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

At one time, the popular pizza chain was the top choice for groups and loved ones to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.

Yet not as many diners are visiting the brand currently, and it is shutting down half of its British locations after being rescued from insolvency for the second instance this calendar year.

“We used to go Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, aged 24, she comments “it's no longer popular.”

In the view of 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it started in the UK in the seventies are now less appealing.

“The manner in which they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How can they?’”

Since food prices have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to maintain. The same goes for its locations, which are being sliced from 132 to just over 60.

The business, in common with competitors, has also seen its expenses increase. Earlier this year, labor expenses jumped due to increases in the legal wage floor and an increase in employer national insurance contributions.

Chris, 36, and Joanne, 29 mention they would often visit at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

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

While Pizza Hut provides off-premise options through third-party apps, it is falling behind to big rivals which solely cater to the delivery sector.

“The rival chain has taken over the takeaway pizza sector thanks to strong promotions and frequent offers that make customers feel like they're finding a good deal, when in reality the base costs are quite high,” explains the expert.

Yet for Chris and Joanne it is worth it to get their evening together brought to their home.

“We definitely eat at home now rather than we eat out,” says one of the diners, echoing latest data that show a decline in people frequenting informal dining spots.

In the warmer season, informal dining venues saw a notable decrease in diners compared to the year before.

Additionally, another rival to ordered-in pies: the cook-at-home oven pizza.

A hospitality expert, senior partner at an advisory group, notes that not only have retailers been providing premium prepared pies for a long time – some are even offering home-pizza ovens.

“Shifts in habits are also contributing in the success of casual eateries,” comments Mr. Hawkley.

The increased interest of high protein diets has increased sales at poultry outlets, while affecting sales of high-carbohydrate options, he continues.

Since people dine out not as often, they may seek out a more premium experience, and Pizza Hut's classic look with booth seating and traditional décor can feel more retro than premium.

The growth of premium pizza outlets” over the last 10 to 15 years, including popular brands, has “fundamentally changed the consumer view of what quality pizza is,” says the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she states.
“What person would spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
An independent operator, who runs a pizza van based in Suffolk says: “It's not that lost interest in pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.

According to Pizzarova in a UK location, the founder says the pizza market is diversifying but Pizza Hut has failed to offer anything innovative.

“Currently available are slice concepts, artisanal styles, new haven, fermented dough, Neapolitan, rectangular – it's a delightful challenge for a pizza enthusiast to discover.”

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

In recent years, Pizza Hut's market has been fragmented and allocated to its fresher, faster competitors. To sustain its costly operations, it would have to increase costs – which experts say is difficult at a time when family finances are shrinking.

The leadership of Pizza Hut's overseas branches said the rescue aimed “to ensure our guest experience and retain staff where possible”.

He said its immediate priority was to maintain service at the remaining 64 restaurants and delivery sites and to support colleagues through the change.

But with large sums going into maintaining its outlets, it may be unable to spend heavily in its off-premise division because the market is “complicated and using existing delivery apps comes at a expense”, analysts say.

However, it's noted, cutting its costs by withdrawing from competitive urban areas could be a good way to adapt.

Manuel Morales
Manuel Morales

A seasoned gaming enthusiast and writer, Aria specializes in reviewing online casinos and sharing expert tips for maximizing player experiences.