How the Nation Lost Interest in Its Craving for the Pizza Hut Chain

At one time, the popular pizza chain was the top choice for families and friends to feast on its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

But fewer customers are choosing the restaurant these days, and it is closing half of its British restaurants after being rescued from insolvency for the second time this year.

It was common to visit Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she comments “it's not a thing anymore.”

For 23-year-old Martina, certain features Pizza Hut has been recognized for since it launched in the UK in the 1970s are now outdated.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 feels like they are cheapening on their quality and have reduced quality... They offer so much food and you're like ‘How can they?’”

Because grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become quite costly to run. Similarly, its outlets, which are being cut from over 130 to 64.

The chain, like many others, has also experienced its costs rise. This spring, labor expenses rose due to rises in minimum wages and an higher rate of employer taxes.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “very overpriced”.

Based on your order, Pizza Hut and Domino's rates are similar, says an industry analyst.

While Pizza Hut has off-premise options through external services, it is losing out to big rivals which solely cater to off-premise dining.

“Domino's has taken over the delivery market thanks to intensive advertising and frequent offers that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” explains the expert.

But for these customers it is worth it to get their special meal delivered to their door.

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

Over the summer, informal dining venues saw a notable decrease in patrons compared to last summer.

There is also another rival to restaurant and takeaway pizzas: the supermarket pizza.

A hospitality expert, senior partner at a major consultancy, notes that not only have retailers been offering good-standard ready-to-bake pizzas for years – some are even selling countertop ovens.

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

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

As people dine out more rarely, they may seek out a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more dated than luxurious.

The rise of artisanal pizza places” over the last 10 to 15 years, for example popular brands, has “completely altered the public's perception of what excellent pie is,” says the culinary analyst.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she comments.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who operates a pizza van based in a regional area says: “People haven’t stopped liking pizza – they just want improved value.”

Dan says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.

From the perspective of a small pizza brand in a UK location, the proprietor says the sector is broadening but Pizza Hut has failed to offer anything fresh.

“There are now by-the-slice options, regional varieties, new haven, artisan base, Neapolitan, deep-dish – it's a delightful challenge for a pie fan to try.”

He says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or loyalty to the brand.

Gradually, Pizza Hut's customer base has been divided and distributed to its more modern, agile alternatives. To sustain its costly operations, it would have to charge more – which commentators say is difficult at a time when personal spending are shrinking.

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

He said its key goal was to continue operating at the surviving locations and takeaway hubs and to assist staff through the change.

But with so much money going into running its restaurants, it may be unable to spend heavily in its off-premise division because the industry is “difficult and using existing external services comes at a expense”, experts say.

However, it's noted, cutting its costs by withdrawing from oversaturated towns and city centres could be a effective strategy to adjust.

Steve Hall
Steve Hall

A seasoned cloud architect with over a decade of experience in helping organizations optimize their digital infrastructure and drive innovation.