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

In the past, Pizza Hut was the top choice for groups and loved ones to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.

But not as many diners are choosing the brand these days, and it is closing 50% of its British locations after being rescued from insolvency for the second instance this year.

“We used to go Pizza Hut when I was a child,” says a young adult. “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 young customer Martina, some of the very things Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now less appealing.

“The way they do their buffet and their salad station, it appears that they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How?’”

Since grocery costs have soared, Pizza Hut's all-you-can-eat model has become very expensive to operate. The same goes for its outlets, which are being sliced from 132 to just over 60.

The chain, in common with competitors, has also seen its costs increase. Earlier this year, labor expenses jumped due to rises in minimum wages and an rise in employer national insurance contributions.

A couple in their thirties and twenties 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”.

According to your order, Pizza Hut and Domino's prices are comparable, explains a culinary author.

Although Pizza Hut has pickup and delivery through external services, it is missing out to larger chains which focus exclusively to the delivery sector.

“Domino's has managed to dominate the delivery market thanks to strong promotions and constantly running deals that make consumers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” says the analyst.

But for these customers it is acceptable to get their special meal delivered to their door.

“We predominantly have meals at home now rather than we eat out,” comments one of the diners, echoing current figures that show a drop in people going to quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a 6% drop in patrons compared to the year before.

There is also one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, global lead for leisure at a leading firm, points out that not only have supermarkets been offering good-standard prepared pies for years – some are even selling home-pizza ovens.

“Evolving preferences are also contributing in the performance of quick-service brands,” comments Mr. Hawkley.

The rising popularity of high protein diets has driven sales at chicken shops, while reducing sales of dough-based meals, he continues.

Because people dine out more rarely, they may look for a more premium experience, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more old-fashioned than upmarket.

The rise of premium pizza outlets” over the last 10 to 15 years, for example boutique chains, has “completely altered the public's perception of what excellent pie is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's downfall,” she comments.
“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who owns a pizza van based in a regional area says: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”

He says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.

At Pizzarova in Bristol, the proprietor says the pizza market is expanding but Pizza Hut has not provided anything fresh.

“You now have slice concepts, artisanal styles, thin crust, fermented dough, traditional Italian, Detroit – it's a delightful challenge for a pie fan to discover.”

Jack says Pizza Hut “should transform” as the youth don't have any emotional connection or allegiance to the chain.

Over time, Pizza Hut's share has been fragmented and distributed to its trendier, more nimble competitors. To sustain its high labor and location costs, it would have to charge more – which experts say is tough at a time when family finances are shrinking.

The managing director of Pizza Hut's global operations said the buyout aimed “to safeguard our dining experience and protect jobs where possible”.

He said its first focus was to keep running at the surviving locations and delivery sites and to assist staff through the transition.

But with so much money going into running its restaurants, it may be unable to spend heavily in its takeaway operation because the industry is “complex and using existing third-party platforms comes at a expense”, analysts say.

However, it's noted, cutting its costs by leaving competitive urban areas could be a smart move to adjust.

Dalton Frank
Dalton Frank

A passionate writer and digital enthusiast with a knack for uncovering unique stories and trends.