Why the Country Lost Interest in Its Appetite for Pizza Hut

Once, Pizza Hut was the go-to for families and friends to feast on its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.

But a declining number of customers are visiting the chain these days, and it is shutting down 50% of its British locations after being rescued from insolvency for the second occasion 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.” However, at present, as a young adult, she says “it's fallen out of favor.”

According to young customer Martina, the very elements Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now less appealing.

“The manner in which they do their buffet and their salad bar, it seems as if they are cheapening on their quality and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”

As food prices have soared, Pizza Hut's all-you-can-eat model has become very expensive to maintain. Similarly, its locations, which are being cut from over 130 to a smaller figure.

The company, in common with competitors, has also seen its expenses increase. This spring, labor expenses rose due to rises in minimum wages and an rise in employer national insurance contributions.

Two diners explain they used to go at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “too expensive”.

Depending on your order, Pizza Hut and Domino's costs are similar, says a food expert.

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

“Another pizza company has taken over the delivery market thanks to strong promotions and ongoing discounts that make consumers feel like they're saving money, when in reality the standard rates are on the higher side,” explains the analyst.

But for Chris and Joanne it is justified to get their date night delivered to their door.

“We absolutely dine at home now rather than we eat out,” says one of the diners, reflecting latest data that show a decline in people visiting quick-service eateries.

During the summer months, informal dining venues saw a 6% drop in customers compared to the year before.

There is also a further alternative to ordered-in pies: the supermarket pizza.

Will Hawkley, senior partner at a major consultancy, notes that not only have supermarkets been providing premium oven-ready pizzas for a long time – some are even offering pizza-making appliances.

“Evolving preferences are also having an impact in the performance of fast-food chains,” comments the expert.

The increased interest of low-carb regimens has increased sales at poultry outlets, while affecting sales of dough-based meals, he continues.

As people dine out not as often, they may look for a more premium experience, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more old-fashioned than luxurious.

The “explosion of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “fundamentally changed the general opinion of what excellent pie is,” notes the food expert.

“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she says.
“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who runs a pizza van based in Suffolk comments: “It's not that stopped liking pizza – they just want better pizza for their money.”

Dan says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.

From the perspective of an independent chain in a city in southwest England, the founder says the industry is expanding but Pizza Hut has failed to offer anything innovative.

“There are now by-the-slice options, artisanal styles, New Haven-style, artisan base, Neapolitan, rectangular – it's a wonderful array for a pizza-loving consumer to explore.”

Jack says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or attachment to the company.

Over time, Pizza Hut's customer base has been divided and allocated to its fresher, faster rivals. To sustain its costly operations, it would have to raise prices – which experts say is challenging at a time when personal spending are tightening.

The leadership of Pizza Hut's international markets said the acquisition aimed “to safeguard our customer service and protect jobs where possible”.

He said its key goal was to keep running at the open outlets and off-premise points and to assist staff through the change.

However with significant funds going into running its restaurants, it may be unable to spend heavily in its takeaway operation because the market is “difficult and partnering with existing delivery apps comes at a price”, experts say.

Still, experts suggest, cutting its costs by exiting competitive urban areas could be a effective strategy to adapt.

Colleen Lozano
Colleen Lozano

Automotive enthusiast and dome expert with over a decade of experience in custom car modifications and accessory reviews.