How the Nation Lost Its Taste for Pizza Hut

In the past, Pizza Hut was the go-to for families and friends to indulge in its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

However fewer patrons are choosing the brand these days, and it is reducing a significant portion of its British locations after being acquired following financial trouble for the second time this year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, as a young adult, she says “it's fallen out of favor.”

According to 23-year-old Martina, the very elements Pizza Hut has been recognized for since it launched in the UK in the 1970s are now less appealing.

“How they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have lower standards... They offer so much food and you're like ‘How is that possible?’”

As grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. As have its restaurants, which are being sliced from 132 to just over 60.

The company, similar to other firms, has also experienced its costs rise. This spring, employee wages rose due to rises in minimum wages and an increase in employer national insurance contributions.

Two diners mention they would often visit at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “too expensive”.

Depending on your order, Pizza Hut and Domino's rates are close, explains a culinary author.

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

“Another pizza company has succeeded in leading the delivery market thanks to strong promotions and constantly running deals that make shoppers feel like they're saving money, when in reality the base costs are relatively expensive,” notes the expert.

But for the couple it is worth it to get their special meal delivered to their door.

“We definitely eat at home now more than we eat out,” comments Joanne, matching current figures that show a decrease in people frequenting informal dining spots.

During the summer months, informal dining venues saw a six percent decline in diners compared to the previous year.

Additionally, one more competitor to restaurant and takeaway pizzas: the supermarket pizza.

Will Hawkley, senior partner at a major consultancy, points out that not only have supermarkets been selling premium prepared pies for a long time – some are even offering home-pizza ovens.

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

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

Since people go out to eat less frequently, they may prefer a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more retro than luxurious.

The “explosion of premium pizza outlets” over the last 10 to 15 years, including boutique chains, has “completely altered the consumer view of what quality pizza is,” says the food expert.

“A light, fresh, easy-to-digest product with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she states.
“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who operates a small business based in Suffolk explains: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

He says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with changing preferences.

From the perspective of an independent chain in a city in southwest England, the founder says the pizza market is broadening but Pizza Hut has not provided anything innovative.

“You now have by-the-slice options, artisanal styles, thin crust, artisan base, Neapolitan, rectangular – it's a delightful challenge for a pizza enthusiast to try.”

The owner says Pizza Hut “should transform” as younger people don't have any fond memories or attachment to the brand.

Gradually, Pizza Hut's share has been fragmented and spread to its more modern, agile competitors. To sustain its expensive staffing and restaurants, it would have to raise prices – which experts say is challenging at a time when family finances are decreasing.

The managing director of Pizza Hut's overseas branches 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 takeaway hubs and to support colleagues through the transition.

However with so much money going into maintaining its outlets, it probably cannot to allocate significant resources in its off-premise division because the sector is “complicated and partnering with existing external services comes at a price”, commentators say.

But, he adds, reducing expenses by leaving oversaturated towns and city centres could be a effective strategy to adapt.

Keith Sanchez
Keith Sanchez

A seasoned software engineer and tech writer passionate about demystifying complex concepts for developers and enthusiasts.