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

Once, the popular pizza chain was the top choice for groups and loved ones to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.

However a declining number of diners are choosing the brand nowadays, and it is closing half of its UK locations after being acquired following financial trouble for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she states “it's fallen out of favor.”

For a diner in her twenties, 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 appears that they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”

Since grocery costs have increased significantly, Pizza Hut's unlimited dining format has become increasingly pricey to operate. The same goes for its outlets, which are being sliced from a large number to 64.

The company, similar to other firms, has also faced its expenses rise. Earlier this year, employee wages rose due to higher minimum pay and an rise in employer taxes.

Chris, 36, and Joanne, 29 explain they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

Based on your order, Pizza Hut and Domino's costs are close, explains an industry analyst.

Although Pizza Hut does offer pickup and delivery through delivery platforms, it is missing out to major competitors which focus exclusively to this market.

“Another pizza company has managed to dominate the delivery market thanks to strong promotions and frequent offers that make shoppers feel like they're saving money, when in reality the base costs are quite high,” notes the analyst.

But for the couple it is justified to get their evening together delivered to their door.

“We predominantly have meals at home now instead of we eat out,” says one of the diners, matching latest data that show a decline in people visiting casual and fast-food restaurants.

During the summer months, casual and fast-food restaurants saw a notable decrease in patrons compared to the previous year.

Moreover, one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

A hospitality expert, senior partner at a leading firm, points out that not only have retailers been offering good-standard oven-ready pizzas for a long time – some are even offering countertop ovens.

“Lifestyle changes are also having an impact in the popularity of quick-service brands,” states the analyst.

The growing trend of high protein diets has driven sales at chicken shops, while hitting sales of dough-based meals, he notes.

As people visit restaurants less frequently, they may look for a more premium experience, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more retro than luxurious.

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

“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she comments.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who operates a small business based in Suffolk explains: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

Dan says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

From the perspective of Pizzarova in a UK location, the proprietor says the industry is diversifying but Pizza Hut has failed to offer anything new.

“You now have individual slices, London pizza, New Haven-style, artisan base, Neapolitan, rectangular – it's a delightful challenge for a pizza enthusiast to try.”

The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or attachment to the brand.

In recent years, Pizza Hut's market has been sliced up and spread to its more modern, agile competitors. To maintain its expensive staffing and restaurants, it would have to charge more – which commentators say is difficult at a time when household budgets are shrinking.

The managing director of Pizza Hut's overseas branches said the rescue aimed “to ensure our guest experience and save employment where possible”.

He said its first focus was to keep running at the open outlets and off-premise points and to assist staff through the restructure.

However with large sums going into running its restaurants, it may be unable to spend heavily in its delivery service because the sector is “complex and working with existing third-party platforms comes at a cost”, experts say.

Still, experts suggest, lowering overhead by withdrawing from competitive urban areas could be a good way to adjust.

Robert Mooney
Robert Mooney

A tech writer and software developer passionate about AI and emerging technologies, sharing insights from years of industry experience.