How the Nation Lost Its Craving for the Pizza Hut Chain

At one time, the popular pizza chain was the top choice for parents and children to feast on its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.

Yet fewer customers are frequenting the restaurant currently, and it is shutting down a significant portion of its UK locations after being acquired following financial trouble 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 regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she comments “it's not a thing anymore.”

For a diner in her twenties, certain features Pizza Hut has been recognized for since it launched in the UK in the 1970s are now less appealing.

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

As ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become quite costly to maintain. As have its outlets, which are being reduced from a large number to 64.

The business, similar to other firms, has also experienced its operating costs rise. In April this year, labor expenses increased due to rises in minimum wages and an higher rate of employer taxes.

Two diners mention they would often visit at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “very overpriced”.

According to your choices, Pizza Hut and Domino's rates are close, notes an industry analyst.

While Pizza Hut provides takeaway and deliveries through third-party apps, it is missing out to larger chains which solely cater to off-premise dining.

“Another pizza company has managed to dominate the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” says the specialist.

But for these customers it is justified to get their special meal sent directly.

“We predominantly have meals at home now rather than we eat out,” comments Joanne, reflecting current figures that show a decrease in people frequenting informal dining spots.

In the warmer season, informal dining venues saw a notable decrease in patrons compared to last summer.

Additionally, a further alternative to pizza from eateries: the cook-at-home oven pizza.

An industry leader, head of leisure and hospitality at a leading firm, explains that not only have supermarkets been offering good-standard oven-ready pizzas for a long time – some are even promoting home-pizza ovens.

“Shifts in habits are also contributing in the popularity of fast-food chains,” states the expert.

The growing trend of high protein diets has increased sales at grilled chicken brands, while hitting sales of dough-based meals, he adds.

Because people visit restaurants less frequently, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more old-fashioned than upmarket.

The growth of high-quality pizzerias” over the last several years, for example popular brands, has “completely altered the consumer view of what good pizza is,” says the industry commentator.

“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she says.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
Dan Puddle, who owns a small business based in Suffolk explains: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”

He says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with new customer habits.

From the perspective of an independent chain in Bristol, the proprietor says the pizza market is diversifying but Pizza Hut has failed to offer anything fresh.

“Currently available are by-the-slice options, artisanal styles, new haven, fermented dough, Neapolitan, deep-dish – it's a delightful challenge for a pizza-loving consumer to try.”

Jack says Pizza Hut “must rebrand” as the youth don't have any fond memories or allegiance to the chain.

Gradually, Pizza Hut's market has been divided and distributed to its more modern, agile alternatives. To sustain its high labor and location costs, it would have to charge more – which commentators say is difficult at a time when family finances are shrinking.

The managing director of Pizza Hut's international markets said the rescue aimed “to ensure our guest experience and retain staff where possible”.

He said its key goal was to keep running at the remaining 64 restaurants and delivery sites and to assist staff through the transition.

However with large sums going into running its restaurants, it may be unable to spend heavily in its takeaway operation because the sector is “complex and working with existing delivery apps comes at a cost”, analysts say.

However, it's noted, cutting its costs by exiting crowded locations could be a smart move to adjust.

Stephen Parker Jr.
Stephen Parker Jr.

A passionate writer and tech enthusiast with a background in digital media and a love for exploring innovative topics.