How the Country Turned Away from Its Appetite for Pizza Hut

Once, the popular pizza chain was the go-to for groups and loved ones to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.

However fewer patrons are visiting the chain these days, and it is shutting down half of its British restaurants after being rescued from insolvency for the second time this year.

I remember going Pizza Hut when I was a child,” explains Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's no longer popular.”

In the view of a diner in her twenties, some of the very things Pizza Hut has been famous for since it started in the UK in the mid-20th century are now less appealing.

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

Since ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become quite costly to operate. The same goes for its locations, which are being reduced from a large number to just over 60.

The chain, in common with competitors, has also seen its expenses rise. This spring, employee wages increased due to higher minimum pay and an rise in employer taxes.

Two diners explain they would often visit at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “too expensive”.

According to your selection, Pizza Hut and Domino's rates are comparable, notes a food expert.

While Pizza Hut has pickup and delivery through third-party apps, it is falling behind to larger chains which focus exclusively to the delivery sector.

“Domino's has succeeded in leading the takeaway pizza sector thanks to strong promotions and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the standard rates are quite high,” says the expert.

However for Chris and Joanne it is justified to get their evening together brought to their home.

“We predominantly have meals at home now instead of we eat out,” comments one of the diners, matching recent statistics that show a decrease in people going to casual and fast-food restaurants.

Over the summer, casual and fast-food restaurants saw a 6% drop in diners compared to last summer.

Additionally, one more competitor to pizza from eateries: the supermarket pizza.

An industry leader, global lead for leisure at a leading firm, explains that not only have grocery stores been selling good-standard ready-to-bake pizzas for a long time – some are even offering countertop ovens.

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

The growing trend of high protein diets has increased sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he notes.

As people visit restaurants not as often, they may prefer a more premium experience, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more retro than premium.

The growth of premium pizza outlets” over the last 10 to 15 years, including popular brands, has “fundamentally changed the consumer view of what excellent pie is,” notes the industry commentator.

“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she states.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who operates Smokey Deez based in Suffolk explains: “The issue isn’t that stopped liking pizza – they just want improved value.”

The owner says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it was unable to evolve with changing preferences.

According to Pizzarova in a UK location, the proprietor says the industry is broadening but Pizza Hut has neglected to introduce anything new.

“Currently available are by-the-slice options, artisanal styles, thin crust, artisan base, traditional Italian, rectangular – it's a heavenly minefield for a pie fan to explore.”

The owner says Pizza Hut “must rebrand” as younger people don't have any sense of nostalgia or attachment to the company.

Over time, Pizza Hut's share has been fragmented and spread to its trendier, more nimble rivals. To keep up its expensive staffing and restaurants, 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 retain staff where possible”.

The executive stated its key goal was to maintain service at the remaining 64 restaurants and off-premise points and to assist staff through the transition.

Yet with large sums going into operating its locations, it likely can't afford to spend heavily in its takeaway operation because the sector is “complex and using existing delivery apps comes at a cost”, analysts say.

But, he adds, reducing expenses by withdrawing from crowded locations could be a effective strategy to adapt.

Karen Williams
Karen Williams

A passionate writer and tech enthusiast with a knack for uncovering the latest trends and sharing actionable insights.