How the Country Lost Its Craving for Pizza Hut

In the past, the popular pizza chain was the top choice for groups and loved ones to feast on its unlimited dining experience, endless salad selection, and make-your-own dessert.

However not as many customers are frequenting the restaurant these days, and it is closing 50% of its British restaurants after being bought out of administration for the second time this calendar year.

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

In the view of a diner in her twenties, the very elements Pizza Hut has been recognized for since it started in the UK in the 1970s are now not-so-hot.

“The way they do their all-you-can-eat and their salad bar, it seems as if they are cutting corners and have lower standards... They provide so much food and you're like ‘How is that possible?’”

Since ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become very expensive to run. The same goes for its restaurants, which are being sliced from over 130 to a smaller figure.

The business, similar to other firms, has also seen its expenses rise. Earlier this year, labor expenses jumped due to rises in minimum wages and an increase in employer social security payments.

A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “too expensive”.

Depending on your selection, Pizza Hut and Domino's prices are close, explains an industry analyst.

While Pizza Hut provides pickup and delivery through external services, it is losing out to major competitors which focus exclusively to this market.

“The rival chain has managed to dominate the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the base costs are quite high,” explains the expert.

However for Chris and Joanne it is worth it to get their special meal delivered to their door.

“We definitely eat at home now rather than we eat out,” says one of the diners, echoing latest data that show a drop in people visiting quick-service eateries.

In the warmer season, informal dining venues saw a 6% drop in customers compared to last summer.

There is also one more competitor to ordered-in pies: the cook-at-home oven pizza.

An industry leader, head of leisure and hospitality at a leading firm, notes that not only have supermarkets been providing good-standard oven-ready pizzas for years – some are even selling home-pizza ovens.

“Shifts in habits are also contributing in the performance of fast-food chains,” comments Mr. Hawkley.

The increased interest of high protein diets has increased sales at grilled chicken brands, while affecting sales of dough-based meals, he continues.

Because people visit restaurants more rarely, they may look for a more upscale outing, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more dated than upmarket.

The “explosion of high-quality pizzerias” over the last decade and a half, for example new entrants, has “completely altered the general opinion of what excellent pie is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's resulted in Pizza Hut's struggles,” she states.
“Why would anyone spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
An independent operator, who operates Smokey Deez based in a county in England says: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

Dan says his mobile setup can offer premium pizza at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with new customer habits.

At a small pizza brand in Bristol, owner Jack Lander says the industry is expanding but Pizza Hut has neglected to introduce anything innovative.

“You now have individual slices, artisanal styles, thin crust, artisan base, Neapolitan, Detroit – it's a wonderful array for a pizza enthusiast to discover.”

The owner says Pizza Hut “should transform” as the youth don't have any emotional connection or attachment to the brand.

Over time, Pizza Hut's customer base has been fragmented and spread to its more modern, agile alternatives. To keep up its costly operations, it would have to increase costs – which industry analysts say is challenging at a time when personal spending are decreasing.

The managing director of Pizza Hut's global operations said the acquisition aimed “to protect our customer service and save employment where possible”.

It was explained its key goal was to continue operating at the open outlets and off-premise points and to assist staff through the transition.

But with significant funds going into operating its locations, it likely can't afford to spend heavily in its off-premise division because the market is “complex and partnering with existing third-party platforms comes at a price”, analysts say.

But, he adds, reducing expenses by withdrawing from competitive urban areas could be a good way to evolve.

Michael Fox
Michael Fox

A tech enthusiast and writer with a passion for exploring emerging technologies and their impact on society.