Why the Nation Lost Interest in Its Craving for Pizza Hut

Once, Pizza Hut was the go-to for groups and loved ones to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

However not as many customers are frequenting the restaurant these days, and it is reducing half of its British restaurants after being acquired following financial trouble for the second time this year.

I remember going Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she comments “it's fallen out of favor.”

According to 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it started in the UK in the 1970s are now less appealing.

“The manner in which they do their buffet and their salad station, it seems as if they are lowering standards and have lower standards... They provide so much food and you're like ‘How can they?’”

Since ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become very expensive to maintain. Similarly, its outlets, which are being sliced from over 130 to just over 60.

The business, in common with competitors, has also faced its operating costs go up. This spring, employee wages jumped due to increases in the legal wage floor and an increase in employer taxes.

Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.

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

Even though Pizza Hut provides off-premise options through external services, it is losing out to big rivals which specialize to off-premise dining.

“Another pizza company has taken over the off-premise pizza industry thanks to aggressive marketing and frequent offers that make shoppers feel like they're saving money, when in reality the original prices are quite high,” says the expert.

However for the couple it is worth it to get their special meal sent directly.

“We definitely eat at home now instead of we eat out,” says the female customer, matching current figures that show a decrease in people frequenting casual and fast-food restaurants.

In the warmer season, informal dining venues saw a notable decrease in patrons compared to the previous year.

There is also one more competitor to pizza from eateries: the supermarket pizza.

A hospitality expert, head of leisure and hospitality at a major consultancy, explains that not only have grocery stores been providing high-quality prepared pies for a long time – some are even offering countertop ovens.

“Lifestyle changes are also having an impact in the performance of casual eateries,” says the analyst.

The rising popularity of low-carb regimens has driven sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he adds.

As people visit restaurants less frequently, they may look for a more premium experience, and Pizza Hut's retro theme with vinyl benches and traditional décor can feel more dated than upmarket.

The “explosion of high-quality pizzerias” over the last several years, for example new entrants, has “dramatically shifted the consumer view of what good pizza is,” explains the culinary analyst.

“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 decline,” she says.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many traditional pizzerias around the country?
“The decision is simple.”
Dan Puddle, who runs Smokey Deez based in Suffolk explains: “People haven’t stopped liking pizza – they just want improved value.”

Dan says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.

According to a small pizza brand in a UK location, the proprietor says the pizza market is diversifying but Pizza Hut has neglected to introduce anything fresh.

“There are now individual slices, regional varieties, New Haven-style, fermented dough, Neapolitan, rectangular – it's a heavenly minefield for a pizza enthusiast to discover.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any fond memories or allegiance to the brand.

Gradually, Pizza Hut's share has been sliced up and spread to its trendier, more nimble rivals. To maintain its costly operations, it would have to raise prices – which industry analysts say is challenging at a time when household budgets are decreasing.

A senior executive of Pizza Hut's international markets said the acquisition aimed “to safeguard our guest 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 assist staff through the transition.

However with significant funds going into operating its locations, it may be unable to allocate significant resources in its takeaway operation because the market is “complex and working with existing external services comes at a cost”, analysts say.

However, it's noted, reducing expenses by exiting competitive urban areas could be a good way to adapt.

Ronnie Anderson
Ronnie Anderson

A seasoned digital marketer with over a decade of experience in SEO and content strategy, passionate about helping businesses thrive online.