How the Country Lost Its Taste for the Pizza Hut Chain

At one time, Pizza Hut was the favorite for families and friends to enjoy its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

But not as many patrons are choosing the brand these days, and it is shutting down half of its UK outlets after being rescued from insolvency for the second occasion this year.

“We used to go Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – make a day of it.” However, at present, in her mid-twenties, she comments “it's fallen out of favor.”

For young customer Martina, the very elements Pizza Hut has been known and loved for since it launched in the UK in the seventies are now less appealing.

“The manner in which they do their buffet and their salad bar, it seems as if they are lowering standards and have reduced quality... They provide so much food and you're like ‘How can they?’”

As food prices have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. The same goes for its restaurants, which are being reduced from a large number to just over 60.

The company, similar to other firms, has also seen its costs increase. In April this year, staffing costs jumped due to rises in minimum wages and an rise in employer taxes.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “from time to time”, but now they choose Domino's and think Pizza Hut is “too expensive”.

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

While Pizza Hut does offer off-premise options through external services, it is falling behind to larger chains which specialize to off-premise dining.

“Domino's has managed to dominate the off-premise pizza industry thanks to aggressive marketing and frequent offers that make shoppers feel like they're finding a good deal, when in reality the original prices are on the higher side,” says the specialist.

But for the couple it is justified to get their special meal brought to their home.

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

Over the summer, informal dining venues saw a six percent decline in patrons compared to the previous year.

Additionally, another rival to ordered-in pies: the cook-at-home oven pizza.

An industry leader, senior partner at a major consultancy, points out that not only have retailers been offering premium oven-ready pizzas for quite a while – some are even selling home-pizza ovens.

“Shifts in habits are also playing a factor in the performance of fast-food chains,” comments Mr. Hawkley.

The growing trend of high protein diets has boosted sales at chicken shops, while reducing sales of carb-heavy pizza, he notes.

As people visit restaurants not as often, they may prefer a more premium experience, and Pizza Hut's retro theme with vinyl benches and nostalgic table settings can feel more old-fashioned than upmarket.

The growth of artisanal pizza places” over the last 10 to 15 years, such as boutique chains, has “fundamentally changed the public's perception of what good pizza is,” notes the industry commentator.

“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's resulted in Pizza Hut's downfall,” she comments.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who owns a pizza van based in a regional area explains: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

The owner says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with new customer habits.

According to an independent chain in Bristol, the founder says the sector is broadening but Pizza Hut has neglected to introduce anything fresh.

“There are now by-the-slice options, regional varieties, New Haven-style, sourdough, Neapolitan, rectangular – it's a delightful challenge for a pizza-loving consumer to explore.”

The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or attachment to the chain.

Over time, Pizza Hut's market has been sliced up and allocated to its fresher, faster rivals. To keep up its expensive staffing and restaurants, it would have to increase costs – which experts say is challenging at a time when family finances are tightening.

A senior executive of Pizza Hut's international markets said the rescue aimed “to ensure our guest experience and protect jobs where possible”.

The executive stated its key goal was to continue operating at the surviving locations and delivery sites and to help employees through the change.

Yet with significant funds going into maintaining its outlets, it probably cannot to allocate significant resources in its takeaway operation because the sector is “difficult and using existing delivery apps comes at a cost”, experts say.

Still, experts suggest, cutting its costs by exiting competitive urban areas could be a good way to adjust.

James Henry
James Henry

A seasoned journalist and commentator with a passion for fostering dialogue on global issues.