flavorful, gentle crust with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she states.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who runs a pizza van based in a county in England says: “The issue isn’t that stopped liking pizza – they just want improved value.”

Dan says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.

From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the pizza market is expanding but Pizza Hut has neglected to introduce anything innovative.

“Currently available are slice concepts, London pizza, New Haven-style, fermented dough, Neapolitan, Detroit – it's a wonderful array for a pie fan to discover.”

Jack says Pizza Hut “must rebrand” as newer generations don't have any fond memories or allegiance to the chain.

In recent years, Pizza Hut's market has been fragmented and distributed to its more modern, agile rivals. To maintain its costly operations, it would have to increase costs – which industry analysts say is challenging at a time when household budgets are decreasing.

A senior executive of Pizza Hut's global operations said the rescue aimed “to ensure our guest experience and retain staff where possible”.

The executive stated its first focus was to continue operating at the surviving locations and off-premise points and to help employees through the change.

Yet with large sums going into maintaining its outlets, it likely can't afford to spend heavily in its delivery service because the market is “complex and working with existing external services comes at a price”, experts say.

Still, experts suggest, lowering overhead by leaving crowded locations could be a good way to adjust.

Austin Brooks
Austin Brooks

A dedicated gaming enthusiast and tech writer with a passion for uncovering the best in next-gen gaming experiences.