How the Nation Lost Its Taste for the Pizza Hut Chain

Once, the popular pizza chain was the top choice for groups and loved ones to enjoy its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.

But not as many patrons are visiting the restaurant these days, and it is reducing 50% of its UK outlets after being rescued from insolvency for the second time this year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she says “it's not a thing anymore.”

For 23-year-old Martina, certain features Pizza Hut has been recognized for since it started in the UK in the 1970s are now less appealing.

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

Since ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become very expensive to operate. The same goes for its outlets, which are being reduced from a large number to a smaller figure.

The business, similar to other firms, has also experienced its operating costs increase. Earlier this year, staffing costs rose due to increases in the legal wage floor and an higher rate of employer national insurance contributions.

Two diners mention they frequently dined at Pizza Hut for a date “from time to time”, but now they order in Domino's and think Pizza Hut is “too expensive”.

Based on your order, Pizza Hut and Domino's rates are close, says a food expert.

Even though Pizza Hut does offer off-premise options through delivery platforms, it is losing out to larger chains which focus exclusively to the delivery sector.

“Domino's has managed to dominate the takeaway pizza sector thanks to strong promotions and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the standard rates are quite high,” says the specialist.

Yet for these customers it is justified to get their evening together brought to their home.

“We predominantly have meals at home now more than we eat out,” says the female customer, echoing latest data that show a decrease in people frequenting quick-service eateries.

During the summer months, quick-service eateries saw a 6% drop in diners compared to the year before.

Additionally, a further alternative to ordered-in pies: the frozen or fresh pizza.

A hospitality expert, global lead for leisure at an advisory group, points out that not only have retailers been providing premium prepared pies for a long time – some are even promoting countertop ovens.

“Shifts in habits are also contributing in the popularity of casual eateries,” comments Mr. Hawkley.

The growing trend of protein-rich eating plans has boosted sales at chicken shops, while affecting sales of carb-heavy pizza, he adds.

Since people dine out less frequently, they may seek out a more upscale outing, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more retro than upmarket.

The growth of premium pizza outlets” over the last decade and a half, for example boutique chains, has “fundamentally changed the consumer view of what excellent pie is,” notes the industry commentator.

“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,” she comments.
“What person would spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who runs Smokey Deez based in Suffolk explains: “It's not that fallen out of love with pizza – they just want better pizza for their money.”

He says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.

At an independent chain in a UK location, the founder says the sector is expanding but Pizza Hut has not provided anything new.

“You now have by-the-slice options, London pizza, thin crust, fermented dough, Neapolitan, Detroit – it's a wonderful array for a pie fan to try.”

Jack says Pizza Hut “should transform” as younger people don't have any emotional connection or allegiance to the company.

Over time, Pizza Hut's share has been sliced up and allocated to its trendier, more nimble rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is difficult at a time when household budgets are shrinking.

The managing director of Pizza Hut's global operations said the buyout aimed “to ensure our dining experience and retain staff where possible”.

It was explained its key goal was to maintain service at the open outlets and delivery sites and to assist staff through the restructure.

However with significant funds going into maintaining its outlets, it likely can't afford to spend heavily in its takeaway operation because the industry is “complex and partnering with existing delivery apps comes at a cost”, experts say.

But, he adds, reducing expenses by exiting competitive urban areas could be a smart move to evolve.

Lawrence Schmitt
Lawrence Schmitt

Fashion enthusiast and luxury brand expert with a passion for haute couture and timeless style.