How the Country Lost Its Taste for Pizza Hut

In the past, the popular pizza chain was the favorite for parents and children to enjoy its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.

But not as many customers are frequenting the restaurant currently, and it is shutting down half of its British outlets after being acquired following financial trouble for the second occasion 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 – make a day of it.” However, at present, as a young adult, she says “it's not a thing anymore.”

According to a diner in her twenties, some of the very things Pizza Hut has been recognized for since it opened in the UK in the seventies are now not-so-hot.

“The way they do their buffet and their salad station, it appears that they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How is that possible?’”

As ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become quite costly to operate. Similarly, its restaurants, which are being sliced from over 130 to 64.

The company, like many others, has also seen its operating costs increase. In April this year, staffing costs jumped due to increases in the legal wage floor and an rise in employer social security payments.

Two diners explain they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

Depending on your choices, Pizza Hut and Domino's rates are comparable, notes a culinary author.

While Pizza Hut provides takeaway and deliveries through external services, it is losing out to larger chains which focus exclusively to the delivery sector.

“Domino's has managed to dominate the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're saving money, when in reality the base costs are on the higher side,” explains the expert.

But for these customers it is acceptable to get their evening together sent directly.

“We absolutely dine at home now rather than we eat out,” explains Joanne, echoing latest data that show a decline in people going to casual and fast-food restaurants.

During the summer months, quick-service eateries saw a six percent decline in diners compared to the year before.

There is also one more competitor to ordered-in pies: the cook-at-home oven pizza.

A hospitality expert, senior partner at a leading firm, points out that not only have retailers been providing high-quality ready-to-bake pizzas for quite a while – some are even selling pizza-making appliances.

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

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

As people go out to eat 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 retro than upmarket.

The growth of artisanal pizza places” over the last decade and a half, for example new entrants, has “completely altered the general opinion of what quality pizza is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's struggles,” she comments.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who operates a pizza van based in Suffolk comments: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”

Dan says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it could not keep up with new customer habits.

According to an independent chain in Bristol, owner Jack Lander says the industry is broadening but Pizza Hut has failed to offer anything innovative.

“You now have by-the-slice options, artisanal styles, thin crust, fermented dough, wood-fired, deep-dish – it's a wonderful array for a pizza enthusiast to try.”

The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or allegiance to the chain.

In recent years, Pizza Hut's customer base has been fragmented and spread to its fresher, faster rivals. To keep up its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is tough at a time when family finances are shrinking.

The managing director of Pizza Hut's overseas branches said the buyout aimed “to ensure our guest experience and save employment where possible”.

It was explained its first focus was to maintain service at the open outlets and off-premise points and to support colleagues through the restructure.

Yet with large sums going into running its restaurants, it may be unable to allocate significant resources in its delivery service because the industry is “complicated and working with existing delivery apps comes at a expense”, commentators say.

However, it's noted, cutting its costs by exiting crowded locations could be a smart move to adjust.

Ashley Simmons
Ashley Simmons

Certified personal trainer and nutritionist with over 10 years of experience, passionate about helping others transform their lives through fitness.