Why the Country Lost Interest in Its Taste for the Pizza Hut Chain

In the past, Pizza Hut was the favorite for groups and loved ones to feast on its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.

Yet a declining number of diners are choosing the chain these days, and it is shutting down half of its British locations after being bought out of administration for the second occasion this year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, in her mid-twenties, she says “it's no longer popular.”

In the view of young customer Martina, certain features Pizza Hut has been recognized for since it launched in the UK in the seventies are now outdated.

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

Since grocery costs have soared, Pizza Hut's unlimited dining format has become quite costly to maintain. As have its outlets, which are being cut from over 130 to 64.

The business, similar to other firms, has also experienced its expenses increase. Earlier this year, labor expenses rose due to increases in the legal wage floor and an increase in employer national insurance contributions.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.

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

Even though Pizza Hut does offer off-premise options through external services, it is losing out to larger chains which solely cater to the delivery sector.

“Domino's has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and frequent offers that make shoppers feel like they're saving money, when in reality the base costs are quite high,” says the analyst.

However for Chris and Joanne it is justified to get their special meal sent directly.

“We predominantly have meals at home now rather than we eat out,” comments Joanne, reflecting latest data that show a decline in people frequenting casual and fast-food restaurants.

During the summer months, quick-service eateries saw a notable decrease in patrons compared to last summer.

Moreover, one more competitor to pizza from eateries: the supermarket pizza.

An industry leader, senior partner at an advisory group, points out that not only have grocery stores been offering good-standard ready-to-bake pizzas for a long time – some are even offering home-pizza ovens.

“Lifestyle changes are also having an impact in the popularity of fast-food chains,” says Mr. Hawkley.

The increased interest of protein-rich eating plans has boosted sales at poultry outlets, while affecting sales of high-carbohydrate options, he notes.

As people dine out more rarely, they may look for a more upscale outing, and Pizza Hut's retro theme with vinyl benches and traditional dĂŠcor can feel more retro than upmarket.

The growth of premium pizza outlets” over the last several years, for example new entrants, has “completely altered the general opinion of what good pizza is,” explains the food expert.

“A thin, flavorful, gentle crust with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she says.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who owns a small business based in Suffolk says: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

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

According to a small pizza brand in a city in southwest England, the founder says the industry is expanding but Pizza Hut has not provided anything new.

“Currently available are by-the-slice options, regional varieties, new haven, fermented dough, traditional Italian, Detroit – it's a delightful challenge for a pizza enthusiast to discover.”

The owner says Pizza Hut “must rebrand” as younger people don't have any fond memories or attachment to the company.

Over time, Pizza Hut's customer base has been divided and spread to its trendier, more nimble alternatives. To keep up its high labor and location costs, it would have to raise prices – which commentators say is challenging at a time when personal spending are tightening.

A senior executive of Pizza Hut's overseas branches said the buyout aimed “to protect our customer service and retain staff where possible”.

The executive stated its first focus was to keep running at the surviving locations and takeaway hubs and to help employees through the transition.

But with significant funds going into maintaining its outlets, it probably cannot to invest too much in its takeaway operation because the industry is “complicated and partnering with existing third-party platforms comes at a cost”, commentators say.

However, it's noted, cutting its costs by exiting crowded locations could be a smart move to adjust.

Charles Rodriguez
Charles Rodriguez

A passionate gamer and tech enthusiast with over a decade of experience in writing about video games and esports trends.