Why the Country Lost Interest in Its Craving for the Pizza Hut Chain

At one time, Pizza Hut was the favorite for families and friends to feast on its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.

However not as many patrons are frequenting the chain currently, and it is reducing 50% of its British locations after being bought out of administration for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she says “it's fallen out of favor.”

In the view of a diner in her twenties, certain features Pizza Hut has been known and loved for since it launched in the UK in the seventies are now not-so-hot.

“The way they do their all-you-can-eat and their salad station, it feels like they are cutting corners and have lower standards... They provide so much food and you're like ‘How is that possible?’”

Since grocery costs have increased significantly, Pizza Hut's buffet-style service has become very expensive to run. Similarly, its locations, which are being reduced from a large number to a smaller figure.

The chain, in common with competitors, has also faced its costs go up. Earlier this year, labor expenses increased due to higher minimum pay and an higher rate of employer taxes.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

According to your choices, Pizza Hut and Domino's costs are close, notes an industry analyst.

Even though Pizza Hut does offer off-premise options through third-party apps, it is missing out to larger chains which focus exclusively to the delivery sector.

“Another pizza company has taken over the delivery market thanks to intensive advertising and frequent offers that make customers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” explains the specialist.

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

“We predominantly have meals at home now more than we eat out,” explains one of the diners, echoing recent statistics that show a decline in people going to informal dining spots.

During the summer months, quick-service eateries saw a six percent decline in diners compared to last summer.

Additionally, one more competitor to ordered-in pies: the frozen or fresh pizza.

A hospitality expert, senior partner at a major consultancy, explains that not only have grocery stores been offering high-quality prepared pies for a long time – some are even offering countertop ovens.

“Evolving preferences are also playing a factor in the success of quick-service brands,” states the expert.

The growing trend of protein-rich eating plans has boosted sales at chicken shops, while affecting sales of dough-based meals, he adds.

Because people go out to eat not as often, they may look for a more high-quality meal, and Pizza Hut's retro theme with vinyl benches and traditional décor can feel more old-fashioned than upmarket.

The rise of artisanal pizza places” over the last several years, such as boutique chains, has “fundamentally changed the general opinion of what quality pizza is,” notes the food expert.

“A thin, flavorful, gentle crust with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she comments.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
Dan Puddle, who operates a small business based in a regional area says: “It's not that lost interest in pizza – they just want improved value.”

The owner says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.

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

“You now have individual slices, London pizza, New Haven-style, fermented dough, traditional Italian, rectangular – it's a wonderful array for a pie fan to explore.”

He says Pizza Hut “should transform” as younger people don't have any fond memories or allegiance to the brand.

Over time, Pizza Hut's customer base has been divided and allocated to its trendier, more nimble competitors. To sustain its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is difficult at a time when household budgets are shrinking.

The leadership of Pizza Hut's overseas branches said the buyout aimed “to safeguard our guest experience and save employment where possible”.

The executive stated its immediate priority was to keep running at the surviving locations and off-premise points and to support colleagues through the transition.

But with so much money going into operating its locations, it probably cannot to allocate significant resources in its takeaway operation because the market is “complex and partnering with existing third-party platforms comes at a expense”, commentators say.

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

Steve Miller
Steve Miller

A passionate traveler and writer sharing experiences from journeys across the UK and beyond.