Why the Country Turned Away from Its Appetite for the Pizza Hut Chain

At one time, Pizza Hut was the top choice for families and friends to enjoy its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.

However not as many customers are visiting the brand currently, and it is shutting down half of its British restaurants 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,” explains one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, in her mid-twenties, she states “it's no longer popular.”

In the view of a diner in her twenties, certain features Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now not-so-hot.

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

As grocery costs have increased significantly, Pizza Hut's unlimited dining format has become very expensive to maintain. As have its restaurants, which are being cut from 132 to a smaller figure.

The company, similar to other firms, has also seen its costs rise. This spring, employee wages rose due to higher minimum pay and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “not good value”.

According to your selection, Pizza Hut and Domino's rates are close, says a culinary author.

Although Pizza Hut provides pickup and delivery through third-party apps, it is missing out to larger chains which specialize to off-premise dining.

“Another pizza company has taken over the delivery market thanks to aggressive marketing and ongoing discounts that make customers feel like they're finding a good deal, when in reality the original prices are quite high,” notes the analyst.

Yet for the couple it is acceptable to get their evening together delivered to their door.

“We predominantly have meals at home now instead of we eat out,” explains one of the diners, echoing recent statistics that show a decrease in people going to quick-service eateries.

In the warmer season, informal dining venues saw a notable decrease in diners compared to the year before.

There is also one more competitor to ordered-in pies: the supermarket pizza.

A hospitality expert, senior partner at an advisory group, explains that not only have grocery stores been selling premium oven-ready pizzas for years – some are even selling pizza-making appliances.

“Shifts in habits are also contributing in the success of quick-service brands,” says Mr. Hawkley.

The rising popularity of high protein diets has boosted sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he adds.

Since people visit restaurants more rarely, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more old-fashioned than premium.

The growth of artisanal pizza places” over the last 10 to 15 years, including new entrants, has “dramatically shifted the public's perception of what excellent pie is,” explains the food expert.

“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 resulted in Pizza Hut's decline,” she says.
“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for a lower price at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who operates Smokey Deez based in a regional area comments: “It's not that stopped liking pizza – they just want improved value.”

The owner says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it could not keep up with new customer habits.

From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the sector is diversifying but Pizza Hut has neglected to introduce anything new.

“There are now by-the-slice options, artisanal styles, thin crust, sourdough, traditional Italian, Detroit – it's a heavenly minefield for a pie fan to discover.”

Jack says Pizza Hut “should transform” as newer generations don't have any sense of nostalgia or allegiance to the chain.

Over time, Pizza Hut's share has been sliced up and allocated to its trendier, more nimble competitors. To sustain its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is difficult at a time when personal spending are decreasing.

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

He said its key goal was to maintain service at the remaining 64 restaurants and takeaway hubs and to help employees through the transition.

However with so much money going into maintaining its outlets, it may be unable to allocate significant resources in its takeaway operation because the industry is “difficult and working with existing delivery apps comes at a price”, analysts say.

But, he adds, reducing expenses by exiting crowded locations could be a good way to evolve.

Julie Valdez
Julie Valdez

Tech enthusiast and digital strategist with over a decade of experience in emerging technologies and startup ecosystems.