How the Nation Turned Away from Its Appetite for the Pizza Hut Chain

Once, the popular pizza chain was the top choice for parents and children to enjoy its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.

Yet fewer diners are frequenting the chain these days, and it is shutting down a significant portion of its British locations after being bought out of administration for the second instance this calendar year.

“We used to go Pizza Hut when I was a child,” says Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” However, at present, as a young adult, she states “it's fallen out of favor.”

For a diner in her twenties, certain features Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now outdated.

“The way they do their all-you-can-eat and their salad bar, it seems as if they are lowering standards and have inferior offerings... They're giving away so much food and you're like ‘How?’”

Since food prices have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to run. The same goes for its locations, which are being sliced from a large number to 64.

The company, in common with competitors, has also seen its operating costs go up. Earlier this year, labor expenses increased due to increases in the legal wage floor and an higher rate of employer national insurance contributions.

A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “from time to time”, but now they order in Domino's and think Pizza Hut is “not good value”.

According to your selection, Pizza Hut and Domino's costs are close, explains a culinary author.

While Pizza Hut provides pickup and delivery through delivery platforms, it is missing out to major competitors which specialize to the delivery sector.

“Another pizza company has succeeded in leading the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make customers feel like they're saving money, when in reality the original prices are quite high,” notes the specialist.

However for Chris and Joanne it is acceptable to get their date night brought to their home.

“We absolutely dine at home now instead of we eat out,” comments Joanne, echoing latest data that show a decline in people visiting quick-service eateries.

Over the summer, informal dining venues saw a notable decrease in diners compared to the year before.

Moreover, one more competitor to restaurant and takeaway pizzas: the supermarket pizza.

A hospitality expert, head of leisure and hospitality at a leading firm, points out that not only have supermarkets been providing good-standard oven-ready pizzas for a long time – some are even promoting countertop ovens.

“Lifestyle changes are also playing a factor in the performance of quick-service brands,” states the expert.

The rising popularity of low-carb regimens has increased sales at grilled chicken brands, while hitting sales of carb-heavy pizza, he notes.

Since people dine out not as often, they may look for a more premium experience, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more dated than premium.

The growth of artisanal pizza places” over the last several years, including new entrants, has “completely altered the consumer view of what excellent pie is,” notes the culinary analyst.

“A thin, flavorful, gentle crust with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she states.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
Dan Puddle, who runs Smokey Deez based in Suffolk comments: “It's not that fallen out of love with pizza – they just want improved value.”

He says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

At Pizzarova in Bristol, the founder says the industry is broadening but Pizza Hut has neglected to introduce anything new.

“You now have by-the-slice options, London pizza, thin crust, artisan base, traditional Italian, deep-dish – it's a heavenly minefield for a pizza enthusiast to discover.”

The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or loyalty to the chain.

Gradually, Pizza Hut's customer base has been divided and spread to its fresher, faster competitors. To keep up its costly operations, it would have to raise prices – which industry analysts say is challenging at a time when family finances are shrinking.

A senior executive of Pizza Hut's global operations said the buyout aimed “to safeguard our dining experience and save employment where possible”.

He said its key goal was to continue operating at the surviving locations and delivery sites and to assist staff through the transition.

But with so much money going into running its restaurants, it likely can't afford to invest too much in its takeaway operation because the market is “difficult and working with existing delivery apps comes at a expense”, commentators say.

Still, experts suggest, reducing expenses by leaving oversaturated towns and city centres could be a good way to adjust.

Kelsey Short
Kelsey Short

Cybersecurity expert with over a decade of experience in digital identity and password management, dedicated to helping users stay safe online.