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

In the past, Pizza Hut was the top choice for groups and loved ones to enjoy its unlimited dining experience, endless salad selection, and ice cream with toppings.

However fewer customers are choosing the restaurant currently, and it is reducing 50% of its British restaurants after being rescued from insolvency for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” explains a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she comments “it's fallen out of favor.”

For young customer Martina, certain features Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now outdated.

“The way they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How can they?’”

Because food prices have risen sharply, Pizza Hut's unlimited dining format has become quite costly to maintain. The same goes for its restaurants, which are being cut from a large number to just over 60.

The business, like many others, has also seen its operating costs increase. This spring, labor expenses rose due to higher minimum pay and an higher rate of employer taxes.

Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “not good value”.

According to your choices, Pizza Hut and Domino's costs are similar, explains a food expert.

Even though Pizza Hut has pickup and delivery through delivery platforms, it is losing out to larger chains which solely cater to the delivery sector.

“Another pizza company has managed to dominate the delivery market thanks to aggressive marketing and frequent offers that make customers feel like they're getting a bargain, when in reality the base costs are quite high,” notes the specialist.

But for the couple it is acceptable to get their special meal sent directly.

“We definitely eat at home now rather than we eat out,” says the female customer, echoing latest data that show a decline in people frequenting casual and fast-food restaurants.

Over the summer, quick-service eateries saw a notable decrease in patrons compared to the previous year.

Additionally, a further alternative to pizza from eateries: the cook-at-home oven pizza.

Will Hawkley, senior partner at an advisory group, notes that not only have supermarkets been selling high-quality ready-to-bake pizzas for years – some are even selling pizza-making appliances.

“Evolving preferences are also playing a factor in the success of fast-food chains,” comments the analyst.

The rising popularity of low-carb regimens has boosted sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he notes.

Since people dine out more rarely, they may seek out a more upscale outing, and Pizza Hut's retro theme with vinyl benches and nostalgic table settings can feel more dated than upmarket.

The growth of artisanal pizza places” over the last several years, including popular brands, has “completely altered the consumer view of what excellent pie is,” explains the industry commentator.

“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she comments.
“What person would spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza 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 a small business based in Suffolk explains: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.

According to a small pizza brand in Bristol, the founder says the pizza market is expanding but Pizza Hut has neglected to introduce anything new.

“Currently available are individual slices, artisanal styles, New Haven-style, fermented dough, traditional Italian, Detroit – it's a wonderful array for a pizza-loving consumer to try.”

Jack says Pizza Hut “must rebrand” as younger people don't have any emotional connection or allegiance to the company.

Gradually, Pizza Hut's customer base has been divided and allocated to its more modern, agile rivals. To keep up its high labor and location costs, it would have to charge more – which experts say is challenging at a time when family finances are decreasing.

The managing director of Pizza Hut's overseas branches said the rescue aimed “to ensure our guest experience and save employment where possible”.

It was explained its key goal was to maintain service at the surviving locations and off-premise points and to help employees through the transition.

But with large sums going into running its restaurants, it likely can't afford to invest too much in its off-premise division because the market is “difficult and working with existing delivery apps comes at a expense”, experts say.

But, he adds, cutting its costs by leaving oversaturated towns and city centres could be a effective strategy to adjust.

Charles Brown
Charles Brown

A seasoned sports journalist with over a decade of experience covering major events and providing insightful commentary.