How the Country Lost Interest in Its Appetite for the Pizza Hut Chain

At one time, the popular pizza chain was the go-to for families and friends to indulge in its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

But a declining number of diners are visiting the chain currently, and it is reducing 50% of its UK locations after being rescued from insolvency for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she states “it's no longer popular.”

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

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

Because ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. The same goes for its restaurants, which are being sliced from over 130 to just over 60.

The chain, like many others, has also faced its expenses increase. Earlier this year, employee wages jumped due to increases in the legal wage floor and an rise in employer taxes.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “from time to time”, but now they order in Domino's and think Pizza Hut is “too expensive”.

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

Even though Pizza Hut has takeaway and deliveries through external services, it is falling behind to big rivals which specialize to off-premise dining.

“Domino's has taken over the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're saving money, when in reality the base costs are quite high,” notes the specialist.

Yet for the couple it is worth it to get their date night brought to their home.

“We predominantly have meals at home now instead of we eat out,” explains the female customer, echoing latest data that show a decline in people frequenting quick-service eateries.

Over the summer, informal dining venues saw a notable decrease in customers compared to the year before.

Additionally, another rival to ordered-in pies: the cook-at-home oven pizza.

A hospitality expert, senior partner at a leading firm, points out that not only have retailers been offering high-quality oven-ready pizzas for a long time – some are even selling home-pizza ovens.

“Evolving preferences are also playing a factor in the success of quick-service brands,” says the expert.

The increased interest of low-carb regimens has driven sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he adds.

As people visit restaurants not as often, they may seek out a more premium experience, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than premium.

The growth of artisanal pizza places” over the last decade and a half, such as popular brands, has “completely altered the general opinion of what excellent pie is,” says the food expert.

“A light, fresh, easy-to-digest product with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she comments.

“What person would spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?

“It's a no-brainer.”

A mobile pizza vendor, who operates a small business based in a regional area comments: “It's not that stopped liking pizza – they just want higher quality at a fair price.”

Dan says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with changing preferences.

From the perspective of an independent chain in Bristol, the founder says the pizza market is expanding but Pizza Hut has not provided anything fresh.

“There are now individual slices, London pizza, thin crust, fermented dough, traditional Italian, rectangular – it's a delightful challenge 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 share has been fragmented and distributed to its trendier, more nimble rivals. To keep up its high labor and location costs, it would have to charge more – which industry analysts say is challenging at a time when personal spending are tightening.

A senior executive of Pizza Hut's international markets said the rescue aimed “to safeguard our dining experience and save employment where possible”.

It was explained its immediate priority was to continue operating at the surviving locations and takeaway hubs and to help employees through the change.

But with large sums going into maintaining its outlets, it probably cannot to invest too much in its delivery service because the sector is “complex and working with existing external services comes at a cost”, commentators say.

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