How the Country Lost Its Taste for Pizza Hut

Once, Pizza Hut was the go-to for groups and loved ones to indulge in its unlimited dining experience, unlimited salad bar, and make-your-own dessert.

But a declining number of customers are frequenting the brand nowadays, and it is shutting down a significant portion of its UK outlets after being bought out of administration for the second time this year.

I remember going Pizza Hut when I was a child,” explains Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she states “it's not a thing anymore.”

According to 23-year-old Martina, the very elements Pizza Hut has been recognized for since it launched in the UK in the 1970s are now less appealing.

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

Because ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. The same goes for its restaurants, which are being reduced from a large number to 64.

The business, similar to other firms, has also faced its expenses rise. In April this year, labor expenses increased due to higher minimum pay and an higher rate of employer social security payments.

A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.

Depending on your choices, Pizza Hut and Domino's rates are close, explains a culinary author.

Even though Pizza Hut provides pickup and delivery through third-party apps, it is losing out to larger chains which focus exclusively to this market.

“The rival chain has taken over the delivery market thanks to strong promotions and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the original prices are relatively expensive,” notes the specialist.

But for these customers it is worth it to get their special meal brought to their home.

“We definitely eat at home now instead of we eat out,” says the female customer, reflecting recent statistics that show a drop in people frequenting quick-service eateries.

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

Additionally, one more competitor to restaurant and takeaway pizzas: the supermarket pizza.

An industry leader, senior partner at a major consultancy, explains that not only have grocery stores been providing good-standard ready-to-bake pizzas for a long time – some are even selling countertop ovens.

“Lifestyle changes are also playing a factor in the performance of fast-food chains,” states the analyst.

The growing trend of protein-rich eating plans has driven sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he notes.

As people go out to eat less frequently, they may prefer a more upscale outing, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more dated than luxurious.

The rise of high-quality pizzerias” over the last 10 to 15 years, including boutique chains, has “dramatically shifted the public's perception of what quality pizza is,” explains the culinary analyst.

“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she comments.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared Margherita for a lower price at one of the many traditional pizzerias around the country?
“The decision is simple.”
Dan Puddle, who runs a pizza van based in Suffolk comments: “It's not that stopped liking pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

According to a small pizza brand in Bristol, the proprietor says the sector is diversifying but Pizza Hut has failed to offer anything innovative.

“You now have by-the-slice options, artisanal styles, New Haven-style, fermented dough, Neapolitan, deep-dish – it's a wonderful array for a pizza-loving consumer to discover.”

He says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or attachment to the company.

Gradually, Pizza Hut's market has been fragmented and spread to its more modern, agile competitors. To maintain its costly operations, it would have to increase costs – which experts say is challenging at a time when personal spending are shrinking.

The leadership of Pizza Hut's global operations said the buyout aimed “to safeguard our dining experience and save employment where possible”.

He said its immediate priority was to continue operating at the remaining 64 restaurants and takeaway hubs and to support colleagues through the change.

But with so much money going into operating its locations, it probably cannot to invest too much in its off-premise division because the sector is “difficult and partnering with existing external services comes at a cost”, commentators say.

But, he adds, lowering overhead by withdrawing from crowded locations could be a effective strategy to adapt.

William Roberts
William Roberts

A passionate writer and creative enthusiast who loves sharing practical tips and inspiring stories to help others unleash their inner innovator.