How the Nation Lost Interest in Its Craving for Pizza Hut

At one time, Pizza Hut was the go-to for families and friends to enjoy its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

But fewer patrons are frequenting the chain these days, and it is shutting down a significant portion of its British outlets after being rescued from insolvency for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she states “it's fallen out of favor.”

In the view of a diner in her twenties, the very elements Pizza Hut has been recognized for since it started in the UK in the seventies are now less appealing.

“The manner in which they do their all-you-can-eat and their salad bar, it seems as if they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How can they?’”

As ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to maintain. The same goes for its outlets, which are being sliced from a large number to a smaller figure.

The company, like many others, has also seen its operating costs rise. This spring, employee wages rose due to rises in minimum wages and an higher rate of employer national insurance contributions.

Two diners mention they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.

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

Even though Pizza Hut does offer off-premise options through third-party apps, it is missing out to larger chains which solely cater to off-premise dining.

“The rival chain has managed to dominate the off-premise pizza industry thanks to intensive advertising and frequent offers that make consumers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” says the analyst.

However for the couple it is justified to get their evening together sent directly.

“We predominantly have meals at home now rather than we eat out,” says Joanne, matching latest data that show a decrease in people visiting informal dining spots.

In the warmer season, quick-service eateries saw a 6% drop in customers compared to last summer.

There is also a further alternative to pizza from eateries: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at a leading firm, points out that not only have grocery stores been offering good-standard prepared pies for a long time – some are even offering home-pizza ovens.

“Lifestyle changes are also playing a factor in the popularity of fast-food chains,” states Mr. Hawkley.

The rising popularity of protein-rich eating plans has boosted sales at chicken shops, while reducing sales of dough-based meals, he notes.

Since people go out to eat less frequently, they may look for a more high-quality meal, and Pizza Hut's classic look with booth seating and traditional décor can feel more old-fashioned than luxurious.

The growth of high-quality pizzerias” over the last 10 to 15 years, such as popular brands, has “fundamentally changed the general opinion of what good pizza is,” explains the industry commentator.

“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,” she states.
“What person would spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns Smokey Deez based in a county in England explains: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”

He says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut struggled because it could not keep up with evolving tastes.

At Pizzarova in a city in southwest England, the proprietor says the pizza market is expanding but Pizza Hut has not provided anything fresh.

“You now have individual slices, London pizza, New Haven-style, fermented dough, wood-fired, deep-dish – it's a wonderful array for a pizza enthusiast to discover.”

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

Over time, Pizza Hut's share has been fragmented and allocated to its more modern, agile rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is difficult at a time when personal spending are tightening.

The leadership of Pizza Hut's overseas branches said the buyout aimed “to safeguard our customer service and save employment where possible”.

It was explained its first focus was to keep running at the surviving locations and delivery sites and to support colleagues through the restructure.

Yet with so much money going into maintaining its outlets, it likely can't afford to spend heavily in its takeaway operation because the industry is “difficult and partnering with existing external services comes at a cost”, analysts say.

However, it's noted, reducing expenses by withdrawing from crowded locations could be a smart move to adjust.

Melissa Edwards
Melissa Edwards

A seasoned real estate analyst with over a decade of experience in the Dutch market, passionate about helping clients make informed property decisions.