How the Country Lost Its Craving for Pizza Hut

Once, the popular pizza chain was the top choice for parents and children to enjoy its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.

Yet not as many patrons are choosing the chain currently, and it is shutting down half of its British locations after being bought out of administration for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, aged 24, she states “it's not a thing anymore.”

According to young customer Martina, some of the very things Pizza Hut has been famous for since it launched in the UK in the 1970s are now less appealing.

“The way they do their all-you-can-eat and their salad bar, it feels like they are lowering standards and have reduced quality... They offer so much food and you're like ‘How can they?’”

Since ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become quite costly to run. As have its locations, which are being sliced from a large number to just over 60.

The business, like many others, has also seen its costs go up. This spring, labor expenses increased due to increases in the legal wage floor and an rise in employer social security payments.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

Depending on your choices, Pizza Hut and Domino's prices are comparable, explains a food expert.

Even though Pizza Hut does offer off-premise options through external services, it is losing out to larger chains which focus exclusively to this market.

“Another pizza company has succeeded in leading the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” says the expert.

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

“We definitely eat at home now instead of we eat out,” says Joanne, reflecting recent statistics that show a decrease in people going to quick-service eateries.

During the summer months, informal dining venues saw a notable decrease in patrons compared to the previous year.

Moreover, another rival to ordered-in pies: the frozen or fresh pizza.

A hospitality expert, head of leisure and hospitality at an advisory group, points out that not only have supermarkets been selling good-standard oven-ready pizzas for years – some are even selling home-pizza ovens.

“Lifestyle changes are also having an impact in the success of casual eateries,” says Mr. Hawkley.

The rising popularity of protein-rich eating plans has increased sales at chicken shops, while affecting sales of carb-heavy pizza, he adds.

As people dine out less frequently, they may prefer a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more old-fashioned than upmarket.

The growth of high-quality pizzerias” over the last 10 to 15 years, including new entrants, has “completely altered the consumer view of what good pizza is,” notes the culinary analyst.

“A thin, flavorful, gentle crust with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she says.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
Dan Puddle, who operates a small business based in Suffolk explains: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

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

At an independent chain in a UK location, owner Jack Lander says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.

“There are now slice concepts, London pizza, New Haven-style, artisan base, traditional Italian, rectangular – it's a wonderful array for a pizza-loving consumer to try.”

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

Gradually, Pizza Hut's market has been fragmented and allocated to its more modern, agile competitors. To sustain its costly operations, it would have to increase costs – which commentators say is difficult at a time when household budgets are decreasing.

The leadership of Pizza Hut's international markets said the rescue aimed “to protect our dining experience and protect jobs where possible”.

It was explained its immediate priority was to maintain service at the open outlets and delivery sites and to assist staff through the change.

But with significant funds going into maintaining its outlets, it may be unable to invest too much in its delivery service because the industry is “complex and using existing delivery apps comes at a expense”, commentators say.

But, he adds, lowering overhead by withdrawing from oversaturated towns and city centres could be a effective strategy to evolve.

Natasha Hunt
Natasha Hunt

Digital marketing strategist with over a decade of experience in helping businesses scale through data-driven approaches.