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

Once, the popular pizza chain was the top choice for groups and loved ones to indulge in its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.

Yet fewer patrons are frequenting the brand currently, and it is reducing 50% of its UK locations after being rescued from insolvency for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, as a young adult, she says “it's not a thing anymore.”

For young customer Martina, some of the very things Pizza Hut has been recognized for since it opened in the UK in the 1970s are now outdated.

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

Since food prices have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. As have its outlets, which are being cut from a large number to a smaller figure.

The company, in common with competitors, has also faced its operating costs increase. This spring, employee wages rose 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 “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

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

While Pizza Hut has pickup and delivery 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 off-premise pizza industry thanks to intensive advertising and frequent offers that make consumers feel like they're saving money, when in reality the original prices are relatively expensive,” explains the specialist.

Yet for Chris and Joanne it is acceptable to get their special meal sent directly.

“We definitely eat at home now instead of we eat out,” says Joanne, reflecting current figures that show a drop in people visiting informal dining spots.

During the summer months, informal dining venues saw a 6% drop in customers compared to the year before.

Moreover, a further alternative to pizza from eateries: the supermarket pizza.

A hospitality expert, senior partner at a major consultancy, explains that not only have retailers been selling good-standard ready-to-bake pizzas for quite a while – some are even selling pizza-making appliances.

“Lifestyle changes are also contributing in the success of quick-service brands,” says the analyst.

The rising popularity of low-carb regimens has driven sales at grilled chicken brands, while hitting sales of dough-based meals, he notes.

Because people visit restaurants less frequently, they may look for a more premium experience, and Pizza Hut's retro theme with vinyl benches and red and white checked plastic table cloths can feel more dated than luxurious.

The growth of artisanal pizza places” over the last decade and a half, including new entrants, has “fundamentally changed the consumer view of what quality pizza is,” notes the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's resulted in Pizza Hut's decline,” she comments.
“What person would spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who operates a pizza van based in a county in England comments: “It's not that stopped liking pizza – they just want improved value.”

He says his flexible operation can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with changing preferences.

From the perspective of an independent chain in a UK location, owner Jack Lander says the pizza market is diversifying but Pizza Hut has failed to offer anything new.

“You now have individual slices, artisanal styles, New Haven-style, sourdough, traditional Italian, rectangular – it's a wonderful array for a pizza enthusiast to explore.”

The owner says Pizza Hut “should transform” as younger people don't have any fond memories or attachment to the chain.

In recent years, Pizza Hut's market has been sliced up and spread to its more modern, agile competitors. To maintain its costly operations, it would have to raise prices – which industry analysts say is tough at a time when family finances are tightening.

The leadership of Pizza Hut's global operations said the buyout aimed “to protect our guest experience and retain staff where possible”.

It was explained its first focus was to maintain service at the remaining 64 restaurants and takeaway hubs and to assist staff through the restructure.

However with significant funds going into running its restaurants, it probably cannot to invest too much in its off-premise division because the industry is “complicated and partnering with existing third-party platforms comes at a expense”, commentators say.

Still, experts suggest, cutting its costs by exiting competitive urban areas could be a smart move to adapt.

John Stewart
John Stewart

A tech enthusiast and lifestyle blogger passionate about sharing insights on innovation and well-being.