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

In the past, Pizza Hut was the go-to for parents and children to indulge in its unlimited dining experience, endless salad selection, and self-serve ice-cream.

But fewer customers are choosing the restaurant currently, and it is closing a significant portion of its UK outlets after being acquired following financial trouble for the second instance this year.

It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she says “it's not a thing anymore.”

For 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now less appealing.

“The way they do their all-you-can-eat and their salad bar, it feels like they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”

Since food prices have soared, Pizza Hut's all-you-can-eat model has become very expensive to maintain. As have its locations, which are being sliced from a large number to just over 60.

The chain, similar to other firms, has also faced its costs increase. In April this year, staffing costs increased due to increases in the legal wage floor and an rise in employer taxes.

Two diners explain they frequently dined at Pizza Hut for a date “from time to time”, but now they order in Domino's and think Pizza Hut is “not good value”.

Based on your selection, Pizza Hut and Domino's rates are comparable, notes a culinary author.

While Pizza Hut has takeaway and deliveries through external services, it is falling behind to big rivals which specialize to this market.

“Another pizza company has managed to dominate the off-premise pizza industry thanks to aggressive marketing and frequent offers that make consumers feel like they're getting a bargain, when in reality the base costs are quite high,” notes the specialist.

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

“We absolutely dine at home now instead of we eat out,” explains the female customer, matching latest data that show a drop in people frequenting casual and fast-food restaurants.

In the warmer season, quick-service eateries saw a 6% drop in customers compared to the year before.

There is also a further alternative to restaurant and takeaway pizzas: the frozen or fresh pizza.

Will Hawkley, senior partner at a leading firm, points out that not only have grocery stores been offering high-quality oven-ready pizzas for a long time – some are even offering pizza-making appliances.

“Lifestyle changes are also playing a factor in the performance of casual eateries,” states the expert.

The increased interest of protein-rich eating plans has increased sales at chicken shops, while hitting sales of dough-based meals, he notes.

Since people go out to eat more rarely, they may prefer a more high-quality meal, and Pizza Hut's classic look 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 10 to 15 years, for example popular brands, has “fundamentally changed the consumer view of what excellent pie is,” notes the food expert.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she states.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who operates a small business based in a county in England says: “The issue isn’t that stopped liking pizza – they just want improved value.”

He says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.

From the perspective of a small pizza brand in a city in southwest England, owner Jack Lander says the industry is diversifying but Pizza Hut has neglected to introduce anything fresh.

“Currently available are slice concepts, regional varieties, new haven, fermented dough, wood-fired, deep-dish – it's a delightful challenge for a pizza enthusiast to explore.”

Jack says Pizza Hut “should transform” as newer generations don't have any sense of nostalgia or attachment to the brand.

In recent years, Pizza Hut's market has been divided and allocated to its more modern, agile competitors. To maintain its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is challenging at a time when household budgets are tightening.

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

He said its first focus was to keep running at the remaining 64 restaurants and off-premise points and to assist staff through the change.

Yet with significant funds going into running its restaurants, it may be unable to invest too much in its off-premise division because the market is “complex and partnering with existing external services comes at a expense”, commentators say.

However, it's noted, reducing expenses by exiting crowded locations could be a effective strategy to adapt.

Rachel Brown
Rachel Brown

Productivity expert and tech enthusiast with a passion for helping teams achieve their goals through efficient work practices.