How the Nation Lost Its Craving for Pizza Hut

In the past, the popular pizza chain was the top choice for groups and loved ones to indulge in its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

However fewer patrons are visiting the restaurant currently, and it is closing 50% of its UK outlets after being bought out of administration for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, as a young adult, she comments “it's not a thing anymore.”

For a diner in her twenties, the very elements Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now not-so-hot.

“The way they do their buffet and their salad bar, it appears that they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How can they?’”

Because food prices have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. The same goes for its outlets, which are being cut from 132 to 64.

The company, like many others, has also seen its operating costs increase. In April this year, employee wages increased due to higher minimum pay and an rise in employer national insurance contributions.

Two diners mention they used to go at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.

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

Even though Pizza Hut provides pickup and delivery 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 aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the original prices are quite high,” explains the expert.

However for Chris and Joanne it is justified to get their evening together delivered to their door.

“We definitely eat at home now more than we eat out,” explains Joanne, reflecting recent statistics that show a decline in people going to casual and fast-food restaurants.

Over the summer, casual and fast-food restaurants saw a 6% drop in customers compared to the year before.

Additionally, one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

Will Hawkley, senior partner at an advisory group, points out that not only have supermarkets been providing premium ready-to-bake pizzas for years – some are even promoting home-pizza ovens.

“Shifts in habits are also having an impact in the success of casual eateries,” states Mr. Hawkley.

The increased interest of high protein diets has driven sales at chicken shops, while hitting sales of high-carbohydrate options, he continues.

Because people go out to eat less frequently, they may look for a more upscale outing, and Pizza Hut's retro theme with vinyl benches and nostalgic table settings can feel more dated than upmarket.

The rise of high-quality pizzerias” over the last several years, for example popular brands, has “fundamentally changed the general opinion of what quality pizza is,” says the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she states.
“Who would choose to spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who owns Smokey Deez based in Suffolk comments: “People haven’t lost interest in pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with changing preferences.

According to a small pizza brand in a city in southwest England, the proprietor says the sector is expanding but Pizza Hut has failed to offer anything fresh.

“You now have by-the-slice options, artisanal styles, thin crust, sourdough, wood-fired, deep-dish – it's a heavenly minefield for a pizza enthusiast to discover.”

The owner says Pizza Hut “should transform” as newer generations don't have any emotional connection or loyalty to the company.

Over time, Pizza Hut's customer base has been divided and distributed to its trendier, more nimble rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is challenging at a time when family finances are decreasing.

The leadership of Pizza Hut's global operations said the buyout aimed “to safeguard our dining experience and retain staff where possible”.

He said its key goal was to maintain service at the remaining 64 restaurants and delivery sites and to support colleagues through the transition.

Yet with so much money going into running its restaurants, it may be unable to invest too much in its delivery service because the market is “difficult and partnering with existing delivery apps comes at a cost”, commentators say.

However, it's noted, lowering overhead by exiting competitive urban areas could be a effective strategy to adapt.

April Clark
April Clark

A tech enthusiast and journalist with a passion for exploring cutting-edge gadgets and sharing actionable insights.