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

In the past, Pizza Hut was the favorite for groups and loved ones to indulge in its unlimited dining experience, unlimited salad bar, and make-your-own dessert.

But fewer diners are visiting the restaurant nowadays, and it is reducing a significant portion of its UK locations after being bought out of administration for the second instance this year.

“We used to go Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she says “it's no longer popular.”

In the view of young customer Martina, certain features Pizza Hut has been famous for since it launched in the UK in the seventies are now less appealing.

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

As ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become quite costly to maintain. As have its restaurants, which are being cut from 132 to just over 60.

The business, in common with competitors, has also seen its expenses rise. This spring, labor expenses increased due to rises in minimum wages and an higher rate of employer social security payments.

Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “very overpriced”.

According to your choices, Pizza Hut and Domino's rates are close, notes an industry analyst.

While Pizza Hut has pickup and delivery through third-party apps, it is losing out to big rivals which specialize to the delivery sector.

“Another pizza company has managed to dominate the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the base costs are quite high,” explains the specialist.

However for these customers it is worth it to get their date night delivered to their door.

“We predominantly have meals at home now more than we eat out,” comments the female customer, matching current figures that show a drop in people frequenting casual and fast-food restaurants.

During the summer months, quick-service eateries saw a six percent decline in patrons compared to the year before.

Moreover, one more competitor to ordered-in pies: the frozen or fresh pizza.

A hospitality expert, head of leisure and hospitality at an advisory group, explains that not only have retailers been selling good-standard prepared pies for a long time – some are even selling pizza-making appliances.

“Shifts in habits are also playing a factor in the success of fast-food chains,” comments the expert.

The rising popularity of protein-rich eating plans has increased sales at poultry outlets, while reducing sales of carb-heavy pizza, he continues.

Because people dine out not as often, they may look for a more upscale outing, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more retro than premium.

The “explosion of premium pizza outlets” over the last 10 to 15 years, such as boutique chains, has “completely altered the public's perception of what good pizza is,” explains the industry commentator.

“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she comments.
“What person would spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns Smokey Deez based in a regional area explains: “The issue isn’t that lost interest in pizza – they just want improved value.”

Dan says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.

According to Pizzarova in a UK location, owner Jack Lander says the industry is broadening but Pizza Hut has not provided anything fresh.

“You now have slice concepts, London pizza, New Haven-style, sourdough, Neapolitan, deep-dish – it's a heavenly minefield for a pizza enthusiast to discover.”

He says Pizza Hut “should transform” as newer generations don't have any sense of nostalgia or allegiance to the chain.

In recent years, Pizza Hut's market has been divided and allocated to its fresher, faster alternatives. To maintain its costly operations, it would have to charge more – which commentators say is difficult at a time when family finances are decreasing.

The leadership of Pizza Hut's overseas branches said the buyout aimed “to protect our dining experience and protect jobs where possible”.

The executive stated its first focus was to keep running at the remaining 64 restaurants and off-premise points and to help employees through the transition.

But with so much money going into running its restaurants, it probably cannot to invest too much in its off-premise division because the industry is “complex and partnering with existing external services comes at a cost”, commentators say.

However, it's noted, cutting its costs by leaving crowded locations could be a smart move to evolve.

Heather Paul
Heather Paul

A seasoned strategist and leadership coach with over a decade of experience in helping individuals and teams achieve their full potential.