How the Nation Lost Its Appetite for Pizza Hut

In the past, the popular pizza chain was the go-to for families and friends to feast on its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

However a declining number of customers are frequenting the restaurant these days, and it is closing a significant portion of its UK outlets after being acquired following financial trouble for the second time this calendar year.

I remember going Pizza Hut when I was a child,” says one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she states “it's no longer popular.”

According to 23-year-old Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the 1970s are now less appealing.

“The way they do their buffet and their salad station, it seems as if they are cutting corners and have reduced quality... 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 quite costly to run. As have its restaurants, which are being reduced from 132 to just over 60.

The chain, similar to other firms, has also experienced its costs increase. This spring, labor expenses jumped due to increases in the legal wage floor and an increase in employer national insurance contributions.

Two diners explain they used to go at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “not good value”.

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

While Pizza Hut provides off-premise options through external services, it is losing out to major competitors which solely cater to this market.

“Another pizza company has taken over the off-premise pizza industry thanks to strong promotions and constantly running deals that make shoppers feel like they're saving money, when in reality the base costs are relatively expensive,” explains the analyst.

Yet for Chris and Joanne it is justified to get their evening together sent directly.

“We predominantly have meals at home now instead of we eat out,” explains the female customer, echoing recent statistics that show a decline in people visiting quick-service eateries.

Over the summer, casual and fast-food restaurants saw a six percent decline in customers compared to the year before.

Additionally, another rival to restaurant and takeaway pizzas: the supermarket pizza.

An industry leader, senior partner at a major consultancy, points out that not only have supermarkets been offering good-standard prepared pies for a long time – some are even promoting countertop ovens.

“Evolving preferences are also playing a factor in the success of casual eateries,” states Mr. Hawkley.

The rising popularity of low-carb regimens has increased sales at chicken shops, while hitting sales of dough-based meals, he adds.

As people visit restaurants not as often, they may seek out a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more dated than luxurious.

The growth of high-quality pizzerias” over the last several years, for example popular brands, has “completely altered the public's perception of what good pizza is,” explains the industry commentator.

“A thin, flavorful, gentle crust with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she says.
“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
Dan Puddle, who operates Smokey Deez based in a county in England comments: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.

From the perspective of a small pizza brand in Bristol, the proprietor says the pizza market is diversifying but Pizza Hut has failed to offer anything innovative.

“You now have individual slices, artisanal styles, new haven, artisan base, Neapolitan, deep-dish – it's a heavenly minefield for a pizza enthusiast to explore.”

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

Over time, Pizza Hut's market has been sliced up and distributed to its trendier, more nimble rivals. To maintain its costly operations, it would have to increase costs – which experts say is difficult at a time when household budgets are shrinking.

The managing director of Pizza Hut's international markets said the buyout aimed “to safeguard our customer service and retain staff where possible”.

The executive stated its first focus was to keep running at the surviving locations and delivery sites and to assist staff through the change.

However with significant funds going into operating its locations, it likely can't afford to invest too much in its off-premise division because the market is “difficult and working with existing third-party platforms comes at a cost”, experts say.

But, he adds, cutting its costs by exiting crowded locations could be a effective strategy to adapt.

Thomas Ho
Thomas Ho

Digital marketing specialist with over 10 years of experience in SEO and content strategy, passionate about helping businesses thrive online.