Why the Country Lost Interest in Its Taste for Pizza Hut

At one time, Pizza Hut was the go-to for families and friends to feast on its unlimited dining experience, endless salad selection, and ice cream with toppings.

Yet not as many diners are choosing the chain nowadays, and it is reducing half of its British locations after being rescued from insolvency for the second time this year.

It was common to visit Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she says “it's not a thing anymore.”

For a diner in her twenties, certain features Pizza Hut has been recognized for since it started in the UK in the seventies are now not-so-hot.

“The manner in which they do their buffet and their salad bar, it seems as if they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”

Because grocery costs have risen sharply, Pizza Hut's unlimited dining format has become very expensive to operate. Similarly, its locations, which are being cut from over 130 to just over 60.

The chain, similar to other firms, has also faced its expenses increase. This spring, staffing costs increased due to increases in the legal wage floor and an higher rate of employer social security payments.

A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.

According to your choices, Pizza Hut and Domino's costs are similar, explains an industry analyst.

Although Pizza Hut does offer pickup and delivery through third-party apps, it is losing out to larger chains which focus exclusively to the delivery sector.

“The rival chain has taken over the takeaway pizza sector thanks to aggressive marketing and ongoing discounts that make shoppers feel like they're saving money, when in reality the original prices are on the higher side,” notes the expert.

But for the couple it is justified to get their evening together sent directly.

“We definitely eat at home now more than we eat out,” says Joanne, reflecting latest data that show a drop in people visiting casual and fast-food restaurants.

In the warmer season, casual and fast-food restaurants saw a 6% drop in diners compared to the previous year.

Additionally, one more competitor to ordered-in pies: the frozen or fresh pizza.

Will Hawkley, senior partner at a major consultancy, notes that not only have retailers been offering good-standard ready-to-bake pizzas for quite a while – some are even offering home-pizza ovens.

“Shifts in habits are also contributing in the performance of fast-food chains,” says the expert.

The rising popularity of protein-rich eating plans has increased sales at chicken shops, while reducing sales of carb-heavy pizza, he adds.

Since people dine out not as often, they may seek out a more premium experience, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more old-fashioned than upmarket.

The growth of high-quality pizzerias” over the last 10 to 15 years, such as new entrants, has “fundamentally changed the public's perception of what excellent pie is,” explains the industry commentator.

“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” 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 Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

An independent operator, who owns Smokey Deez based in a regional area comments: “It's not that fallen out of love with pizza – they just want improved value.”

He says his mobile setup can offer premium pizza at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with new customer habits.

According to Pizzarova in Bristol, the founder says the pizza market is broadening but Pizza Hut has failed to offer anything innovative.

“Currently available are by-the-slice options, regional varieties, thin crust, fermented dough, traditional Italian, rectangular – it's a wonderful array for a pie fan to discover.”

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

In recent years, Pizza Hut's market has been fragmented and distributed to its fresher, faster rivals. To keep up its costly operations, it would have to increase costs – which industry analysts say is difficult at a time when household budgets are tightening.

The leadership of Pizza Hut's international markets said the rescue aimed “to ensure our guest experience and protect jobs where possible”.

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

But with so much money going into maintaining its outlets, it may be unable to invest too much in its takeaway operation because the sector is “complicated and partnering with existing delivery apps comes at a cost”, analysts say.

But, he adds, reducing expenses by withdrawing from oversaturated towns and city centres could be a good way to evolve.