Why the Country Lost Interest in Its Appetite for Pizza Hut

In the past, the popular pizza chain was the go-to for parents and children to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.

However fewer diners are frequenting the restaurant these days, and it is shutting down a significant portion of its British restaurants after being acquired following financial trouble for the second time this calendar year.

“We used to go Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, aged 24, she says “it's no longer popular.”

For 23-year-old Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now outdated.

“The way they do their all-you-can-eat and their salad station, it seems as if they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How?’”

Since ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to run. As have its restaurants, which are being reduced from over 130 to 64.

The business, in common with competitors, has also seen its costs rise. Earlier this year, staffing costs rose due to higher minimum pay and an rise in employer national insurance contributions.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “every now and then”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.

Based on your choices, Pizza Hut and Domino's costs are similar, notes an industry analyst.

While Pizza Hut does offer takeaway and deliveries through external services, it is missing out to major competitors which solely cater to this market.

“Domino's has taken over the takeaway pizza sector thanks to intensive advertising and ongoing discounts that make consumers feel like they're saving money, when in reality the original prices are on the higher side,” notes the expert.

However for Chris and Joanne it is acceptable to get their date night delivered to their door.

“We predominantly have meals at home now instead of we eat out,” comments the female customer, reflecting latest data that show a drop in people frequenting quick-service eateries.

In the warmer season, quick-service eateries saw a notable decrease in patrons compared to last summer.

There is also another rival to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, senior partner at a major consultancy, explains that not only have retailers been providing premium prepared pies for quite a while – some are even promoting pizza-making appliances.

“Lifestyle changes are also having an impact in the performance of fast-food chains,” states the analyst.

The increased interest of high protein diets has driven sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he continues.

As people go out to eat not as often, they may seek out a more upscale outing, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more dated than luxurious.

The growth of artisanal pizza places” over the last 10 to 15 years, for example popular brands, has “completely altered the public's perception of what excellent pie is,” notes the culinary analyst.

“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she comments.
“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who operates a small business based in a county in England comments: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

He says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with evolving tastes.

From the perspective of Pizzarova in Bristol, the founder says the sector is diversifying but Pizza Hut has not provided anything innovative.

“There are now individual slices, London pizza, thin crust, sourdough, wood-fired, Detroit – it's a heavenly minefield for a pizza-loving consumer to discover.”

Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or attachment to the brand.

In recent years, Pizza Hut's market has been fragmented and distributed to its more modern, agile competitors. To sustain its costly operations, it would have to charge more – which commentators say is difficult at a time when family finances are decreasing.

The managing director of Pizza Hut's overseas branches said the rescue aimed “to safeguard our guest experience and protect jobs where possible”.

He said its first focus was to continue operating at the surviving locations and off-premise points and to support colleagues through the restructure.

But with significant funds going into running its restaurants, it probably cannot to invest too much in its off-premise division because the market is “complex and working with existing third-party platforms comes at a cost”, commentators say.

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

Gary Wilkinson
Gary Wilkinson

Award-winning journalist with a passion for uncovering truth and delivering compelling narratives.