How the Nation Lost Interest in Its Appetite for the Pizza Hut Chain

In the past, Pizza Hut was the favorite for parents and children to indulge in its unlimited dining experience, endless salad selection, and ice cream with toppings.

However fewer diners are visiting the chain nowadays, and it is shutting down half of its British locations after being bought out of administration for the second time this year.

It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, she says “it's not a thing anymore.”

In the view of a diner in her twenties, certain features Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now not-so-hot.

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

Since grocery costs have risen sharply, Pizza Hut's buffet-style service has become quite costly to operate. As have its restaurants, which are being sliced from over 130 to 64.

The business, like many others, has also faced its operating costs go up. Earlier this year, employee wages jumped due to higher minimum pay and an increase in employer national insurance contributions.

Two diners mention they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

Depending on your selection, Pizza Hut and Domino's costs are close, explains an industry analyst.

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

“Another pizza company has succeeded in leading the off-premise pizza industry thanks to strong promotions and ongoing discounts that make customers feel like they're getting a bargain, when in reality the standard rates are quite high,” notes the specialist.

But for Chris and Joanne it is worth it to get their special meal brought to their home.

“We absolutely dine at home now more than we eat out,” says the female customer, echoing latest data that show a decline in people frequenting quick-service eateries.

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

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

A hospitality expert, senior partner at an advisory group, explains that not only have retailers been offering premium oven-ready pizzas for a long time – some are even selling countertop ovens.

“Evolving preferences are also contributing in the performance of casual eateries,” states the analyst.

The rising popularity of high protein diets has boosted sales at chicken shops, while reducing sales of carb-heavy pizza, he adds.

Since people visit restaurants less frequently, they may prefer a more high-quality meal, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more retro than luxurious.

The growth of premium pizza outlets” over the last decade and a half, for example boutique chains, has “fundamentally changed the consumer view of what quality pizza is,” says the culinary analyst.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she says.
“What person would spend a high price on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who runs a pizza van based in a county in England explains: “It's not that stopped liking pizza – they just want higher quality at a fair price.”

Dan says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.

According to a small pizza brand in a UK location, owner Jack Lander says the sector is diversifying but Pizza Hut has not provided anything fresh.

“There are now by-the-slice options, London pizza, New Haven-style, sourdough, wood-fired, deep-dish – it's a heavenly minefield for a pizza-loving consumer to discover.”

He says Pizza Hut “should transform” as younger people don't have any fond memories or allegiance to the brand.

Gradually, Pizza Hut's market has been sliced up and distributed to its trendier, more nimble alternatives. To sustain its high labor and location costs, it would have to raise prices – which experts say is tough at a time when family finances are tightening.

The leadership of Pizza Hut's international markets said the rescue aimed “to ensure our dining experience and save employment where possible”.

He said its immediate priority was to maintain service at the surviving locations and off-premise points and to support colleagues through the restructure.

However with large sums going into operating its locations, it may be unable to allocate significant resources in its takeaway operation because the sector is “complex and working with existing delivery apps comes at a expense”, analysts say.

However, it's noted, cutting its costs by withdrawing from oversaturated towns and city centres could be a effective strategy to evolve.

Linda Clark
Linda Clark

A tech enthusiast and software developer with a passion for AI and open-source projects.