Why the Nation Turned Away from Its Appetite for the Pizza Hut Chain

At one time, the popular pizza chain was the top choice for parents and children to feast on its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.

However fewer customers are choosing the brand these days, and it is reducing a significant portion of its UK restaurants after being bought out of administration for the second instance this calendar year.

I remember going Pizza Hut when I was a child,” notes a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, she comments “it's not a thing anymore.”

According to young customer Martina, certain features Pizza Hut has been recognized for since it started in the UK in the seventies are now less appealing.

“How they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How can they?’”

Because grocery costs have risen sharply, Pizza Hut's buffet-style service has become very expensive to run. As have its restaurants, which are being reduced from over 130 to just over 60.

The company, similar to other firms, has also experienced its costs increase. Earlier this year, employee wages jumped due to rises in minimum wages and an rise in employer national insurance contributions.

Two diners say they would often visit at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “very overpriced”.

Based on your selection, Pizza Hut and Domino's rates are similar, notes a food expert.

While Pizza Hut provides off-premise options through delivery platforms, it is losing out to big rivals which focus exclusively to this market.

“Domino's has succeeded in leading the delivery market thanks to aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the standard rates are relatively expensive,” says the analyst.

However for these customers it is justified to get their date night brought to their home.

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

During the summer months, informal dining venues saw a 6% drop in diners compared to the year before.

There is also one more competitor to pizza from eateries: the frozen or fresh pizza.

An industry leader, global lead for leisure at a major consultancy, notes that not only have grocery stores been providing high-quality prepared pies for a long time – some are even promoting pizza-making appliances.

“Lifestyle changes are also contributing in the success of casual eateries,” says the expert.

The growing trend of high protein diets has boosted sales at chicken shops, while affecting sales of carb-heavy pizza, he continues.

As people visit restaurants not as often, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more old-fashioned than luxurious.

The rise of premium pizza outlets” over the last 10 to 15 years, such as new entrants, has “dramatically shifted the consumer view of what good pizza is,” says the industry commentator.

“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,” she comments.

“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for a lower price at one of the many real Italian restaurants around the country?

“It's an easy choice.”

Dan Puddle, who operates a pizza van based in a regional area comments: “It's not that stopped liking pizza – they just want better pizza for their money.”

The owner says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

From the perspective of a small pizza brand in a city in southwest England, owner Jack Lander says the sector is expanding but Pizza Hut has neglected to introduce anything new.

“There are now slice concepts, artisanal styles, thin crust, artisan base, wood-fired, rectangular – it's a delightful challenge for a pizza enthusiast to try.”

He says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or allegiance to the chain.

Over time, Pizza Hut's share has been fragmented and spread to its trendier, more nimble alternatives. To sustain its expensive staffing and restaurants, it would have to raise prices – which experts say is challenging at a time when family finances are decreasing.

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

The executive stated its key goal was to maintain service at the open outlets and delivery sites and to help employees through the change.

Yet with large sums going into running its restaurants, it likely can't afford to spend heavily in its delivery service because the sector is “complicated and using existing third-party platforms comes at a expense”, analysts say.

However, it's noted, lowering overhead by leaving competitive urban areas could be a smart move to adjust.