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

At one time, Pizza Hut was the go-to for parents and children to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.

Yet fewer patrons are choosing the chain these days, and it is shutting down a significant portion of its UK outlets after being rescued from insolvency for the second instance this year.

I remember going Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – make a day of it.” However, at present, as a young adult, she comments “it's fallen out of favor.”

In the view of a diner in her twenties, the very elements Pizza Hut has been recognized for since it launched in the UK in the mid-20th century are now less appealing.

“The way they do their buffet and their salad bar, it feels like they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How?’”

As ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to run. As have its outlets, which are being cut from 132 to just over 60.

The business, like many others, has also seen its operating costs rise. In April this year, employee wages increased due to higher minimum pay and an higher rate of employer taxes.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.

Based on your choices, Pizza Hut and Domino's prices are close, notes a culinary author.

Although Pizza Hut provides pickup and delivery through delivery platforms, it is falling behind to big rivals which specialize to the delivery sector.

“Domino's has managed to dominate the off-premise pizza industry thanks to strong promotions and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are quite high,” explains the specialist.

But for Chris and Joanne it is justified to get their date night brought to their home.

“We definitely eat at home now more than we eat out,” says one of the diners, reflecting recent statistics that show a drop in people frequenting casual and fast-food restaurants.

Over the summer, informal dining venues saw a notable decrease in customers compared to the previous year.

There is also a further alternative to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at a leading firm, points out that not only have retailers been providing good-standard oven-ready pizzas for years – some are even offering pizza-making appliances.

“Lifestyle changes are also having an impact in the success of casual eateries,” states the analyst.

The increased interest of high protein diets has boosted sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he continues.

As people dine out less frequently, they may prefer a more high-quality meal, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more old-fashioned than premium.

The growth of artisanal pizza places” over the last 10 to 15 years, such as new entrants, has “fundamentally changed the consumer view of what excellent pie is,” notes the food expert.

“A light, fresh, easy-to-digest product with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she says.
“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
Dan Puddle, who runs Smokey Deez based in Suffolk comments: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

Dan says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.

According to a small pizza brand in a city in southwest England, owner Jack Lander says the sector is expanding but Pizza Hut has failed to offer anything innovative.

“There are now slice concepts, London pizza, new haven, artisan base, Neapolitan, Detroit – it's a heavenly minefield for a pie fan to try.”

He says Pizza Hut “should transform” as younger people don't have any emotional connection or allegiance to the brand.

Over time, Pizza Hut's customer base has been sliced up and distributed to its more modern, agile competitors. To sustain its costly operations, it would have to increase costs – which industry analysts say is tough at a time when personal spending are tightening.

A senior executive of Pizza Hut's overseas branches said the rescue aimed “to ensure our dining experience and protect jobs where possible”.

The executive stated its first focus was to maintain service at the surviving locations and takeaway hubs and to assist staff through the transition.

Yet with large sums going into operating its locations, it may be unable to spend heavily in its off-premise division because the sector is “complicated and partnering with existing third-party platforms comes at a expense”, analysts say.

Still, experts suggest, lowering overhead by withdrawing from oversaturated towns and city centres could be a smart move to adapt.

Patrick Black
Patrick Black

A seasoned gaming enthusiast and writer, Elara specializes in reviewing online casinos and sharing insights to help players maximize their fun and wins.