Why the Country Lost Interest in Its Taste for Pizza Hut

In the past, Pizza Hut was the top choice for parents and children to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.

But fewer diners are visiting the brand these days, and it is closing a significant portion of its British outlets after being acquired following financial trouble for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, as a young adult, she states “it's no longer popular.”

For 23-year-old Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now less appealing.

“How they do their buffet and their salad station, it seems as if they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How?’”

Because food prices have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. As have its locations, which are being sliced from over 130 to a smaller figure.

The business, in common with competitors, has also experienced its operating costs go up. In April this year, staffing costs rose due to higher minimum pay and an increase in employer national insurance contributions.

A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.

According to your selection, Pizza Hut and Domino's prices are comparable, notes a culinary author.

Even though Pizza Hut provides pickup and delivery through third-party apps, it is losing out to big rivals which solely cater to the delivery sector.

“The rival chain has managed to dominate the off-premise pizza industry thanks to aggressive marketing and frequent offers that make customers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” explains the specialist.

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

“We absolutely dine at home now instead of we eat out,” comments the female customer, echoing latest data that show a decline in people visiting informal dining spots.

Over the summer, quick-service eateries saw a six percent decline in customers compared to the previous year.

Moreover, another rival to ordered-in pies: the frozen or fresh pizza.

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

“Lifestyle changes are also contributing in the performance of fast-food chains,” says the analyst.

The increased interest of high protein diets has driven sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he notes.

Since people dine out more rarely, they may look for a more upscale outing, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more dated than luxurious.

The rise of high-quality pizzerias” over the last 10 to 15 years, including new entrants, has “completely altered the consumer view of what excellent pie is,” explains the food expert.

“A thin, flavorful, gentle crust with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's resulted in Pizza Hut's downfall,” she says.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who operates a pizza van based in a county in England comments: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

Dan says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it was unable to evolve with changing preferences.

According to a small pizza brand in Bristol, the proprietor says the pizza market is broadening but Pizza Hut has neglected to introduce anything fresh.

“There are now by-the-slice options, regional varieties, new haven, artisan base, wood-fired, Detroit – it's a wonderful array for a pizza enthusiast to try.”

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

In recent years, Pizza Hut's market has been divided and allocated to its trendier, more nimble alternatives. To keep up its expensive staffing and restaurants, it would have to charge more – which commentators say is tough at a time when personal spending are shrinking.

The managing director of Pizza Hut's global operations said the buyout aimed “to protect our customer service and save employment where possible”.

The executive stated its first focus was to continue operating at the remaining 64 restaurants and takeaway hubs and to assist staff through the change.

But with so much money going into operating its locations, it likely can't afford to invest too much in its delivery service because the sector is “complex and working with existing external services comes at a cost”, analysts say.

Still, experts suggest, cutting its costs by withdrawing from competitive urban areas could be a good way to adapt.

Isaac Burns
Isaac Burns

Former defense officer and mentor with over a decade of experience guiding candidates through SSB interviews.