How the Country Lost Its Craving for the Pizza Hut Chain

Once, Pizza Hut was the favorite for families and friends to enjoy its unlimited dining experience, endless salad selection, and ice cream with toppings.

But a declining number of diners are frequenting the restaurant these days, and it is closing 50% of its British locations after being acquired following financial trouble for the second time this calendar year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she says “it's no longer popular.”

For a diner in her twenties, the very elements Pizza Hut has been recognized for since it launched in the UK in the 1970s are now less appealing.

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

Because grocery costs have increased significantly, Pizza Hut's buffet-style service has become increasingly pricey to operate. Similarly, its restaurants, which are being sliced from 132 to just over 60.

The business, like many others, has also faced its costs rise. In April this year, employee wages jumped due to rises in minimum wages and an higher rate of employer taxes.

Chris, 36, and Joanne, 29 mention they would often visit at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.

According to your order, Pizza Hut and Domino's prices are close, says a culinary author.

Even though Pizza Hut does offer off-premise options through external services, it is missing out to big rivals which solely cater to off-premise dining.

“Another pizza company has managed to dominate the takeaway pizza sector thanks to intensive advertising and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are quite high,” says the analyst.

Yet for these customers it is worth it to get their evening together delivered to their door.

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

Over the summer, casual and fast-food restaurants saw a notable decrease in diners compared to the year before.

There is also a further alternative to ordered-in pies: the supermarket pizza.

A hospitality expert, global lead for leisure at a major consultancy, points out that not only have grocery stores been selling premium ready-to-bake pizzas for a long time – some are even promoting countertop ovens.

“Evolving preferences are also playing a factor in the popularity of fast-food chains,” comments Mr. Hawkley.

The growing trend of high protein diets has driven sales at chicken shops, while reducing sales of dough-based meals, he continues.

Since people visit restaurants less frequently, they may prefer a more upscale outing, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more retro than upmarket.

The growth of premium pizza outlets” over the last several years, for example popular brands, has “dramatically shifted the consumer view of what excellent pie is,” explains the culinary analyst.

“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 resulted in Pizza Hut's downfall,” she states.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns a pizza van based in a regional area explains: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”

The owner says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.

According to an independent chain in a UK location, owner Jack Lander says the industry is diversifying but Pizza Hut has not provided anything fresh.

“Currently available are by-the-slice options, artisanal styles, new haven, fermented dough, wood-fired, rectangular – it's a wonderful array for a pie fan to explore.”

The owner says Pizza Hut “must rebrand” as the youth don't have any fond memories or allegiance to the company.

Over time, Pizza Hut's market has been divided and spread to its trendier, more nimble competitors. To keep up its costly operations, it would have to raise prices – which commentators say is tough at a time when household budgets are shrinking.

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

It was explained its immediate priority was to keep running at the open outlets and off-premise points and to support colleagues through the change.

But with significant funds going into running its restaurants, it likely can't afford to allocate significant resources in its off-premise division because the sector is “difficult and using existing external services comes at a price”, experts say.

However, it's noted, lowering overhead by exiting crowded locations could be a good way to adapt.

Kim Sherman
Kim Sherman

Music enthusiast and vinyl collector with a passion for uncovering rare finds and sharing insights on music history.