How the Nation Lost Interest in Its Appetite for Pizza Hut

In the past, Pizza Hut was the top choice for families and friends to indulge in its unlimited dining experience, endless salad selection, and self-serve ice-cream.

However not as many customers are visiting the chain nowadays, and it is shutting down 50% of its British outlets after being rescued from insolvency for the second instance this year.

It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she says “it's fallen out of favor.”

According to a diner in her twenties, certain features Pizza Hut has been recognized for since it started in the UK in the seventies are now less appealing.

“How they do their buffet and their salad station, it seems as if they are cheapening on their quality and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

As ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become very expensive to run. Similarly, its restaurants, which are being sliced from 132 to just over 60.

The business, in common with competitors, has also experienced its operating costs go up. Earlier this year, labor expenses jumped due to higher minimum pay and an rise in employer social security payments.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.

Depending on your selection, Pizza Hut and Domino's rates are similar, notes a culinary author.

While Pizza Hut does offer takeaway and deliveries through external services, it is missing out to larger chains which solely cater to off-premise dining.

“Domino's has managed to dominate the off-premise pizza industry thanks to intensive advertising and frequent offers that make shoppers feel like they're saving money, when in reality the standard rates are quite high,” notes the expert.

However for Chris and Joanne it is acceptable to get their date night brought to their home.

“We definitely eat at home now more than we eat out,” explains the female customer, echoing latest data that show a decrease in people visiting quick-service eateries.

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

There is also another rival to restaurant and takeaway pizzas: the frozen or fresh pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, points out that not only have grocery stores been selling good-standard prepared pies for quite a while – some are even selling countertop ovens.

“Lifestyle changes are also playing a factor in the success of fast-food chains,” states Mr. Hawkley.

The increased interest of low-carb regimens has boosted sales at chicken shops, while affecting sales of high-carbohydrate options, he continues.

As people go out to eat less frequently, they may seek out a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more retro than upmarket.

The growth of premium pizza outlets” over the last several years, such as popular brands, has “dramatically shifted the public's perception of what excellent pie is,” says the industry commentator.

“A thin, flavorful, gentle crust with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she states.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who owns a small business based in Suffolk comments: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

The owner says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.

From the perspective of a small pizza brand in Bristol, the founder says the pizza market is broadening but Pizza Hut has not provided anything fresh.

“You now have by-the-slice options, London pizza, new haven, sourdough, wood-fired, deep-dish – it's a heavenly minefield for a pizza enthusiast to discover.”

Jack says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or allegiance to the chain.

Over time, Pizza Hut's customer base has been sliced up and allocated to its fresher, faster alternatives. To keep up its costly operations, it would have to raise prices – which industry analysts say is difficult at a time when household budgets are tightening.

The leadership of Pizza Hut's international markets said the rescue aimed “to protect our customer service and protect jobs where possible”.

He said its first focus was to maintain service at the open outlets and off-premise points and to assist staff through the change.

But with so much money going into operating its locations, it probably cannot to invest too much in its takeaway operation because the industry is “complicated and using existing external services comes at a price”, analysts say.

Still, experts suggest, cutting its costs by withdrawing from crowded locations could be a smart move to adapt.

David Carter
David Carter

A seasoned gambling enthusiast and writer, sharing years of experience in lottery strategies and casino game insights.