Why the Country Lost Its Appetite for Pizza Hut

At one time, Pizza Hut was the favorite for groups and loved ones to feast on its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

However fewer diners are frequenting the brand nowadays, and it is shutting down a significant portion of its British restaurants after being bought out of administration for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she states “it's fallen out of favor.”

According to a diner in her twenties, certain features Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now outdated.

“The way they do their all-you-can-eat and their salad station, it seems as if they are cutting corners and have reduced quality... They offer so much food and you're like ‘How?’”

Because grocery costs have soared, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. Similarly, its outlets, which are being cut from 132 to a smaller figure.

The company, in common with competitors, has also faced its operating costs increase. This spring, employee wages rose due to rises in minimum wages and an rise in employer taxes.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

Based on your order, Pizza Hut and Domino's costs are similar, says a food expert.

While Pizza Hut does offer takeaway and deliveries through third-party apps, it is losing out to big rivals which solely cater to off-premise dining.

“Domino's has managed to dominate the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make consumers feel like they're saving money, when in reality the base costs are on the higher side,” explains the specialist.

Yet for these customers it is acceptable to get their evening together brought to their home.

“We predominantly have meals at home now rather than we eat out,” says Joanne, echoing recent statistics that show a decline in people visiting quick-service eateries.

In the warmer season, quick-service eateries saw a 6% drop in patrons compared to the previous year.

Additionally, one more competitor to pizza from eateries: the frozen or fresh pizza.

Will Hawkley, head of leisure and hospitality at an advisory group, explains that not only have supermarkets been selling high-quality prepared pies for quite a while – some are even selling countertop ovens.

“Evolving preferences are also playing a factor in the popularity of casual eateries,” comments Mr. Hawkley.

The growing trend of protein-rich eating plans has driven sales at chicken shops, while reducing sales of carb-heavy pizza, he continues.

Since people visit restaurants not as often, they may prefer a more premium experience, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more dated than upmarket.

The growth of artisanal pizza places” over the last several years, for example boutique chains, has “completely altered the public's perception of what quality pizza is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded 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 franchise when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
An independent operator, who operates a small business based in a regional area says: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

He says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut faced challenges because it could not keep up with new customer habits.

According to a small pizza brand in a UK location, the founder says the pizza market is broadening but Pizza Hut has failed to offer anything fresh.

“Currently available are by-the-slice options, London pizza, thin crust, artisan base, wood-fired, deep-dish – it's a heavenly minefield for a pizza enthusiast to explore.”

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

Over time, Pizza Hut's share has been fragmented and spread to its trendier, more nimble competitors. To maintain its costly operations, it would have to charge more – which commentators say is difficult at a time when personal spending are shrinking.

The managing director of Pizza Hut's overseas branches said the buyout aimed “to protect our dining experience and protect jobs where possible”.

The executive stated its immediate priority was to keep running at the remaining 64 restaurants and delivery sites and to support colleagues through the change.

However with large sums going into running its restaurants, it likely can't afford to invest too much in its delivery service because the sector is “complicated and using existing third-party platforms comes at a cost”, analysts say.

However, it's noted, reducing expenses by exiting oversaturated towns and city centres could be a good way to adapt.

Travis Morgan
Travis Morgan

Seasoned gaming expert and reviewer with over a decade in the online casino industry, specializing in high-roller strategies.