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

In the past, Pizza Hut was the go-to for families and friends to enjoy its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

However not as many patrons are visiting the chain nowadays, and it is reducing 50% of its UK outlets after being rescued from insolvency for the second instance this year.

“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she states “it's not a thing anymore.”

For a diner in her twenties, the very elements Pizza Hut has been recognized for since it launched in the UK in the mid-20th century are now less appealing.

“The way they do their buffet and their salad bar, it appears that they are cutting corners and have reduced quality... They provide so much food and you're like ‘How?’”

Because grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. Similarly, its restaurants, which are being cut from a large number to a smaller figure.

The company, in common with competitors, has also seen its expenses increase. This spring, staffing costs increased due to increases in the legal wage floor and an increase in employer taxes.

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

According to your choices, Pizza Hut and Domino's costs are similar, notes a food expert.

Even though Pizza Hut has off-premise options through third-party apps, it is falling behind to major competitors which focus exclusively to this market.

“The rival chain has succeeded in leading the delivery market thanks to aggressive marketing and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the original prices are quite high,” notes the specialist.

But for these customers it is acceptable to get their evening together sent directly.

“We predominantly have meals at home now more than we eat out,” comments one of the diners, echoing recent statistics that show a decline in people frequenting quick-service eateries.

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

Additionally, one more competitor to ordered-in pies: the cook-at-home oven pizza.

An industry leader, head of leisure and hospitality at a major consultancy, points out that not only have supermarkets been offering high-quality prepared pies for a long time – some are even promoting home-pizza ovens.

“Evolving preferences are also having an impact in the popularity of casual eateries,” states the analyst.

The increased interest of low-carb regimens has boosted sales at poultry outlets, while hitting sales of carb-heavy pizza, he continues.

Because people go out to eat less frequently, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more retro than luxurious.

The growth of high-quality pizzerias” over the last decade and a half, for example boutique chains, has “fundamentally changed the consumer view of what quality pizza is,” notes the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she says.

“Who would choose to spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made Margherita 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 pizza van based in Suffolk explains: “The issue isn’t that stopped liking pizza – they just want improved value.”

Dan says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

From the perspective of Pizzarova in a city in southwest England, the founder says the industry is broadening but Pizza Hut has neglected to introduce anything innovative.

“There are now by-the-slice options, regional varieties, new haven, fermented dough, Neapolitan, Detroit – it's a heavenly minefield for a pizza-loving consumer to try.”

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

Over time, Pizza Hut's share has been fragmented and allocated to its more modern, agile alternatives. To maintain its costly operations, it would have to increase costs – which industry analysts say is tough at a time when family finances are decreasing.

The managing director of Pizza Hut's overseas branches said the rescue aimed “to safeguard our customer service and retain staff where possible”.

He said its key goal was to continue operating at the remaining 64 restaurants and delivery sites and to help employees through the change.

However with significant funds going into maintaining its outlets, it may be unable to invest too much in its delivery service because the sector is “difficult and working with existing external services comes at a price”, experts say.

However, it's noted, lowering overhead by leaving oversaturated towns and city centres could be a smart move to adapt.