Why the Country Lost Its Taste for Pizza Hut

Once, Pizza Hut was the go-to for families and friends to indulge in its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

However fewer patrons are visiting the restaurant nowadays, and it is shutting down a significant portion of its British restaurants after being bought out of administration for the second instance this year.

It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she says “it's not a thing anymore.”

For 23-year-old Martina, the very elements Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now not-so-hot.

“How they do their buffet and their salad station, it seems as if they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”

As food prices have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. Similarly, its restaurants, which are being sliced from over 130 to a smaller figure.

The business, in common with competitors, has also experienced its operating costs go up. In April this year, labor expenses jumped due to rises in minimum wages and an higher rate of employer social security payments.

A couple in their thirties and twenties explain they would often visit at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

Based on your selection, Pizza Hut and Domino's rates are close, notes an industry analyst.

Even though Pizza Hut has takeaway and deliveries through external services, it is losing out to major competitors which specialize to the delivery sector.

“Another pizza company has taken over the delivery market thanks to intensive advertising and frequent offers that make consumers feel like they're finding a good deal, when in reality the standard rates are quite high,” says the analyst.

Yet for the couple it is worth it to get their special meal sent directly.

“We definitely eat at home now more than we eat out,” comments one of the diners, matching latest data that show a drop in people going to informal dining spots.

Over the summer, quick-service eateries saw a 6% drop in diners compared to the previous year.

Additionally, a further alternative to restaurant and takeaway pizzas: the supermarket pizza.

An industry leader, global lead for leisure at a leading firm, explains that not only have supermarkets been selling high-quality ready-to-bake pizzas for years – some are even selling home-pizza ovens.

“Evolving preferences are also playing a factor in the popularity of quick-service brands,” comments the analyst.

The increased interest of protein-rich eating plans has increased sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he continues.

Because people dine out more rarely, they may seek out a more upscale outing, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more retro than upmarket.

The “explosion of premium pizza outlets” over the last decade and a half, for example popular brands, has “fundamentally changed the consumer view of what good pizza is,” says the food expert.

“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she states.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many traditional pizzerias around the country?
“It's an easy choice.”
An independent operator, who operates a small business based in Suffolk comments: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

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

From the perspective of Pizzarova in a city in southwest England, the founder says the sector is expanding but Pizza Hut has not provided anything fresh.

“Currently available are by-the-slice options, regional varieties, new haven, fermented dough, wood-fired, deep-dish – it's a delightful challenge for a pie fan to discover.”

He says Pizza Hut “must rebrand” as the youth don't have any fond memories or allegiance to the brand.

In recent years, Pizza Hut's share has been divided and allocated to its trendier, more nimble competitors. To keep up its high labor and location costs, it would have to increase costs – which commentators say is tough at a time when personal spending are decreasing.

A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to safeguard our dining experience and save employment where possible”.

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

However with large sums going into operating its locations, it probably cannot to allocate significant resources in its takeaway operation because the sector is “complicated and partnering with existing external services comes at a cost”, experts say.

However, it's noted, reducing expenses by leaving competitive urban areas could be a smart move to adapt.

Dr. Marie Walsh
Dr. Marie Walsh

A tech enthusiast and cultural critic with a passion for exploring how digital trends shape our daily experiences.