Why the Country Lost Its Taste for the Pizza Hut Chain

Once, Pizza Hut was the top choice for groups and loved ones to indulge in its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.

Yet a declining number of patrons are frequenting the brand currently, and it is reducing a significant portion of its UK outlets after being rescued from insolvency for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” says one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she says “it's no longer popular.”

For a diner in her twenties, some of the very things Pizza Hut has been famous for since it launched in the UK in the seventies are now not-so-hot.

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

Since food prices have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. As have its outlets, which are being reduced from a large number to just over 60.

The chain, in common with competitors, has also experienced its operating costs increase. In April this year, labor expenses jumped due to higher minimum pay and an rise in employer taxes.

A couple in their thirties and twenties say they would often visit 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”.

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

Although Pizza Hut has pickup and delivery through delivery platforms, it is missing out to major competitors which specialize to the delivery sector.

“Another pizza company has managed to dominate the delivery market thanks to aggressive marketing and constantly running deals that make customers feel like they're finding a good deal, when in reality the base costs are on the higher side,” explains the specialist.

However for these customers it is worth it to get their date night delivered to their door.

“We definitely eat at home now more than we eat out,” explains one of the diners, reflecting recent statistics that show a drop in people going to quick-service eateries.

During the summer months, informal dining venues saw a six percent decline in diners compared to the previous year.

Moreover, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, head of leisure and hospitality at an advisory group, explains that not only have supermarkets been selling premium oven-ready pizzas for years – some are even offering pizza-making appliances.

“Evolving preferences are also playing a factor in the popularity of fast-food chains,” says Mr. Hawkley.

The rising popularity of high protein diets has driven sales at grilled chicken brands, while reducing sales of dough-based meals, he adds.

Because people dine out more rarely, they may seek out a more premium experience, 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 10 to 15 years, for example new entrants, has “dramatically shifted the general opinion of what excellent pie is,” notes the industry commentator.

“A thin, flavorful, gentle crust 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 stunning, expertly crafted Margherita for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns a pizza van based in a county in England comments: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

The owner says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with new customer habits.

According to Pizzarova in a city in southwest England, the founder says the sector is broadening but Pizza Hut has failed to offer anything new.

“There are now slice concepts, regional varieties, new haven, fermented dough, traditional Italian, Detroit – it's a wonderful array for a pizza enthusiast to explore.”

He says Pizza Hut “should transform” as the youth don't have any fond memories or attachment to the company.

Over time, Pizza Hut's share has been fragmented and distributed to its fresher, faster alternatives. To keep up its costly operations, it would have to charge more – which commentators say is tough at a time when household budgets are shrinking.

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

It was explained its immediate priority was to maintain service at the surviving locations and delivery sites and to assist staff through the restructure.

But with significant funds going into maintaining its outlets, it may be unable to allocate significant resources in its delivery service because the market is “complicated and using existing third-party platforms comes at a expense”, commentators say.

Still, experts suggest, reducing expenses by exiting competitive urban areas could be a effective strategy to adapt.

Matthew Flores
Matthew Flores

Fintech expert with over a decade of experience in digital payments and financial innovation, passionate about simplifying online transactions.