Why the Nation Lost Interest in Its Appetite for Pizza Hut

At one time, Pizza Hut was the top choice for parents and children to indulge in its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.

But a declining number of customers are visiting the chain currently, and it is reducing 50% of its British outlets after being rescued from insolvency for the second instance this year.

“We used to go Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she says “it's not a thing anymore.”

For a diner in her twenties, some of the very things Pizza Hut has been recognized for since it launched in the UK in the 1970s are now outdated.

“The manner in which they do their all-you-can-eat and their salad bar, it appears that they are cutting corners and have reduced quality... They provide so much food and you're like ‘How is that possible?’”

As food prices have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to run. Similarly, its locations, which are being cut from 132 to a smaller figure.

The business, in common with competitors, has also experienced its expenses go up. Earlier this year, employee wages increased due to higher minimum pay and an higher rate of employer social security payments.

Two diners explain they would often visit at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.

Depending on your order, Pizza Hut and Domino's rates are similar, explains a food expert.

Even though Pizza Hut has off-premise options through third-party apps, it is losing out to big rivals which focus exclusively to the delivery sector.

“Domino's has managed to dominate the takeaway pizza sector thanks to intensive advertising and ongoing discounts that make customers feel like they're finding a good deal, when in reality the standard rates are quite high,” explains the expert.

But for these customers it is acceptable to get their special meal brought to their home.

“We absolutely dine at home now instead of we eat out,” explains Joanne, reflecting current figures that show a decrease in people going to casual and fast-food restaurants.

During the summer months, casual and fast-food restaurants saw a notable decrease in patrons compared to the year before.

Additionally, one more competitor to pizza from eateries: the cook-at-home oven pizza.

Will Hawkley, senior partner at an advisory group, points out that not only have grocery stores been selling high-quality prepared pies for quite a while – some are even selling countertop ovens.

“Evolving preferences are also contributing in the success of quick-service brands,” says Mr. Hawkley.

The growing trend of high protein diets has boosted sales at chicken shops, while affecting sales of high-carbohydrate options, he adds.

As people visit restaurants not as often, they may prefer a more premium experience, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more old-fashioned than premium.

The “explosion of artisanal pizza places” over the last decade and a half, including popular brands, has “completely altered the public's perception of what quality pizza is,” says the food expert.

“A thin, flavorful, gentle crust with a carefully curated additions, 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 says.
“Why would anyone spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who operates Smokey Deez based in Suffolk says: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”

He says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with changing preferences.

From the perspective of a small pizza brand in a city in southwest England, the founder says the sector is diversifying but Pizza Hut has failed to offer anything fresh.

“There are now by-the-slice options, artisanal styles, New Haven-style, fermented dough, wood-fired, deep-dish – it's a delightful challenge for a pie fan to discover.”

The owner says Pizza Hut “should transform” as younger people don't have any emotional connection or loyalty to the company.

Over time, Pizza Hut's customer base has been sliced up and allocated to its trendier, more nimble rivals. To keep up its expensive staffing and restaurants, it would have to charge more – which experts say is challenging at a time when household budgets are shrinking.

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

He said its first focus was to continue operating at the surviving locations and delivery sites and to assist staff through the change.

But with significant funds going into running its restaurants, it may be unable to spend heavily in its off-premise division because the sector is “difficult and partnering with existing external services comes at a cost”, analysts say.

But, he adds, reducing expenses by leaving competitive urban areas could be a effective strategy to adapt.

April Jones
April Jones

A passionate life coach and writer dedicated to empowering others through mindset transformation and holistic well-being practices.