How the Nation Lost Interest in Its Taste for Pizza Hut

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

Yet not as many customers are frequenting the chain nowadays, and it is reducing half of its British restaurants after being rescued from insolvency for the second instance this year.

“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, she states “it's not a thing anymore.”

For young customer Martina, some of the very things Pizza Hut has been famous 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 appears that they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How?’”

Since food prices have risen sharply, Pizza Hut's unlimited dining format has become increasingly pricey to operate. As have its outlets, which are being reduced from 132 to just over 60.

The business, like many others, has also experienced its expenses go up. Earlier this year, staffing costs rose due to increases in the legal wage floor and an higher rate of employer taxes.

Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.

Depending on your choices, Pizza Hut and Domino's prices are close, notes an industry analyst.

Although Pizza Hut does offer takeaway and deliveries through third-party apps, it is losing out to larger chains which focus exclusively to the delivery sector.

“Another pizza company has managed to dominate the takeaway pizza sector thanks to strong promotions and frequent offers that make customers feel like they're saving money, when in reality the standard rates are on the higher side,” says the specialist.

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

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

During the summer months, informal dining venues saw a 6% drop in patrons compared to last summer.

There is also one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

A hospitality expert, senior partner at a major consultancy, points out that not only have retailers been selling good-standard ready-to-bake pizzas for years – some are even promoting countertop ovens.

“Evolving preferences are also contributing in the performance of quick-service brands,” comments Mr. Hawkley.

The increased interest of protein-rich eating plans has boosted sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he adds.

Since people dine out less frequently, they may look for a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more retro than upmarket.

The growth of high-quality pizzerias” over the last decade and a half, such as boutique chains, has “completely altered the consumer view of what excellent pie is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she states.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
An independent operator, who owns a small business based in a county in England says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”

Dan says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it failed to adapt with new customer habits.

According to a small pizza brand in Bristol, owner Jack Lander says the sector is broadening but Pizza Hut has neglected to introduce anything fresh.

“You now have by-the-slice options, artisanal styles, New Haven-style, sourdough, wood-fired, deep-dish – it's a wonderful array for a pizza enthusiast to discover.”

Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any sense of nostalgia or attachment to the chain.

Gradually, Pizza Hut's share has been divided and allocated to its fresher, faster competitors. To keep up its costly operations, it would have to raise prices – which commentators say is challenging at a time when household budgets are decreasing.

The leadership of Pizza Hut's international markets said the buyout aimed “to safeguard our guest experience and retain staff where possible”.

It was explained its immediate priority was to keep running at the remaining 64 restaurants and takeaway hubs and to support colleagues through the restructure.

But with so much money going into operating its locations, it may be unable to spend heavily in its takeaway operation because the industry is “difficult and using existing third-party platforms comes at a cost”, experts say.

But, he adds, reducing expenses by leaving oversaturated towns and city centres could be a smart move to adapt.

Caleb Garcia
Caleb Garcia

A tech-savvy writer passionate about exploring digital trends and sharing practical lifestyle advice.