Why the Country Lost Its Taste for the Pizza Hut Chain

Once, the popular pizza chain was the top choice for groups and loved ones to indulge in its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.

However not as many diners are visiting the brand nowadays, and it is closing a significant portion of its British outlets after being rescued from insolvency for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's fallen out of favor.”

For young customer Martina, the very elements Pizza Hut has been recognized for since it started in the UK in the seventies are now less appealing.

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

Because ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become very expensive to maintain. The same goes for its restaurants, which are being reduced from over 130 to a smaller figure.

The company, like many others, has also seen its costs go up. This spring, employee wages jumped due to increases in the legal wage floor and an increase in employer national insurance contributions.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “from time to time”, but now they choose Domino's and think Pizza Hut is “very overpriced”.

According to your selection, Pizza Hut and Domino's prices are similar, explains a food expert.

While Pizza Hut provides off-premise options through third-party apps, it is missing out to major competitors which focus exclusively to off-premise dining.

“Another pizza company has succeeded in leading the delivery market thanks to strong promotions and ongoing discounts that make customers feel like they're finding a good deal, when in reality the original prices are quite high,” says the analyst.

But for Chris and Joanne it is justified to get their special meal sent directly.

“We definitely eat at home now instead of we eat out,” comments Joanne, echoing latest data that show a decrease in people going to casual and fast-food restaurants.

During the summer months, casual and fast-food restaurants saw a notable decrease in customers compared to the previous year.

There is also a further alternative to pizza from eateries: the frozen or fresh pizza.

Will Hawkley, senior partner at a leading firm, points out that not only have retailers been offering high-quality prepared pies for a long time – some are even offering countertop ovens.

“Shifts in habits are also playing a factor in the popularity of quick-service brands,” comments Mr. Hawkley.

The increased interest of low-carb regimens has driven sales at chicken shops, while affecting sales of carb-heavy pizza, he adds.

As people go out to eat less frequently, 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 premium.

The rise of high-quality pizzerias” over the last several years, such as boutique chains, has “completely altered the general opinion of what quality pizza is,” says the food expert.

“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she says.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who owns a pizza van based in a regional area says: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

The owner says his mobile setup can offer premium pizza at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with changing preferences.

From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the sector is diversifying but Pizza Hut has not provided anything innovative.

“There are now slice concepts, artisanal styles, thin crust, artisan base, traditional Italian, deep-dish – it's a delightful challenge for a pie fan to try.”

He says Pizza Hut “must rebrand” as newer generations don't have any fond memories or loyalty to the company.

Gradually, Pizza Hut's share has been fragmented and allocated to its trendier, more nimble competitors. To keep up its expensive staffing and restaurants, it would have to raise prices – which commentators say is tough at a time when household budgets are tightening.

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

The executive stated its first focus was to keep running at the remaining 64 restaurants and off-premise points and to assist staff through the restructure.

But with so much money going into operating its locations, it probably cannot to spend heavily in its off-premise division because the sector is “complex and partnering with existing third-party platforms comes at a price”, experts say.

But, he adds, reducing expenses by exiting oversaturated towns and city centres could be a good way to adjust.

Jennifer Smith
Jennifer Smith

A passionate life coach and productivity expert dedicated to helping others unlock their full potential.