How the Country Turned Away from Its Appetite for the Pizza Hut Chain

Once, the popular pizza chain was the top choice for families and friends to indulge in its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

But fewer customers are choosing the chain these days, and it is shutting down half of its UK outlets after being rescued from insolvency for the second instance this year.

“We used to go Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she states “it's fallen out of favor.”

In the view of a diner in her twenties, the very elements Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now not-so-hot.

“How they do their buffet and their salad bar, it feels like they are cutting corners and have lower standards... They offer so much food and you're like ‘How?’”

Since ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to run. As have its restaurants, which are being sliced from 132 to a smaller figure.

The company, like many others, has also experienced its costs rise. This spring, staffing costs jumped due to increases in the legal wage floor and an higher rate of employer social security payments.

A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “from time to time”, but now they order in Domino's and think Pizza Hut is “too expensive”.

Depending on your selection, Pizza Hut and Domino's prices are similar, says an industry analyst.

Although Pizza Hut has off-premise options through third-party apps, it is falling behind to big rivals which specialize to this market.

“Domino's has managed to dominate the takeaway pizza sector thanks to intensive advertising and frequent offers that make customers feel like they're finding a good deal, when in reality the original prices are quite high,” explains the analyst.

However for Chris and Joanne it is justified to get their evening together delivered to their door.

“We absolutely dine at home now rather than we eat out,” says one of the diners, echoing current figures that show a decline in people visiting informal dining spots.

In the warmer season, informal dining venues saw a six percent decline in patrons compared to the year before.

Additionally, a further alternative to pizza from eateries: the supermarket pizza.

Will Hawkley, global lead for leisure at a major consultancy, notes that not only have retailers been offering premium prepared pies for a long time – some are even promoting pizza-making appliances.

“Shifts in habits are also contributing in the success of casual eateries,” comments the expert.

The growing trend of protein-rich eating plans has driven sales at poultry outlets, while hitting sales of carb-heavy pizza, he continues.

As people go out to eat more rarely, they may seek out a more premium experience, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more dated than upmarket.

The rise of high-quality pizzerias” over the last several years, including popular brands, has “completely altered the public's perception of what excellent pie is,” says the food expert.

“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she states.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared 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 Smokey Deez based in a county in England explains: “The issue isn’t that lost interest in pizza – they just want improved value.”

He says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

At a small pizza brand in a city in southwest England, owner Jack Lander says the industry is broadening but Pizza Hut has neglected to introduce anything innovative.

“There are now individual slices, artisanal styles, New Haven-style, sourdough, wood-fired, rectangular – it's a heavenly minefield for a pie fan to try.”

He says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or loyalty to the company.

Over time, Pizza Hut's customer base has been fragmented and distributed to its trendier, more nimble competitors. To sustain its expensive staffing and restaurants, it would have to increase costs – which experts say is difficult at a time when family finances are tightening.

The managing director of Pizza Hut's international markets said the acquisition aimed “to safeguard our customer service and retain staff where possible”.

It was explained its first focus was to continue operating at the open outlets and takeaway hubs and to help employees through the transition.

But with large sums going into maintaining its outlets, it likely can't afford to spend heavily in its takeaway operation because the market is “complex and using existing external services comes at a price”, commentators say.

But, he adds, lowering overhead by withdrawing from oversaturated towns and city centres could be a effective strategy to evolve.

John Santana
John Santana

A tech enthusiast and digital strategist with over a decade of experience in helping businesses adapt to technological changes.