How the Country Lost Its Craving for Pizza Hut

At one time, Pizza Hut was the top choice for parents and children to indulge in its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.

However fewer customers are choosing the chain nowadays, and it is reducing a significant portion of its UK restaurants after being rescued from insolvency for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she says “it's fallen out of favor.”

In the view of young customer Martina, some of the very things Pizza Hut has been recognized for since it launched in the UK in the 1970s are now less appealing.

“The manner in which they do their all-you-can-eat and their salad bar, it appears that they are cutting corners and have lower standards... They offer so much food and you're like ‘How can they?’”

Since ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become quite costly to operate. The same goes for its locations, which are being cut from over 130 to a smaller figure.

The business, like many others, has also seen its expenses increase. Earlier this year, labor expenses jumped due to rises in minimum wages and an rise in employer taxes.

A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

Based on your order, Pizza Hut and Domino's rates are close, explains a food expert.

Even though Pizza Hut provides off-premise options through delivery platforms, it is falling behind to major competitors which focus exclusively to off-premise dining.

“Another pizza company has succeeded in leading the takeaway pizza sector thanks to strong promotions and ongoing discounts that make customers feel like they're finding a good deal, when in reality the original prices are on the higher side,” explains the specialist.

Yet for Chris and Joanne it is acceptable to get their evening together delivered to their door.

“We absolutely dine at home now instead of we eat out,” says the female customer, matching current figures that show a decline in people going to quick-service eateries.

During the summer months, quick-service eateries saw a notable decrease in patrons compared to the previous year.

Moreover, another rival to pizza from eateries: the cook-at-home oven pizza.

Will Hawkley, global lead for leisure at an advisory group, points out that not only have grocery stores been providing premium prepared pies for a long time – some are even selling home-pizza ovens.

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

The rising popularity of high protein diets has boosted sales at chicken shops, while reducing sales of high-carbohydrate options, he notes.

Since people go out to eat not as often, they may seek out a more high-quality meal, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more retro than luxurious.

The rise of premium pizza outlets” over the last 10 to 15 years, for example popular brands, has “dramatically shifted the consumer view of what good pizza is,” explains the industry commentator.

“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 downfall,” she states.
“What person would spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who runs a small business based in a regional area explains: “It's not that lost interest in pizza – they just want improved value.”

He says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.

According to an independent chain in a city in southwest England, owner Jack Lander says the industry is broadening but Pizza Hut has neglected to introduce anything fresh.

“There are now slice concepts, regional varieties, thin crust, fermented dough, traditional Italian, rectangular – it's a delightful challenge for a pizza enthusiast to discover.”

The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or attachment to the chain.

Gradually, Pizza Hut's customer base has been fragmented and distributed to its more modern, agile competitors. To sustain its expensive staffing and restaurants, it would have to charge more – which experts say is difficult at a time when personal spending are tightening.

The managing director of Pizza Hut's international markets said the acquisition aimed “to safeguard our customer service and protect jobs where possible”.

The executive stated its key goal was to continue operating at the remaining 64 restaurants and takeaway hubs and to help employees through the transition.

But with significant funds going into operating its locations, it likely can't afford to allocate significant resources in its takeaway operation because the industry is “complicated and partnering with existing delivery apps comes at a cost”, commentators say.

Still, experts suggest, reducing expenses by leaving oversaturated towns and city centres could be a effective strategy to adapt.

Crystal Johnston
Crystal Johnston

A seasoned remote work consultant and productivity expert, passionate about helping professionals excel in flexible work environments.