Why the Nation Lost Its Appetite for the Pizza Hut Chain

Once, Pizza Hut was the go-to for groups and loved ones to enjoy its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

But fewer customers are frequenting the brand these days, and it is closing half of its UK outlets after being acquired following financial trouble for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she states “it's no longer popular.”

For young customer Martina, some of the very things Pizza Hut has been recognized for since it opened in the UK in the seventies are now not-so-hot.

“The manner in which they do their all-you-can-eat and their salad station, it feels like they are cheapening on their quality and have reduced quality... They offer so much food and you're like ‘How can they?’”

Because food prices have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to maintain. The same goes for its outlets, which are being cut from over 130 to just over 60.

The business, like many others, has also faced its operating costs rise. Earlier this year, labor expenses rose due to higher minimum pay and an increase in employer social security payments.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “too expensive”.

According to your selection, Pizza Hut and Domino's costs are close, explains an industry analyst.

Although Pizza Hut has takeaway and deliveries through third-party apps, it is missing out to larger chains which solely cater to the delivery sector.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to strong promotions and constantly running deals that make customers feel like they're finding a good deal, when in reality the original prices are quite high,” notes the analyst.

Yet for these customers it is acceptable to get their special meal sent directly.

“We absolutely dine at home now instead of we eat out,” comments the female customer, matching recent statistics that show a drop in people frequenting informal dining spots.

In the warmer season, informal dining venues saw a notable decrease in diners compared to the previous year.

Additionally, another rival to pizza from eateries: the frozen or fresh pizza.

An industry leader, global lead for leisure at an advisory group, notes that not only have retailers been providing high-quality prepared pies for a long time – some are even offering pizza-making appliances.

“Shifts in habits are also contributing in the performance of quick-service brands,” comments Mr. Hawkley.

The increased interest of protein-rich eating plans has driven sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he continues.

As people visit restaurants more rarely, they may look for a more upscale outing, and Pizza Hut's classic look with booth seating and traditional décor can feel more dated than luxurious.

The growth of high-quality pizzerias” over the last 10 to 15 years, including popular brands, has “fundamentally changed the consumer view of what good pizza is,” explains the industry commentator.

“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's led to Pizza Hut's downfall,” she says.
“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who operates a small business based in a county in England comments: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”

The owner says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.

From the perspective of a small pizza brand in a city in southwest England, the founder says the sector is expanding but Pizza Hut has not provided anything innovative.

“Currently available are individual slices, regional varieties, thin crust, sourdough, traditional Italian, deep-dish – it's a wonderful array for a pie fan to explore.”

The owner says Pizza Hut “should transform” as newer generations don't have any emotional connection or attachment to the company.

Over time, Pizza Hut's market has been divided and distributed to its more modern, agile alternatives. To maintain its expensive staffing and restaurants, it would have to charge more – which commentators say is difficult at a time when household budgets are shrinking.

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

The executive stated its immediate priority was to continue operating at the surviving locations and takeaway hubs and to help employees through the restructure.

But with so much money going into maintaining its outlets, it likely can't afford to spend heavily in its off-premise division because the market is “difficult and partnering with existing external services comes at a price”, commentators say.

However, it's noted, cutting its costs by leaving competitive urban areas could be a effective strategy to evolve.

Tara Walker
Tara Walker

A tech enthusiast and writer passionate about innovation and self-improvement, sharing insights from years of experience.