How the Country Lost Its Appetite for the Pizza Hut Chain

Once, Pizza Hut was the go-to for groups and loved ones to enjoy its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.

Yet fewer diners are visiting the restaurant these days, and it is reducing half of its British outlets after being rescued from insolvency for the second occasion this year.

“We used to go Pizza Hut when I was a child,” notes a young adult. “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 fallen out of favor.”

According to 23-year-old Martina, the very elements Pizza Hut has been recognized for since it started in the UK in the 1970s are now outdated.

“The way they do their buffet and their salad bar, it feels like they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How can they?’”

As food prices have soared, Pizza Hut's buffet-style service has become increasingly pricey to maintain. The same goes for its restaurants, which are being reduced from over 130 to 64.

The business, similar to other firms, has also seen its expenses rise. Earlier this year, employee wages jumped due to higher minimum pay and an increase in employer social security payments.

A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

According to your order, Pizza Hut and Domino's costs are close, says an industry analyst.

Even though Pizza Hut has takeaway and deliveries through external services, it is missing out to larger chains which specialize to this market.

“The rival chain has managed to dominate the takeaway pizza sector thanks to strong promotions and frequent offers that make consumers feel like they're getting a bargain, when in reality the base costs are on the higher side,” says the expert.

Yet for the couple it is acceptable to get their date night sent directly.

“We absolutely dine at home now more than we eat out,” explains one of the diners, matching recent statistics that show a drop in people visiting quick-service eateries.

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

Additionally, another rival to ordered-in pies: the cook-at-home oven pizza.

An industry leader, global lead for leisure at an advisory group, points out that not only have supermarkets been selling high-quality oven-ready pizzas for quite a while – some are even offering pizza-making appliances.

“Lifestyle changes are also contributing in the popularity of quick-service brands,” comments Mr. Hawkley.

The increased interest of high protein diets has boosted sales at poultry outlets, while reducing sales of dough-based meals, he adds.

Since people visit restaurants more rarely, they may prefer a more upscale outing, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more dated than upmarket.

The rise of high-quality pizzerias” over the last several years, for example new entrants, has “fundamentally changed the public's perception of what good pizza is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she comments.
“What person would spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many traditional pizzerias around the country?
“The decision is simple.”
An independent operator, who runs a small business based in Suffolk says: “It's not that fallen out of love with pizza – they just want better pizza for their money.”

He says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.

At Pizzarova in a UK location, the proprietor says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.

“You now have by-the-slice options, artisanal styles, New Haven-style, fermented dough, traditional Italian, deep-dish – it's a wonderful array for a pizza-loving consumer to try.”

He says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or allegiance to the chain.

Gradually, Pizza Hut's customer base has been divided and allocated to its fresher, faster rivals. To maintain its expensive staffing and restaurants, it would have to charge more – which commentators say is tough at a time when household budgets are shrinking.

The managing director of Pizza Hut's global operations said the acquisition aimed “to safeguard our guest experience and retain staff where possible”.

The executive stated its first focus was to keep running at the open outlets and delivery sites and to support colleagues through the restructure.

Yet with so much money going into maintaining its outlets, it probably cannot to spend heavily in its delivery service because the sector is “complicated and using existing delivery apps comes at a cost”, commentators say.

However, it's noted, reducing expenses by withdrawing from competitive urban areas could be a effective strategy to evolve.

Connie West
Connie West

Tech enthusiast and digital lifestyle expert with a passion for reviewing the latest gadgets and sharing practical tech advice.