Why the Country Turned Away from Its Appetite for the Pizza Hut Chain

In the past, Pizza Hut was the go-to for groups and loved ones to indulge in its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.

But a declining number of customers are choosing the chain these days, and it is reducing half of its British locations after being acquired following financial trouble for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she says “it's fallen out of favor.”

In the view of 23-year-old Martina, certain features Pizza Hut has been famous for since it started in the UK in the mid-20th century are now outdated.

“How they do their all-you-can-eat and their salad bar, it feels like they are lowering standards and have reduced quality... They offer so much food and you're like ‘How can they?’”

Since grocery costs have soared, Pizza Hut's buffet-style service has become quite costly to maintain. As have its outlets, which are being cut from a large number to just over 60.

The business, like many others, has also faced its operating costs rise. Earlier this year, staffing costs increased due to higher minimum pay and an increase in employer social security payments.

Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “very overpriced”.

According to your selection, Pizza Hut and Domino's costs are comparable, notes an industry analyst.

While Pizza Hut provides takeaway and deliveries through delivery platforms, it is missing out to big rivals which focus exclusively to this market.

“Another pizza company has managed to dominate the delivery market thanks to strong promotions and constantly running deals that make consumers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” explains the specialist.

Yet for these customers it is acceptable to get their evening together brought to their home.

“We definitely eat at home now rather than we eat out,” says the female customer, reflecting latest data that show a drop in people going to quick-service eateries.

During the summer months, quick-service eateries saw a 6% drop in customers compared to the year before.

Moreover, a further alternative to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, head of leisure and hospitality at a leading firm, notes that not only have retailers been selling high-quality prepared pies for years – some are even selling home-pizza ovens.

“Lifestyle changes are also playing a factor in the performance of fast-food chains,” comments Mr. Hawkley.

The rising popularity of high protein diets has increased sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he notes.

Since people visit restaurants less frequently, they may look for a more premium experience, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more dated than luxurious.

The “explosion of premium pizza outlets” over the last 10 to 15 years, including new entrants, has “fundamentally changed the consumer view of what quality pizza is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she comments.
“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared traditional pie for a lower price at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who operates a small business based in a county in England says: “It's not that stopped liking pizza – they just want improved value.”

He says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with changing preferences.

According to Pizzarova in Bristol, the proprietor says the industry is diversifying but Pizza Hut has not provided anything innovative.

“You now have slice concepts, regional varieties, new haven, sourdough, traditional Italian, rectangular – it's a delightful challenge for a pie fan to explore.”

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

Gradually, Pizza Hut's share has been divided and spread to its fresher, faster competitors. To maintain its costly operations, it would have to charge more – which experts say is difficult at a time when household budgets are decreasing.

The leadership of Pizza Hut's global operations said the rescue aimed “to safeguard our dining experience and save employment where possible”.

He said its key goal was to maintain service at the remaining 64 restaurants and off-premise points and to support colleagues through the change.

But with significant funds going into maintaining its outlets, it may be unable to spend heavily in its delivery service because the industry is “difficult and using existing delivery apps comes at a expense”, analysts say.

Still, experts suggest, reducing expenses by exiting oversaturated towns and city centres could be a smart move to evolve.

Joshua Francis
Joshua Francis

A tech enthusiast and writer passionate about innovation and self-improvement, sharing insights from years of experience.