Why the Nation Turned Away from Its Craving for the Pizza Hut Chain

Once, Pizza Hut was the top choice for groups and loved ones to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.

Yet fewer customers are frequenting the restaurant these days, and it is closing 50% of its UK outlets after being rescued from insolvency for the second time this year.

“We used to go Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she comments “it's not a thing anymore.”

In the view of 23-year-old Martina, the very elements Pizza Hut has been famous for since it started in the UK in the mid-20th century are now not-so-hot.

“The manner in which they do their buffet and their salad station, it feels like they are cheapening on their quality and have lower standards... They provide so much food and you're like ‘How?’”

As ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become quite costly to operate. As have its restaurants, which are being sliced from 132 to 64.

The company, similar to other firms, has also seen its costs rise. In April this year, employee wages increased due to increases in the legal wage floor and an rise in employer taxes.

Two diners explain they used to go at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “not good value”.

Based on your selection, Pizza Hut and Domino's costs are comparable, notes a food expert.

Even though Pizza Hut does offer takeaway and deliveries through external services, it is missing out to major competitors which solely cater to off-premise dining.

“Domino's has managed to dominate the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the base costs are on the higher side,” says the analyst.

However for the couple it is acceptable to get their date night sent directly.

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

During the summer months, informal dining venues saw a 6% drop in customers compared to the previous year.

There is also a further alternative to restaurant and takeaway pizzas: the supermarket pizza.

An industry leader, head of leisure and hospitality at a major consultancy, explains that not only have retailers been offering high-quality oven-ready pizzas for a long time – some are even promoting home-pizza ovens.

“Shifts in habits are also contributing in the popularity of quick-service brands,” says Mr. Hawkley.

The rising popularity of low-carb regimens has increased sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he continues.

Since people dine out less frequently, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more retro than upmarket.

The rise of artisanal pizza places” over the last several years, including popular brands, has “fundamentally changed the public's perception of what quality pizza is,” explains the industry commentator.

“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she states.
“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who runs a small business based in a county in England says: “The issue isn’t that lost interest in pizza – they just want improved value.”

Dan says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.

At Pizzarova in a UK location, the proprietor says the industry is broadening but Pizza Hut has not provided anything innovative.

“Currently available are individual slices, artisanal styles, new haven, fermented dough, traditional Italian, Detroit – it's a heavenly minefield for a pizza enthusiast to explore.”

The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or allegiance to the company.

Gradually, Pizza Hut's customer base has been sliced up and distributed to its more modern, agile rivals. To keep up its high labor and location costs, it would have to increase costs – which industry analysts say is challenging at a time when family finances are shrinking.

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

The executive stated its first focus was to continue operating at the remaining 64 restaurants and off-premise points and to help employees through the change.

But with significant funds going into running its restaurants, it may be unable to invest too much in its delivery service because the sector is “complicated and partnering with existing external services comes at a expense”, analysts say.

Still, experts suggest, cutting its costs by leaving crowded locations could be a good way to evolve.

Jeffrey Horton
Jeffrey Horton

A seasoned digital marketer with over a decade of experience in SEO and content strategy, passionate about helping businesses thrive online.