How the Nation Lost Its Appetite for the Pizza Hut Chain

At one time, the popular pizza chain was the top choice for groups and loved ones to indulge in its unlimited dining experience, endless salad selection, and make-your-own dessert.

However a declining number of diners are choosing the brand nowadays, and it is reducing 50% of its UK outlets after being bought out of administration for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she states “it's no longer popular.”

For a diner in her twenties, the very elements Pizza Hut has been recognized for since it launched in the UK in the 1970s are now not-so-hot.

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

Because food prices have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. As have its outlets, which are being sliced from a large number to 64.

The chain, like many others, has also faced its operating costs rise. In April this year, employee wages increased due to rises in minimum wages and an higher rate of employer taxes.

Two diners explain they frequently dined at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

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

While Pizza Hut does offer off-premise options through delivery platforms, it is falling behind to larger chains which focus exclusively to this market.

“The rival chain has taken over the delivery market thanks to strong promotions and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” explains the analyst.

Yet for Chris and Joanne it is worth it to get their date night delivered to their door.

“We definitely eat at home now instead of we eat out,” says Joanne, echoing recent statistics that show a decline in people frequenting informal dining spots.

In the warmer season, quick-service eateries saw a six percent decline in customers compared to last summer.

There is also a further alternative to pizza from eateries: the supermarket pizza.

An industry leader, global lead for leisure at a major consultancy, explains that not only have retailers been offering good-standard prepared pies for a long time – some are even selling pizza-making appliances.

“Shifts in habits are also contributing in the success of fast-food chains,” comments Mr. Hawkley.

The increased interest of high protein diets has boosted sales at chicken shops, while reducing sales of dough-based meals, he continues.

Since people visit restaurants not as often, they may prefer a more upscale outing, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more retro than premium.

The rise of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “fundamentally changed the consumer view of what quality pizza is,” says the culinary analyst.

“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she comments.
“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who operates Smokey Deez based in a regional area explains: “People haven’t stopped liking pizza – they just want better pizza for their money.”

Dan says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with evolving tastes.

From the perspective of an independent chain in a UK location, owner Jack Lander says the industry is broadening but Pizza Hut has neglected to introduce anything fresh.

“Currently available are slice concepts, London pizza, thin crust, artisan base, wood-fired, Detroit – it's a wonderful array for a pizza enthusiast to try.”

Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or allegiance to the chain.

Over time, Pizza Hut's share has been fragmented and allocated to its fresher, faster competitors. To keep up its costly operations, it would have to charge more – which industry analysts say is difficult at a time when household budgets are shrinking.

The managing director of Pizza Hut's international markets said the rescue aimed “to safeguard our guest experience and save employment where possible”.

He said its immediate priority was to continue operating at the surviving locations and takeaway hubs and to help employees through the restructure.

But with significant funds going into maintaining its outlets, it may be unable to invest too much in its delivery service because the sector is “complicated and working with existing external services comes at a expense”, experts say.

However, it's noted, reducing expenses by withdrawing from competitive urban areas could be a smart move to evolve.

Toni Sullivan
Toni Sullivan

A tech enthusiast and digital strategist with over a decade of experience in driving innovation and growth for businesses.