Why the Country Lost Its Taste for the Pizza Hut Chain

At one time, the popular pizza chain was the favorite for groups and loved ones to enjoy its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

However fewer customers are frequenting the restaurant these days, and it is shutting down a significant portion of its UK locations after being rescued from insolvency for the second instance this year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she comments “it's not a thing anymore.”

In the view of a diner in her twenties, some of the very things Pizza Hut has been famous for since it started in the UK in the 1970s are now outdated.

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

As grocery costs have increased significantly, Pizza Hut's unlimited dining format has become quite costly to run. The same goes for its locations, which are being sliced from 132 to just over 60.

The chain, in common with competitors, has also seen its expenses rise. This spring, employee wages increased due to increases in the legal wage floor and an rise in employer social security payments.

Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “occasionally”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.

According to your selection, Pizza Hut and Domino's rates are close, says an industry analyst.

Although Pizza Hut provides takeaway and deliveries through external services, it is falling behind to big rivals which focus exclusively to the delivery sector.

“Domino's has managed to dominate the takeaway pizza sector thanks to aggressive marketing and ongoing discounts that make shoppers feel like they're saving money, when in reality the original prices are on the higher side,” explains the expert.

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

“We predominantly have meals at home now rather than we eat out,” explains the female customer, matching latest data that show a decrease in people frequenting casual and fast-food restaurants.

In the warmer season, quick-service eateries saw a notable decrease in diners compared to last summer.

Additionally, another rival to ordered-in pies: the supermarket pizza.

Will Hawkley, global lead for leisure at an advisory group, points out that not only have retailers been offering high-quality ready-to-bake pizzas for years – some are even offering pizza-making appliances.

“Shifts in habits are also playing a factor in the performance of casual eateries,” states Mr. Hawkley.

The increased interest of protein-rich eating plans has boosted sales at poultry outlets, while reducing sales of high-carbohydrate options, he notes.

Because people go out to eat more rarely, they may prefer a more upscale outing, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more old-fashioned than upmarket.

The “explosion of artisanal pizza places” over the last several years, including popular brands, has “completely altered the general opinion of what good pizza is,” explains the food expert.

“A crisp, airy, digestible pizza 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 comments.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who operates a pizza van based in a regional area comments: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”

The owner says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

According to a small pizza brand in a city in southwest England, the proprietor says the pizza market is broadening but Pizza Hut has failed to offer anything fresh.

“Currently available are individual slices, London pizza, thin crust, sourdough, Neapolitan, deep-dish – it's a wonderful array for a pizza enthusiast to discover.”

Jack says Pizza Hut “must rebrand” as the youth don't have any fond memories or loyalty to the brand.

Over time, Pizza Hut's share has been fragmented and allocated to its trendier, more nimble rivals. To maintain its expensive staffing and restaurants, it would have to charge more – which industry analysts say is difficult at a time when household budgets are shrinking.

The managing director of Pizza Hut's international markets said the rescue aimed “to protect our guest experience and retain staff 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 restructure.

However with so much money going into operating its locations, it probably cannot to allocate significant resources in its off-premise division because the industry is “difficult and partnering with existing external services comes at a cost”, experts say.

But, he adds, lowering overhead by leaving crowded locations could be a good way to adjust.

Thomas Hall
Thomas Hall

A tech enthusiast and IT consultant with over a decade of experience in cybersecurity and network solutions.