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

At one time, the popular pizza chain was the go-to for families and friends to indulge in its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

However a declining number of diners are frequenting the brand nowadays, and it is shutting down a significant portion of its British outlets after being rescued from insolvency for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she says “it's not a thing anymore.”

In the view of 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 feels like they are cutting corners and have inferior offerings... They provide so much food and you're like ‘How?’”

As ingredient expenses have soared, Pizza Hut's unlimited dining format has become very expensive to run. Similarly, its outlets, which are being sliced from 132 to just over 60.

The business, like many others, has also experienced its operating costs go up. In April this year, labor expenses jumped 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 order in another pizza brand and think Pizza Hut is “not good value”.

Depending on your order, Pizza Hut and Domino's rates are similar, says a culinary author.

Although Pizza Hut provides pickup and delivery through external services, it is missing out to major competitors which solely cater to off-premise dining.

“Another pizza company has managed to dominate the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make consumers feel like they're saving money, when in reality the original prices are quite high,” says the specialist.

Yet for the couple it is worth it to get their date night brought to their home.

“We definitely eat at home now instead of we eat out,” explains one of the diners, echoing current figures that show a decrease in people frequenting casual and fast-food restaurants.

In the warmer season, informal dining venues saw a six percent decline in customers compared to the previous year.

Additionally, a further alternative to ordered-in pies: the supermarket pizza.

An industry leader, global lead for leisure at a major consultancy, notes that not only have grocery stores been providing premium prepared pies for a long time – some are even selling pizza-making appliances.

“Lifestyle changes are also playing a factor in the popularity of fast-food chains,” says the analyst.

The rising popularity of protein-rich eating plans has driven sales at poultry outlets, while reducing sales of carb-heavy pizza, he adds.

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

The “explosion of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “fundamentally changed the general opinion of what excellent pie is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's caused Pizza Hut's downfall,” she comments.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a stunning, expertly crafted Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
An independent operator, who runs a pizza van based in Suffolk comments: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

The owner says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

According to a small pizza brand in a city in southwest England, the proprietor says the sector is expanding but Pizza Hut has neglected to introduce anything fresh.

“Currently available are by-the-slice options, London pizza, new haven, artisan base, wood-fired, deep-dish – it's a heavenly minefield for a pizza-loving consumer to try.”

The owner says Pizza Hut “must rebrand” as younger people don't have any emotional connection or loyalty to the brand.

Gradually, Pizza Hut's customer base has been fragmented and allocated to its more modern, agile rivals. To maintain its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is challenging at a time when personal spending are shrinking.

The leadership of Pizza Hut's overseas branches said the buyout aimed “to ensure our customer service and save employment where possible”.

He said its immediate priority was to keep running at the open outlets and takeaway hubs and to assist staff through the transition.

However with significant funds going into operating its locations, it likely can't afford to spend heavily in its off-premise division because the industry is “complex and working with existing delivery apps comes at a expense”, experts say.

Still, experts suggest, cutting its costs by leaving competitive urban areas could be a effective strategy to evolve.

Taylor Mclaughlin
Taylor Mclaughlin

An experienced journalist with a passion for technology and digital culture, based in Prague.