How the Country Turned Away from Its Taste for the Pizza Hut Chain

In the past, Pizza Hut was the go-to for families and friends to feast on its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.

But not as many patrons are visiting the brand currently, and it is shutting down 50% of its UK restaurants after being acquired following financial trouble for the second time this year.

It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she comments “it's not a thing anymore.”

In the view of young customer Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now not-so-hot.

“The way they do their buffet and their salad station, it seems as if they are lowering standards and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”

As grocery costs have soared, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. As have its restaurants, which are being cut from 132 to 64.

The business, in common with competitors, has also experienced its costs increase. Earlier this year, employee wages jumped due to rises in minimum wages and an rise in employer social security payments.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.

Depending on your selection, Pizza Hut and Domino's costs are close, explains a food expert.

Even though Pizza Hut has off-premise options through third-party apps, it is falling behind to major competitors which focus exclusively to the delivery sector.

“Domino's has taken over the delivery market thanks to intensive advertising and frequent offers that make customers feel like they're saving money, when in reality the base costs are quite high,” explains the specialist.

But for the couple it is worth it to get their special meal brought to their home.

“We definitely eat at home now instead of we eat out,” comments one of the diners, matching recent statistics that show a drop in people frequenting informal dining spots.

During the summer months, quick-service eateries saw a notable decrease in patrons compared to the year before.

Additionally, one more competitor to pizza from eateries: the frozen or fresh pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, notes that not only have retailers been selling high-quality ready-to-bake pizzas for a long time – some are even selling countertop ovens.

“Lifestyle changes are also having an impact in the popularity of casual eateries,” comments the analyst.

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

As people dine out not as often, they may look for a more upscale outing, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more dated than premium.

The rise of artisanal pizza places” over the last several years, such as popular brands, has “fundamentally changed the public's perception of what quality pizza is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she states.
“Who would choose to spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
Dan Puddle, who operates a pizza van based in a regional area comments: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”

The owner says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.

From the perspective of an independent chain in a UK location, the proprietor says the industry is expanding but Pizza Hut has not provided anything fresh.

“You now have individual slices, regional varieties, New Haven-style, sourdough, Neapolitan, Detroit – it's a wonderful array for a pizza-loving consumer to try.”

The owner says Pizza Hut “should transform” as the youth don't have any fond memories or attachment to the company.

In recent years, Pizza Hut's market has been fragmented and spread to its more modern, agile competitors. To sustain its costly operations, it would have to increase costs – which experts say is difficult at a time when family finances are shrinking.

The managing director of Pizza Hut's international markets said the buyout aimed “to ensure our guest experience and protect jobs where possible”.

It was explained its key goal was to keep running at the surviving locations and off-premise points and to assist staff through the change.

However with large sums going into maintaining its outlets, it may be unable to allocate significant resources in its delivery service because the market is “complex and using existing third-party platforms comes at a expense”, commentators say.

Still, experts suggest, cutting its costs by withdrawing from crowded locations could be a effective strategy to adapt.

Stacy Hoffman
Stacy Hoffman

A passionate writer and tech enthusiast sharing insights on innovation and self-improvement.