Why the Nation Lost Its Appetite for Pizza Hut

In the past, Pizza Hut was the favorite for groups and loved ones to indulge in its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.

But a declining number of patrons are visiting the restaurant nowadays, and it is reducing a significant portion of its British locations after being bought out of administration for the second time this calendar year.

I remember going Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, aged 24, she states “it's not a thing anymore.”

In the view of young customer Martina, certain features Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now not-so-hot.

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

Because ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become quite costly to maintain. Similarly, its restaurants, which are being reduced from 132 to 64.

The business, like many others, has also seen its costs go up. This spring, employee wages jumped due to rises in minimum wages and an higher rate of employer national insurance contributions.

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

According to your choices, Pizza Hut and Domino's prices are comparable, notes an industry analyst.

While Pizza Hut provides off-premise options through delivery platforms, it is falling behind to major competitors which focus exclusively to off-premise dining.

“Another pizza company has managed to dominate the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make customers feel like they're getting a bargain, when in reality the base costs are relatively expensive,” explains the specialist.

But for these customers it is acceptable to get their evening together delivered to their door.

“We predominantly have meals at home now instead of we eat out,” explains one of the diners, matching recent statistics that show a drop in people frequenting informal dining spots.

Over the summer, casual and fast-food restaurants saw a notable decrease in diners compared to the year before.

Moreover, a further alternative to pizza from eateries: the frozen or fresh pizza.

A hospitality expert, head of leisure and hospitality at a major consultancy, explains that not only have supermarkets been offering good-standard ready-to-bake pizzas for a long time – some are even promoting pizza-making appliances.

“Shifts in habits are also playing a factor in the success of quick-service brands,” comments the expert.

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

As people dine out less frequently, they may look for a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more old-fashioned than luxurious.

The “explosion of premium pizza outlets” over the last several years, including boutique chains, has “completely altered the general opinion of what quality pizza is,” notes the food expert.

“A light, fresh, easy-to-digest product with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she states.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates a small business based in a regional area explains: “It's not that lost interest in pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

According to a small pizza brand in Bristol, the founder says the pizza market is broadening but Pizza Hut has failed to offer anything new.

“You now have by-the-slice options, artisanal styles, new haven, sourdough, wood-fired, Detroit – it's a heavenly minefield for a pizza-loving consumer to try.”

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

Gradually, Pizza Hut's share has been fragmented and spread to its fresher, faster competitors. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is tough at a time when personal spending are decreasing.

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

It was explained its key goal was to keep running at the open outlets and delivery sites and to assist staff through the restructure.

But with so much money going into operating its locations, it likely can't afford to invest too much in its off-premise division because the sector is “difficult and using existing external services comes at a cost”, analysts say.

Still, experts suggest, cutting its costs by withdrawing from competitive urban areas could be a good way to adapt.

John Allen
John Allen

A seasoned digital marketer and content strategist with over a decade of experience in helping bloggers scale their online presence.