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

At one time, the popular pizza chain was the go-to for groups and loved ones to enjoy its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.

However fewer patrons are choosing the chain nowadays, and it is shutting down half of its UK restaurants after being acquired following financial trouble for the second time this calendar year.

I remember going Pizza Hut when I was a child,” explains Prudence. “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 not a thing anymore.”

In the view of young customer Martina, the very elements Pizza Hut has been known and loved for since it launched 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 cutting corners and have reduced quality... They provide so much food and you're like ‘How is that possible?’”

As food prices have increased significantly, Pizza Hut's unlimited dining format has become increasingly pricey to operate. The same goes for its restaurants, which are being reduced from a large number to just over 60.

The business, like many others, has also faced its costs increase. Earlier this year, labor expenses increased due to higher minimum pay and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “too expensive”.

Based on your choices, Pizza Hut and Domino's costs are comparable, explains a culinary author.

Although Pizza Hut provides takeaway and deliveries through third-party apps, it is falling behind to larger chains which focus exclusively to off-premise dining.

“The rival chain has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make customers feel like they're finding a good deal, when in reality the original prices are relatively expensive,” notes the specialist.

But for the couple it is acceptable to get their special meal sent directly.

“We absolutely dine at home now more than we eat out,” says Joanne, reflecting latest data that show a decrease in people frequenting informal dining spots.

During the summer months, quick-service eateries saw a six percent decline in diners compared to last summer.

Moreover, one more competitor to ordered-in pies: the supermarket pizza.

A hospitality expert, global lead for leisure at a major consultancy, explains that not only have supermarkets been providing premium prepared pies for years – some are even offering countertop ovens.

“Evolving preferences are also playing a factor in the success of quick-service brands,” says Mr. Hawkley.

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

Since people go out to eat not as often, they may seek out a more upscale outing, and Pizza Hut's retro theme with vinyl benches and red and white checked plastic table cloths can feel more old-fashioned than premium.

The growth of premium pizza outlets” over the last 10 to 15 years, for example popular brands, has “dramatically shifted the public's perception of what good pizza is,” says the food expert.

“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she says.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who owns a pizza van based in a regional area explains: “People haven’t fallen out of love with pizza – they just want improved value.”

The owner says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

At an independent chain in a UK location, owner Jack Lander says the pizza market is diversifying but Pizza Hut has neglected to introduce anything fresh.

“You now have individual slices, regional varieties, New Haven-style, fermented dough, Neapolitan, Detroit – it's a delightful challenge for a pizza enthusiast to try.”

Jack says Pizza Hut “should transform” as the youth don't have any fond memories or attachment to the chain.

In recent years, Pizza Hut's share has been sliced up and spread to its fresher, faster competitors. To sustain its high labor and location costs, it would have to charge more – which industry analysts say is difficult at a time when household budgets are tightening.

A senior executive of Pizza Hut's global operations said the acquisition aimed “to safeguard our dining 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 help employees through the restructure.

However with significant funds going into maintaining its outlets, it may be unable to allocate significant resources in its off-premise division because the sector is “complicated and partnering with existing delivery apps comes at a expense”, commentators say.

However, it's noted, reducing expenses by leaving competitive urban areas could be a good way to evolve.

Cassandra Boyle
Cassandra Boyle

A passionate horticulturist with over a decade of experience in organic gardening and landscape design.