Why the Country Lost Its Taste for Pizza Hut

At one time, Pizza Hut was the go-to for groups and loved ones to feast on its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.

But not as many diners are frequenting the chain currently, and it is closing 50% of its British locations after being acquired following financial trouble for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she comments “it's not a thing anymore.”

For 23-year-old Martina, some of the very things Pizza Hut has been recognized for since it started in the UK in the 1970s are now outdated.

“How they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have lower standards... They provide so much food and you're like ‘How is that possible?’”

Since ingredient expenses have soared, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. The same goes for its restaurants, which are being reduced from 132 to a smaller figure.

The business, in common with competitors, has also seen its operating costs increase. Earlier this year, labor expenses jumped due to higher minimum pay and an higher rate of employer social security payments.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.

Depending on your selection, Pizza Hut and Domino's prices are similar, explains an industry analyst.

Although Pizza Hut has off-premise options through third-party apps, it is losing out to major competitors which specialize to this market.

“The rival chain has managed to dominate the off-premise pizza industry thanks to strong promotions and frequent offers that make shoppers feel like they're saving money, when in reality the base costs are on the higher side,” notes the expert.

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

“We definitely eat at home now rather than we eat out,” explains Joanne, echoing current figures that show a drop in people going to quick-service eateries.

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

Moreover, a further alternative to ordered-in pies: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at a major consultancy, points out that not only have retailers been selling high-quality ready-to-bake pizzas for a long time – some are even selling pizza-making appliances.

“Shifts in habits are also contributing in the success of fast-food chains,” comments the expert.

The growing trend of high protein diets has driven sales at grilled chicken brands, while reducing sales of dough-based meals, he adds.

Since people go out to eat less frequently, they may look for a more upscale outing, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more old-fashioned than upmarket.

The rise of premium pizza outlets” over the last several years, such as new entrants, has “completely altered the public's perception of what excellent pie is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she states.

“What person would spend a high price on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

An independent operator, who owns a pizza van based in a regional area explains: “People haven’t stopped liking pizza – they just want better pizza for their money.”

He says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.

According to a small pizza brand in a UK location, the founder says the industry is expanding but Pizza Hut has not provided anything new.

“There are now individual slices, artisanal styles, new haven, sourdough, wood-fired, rectangular – it's a delightful challenge for a pizza-loving consumer to discover.”

He says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or allegiance to the brand.

Gradually, Pizza Hut's customer base has been sliced up and spread to its trendier, more nimble alternatives. To sustain its costly operations, it would have to raise prices – which industry analysts say is difficult at a time when personal spending are shrinking.

The leadership of Pizza Hut's global operations said the buyout aimed “to ensure our dining experience and protect jobs where possible”.

It was explained its key goal was to maintain service at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.

But with so much money going into operating its locations, it probably cannot to invest too much in its takeaway operation because the sector is “complicated and using existing external services comes at a price”, experts say.

However, it's noted, cutting its costs by leaving competitive urban areas could be a smart move to evolve.