Why the Country Lost Interest in Its Taste for Pizza Hut

Once, Pizza Hut was the top choice for families and friends to indulge in its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

But a declining number of customers are choosing the chain nowadays, and it is shutting down half of its British outlets after being rescued from insolvency for the second instance this calendar year.

“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” However, at present, in her mid-twenties, she says “it's no longer popular.”

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Martina, some of the very things Pizza Hut has been famous for since it started in the UK in the 1970s are now outdated.

“The manner in which 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?’”

As grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to maintain. The same goes for its locations, which are being reduced from over 130 to a smaller figure.

The chain, in common with competitors, has also experienced its expenses rise. 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 “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “too expensive”.

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

Although Pizza Hut does offer pickup and delivery through delivery platforms, it is missing out to larger chains which specialize to this market.

“Domino's has managed to dominate the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make customers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” says the specialist.

But for Chris and Joanne it is justified to get their date night brought to their home.

“We absolutely dine at home now more than we eat out,” explains one of the diners, matching recent statistics that show a decline in people visiting informal dining spots.

During the summer months, casual and fast-food restaurants saw a six percent decline in patrons compared to last summer.

There is also a further alternative to pizza from eateries: the frozen or fresh pizza.

A hospitality expert, global lead for leisure at a leading firm, points out that not only have grocery stores been selling good-standard prepared pies for a long time – some are even promoting pizza-making appliances.

“Lifestyle changes are also contributing in the success of casual eateries,” states Mr. Hawkley.

The growing trend of protein-rich eating plans has driven sales at chicken shops, while hitting sales of carb-heavy pizza, he continues.

Because people go out to eat not as often, they may prefer a more high-quality meal, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more old-fashioned than upmarket.

The “explosion of premium pizza outlets” over the last decade and a half, including popular brands, has “completely altered the general opinion of what quality pizza is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she says.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
An independent operator, who runs a small business based in Suffolk says: “People haven’t lost interest in pizza – they just want better pizza for their money.”

The owner says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut struggled because it failed to adapt with changing preferences.

From the perspective of Pizzarova in a city in southwest England, the proprietor says the pizza market is broadening but Pizza Hut has neglected to introduce anything fresh.

“You now have slice concepts, artisanal styles, new haven, artisan base, Neapolitan, rectangular – it's a heavenly minefield for a pizza-loving consumer to discover.”

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

In recent years, Pizza Hut's customer base has been divided and distributed to its fresher, faster alternatives. To sustain its expensive staffing and restaurants, it would have to raise prices – which experts say is difficult at a time when personal spending are shrinking.

The leadership of Pizza Hut's international markets said the buyout aimed “to ensure our guest experience and retain staff where possible”.

It was explained its immediate priority was to keep running at the surviving locations and takeaway hubs and to help employees through the change.

However with significant funds going into running its restaurants, it may be unable to invest too much in its off-premise division because the sector is “difficult and partnering with existing delivery apps comes at a cost”, experts say.

However, it's noted, cutting its costs by withdrawing from crowded locations could be a smart move to evolve.

Diamond Robbins
Diamond Robbins

Music journalist and critic with a passion for discovering emerging talents and sharing insightful perspectives on the industry.