Why the Nation Lost Its Appetite for Pizza Hut

In the past, the popular pizza chain was the favorite for groups and loved ones to indulge in its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.

However fewer diners are visiting the chain these days, and it is closing 50% of its UK outlets after being bought out of administration for the second occasion this year.

I remember going Pizza Hut when I was a child,” explains Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she comments “it's not a thing anymore.”

According to young customer Martina, certain features Pizza Hut has been recognized for since it started in the UK in the 1970s are now less appealing.

“The manner in which they do their all-you-can-eat and their salad station, it seems as if they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How?’”

Since grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become quite costly to run. The same goes for its outlets, which are being cut from over 130 to just over 60.

The business, similar to other firms, has also experienced its operating costs increase. This spring, employee wages increased due to rises in minimum wages and an increase in employer social security payments.

Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “every now and then”, but now they order in a rival chain and think Pizza Hut is “not good value”.

Depending on your order, Pizza Hut and Domino's rates are similar, says a culinary author.

Even though Pizza Hut does offer pickup and delivery through external services, it is missing out to big rivals which focus exclusively to this market.

“Domino's has managed to dominate the delivery market thanks to aggressive marketing and constantly running deals that make customers feel like they're getting a bargain, when in reality the original prices are on the higher side,” explains the analyst.

However for these customers it is acceptable to get their date night sent directly.

“We absolutely dine at home now instead of we eat out,” says the female customer, reflecting recent statistics that show a drop in people going to casual and fast-food restaurants.

In the warmer season, casual and fast-food restaurants saw a notable decrease in diners compared to the previous year.

Additionally, another rival to restaurant and takeaway pizzas: the supermarket pizza.

Will Hawkley, senior partner at an advisory group, points out that not only have grocery stores been providing premium prepared pies for quite a while – some are even offering home-pizza ovens.

“Shifts in habits are also having an impact in the success of quick-service brands,” comments the expert.

The rising popularity of protein-rich eating plans has boosted sales at poultry outlets, while affecting sales of dough-based meals, he adds.

As people dine out less frequently, they may look for a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more old-fashioned than upmarket.

The growth of high-quality pizzerias” over the last several years, such as popular brands, has “completely altered the public's perception of what good pizza is,” notes the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she comments.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who runs a pizza van based in Suffolk explains: “People haven’t stopped liking 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 had difficulty because it was unable to evolve with changing preferences.

At Pizzarova in a city in southwest England, the founder says the pizza market is broadening but Pizza Hut has not provided anything fresh.

“Currently available are individual slices, regional varieties, New Haven-style, artisan base, wood-fired, rectangular – it's a heavenly minefield for a pizza enthusiast to try.”

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

Over time, Pizza Hut's customer base has been divided and spread to its fresher, faster alternatives. To keep up its expensive staffing and restaurants, it would have to raise prices – which commentators say is tough at a time when household budgets are tightening.

The leadership of Pizza Hut's overseas branches said the buyout aimed “to ensure our guest experience and retain staff where possible”.

It was explained its immediate priority was to keep running at the remaining 64 restaurants and delivery sites and to help employees through the change.

However with so much money going into maintaining its outlets, it may be unable to spend heavily in its delivery service because the industry is “complicated and working with existing third-party platforms comes at a expense”, commentators say.

However, it's noted, reducing expenses by leaving oversaturated towns and city centres could be a good way to adapt.

Andrea Ashley
Andrea Ashley

A seasoned business strategist and tech enthusiast with over a decade of experience in driving organizational success.