How the Country Turned Away from Its Taste for the Pizza Hut Chain

Once, the popular pizza chain was the top choice for groups and loved ones to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

Yet fewer diners are frequenting the restaurant these days, and it is reducing half of its UK locations after being acquired following financial trouble for the second occasion this calendar year.

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

For young customer Martina, some of the very things Pizza Hut has been recognized for since it opened in the UK in the 1970s are now outdated.

“The manner in which they do their all-you-can-eat and their salad station, it seems as if they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How?’”

As grocery costs have risen sharply, Pizza Hut's unlimited dining format has become very expensive to run. As have its restaurants, which are being sliced from a large number to 64.

The company, similar to other firms, has also faced its operating costs go up. This spring, labor expenses jumped due to increases in the legal wage floor and an rise in employer social security payments.

A couple in their thirties and twenties say they frequently dined at Pizza Hut for a date “every now and then”, 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, says a culinary author.

Although Pizza Hut has off-premise options through delivery platforms, it is losing out to major competitors which specialize to the delivery sector.

“Another pizza company has managed to dominate the delivery market thanks to intensive advertising and frequent offers that make shoppers feel like they're getting a bargain, when in reality the standard rates are quite high,” notes the specialist.

But for these customers it is worth it to get their special meal sent directly.

“We absolutely dine at home now more than we eat out,” explains Joanne, reflecting current figures that show a decrease in people frequenting informal dining spots.

In the warmer season, casual and fast-food restaurants saw a six percent decline in diners compared to last summer.

Additionally, a further alternative to pizza from eateries: the cook-at-home oven pizza.

An industry leader, senior partner at a leading firm, explains that not only have grocery stores been selling premium prepared pies for quite a while – some are even promoting pizza-making appliances.

“Shifts in habits are also having an impact in the success of quick-service brands,” says Mr. Hawkley.

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

Since people dine out more rarely, they may seek out a more upscale outing, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more old-fashioned than premium.

The growth of artisanal pizza places” over the last 10 to 15 years, including popular brands, has “fundamentally changed the consumer view of what excellent pie is,” says the culinary analyst.

“A crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's caused Pizza Hut's decline,” she comments.
“What person would spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who owns a small business based in a county in England explains: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

According to Pizzarova in a UK location, owner Jack Lander says the sector is diversifying but Pizza Hut has not provided anything innovative.

“You now have individual slices, artisanal styles, New Haven-style, fermented dough, wood-fired, rectangular – it's a heavenly minefield for a pizza enthusiast to discover.”

He says Pizza Hut “should transform” as the youth don't have any emotional connection or loyalty to the company.

Over time, Pizza Hut's share has been fragmented and spread to its trendier, more nimble rivals. To maintain its costly operations, it would have to raise prices – which commentators say is tough at a time when personal spending are tightening.

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

He said its first focus was to maintain service at the open outlets and delivery sites and to assist staff through the restructure.

But with large sums going into running its restaurants, it may be unable to invest too much in its delivery service because the industry is “difficult and using existing third-party platforms comes at a expense”, commentators say.

But, he adds, cutting its costs by withdrawing from oversaturated towns and city centres could be a effective strategy to adapt.

Daniel Nguyen
Daniel Nguyen

Digital marketing strategist with over 10 years of experience, specializing in data-driven campaigns and brand storytelling.