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

Once, Pizza Hut was the top choice for families and friends to feast on its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

But fewer diners are visiting the restaurant these days, and it is closing half of its British outlets after being bought out of administration for the second time this year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – make a day of it.” However, at present, in her mid-twenties, she says “it's no longer popular.”

In the view of young customer Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now less appealing.

“The way they do their buffet and their salad station, it seems as if they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How can they?’”

Since ingredient expenses have soared, Pizza Hut's buffet-style service has become very expensive to operate. Similarly, its locations, which are being cut from over 130 to 64.

The company, in common with competitors, has also seen its expenses rise. Earlier this year, employee wages rose due to higher minimum pay and an increase in employer national insurance contributions.

A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “very overpriced”.

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

Even though Pizza Hut provides pickup and delivery through external services, it is missing out to big rivals which specialize to this market.

“Another pizza company has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make consumers feel like they're saving money, when in reality the base costs are on the higher side,” says the expert.

However for these customers it is worth it to get their evening together sent directly.

“We predominantly have meals at home now instead of we eat out,” comments Joanne, reflecting current figures that show a decrease in people visiting casual and fast-food restaurants.

Over the summer, informal dining venues saw a six percent decline in diners compared to last summer.

There is also one more competitor to pizza from eateries: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at a major consultancy, points out that not only have supermarkets been selling premium oven-ready pizzas for quite a while – some are even offering home-pizza ovens.

“Evolving preferences are also playing a factor in the performance of casual eateries,” states the expert.

The increased interest of protein-rich eating plans has driven sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he notes.

As people go out to eat more rarely, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more old-fashioned than luxurious.

The rise of high-quality pizzerias” over the last 10 to 15 years, including popular brands, has “dramatically shifted the public's perception of what good pizza is,” explains the industry commentator.

“A light, fresh, easy-to-digest product with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she comments.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who owns a small business based in Suffolk comments: “People haven’t lost interest in pizza – they just want better pizza for their money.”

The owner says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.

From the perspective of a small pizza brand in Bristol, the proprietor says the pizza market is broadening but Pizza Hut has not provided anything new.

“You now have individual slices, London pizza, New Haven-style, artisan base, Neapolitan, Detroit – it's a delightful challenge for a pizza enthusiast to try.”

The owner says Pizza Hut “should transform” as newer generations don't have any sense of nostalgia or loyalty to the brand.

In recent years, Pizza Hut's market has been fragmented and distributed to its more modern, agile alternatives. To maintain its costly operations, it would have to charge more – which commentators say is challenging at a time when family finances are decreasing.

The leadership of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and retain staff where possible”.

The executive stated its key goal was to maintain service at the remaining 64 restaurants and delivery sites and to assist staff through the restructure.

Yet with large sums going into running its restaurants, it likely can't afford to invest too much in its off-premise division because the sector is “complicated and using existing third-party platforms comes at a cost”, experts say.

But, he adds, lowering overhead by exiting oversaturated towns and city centres could be a good way to evolve.

Tyler Mclaughlin
Tyler Mclaughlin

Certified fitness coach and nutrition enthusiast dedicated to helping others lead healthier, more active lives through practical advice.