How the Nation Lost Its Craving for Pizza Hut

At one time, the popular pizza chain was the go-to for parents and children to enjoy its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.

However not as many customers are visiting the brand these days, and it is closing a significant portion of its British outlets after being rescued from insolvency for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she says “it's not a thing anymore.”

According to a diner in her twenties, certain features Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now not-so-hot.

“How they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have lower standards... They offer so much food and you're like ‘How can they?’”

Since food prices have increased significantly, Pizza Hut's buffet-style service has become quite costly to run. As have its outlets, which are being reduced from 132 to a smaller figure.

The company, similar to other firms, has also faced its expenses go up. This spring, labor expenses rose due to rises in minimum wages and an rise in employer social security payments.

Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's prices are close, says a food expert.

Even though Pizza Hut does offer takeaway and deliveries through external services, it is falling behind to big rivals which solely cater to this market.

“Domino's has taken over the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make shoppers feel like they're saving money, when in reality the standard rates are on the higher side,” explains the specialist.

But for these customers it is justified to get their special meal sent directly.

“We definitely eat at home now instead of we eat out,” explains one of the diners, reflecting current figures that show a drop in people frequenting informal dining spots.

Over the summer, casual and fast-food restaurants saw a six percent decline in customers compared to the previous year.

Moreover, another rival to pizza from eateries: the frozen or fresh pizza.

Will Hawkley, senior partner at a major consultancy, notes that not only have grocery stores been providing good-standard oven-ready pizzas for years – some are even selling countertop ovens.

“Lifestyle changes are also playing a factor in the popularity of fast-food chains,” states Mr. Hawkley.

The growing trend of high protein diets has boosted sales at chicken shops, while affecting sales of carb-heavy pizza, he continues.

As people dine out less frequently, they may seek out a more upscale outing, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more dated than upmarket.

The growth of premium pizza outlets” over the last several years, including new entrants, has “dramatically shifted the public's perception of what quality pizza is,” says the industry commentator.

“A thin, flavorful, gentle crust with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she comments.
“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared Margherita for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
Dan Puddle, who owns Smokey Deez based in Suffolk comments: “It's not that stopped liking pizza – they just want better pizza for their money.”

He says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with new customer habits.

From the perspective of Pizzarova in a city in southwest England, owner Jack Lander says the pizza market is broadening but Pizza Hut has failed to offer anything new.

“There are now slice concepts, regional varieties, New Haven-style, artisan base, wood-fired, Detroit – it's a delightful challenge for a pie fan to try.”

Jack says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or loyalty to the chain.

Over time, Pizza Hut's customer base has been sliced up and distributed to its trendier, more nimble rivals. To sustain its costly operations, it would have to increase costs – which experts say is difficult at a time when family finances are decreasing.

A senior executive of Pizza Hut's overseas branches said the rescue aimed “to ensure our customer service and retain staff where possible”.

The executive stated its immediate priority was to maintain service at the remaining 64 restaurants and takeaway hubs and to assist staff through the change.

But with large sums going into running its restaurants, it likely can't afford to allocate significant resources in its delivery service because the industry is “complex and partnering with existing delivery apps comes at a expense”, commentators say.

But, he adds, reducing expenses by exiting competitive urban areas could be a good way to evolve.

Kristy Cordova
Kristy Cordova

A seasoned gaming enthusiast and analyst, passionate about sharing strategies and trends in the online betting world.