How the Country Lost Interest in Its Appetite for the Pizza Hut Chain

In the past, the popular pizza chain was the favorite for groups and loved ones to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.

However not as many diners are visiting the restaurant currently, and it is shutting down 50% of its British outlets after being bought out of administration for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” explains Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she states “it's not a thing anymore.”

According to young customer Martina, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the seventies are now less appealing.

“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 provide so much food and you're like ‘How can they?’”

Because ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to maintain. Similarly, its outlets, which are being cut from a large number to 64.

The company, like many others, has also seen its operating costs go up. This spring, labor expenses increased due to higher minimum pay and an increase in employer national insurance contributions.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “very overpriced”.

Depending on your selection, Pizza Hut and Domino's rates are close, explains an industry analyst.

While Pizza Hut provides pickup and delivery through external services, it is missing out to larger chains which specialize to the delivery sector.

“The rival chain has taken over the delivery market thanks to strong promotions and ongoing discounts that make consumers feel like they're saving money, when in reality the original prices are on the higher side,” notes the specialist.

Yet for the couple it is justified to get their date night delivered to their door.

“We absolutely dine at home now rather than we eat out,” explains one of the diners, matching latest data that show a decrease in people visiting informal dining spots.

In the warmer season, casual and fast-food restaurants saw a notable decrease in customers compared to the year before.

Additionally, one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, global lead for leisure at a leading firm, notes that not only have retailers been offering high-quality oven-ready pizzas for a long time – some are even offering pizza-making appliances.

“Evolving preferences are also playing a factor in the popularity of fast-food chains,” comments the analyst.

The growing trend of protein-rich eating plans has increased sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he adds.

As people go out to eat less frequently, they may seek out a more upscale outing, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more dated than upmarket.

The growth of high-quality pizzerias” over the last decade and a half, for example new entrants, has “completely altered the public's perception of what quality pizza is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's decline,” she states.
“Who would choose to spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted Margherita for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who runs a pizza van based in Suffolk comments: “The issue isn’t that lost interest in 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.

At an independent chain in Bristol, owner Jack Lander says the pizza market is broadening but Pizza Hut has failed to offer anything new.

“Currently available are individual slices, London pizza, thin crust, sourdough, wood-fired, deep-dish – it's a delightful challenge for a pizza enthusiast to discover.”

He says Pizza Hut “should transform” as newer generations don't have any sense of nostalgia or allegiance to the company.

Gradually, Pizza Hut's market has been divided and allocated to its trendier, more nimble alternatives. To maintain its high labor and location costs, it would have to increase costs – which commentators say is difficult at a time when family finances are tightening.

A senior executive of Pizza Hut's international markets said the rescue aimed “to ensure our guest experience and save employment where possible”.

The executive stated its immediate priority was to keep running at the remaining 64 restaurants and off-premise points and to assist staff through the change.

However with significant funds going into running its restaurants, it probably cannot to spend heavily in its delivery service because the sector is “complicated and using existing third-party platforms comes at a price”, experts say.

Still, experts suggest, reducing expenses by exiting competitive urban areas could be a good way to evolve.

Katherine Blake
Katherine Blake

Elara is a digital content creator passionate about uncovering viral trends and sharing engaging stories with a global audience.