Why the Country Lost Interest in Its Appetite for the Pizza Hut Chain

Once, Pizza Hut was the favorite for families and friends to indulge in its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

Yet not as many patrons are frequenting the restaurant these days, and it is closing half of its UK outlets after being bought out of administration for the second occasion this year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she states “it's fallen out of favor.”

For young customer Martina, the very elements Pizza Hut has been known and loved for since it opened in the UK in the seventies are now outdated.

“The manner in which they do their buffet and their salad station, it feels like they are cutting corners and have inferior offerings... They provide so much food and you're like ‘How?’”

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 reduced from 132 to 64.

The chain, in common with competitors, has also seen its costs go up. In April this year, labor expenses rose due to rises in minimum wages and an higher rate of employer social security payments.

Two diners say they would often visit at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

Based on your choices, Pizza Hut and Domino's prices are close, notes a food expert.

Although Pizza Hut provides takeaway and deliveries through third-party apps, it is missing out to larger chains which focus exclusively to the delivery sector.

“The rival chain has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” explains the analyst.

But for Chris and Joanne it is justified to get their evening together brought to their home.

“We absolutely dine at home now instead of we eat out,” comments Joanne, echoing latest data that show a decrease in people frequenting quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a notable decrease in patrons compared to last summer.

Moreover, another rival to ordered-in pies: the cook-at-home oven pizza.

Will Hawkley, global lead for leisure at an advisory group, points out that not only have grocery stores been selling good-standard oven-ready pizzas for quite a while – some are even promoting pizza-making appliances.

“Shifts in habits are also playing a factor in the performance of casual eateries,” states the analyst.

The growing trend of low-carb regimens has boosted sales at poultry outlets, while reducing sales of dough-based meals, he notes.

Because people go out to eat more rarely, they may prefer a more upscale outing, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more retro than premium.

The rise of premium pizza outlets” over the last several years, such as popular brands, has “fundamentally changed the public's perception of what good pizza is,” notes the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she says.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who runs a pizza van based in a regional area comments: “It's not that stopped liking pizza – they just want higher quality at a fair price.”

He says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.

At Pizzarova in a city in southwest England, owner Jack Lander says the industry is diversifying but Pizza Hut has neglected to introduce anything innovative.

“There are now slice concepts, regional varieties, new haven, sourdough, traditional Italian, Detroit – it's a wonderful array for a pizza-loving consumer to discover.”

The owner says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or attachment to the company.

In recent years, Pizza Hut's share has been divided and spread to its fresher, faster alternatives. To keep up its costly operations, it would have to increase costs – which industry analysts say is difficult at a time when household budgets are shrinking.

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

It was explained its first focus was to maintain service at the remaining 64 restaurants and delivery sites and to assist staff through the transition.

But with significant funds going into operating its locations, it probably cannot to allocate significant resources in its off-premise division because the sector is “complicated and using existing delivery apps comes at a cost”, analysts say.

But, he adds, cutting its costs by withdrawing from crowded locations could be a effective strategy to adjust.

Dr. Susan Tate
Dr. Susan Tate

A dedicated advocate for child safety with over a decade of experience in community outreach and nonprofit management.