Why the Country Turned Away from Its Appetite for Pizza Hut

At one time, Pizza Hut was the top choice for groups and loved ones to indulge in its unlimited dining experience, unlimited salad bar, and self-serve ice-cream.

But not as many patrons are choosing the brand currently, and it is shutting down a significant portion of its British locations after being acquired following financial trouble for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she states “it's not a thing anymore.”

In the view of 23-year-old Martina, certain features Pizza Hut has been known and loved for since it launched in the UK in the seventies are now not-so-hot.

“How they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How?’”

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

The company, similar to other firms, has also faced its expenses go up. This spring, labor expenses jumped due to increases in the legal wage floor and an increase in employer social security payments.

A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.

According to your order, Pizza Hut and Domino's costs are similar, says an industry analyst.

While Pizza Hut does offer takeaway and deliveries through external services, it is missing out to major competitors which specialize to this market.

“The rival chain has succeeded in leading the off-premise pizza industry thanks to intensive advertising and constantly running deals that make consumers feel like they're finding a good deal, when in reality the original prices are on the higher side,” explains the analyst.

However for Chris and Joanne it is worth it to get their evening together sent directly.

“We absolutely dine at home now instead of we eat out,” says one of the diners, echoing current figures that show a decrease in people frequenting informal dining spots.

Over the summer, informal dining venues saw a six percent decline in patrons compared to the year before.

There is also a further alternative to pizza from eateries: the cook-at-home oven pizza.

An industry leader, global lead for leisure at a leading firm, notes that not only have retailers been offering good-standard prepared pies for quite a while – some are even promoting countertop ovens.

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

The growing trend of high protein diets has driven sales at poultry outlets, while affecting sales of carb-heavy pizza, he adds.

As people dine out more rarely, they may prefer a more upscale outing, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more retro than upmarket.

The growth of premium pizza outlets” over the last several years, such as new entrants, has “fundamentally changed the consumer view of what excellent pie is,” explains 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 led to Pizza Hut's struggles,” she says.
“What person would spend a high price on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted Margherita for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who runs Smokey Deez based in Suffolk says: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”

The owner says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

According to an independent chain in a city in southwest England, the founder says the industry is broadening but Pizza Hut has neglected to introduce anything new.

“You now have individual slices, London pizza, thin crust, sourdough, Neapolitan, rectangular – it's a wonderful array for a pizza enthusiast to explore.”

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

In recent years, Pizza Hut's market has been fragmented and spread to its fresher, faster rivals. To keep up its expensive staffing and restaurants, it would have to raise prices – which commentators say is challenging at a time when family finances are decreasing.

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

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

However with significant funds going into operating its locations, it likely can't afford to invest too much in its takeaway operation because the industry is “complex and partnering with existing third-party platforms comes at a price”, experts say.

However, it's noted, lowering overhead by exiting crowded locations could be a smart move to adapt.

Stephen Zimmerman
Stephen Zimmerman

A tech enthusiast and business strategist with over a decade of experience in digital transformation and startup ecosystems.