How the Country Lost Its Appetite for Pizza Hut

Once, the popular pizza chain was the go-to for groups and loved ones to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.

However a declining number of patrons are choosing the brand these days, and it is shutting down a significant portion of its British outlets after being bought out of administration for the second instance this year.

“We used to go Pizza Hut when I was a child,” notes a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, in her mid-twenties, she states “it's fallen out of favor.”

In the view of 23-year-old Martina, some of the very things Pizza Hut has been recognized for since it launched in the UK in the seventies are now outdated.

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

Since food prices have soared, Pizza Hut's all-you-can-eat model has become very expensive to maintain. As have its restaurants, which are being reduced from over 130 to 64.

The company, similar to other firms, has also faced its costs go up. In April this year, staffing costs increased due to higher minimum pay and an rise in employer taxes.

Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “too expensive”.

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

Although Pizza Hut has pickup and delivery through external services, it is falling behind to big rivals which solely cater to this market.

“The rival chain has managed to dominate the off-premise pizza industry thanks to strong promotions and ongoing discounts that make customers feel like they're saving money, when in reality the standard rates are relatively expensive,” says the expert.

Yet for the couple it is acceptable to get their date night delivered to their door.

“We definitely eat at home now instead of we eat out,” explains Joanne, reflecting latest data that show a decline in people going to quick-service eateries.

In the warmer season, quick-service eateries saw a six percent decline in diners compared to the previous year.

There is also another rival to pizza from eateries: the cook-at-home oven pizza.

An industry leader, senior partner at an advisory group, explains that not only have retailers been providing high-quality prepared pies for a long time – some are even promoting countertop ovens.

“Shifts in habits are also having an impact in the performance of quick-service brands,” comments the analyst.

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

Because people go out to eat not as often, they may prefer a more premium experience, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more dated than premium.

The rise of artisanal pizza places” over the last several years, including new entrants, has “completely altered the consumer view of what good pizza is,” explains the culinary analyst.

“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she states.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“It's an easy choice.”
Dan Puddle, who operates a pizza van based in Suffolk comments: “The issue isn’t that lost interest in pizza – they just want improved value.”

He says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it could not keep up with new customer habits.

According to Pizzarova in a UK location, the proprietor says the pizza market is expanding but Pizza Hut has not provided anything fresh.

“You now have individual slices, artisanal styles, new haven, sourdough, wood-fired, deep-dish – it's a wonderful array for a pizza-loving consumer to discover.”

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

In recent years, Pizza Hut's market has been divided and allocated to its trendier, more nimble competitors. To keep up its expensive staffing and restaurants, it would have to increase costs – which experts say is tough at a time when household budgets are shrinking.

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

The executive stated its first focus was to continue operating at the surviving locations and takeaway hubs and to assist staff through the change.

Yet with significant funds going into maintaining its outlets, it probably cannot to allocate significant resources in its off-premise division because the industry is “complicated and using existing external services comes at a expense”, experts say.

But, he adds, cutting its costs by leaving oversaturated towns and city centres could be a smart move to adjust.

Lynn Alvarez
Lynn Alvarez

A tech enthusiast and digital strategist with over a decade of experience in helping businesses adapt to the digital age.