How the Country Lost Interest in Its Craving for Pizza Hut

At one time, the popular pizza chain was the go-to for groups and loved ones to feast on its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.

But a declining number of patrons are choosing the restaurant nowadays, and it is shutting down half of its British restaurants after being bought out of administration for the second instance this calendar year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, aged 24, she comments “it's not a thing anymore.”

In the view of a diner in her twenties, certain features Pizza Hut has been famous for since it opened in the UK in the seventies are now not-so-hot.

“The way they do their buffet and their salad bar, it seems as if they are lowering standards and have lower standards... They provide so much food and you're like ‘How?’”

Because ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to maintain. The same goes for its restaurants, which are being cut from a large number to just over 60.

The company, like many others, has also faced its costs rise. This spring, employee wages jumped due to increases in the legal wage floor and an increase in employer taxes.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

According to your order, Pizza Hut and Domino's rates are comparable, says a food expert.

While Pizza Hut has takeaway and deliveries through delivery platforms, it is falling behind to big rivals which specialize to the delivery sector.

“The rival chain has succeeded in leading the delivery market thanks to aggressive marketing and frequent offers that make customers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” says the analyst.

However for the couple it is justified to get their date night brought to their home.

“We predominantly have meals at home now instead of we eat out,” comments Joanne, matching latest data that show a decline in people going to casual and fast-food restaurants.

Over the summer, quick-service eateries saw a six percent decline in patrons compared to the previous year.

There is also a further alternative to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, senior partner at an advisory group, points out that not only have grocery stores been offering premium prepared pies for quite a while – some are even selling home-pizza ovens.

“Shifts in habits are also having an impact in the popularity of fast-food chains,” states Mr. Hawkley.

The rising popularity of protein-rich eating plans has driven sales at grilled chicken brands, while hitting sales of dough-based meals, he adds.

Because people visit restaurants not as often, they may look for a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more retro than upmarket.

The growth of artisanal pizza places” over the last 10 to 15 years, including boutique chains, has “dramatically shifted the public's perception of what excellent pie is,” notes the industry commentator.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's downfall,” she comments.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who runs a pizza van based in a regional area comments: “People haven’t stopped liking pizza – they just want improved value.”

The owner says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with new customer habits.

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

“Currently available are individual slices, London pizza, new haven, artisan base, wood-fired, deep-dish – it's a delightful challenge for a pizza enthusiast to explore.”

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

Over time, Pizza Hut's share has been sliced up and distributed to its fresher, faster rivals. To keep up its high labor and location costs, it would have to charge more – which commentators say is challenging at a time when family finances are tightening.

The leadership of Pizza Hut's overseas branches said the acquisition aimed “to ensure our guest experience and retain staff where possible”.

He said its immediate priority was to maintain service at the remaining 64 restaurants and takeaway hubs and to assist staff through the change.

But with significant funds going into maintaining its outlets, it may be unable to spend heavily in its takeaway operation because the sector is “difficult and working with existing delivery apps comes at a price”, experts say.

However, it's noted, cutting its costs by withdrawing from oversaturated towns and city centres could be a effective strategy to adapt.

Lindsey Cohen
Lindsey Cohen

Tech writer and digital strategist passionate about emerging technologies and their impact on society.