Why the Nation Lost Interest in Its Craving for the Pizza Hut Chain

At one time, the popular pizza chain was the go-to for parents and children to indulge in its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

However fewer patrons are choosing the chain currently, and it is shutting down a significant portion of its British locations after being rescued from insolvency for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, she says “it's no longer popular.”

For a diner in her twenties, some of the very things Pizza Hut has been recognized for since it started in the UK in the seventies are now not-so-hot.

“The manner in which they do their buffet and their salad station, it feels like they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How can they?’”

Because grocery costs have soared, Pizza Hut's unlimited dining format has become quite costly to run. The same goes for its outlets, which are being cut from a large number to just over 60.

The company, like many others, has also seen its operating costs go up. In April this year, labor expenses jumped due to increases in the legal wage floor and an higher rate of employer taxes.

A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “not good value”.

According to your selection, Pizza Hut and Domino's costs are close, says a food expert.

Although Pizza Hut has takeaway and deliveries through external services, it is missing out to larger chains which specialize to the delivery sector.

“The rival chain has taken over the off-premise pizza industry thanks to intensive advertising and frequent offers that make customers feel like they're saving money, when in reality the original prices are quite high,” explains the analyst.

But for the couple it is justified to get their date night brought to their home.

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

During the summer months, informal dining venues saw a six percent decline in patrons compared to last summer.

Moreover, a further alternative to ordered-in pies: the cook-at-home oven pizza.

A hospitality expert, head of leisure and hospitality at a leading firm, points out that not only have supermarkets been providing high-quality oven-ready pizzas for a long time – some are even offering home-pizza ovens.

“Shifts in habits are also contributing in the performance of quick-service brands,” says the analyst.

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

As people go out to eat not as often, they may look for a more high-quality meal, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more retro than premium.

The “explosion of high-quality pizzerias” over the last decade and a half, such as popular brands, has “completely altered the public's perception of what excellent pie is,” says the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she says.
“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns Smokey Deez based in a regional area comments: “The issue isn’t that stopped liking pizza – they just want improved value.”

The owner says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it could not keep up with evolving tastes.

From the perspective of a small pizza brand in Bristol, the founder says the pizza market is diversifying but Pizza Hut has neglected to introduce anything fresh.

“There are now by-the-slice options, regional varieties, new haven, fermented dough, wood-fired, deep-dish – it's a heavenly minefield for a pizza enthusiast to explore.”

Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any emotional connection or allegiance to the brand.

In recent years, Pizza Hut's market has been divided and distributed to its fresher, faster rivals. To keep up its high labor and location costs, it would have to charge more – which commentators say is tough at a time when personal spending are tightening.

A senior executive of Pizza Hut's global operations said the buyout aimed “to safeguard our guest experience and retain staff where possible”.

The executive stated its key goal was to keep running at the open outlets and takeaway hubs and to support colleagues through the change.

However with significant funds going into running its restaurants, it likely can't afford to allocate significant resources in its takeaway operation because the market is “complicated and using existing third-party platforms comes at a cost”, experts say.

Still, experts suggest, lowering overhead by exiting competitive urban areas could be a good way to adapt.

Lisa Wilson
Lisa Wilson

Interior designer with a passion for sustainable home styling and creative DIY solutions.