How the Nation Lost Its Taste for the Pizza Hut Chain

At one time, Pizza Hut was the go-to for families and friends to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

But fewer patrons are visiting the brand nowadays, and it is shutting down 50% of its UK outlets after being rescued from insolvency for the second occasion this calendar year.

I remember going 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.” Today, aged 24, she comments “it's no longer popular.”

In the view of young customer Martina, the very elements Pizza Hut has been famous for since it opened in the UK in the seventies are now outdated.

“The way they do their all-you-can-eat and their salad station, it feels like they are cheapening on their quality and have inferior offerings... They provide so much food and you're like ‘How is that possible?’”

Since ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become very expensive to operate. The same goes for its restaurants, which are being cut from 132 to a smaller figure.

The chain, like many others, has also experienced its expenses rise. In April this year, employee wages jumped due to increases in the legal wage floor and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “every now and then”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.

Depending on your choices, Pizza Hut and Domino's costs are comparable, says an industry analyst.

Although Pizza Hut does offer pickup and delivery through delivery platforms, it is falling behind to big rivals which focus exclusively to this market.

“Domino's has taken over the delivery market thanks to strong promotions and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are on the higher side,” says the expert.

But for these customers it is acceptable to get their evening together delivered to their door.

“We predominantly have meals at home now more than we eat out,” says the female customer, echoing latest data that show a decrease in people going to quick-service eateries.

During the summer months, quick-service eateries saw a notable decrease in patrons compared to the previous year.

There is also one more competitor to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, global lead for leisure at a leading firm, points out that not only have grocery stores been offering premium prepared pies for quite a while – some are even selling pizza-making appliances.

“Shifts in habits are also having an impact in the popularity of quick-service brands,” says the analyst.

The growing trend of low-carb regimens has driven sales at poultry outlets, while hitting sales of carb-heavy pizza, he adds.

Since people dine out less frequently, 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 upmarket.

The rise of artisanal pizza places” over the last 10 to 15 years, including new entrants, has “completely altered the consumer view of what good pizza is,” says the food expert.

“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she comments.

“What person would spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?

“It's an easy choice.”

Dan Puddle, who owns a small business 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 flexible operation can offer premium pizza at affordable costs, and that Pizza Hut faced challenges because it could not keep up with evolving tastes.

At a small pizza brand in a UK location, the founder says the sector is diversifying but Pizza Hut has not provided anything innovative.

“Currently available are slice concepts, regional varieties, new haven, fermented dough, wood-fired, Detroit – it's a heavenly minefield for a pie fan to try.”

He says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or allegiance to the chain.

In recent years, Pizza Hut's customer base has been fragmented and spread to its fresher, faster rivals. To keep up its costly operations, it would have to raise prices – which commentators say is challenging at a time when household budgets are decreasing.

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

He said its first focus was to maintain service at the surviving locations and delivery sites and to help employees through the change.

But with significant funds going into maintaining its outlets, it likely can't afford to allocate significant resources in its takeaway operation because the sector is “difficult and working with existing delivery apps comes at a cost”, commentators say.

However, it's noted, reducing expenses by leaving competitive urban areas could be a effective strategy to evolve.