Why the Nation Lost Interest in Its Taste for the Pizza Hut Chain
Once, the popular pizza chain was the go-to for groups and loved ones to indulge in its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.
Yet fewer patrons are frequenting the restaurant currently, and it is closing a significant portion of its British restaurants after being bought out of administration for the second instance 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 – make a day of it.” But now, aged 24, she states “it's not a thing anymore.”
For young customer Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the seventies are now outdated.
“The manner in which they do their all-you-can-eat and their salad station, it feels like they are cutting corners and have reduced quality... They offer so much food and you're like ‘How is that possible?’”
Because grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to operate. Similarly, its locations, which are being cut from a large number to a smaller figure.
The business, in common with competitors, has also experienced its expenses increase. This spring, staffing costs rose due to rises in minimum wages and an increase in employer taxes.
Two diners explain they frequently dined at Pizza Hut for a date “occasionally”, but now they order in Domino's and think Pizza Hut is “very overpriced”.
Based on your order, Pizza Hut and Domino's costs are close, notes a culinary author.
While Pizza Hut has pickup and delivery through third-party apps, it is missing out to larger chains which specialize to off-premise dining.
“The rival chain has taken over the takeaway pizza sector thanks to strong promotions and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” notes the expert.
Yet for Chris and Joanne it is acceptable to get their special meal sent directly.
“We definitely eat at home now more than we eat out,” comments one of the diners, reflecting latest data that show a decline in people visiting quick-service eateries.
Over the summer, informal dining venues saw a notable decrease in customers compared to the year before.
Moreover, a further alternative to pizza from eateries: the supermarket pizza.
An industry leader, senior partner at a major consultancy, points out that not only have supermarkets been offering good-standard prepared pies for years – some are even offering countertop ovens.
“Evolving preferences are also contributing in the popularity of fast-food chains,” comments Mr. Hawkley.
The increased interest of low-carb regimens has driven sales at chicken shops, while reducing sales of carb-heavy pizza, he continues.
Since people go out to eat not as often, they may seek out a more premium experience, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more old-fashioned than luxurious.
The rise of artisanal pizza places” over the last 10 to 15 years, including popular brands, has “dramatically shifted the public's perception of what good pizza is,” says the industry commentator.
“A thin, flavorful, gentle crust with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's resulted in Pizza Hut's decline,” 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 stunning, expertly crafted classic pizza for a lower price at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who owns Smokey Deez based in Suffolk comments: “It's not that fallen out of love with pizza – they just want better pizza for their money.”
He says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it could not keep up with new customer habits.
According to Pizzarova in a UK location, owner Jack Lander says the sector is expanding but Pizza Hut has not provided anything innovative.
“Currently available are individual slices, regional varieties, thin crust, artisan base, traditional Italian, Detroit – it's a delightful challenge for a pizza-loving consumer to try.”
The owner says Pizza Hut “must rebrand” as younger people don't have any fond memories or loyalty to the company.
Gradually, Pizza Hut's market has been sliced up and allocated to its fresher, faster alternatives. To keep up its expensive staffing and restaurants, it would have to charge more – which experts say is difficult at a time when household budgets are shrinking.
A senior executive of Pizza Hut's international markets said the acquisition aimed “to protect our dining experience and retain staff where possible”.
He said its immediate priority was to continue operating at the surviving locations and takeaway hubs and to support colleagues through the transition.
But with large sums going into operating its locations, it likely can't afford to spend heavily in its delivery service because the market is “difficult and working with existing third-party platforms comes at a cost”, analysts say.
Still, experts suggest, cutting its costs by exiting competitive urban areas could be a smart move to evolve.