Why the Country Lost Its Appetite for Pizza Hut

Once, the popular pizza chain was the go-to for parents and children to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

Yet a declining number of diners are frequenting the brand nowadays, and it is closing 50% of its UK restaurants after being bought out of administration for the second instance this year.

I remember going Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's not a thing anymore.”

For 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it opened in the UK in the seventies are now not-so-hot.

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

Because grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to run. The same goes for its restaurants, which are being sliced from over 130 to a smaller figure.

The business, like many others, has also faced its expenses rise. This spring, labor expenses jumped due to increases in the legal wage floor and an higher rate of employer taxes.

Two diners explain they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

Based on your selection, Pizza Hut and Domino's rates are comparable, explains a culinary author.

While Pizza Hut does offer takeaway and deliveries through external services, it is losing out to big rivals which solely cater to this market.

“The rival chain has taken over the delivery market thanks to aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the standard rates are on the higher side,” notes the specialist.

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

“We predominantly have meals at home now rather than we eat out,” says Joanne, echoing latest data that show a decline in people frequenting informal dining spots.

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

Moreover, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.

An industry leader, senior partner at a major consultancy, notes that not only have supermarkets been providing good-standard oven-ready pizzas for years – some are even selling pizza-making appliances.

“Shifts in habits are also having an impact in the success of fast-food chains,” comments the analyst.

The increased interest of high protein diets has driven sales at poultry outlets, while affecting sales of high-carbohydrate options, he notes.

As people go out to eat not as often, they may seek out a more premium experience, and Pizza Hut's retro theme with vinyl benches and traditional décor can feel more old-fashioned than premium.

The rise of premium pizza outlets” over the last 10 to 15 years, for example new entrants, has “fundamentally changed the general opinion of what good pizza is,” says the industry commentator.

“A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,” she states.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who operates a pizza van based in a county in England comments: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

He says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.

According to an independent chain in Bristol, the founder says the sector is diversifying but Pizza Hut has neglected to introduce anything innovative.

“You now have by-the-slice options, London pizza, New Haven-style, fermented dough, Neapolitan, deep-dish – it's a heavenly minefield for a pizza enthusiast to try.”

He says Pizza Hut “must rebrand” as younger people don't have any fond memories or allegiance to the chain.

Over time, Pizza Hut's market has been fragmented and spread to its fresher, faster rivals. To keep up its costly operations, it would have to raise prices – which industry analysts say is difficult at a time when household budgets are decreasing.

A senior executive of Pizza Hut's international markets said the rescue aimed “to ensure our dining experience and protect jobs where possible”.

It was explained its first focus was to continue operating at the surviving locations and off-premise points and to assist staff through the restructure.

However with large sums going into operating its locations, it likely can't afford to allocate significant resources in its takeaway operation because the sector is “difficult and using existing delivery apps comes at a cost”, analysts say.

However, it's noted, reducing expenses by withdrawing from competitive urban areas could be a good way to adjust.

Terry Franco
Terry Franco

A passionate gaming enthusiast and expert in online casino reviews and strategies.