Why the Country Lost Its Taste for the Pizza Hut Chain

Once, Pizza Hut was the top choice for parents and children to indulge in its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.

Yet a declining number of customers are frequenting the restaurant currently, and it is shutting down a significant portion of its UK restaurants after being bought out of administration for the second time this calendar year.

I remember going Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she says “it's not a thing anymore.”

According to young customer Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the mid-20th century 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 reduced quality... They provide so much food and you're like ‘How can they?’”

Because grocery costs have risen sharply, Pizza Hut's unlimited dining format has become increasingly pricey to operate. Similarly, its outlets, which are being reduced from 132 to just over 60.

The business, in common with competitors, has also faced its costs rise. This spring, staffing costs increased due to increases in the legal wage floor and an increase in employer social security payments.

Chris, 36, and Joanne, 29 explain they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.

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

Even though Pizza Hut provides pickup and delivery through delivery platforms, it is missing out to big rivals which specialize to off-premise dining.

“The rival chain has taken over the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make shoppers feel like they're saving money, when in reality the standard rates are relatively expensive,” says the expert.

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

“We absolutely dine at home now more than we eat out,” says the female customer, matching recent statistics that show a drop in people visiting quick-service eateries.

Over the summer, casual and fast-food restaurants saw a 6% drop in diners compared to the year before.

Moreover, one more competitor to ordered-in pies: the supermarket pizza.

An industry leader, senior partner at a leading firm, notes that not only have retailers been providing good-standard oven-ready pizzas for quite a while – some are even selling pizza-making appliances.

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

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

As people go out to eat more rarely, they may prefer a more upscale outing, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more dated than upmarket.

The growth of artisanal pizza places” over the last several years, such as popular brands, has “dramatically shifted the consumer view of what quality pizza is,” says the industry commentator.

“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she states.
“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many real Italian restaurants around the country?
“The decision is simple.”
An independent operator, who runs a pizza van based in Suffolk says: “It's not that stopped liking pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it failed to adapt with changing preferences.

At a small pizza brand in a city in southwest England, the founder says the industry is broadening but Pizza Hut has neglected to introduce anything innovative.

“Currently available are by-the-slice options, regional varieties, thin crust, fermented dough, wood-fired, deep-dish – it's a delightful challenge for a pizza-loving consumer to try.”

Jack says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or allegiance to the chain.

Gradually, Pizza Hut's customer base has been fragmented and distributed to its trendier, more nimble rivals. To sustain its high labor and location costs, it would have to charge more – which commentators say is challenging at a time when family finances are tightening.

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

The executive stated its first focus was to maintain service at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.

However with significant funds going into running its restaurants, it probably cannot to allocate significant resources in its off-premise division because the sector is “difficult and partnering with existing external services comes at a price”, analysts say.

However, it's noted, cutting its costs by leaving oversaturated towns and city centres could be a smart move to adjust.

Victoria Brooks
Victoria Brooks

A passionate traveler and writer sharing UK explorations and practical advice for memorable journeys.