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

At one time, Pizza Hut was the top choice for parents and children to indulge in its unlimited dining experience, endless salad selection, and make-your-own dessert.

However not as many patrons are frequenting the brand nowadays, and it is reducing half of its UK restaurants after being acquired following financial trouble for the second occasion this year.

“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she comments “it's no longer popular.”

For 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.

“The manner in which they do their all-you-can-eat and their salad bar, it feels like they are cutting corners and have inferior offerings... They're giving away so much food and you're like ‘How?’”

As grocery costs have increased significantly, Pizza Hut's unlimited dining format has become quite costly to maintain. The same goes for its outlets, which are being reduced from a large number to a smaller figure.

The chain, in common with competitors, has also experienced its expenses rise. This spring, employee wages rose due to higher minimum pay and an higher rate of employer social security payments.

Two diners say they frequently dined at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

Based on your choices, Pizza Hut and Domino's costs are comparable, notes a food expert.

While Pizza Hut has off-premise options through third-party apps, it is losing out to major competitors which specialize to the delivery sector.

“The rival chain has managed to dominate the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make consumers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” explains the expert.

However for the couple it is justified to get their date night sent directly.

“We absolutely dine at home now more than we eat out,” comments one of the diners, matching recent statistics that show a decrease in people frequenting casual and fast-food restaurants.

In the warmer season, quick-service eateries saw a notable decrease in customers compared to the year before.

Moreover, another rival to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, senior partner at a major consultancy, explains that not only have grocery stores been offering high-quality oven-ready pizzas for quite a while – some are even offering pizza-making appliances.

“Lifestyle changes are also contributing in the popularity of quick-service brands,” comments Mr. Hawkley.

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

Since people visit restaurants more rarely, they may prefer a more premium experience, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more retro than premium.

The “explosion of high-quality pizzerias” over the last decade and a half, for example popular brands, has “fundamentally changed the general opinion of what excellent pie is,” notes the culinary analyst.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she comments.
“What person would spend a high price on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared traditional pie for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who operates a pizza van based in a county in England says: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

He says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with changing preferences.

According to a small pizza brand in a UK location, the proprietor says the pizza market is broadening but Pizza Hut has failed to offer anything innovative.

“Currently available are slice concepts, regional varieties, new haven, sourdough, traditional Italian, deep-dish – it's a heavenly minefield for a pie fan to try.”

Jack says Pizza Hut “should transform” as younger people don't have any emotional connection or loyalty to the company.

In recent years, Pizza Hut's market has been sliced up and allocated to its trendier, more nimble rivals. To sustain its expensive staffing and restaurants, it would have to charge more – which industry analysts say is challenging at a time when household budgets are tightening.

The managing director of Pizza Hut's international markets said the acquisition aimed “to protect our dining experience and save employment where possible”.

It was explained its immediate priority was to maintain service at the surviving locations and takeaway hubs and to support colleagues through the change.

Yet with large sums going into operating its locations, it may be unable to invest too much in its delivery service because the industry is “complicated and working with existing delivery apps comes at a cost”, analysts say.

But, he adds, lowering overhead by leaving crowded locations could be a effective strategy to adjust.

Kristina Parsons
Kristina Parsons

A seasoned crypto analyst with a passion for demystifying digital currencies and helping investors make informed decisions.