Why the Nation Lost Interest in Its Craving for Pizza Hut

In the past, the popular pizza chain was the favorite for parents and children to indulge in its unlimited dining experience, endless salad selection, and make-your-own dessert.

Yet a declining number of diners are choosing the brand currently, and it is closing a significant portion of its British restaurants after being acquired following financial trouble for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, as a young adult, she comments “it's fallen out of favor.”

For 23-year-old Martina, some of the very things Pizza Hut has been famous for since it launched in the UK in the 1970s are now not-so-hot.

“The manner in which they do their all-you-can-eat and their salad bar, it seems as if they are cheapening on their quality and have inferior offerings... They provide so much food and you're like ‘How can they?’”

Since food prices have soared, Pizza Hut's all-you-can-eat model has become very expensive to run. The same goes for its restaurants, which are being reduced from a large number to a smaller figure.

The chain, in common with competitors, has also seen its costs go up. Earlier this year, employee wages rose due to increases in the legal wage floor and an rise in employer social security payments.

A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.

Depending on your order, Pizza Hut and Domino's rates are close, explains an industry analyst.

While Pizza Hut does offer pickup and delivery through delivery platforms, it is missing out to major competitors which focus exclusively to off-premise dining.

“The rival chain has managed to dominate the takeaway pizza sector thanks to aggressive marketing and frequent offers that make customers feel like they're saving money, when in reality the original prices are quite high,” says the analyst.

However for Chris and Joanne it is justified to get their special meal delivered to their door.

“We definitely eat at home now more than we eat out,” comments the female customer, echoing recent statistics that show a drop in people frequenting informal dining spots.

Over the summer, quick-service eateries saw a notable decrease in patrons compared to last summer.

Additionally, another rival to ordered-in pies: the supermarket pizza.

An industry leader, head of leisure and hospitality at a major consultancy, points out that not only have grocery stores been selling good-standard oven-ready pizzas for years – some are even offering pizza-making appliances.

“Evolving preferences are also having an impact in the popularity of casual eateries,” comments the expert.

The rising popularity of high protein diets has increased sales at poultry outlets, while affecting sales of carb-heavy pizza, he adds.

Since people dine out not as often, they may look for a more upscale outing, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more old-fashioned than luxurious.

The rise of high-quality pizzerias” over the last 10 to 15 years, for example new entrants, has “fundamentally changed the general opinion of what good pizza is,” says the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she comments.
“What person would spend a high price on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
An independent operator, who owns a pizza van based in a county in England explains: “People haven’t lost interest in pizza – they just want better pizza for their money.”

The owner says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with new customer habits.

From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the sector is expanding but Pizza Hut has neglected to introduce anything fresh.

“There are now individual slices, regional varieties, new haven, fermented dough, Neapolitan, deep-dish – it's a wonderful array for a pizza-loving consumer to try.”

Jack says Pizza Hut “must rebrand” as younger people don't have any fond memories or allegiance to the chain.

In recent years, Pizza Hut's market has been divided and spread to its more modern, agile rivals. To keep up its high labor and location costs, it would have to increase costs – which commentators say is difficult at a time when family finances are tightening.

The managing director of Pizza Hut's overseas branches said the buyout aimed “to safeguard our dining experience and protect jobs where possible”.

It was explained its immediate priority was to keep running at the remaining 64 restaurants and takeaway hubs and to assist staff through the restructure.

However with significant funds going into operating its locations, it may be unable to spend heavily in its delivery service because the market is “complex and using existing delivery apps comes at a cost”, analysts say.

But, he adds, cutting its costs by withdrawing from competitive urban areas could be a good way to evolve.

Debbie Brown
Debbie Brown

An art historian passionate about Italian culture and museum curation, sharing insights on Pisa's treasures.