Why the Country Lost Interest in Its Craving for the Pizza Hut Chain

At one time, the popular pizza chain was the go-to for parents and children to indulge in its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.

Yet a declining number of patrons are frequenting the restaurant these days, and it is reducing half of its UK outlets after being bought out of administration for the second instance this year.

I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” But now, as a young adult, she comments “it's not a thing anymore.”

For 23-year-old Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the seventies are now less appealing.

“The manner in which they do their buffet and their salad station, it seems as if they are cutting corners and have reduced quality... They offer so much food and you're like ‘How can they?’”

Because ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become very expensive to operate. As have its outlets, which are being reduced from over 130 to just over 60.

The chain, similar to other firms, has also experienced its expenses rise. Earlier this year, labor expenses rose due to increases in the legal wage floor and an rise in employer taxes.

Two diners say they frequently dined at Pizza Hut for a date “from time to time”, but now they choose Domino's and think Pizza Hut is “very overpriced”.

Depending on your choices, Pizza Hut and Domino's prices are comparable, notes a food expert.

Even though Pizza Hut does offer off-premise options through external services, it is missing out to major competitors which focus exclusively to off-premise dining.

“Another pizza company has taken over the takeaway pizza sector thanks to intensive advertising and frequent offers that make customers feel like they're getting a bargain, when in reality the original prices are on the higher side,” says the expert.

But for these customers it is justified to get their date night brought to their home.

“We absolutely dine at home now instead of we eat out,” comments one of the diners, echoing current figures that show a drop in people going to casual and fast-food restaurants.

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

There is also one more competitor to ordered-in pies: the supermarket pizza.

An industry leader, head of leisure and hospitality at a major consultancy, explains that not only have supermarkets been providing good-standard ready-to-bake pizzas for quite a while – some are even offering countertop ovens.

“Shifts in habits are also having an impact in the popularity of casual eateries,” states the analyst.

The growing trend of high protein diets has driven sales at chicken shops, while affecting sales of high-carbohydrate options, he continues.

Since people dine out not as often, they may look for a more high-quality meal, and Pizza Hut's classic look with booth seating and traditional décor can feel more retro than premium.

The “explosion of high-quality pizzerias” over the last several years, such as popular brands, has “completely altered the general opinion of what quality pizza is,” says the industry commentator.

“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she states.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
Dan Puddle, who runs a small business based in a regional area comments: “It's not that lost interest in pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

At an independent chain in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has failed to offer anything innovative.

“You now have individual slices, regional varieties, thin crust, sourdough, Neapolitan, deep-dish – it's a wonderful array for a pie fan to try.”

He says Pizza Hut “must rebrand” as newer generations don't have any fond memories or loyalty to the company.

In recent years, Pizza Hut's share has been sliced up and allocated to its fresher, faster competitors. To keep up its costly operations, it would have to increase costs – which commentators say is difficult at a time when family finances are decreasing.

A senior executive of Pizza Hut's international markets said the rescue aimed “to safeguard our customer service and retain staff where possible”.

It was explained its key goal was to maintain service at the surviving locations and takeaway hubs and to help employees through the change.

Yet with large sums going into operating its locations, it may be unable to allocate significant resources in its delivery service because the sector is “difficult and using existing third-party platforms comes at a price”, commentators say.

Still, experts suggest, reducing expenses by exiting competitive urban areas could be a good way to adapt.

Gina Stone
Gina Stone

Aerospace engineer and tech writer passionate about space exploration and emerging technologies.

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