Why the Country Lost Its Craving for Pizza Hut

Once, the popular pizza chain was the favorite for groups and loved ones to feast on its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.

However not as many customers are choosing the brand currently, and it is shutting down 50% of its British restaurants after being bought out of administration for the second time this year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, as a young adult, she says “it's no longer popular.”

According to 23-year-old Martina, the very elements Pizza Hut has been known and loved 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 bar, it feels like they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”

Because ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become very expensive to operate. Similarly, its outlets, which are being sliced from over 130 to a smaller figure.

The chain, like many others, has also faced its operating costs go up. In April this year, staffing costs rose due to higher minimum pay and an increase in employer taxes.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.

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

While Pizza Hut does offer takeaway and deliveries through third-party apps, it is falling behind to larger chains which focus exclusively to this market.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to intensive advertising and frequent offers that make customers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” says the expert.

Yet for these customers it is worth it to get their date night brought to their home.

“We definitely eat at home now rather than we eat out,” says one of the diners, reflecting recent statistics that show a decrease in people frequenting casual and fast-food restaurants.

Over the summer, casual and fast-food restaurants saw a 6% drop in patrons compared to the previous year.

There is also another rival to pizza from eateries: the supermarket pizza.

An industry leader, senior partner at a major consultancy, explains that not only have grocery stores been providing premium prepared pies for a long time – some are even offering countertop ovens.

“Shifts in habits are also contributing in the popularity of casual eateries,” states the analyst.

The rising popularity of protein-rich eating plans has boosted sales at chicken shops, while affecting sales of carb-heavy pizza, he notes.

Because people go out to eat not as often, they may prefer a more premium experience, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more old-fashioned than luxurious.

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

“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she comments.
“What person would spend a high price on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
A mobile pizza vendor, who runs Smokey Deez based in a county in England explains: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”

He says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.

According to Pizzarova in a UK location, owner Jack Lander says the sector is broadening but Pizza Hut has not provided anything fresh.

“There are now slice concepts, regional varieties, New Haven-style, sourdough, traditional Italian, rectangular – it's a heavenly minefield for a pie fan to discover.”

He says Pizza Hut “should transform” as the youth don't have any fond memories or allegiance to the company.

Gradually, Pizza Hut's customer base has been sliced up and spread to its fresher, faster alternatives. To maintain its expensive staffing and restaurants, it would have to increase costs – which commentators say is tough at a time when family finances are shrinking.

The leadership of Pizza Hut's overseas branches said the rescue aimed “to protect our dining experience and retain staff where possible”.

The executive stated its key goal was to keep running at the remaining 64 restaurants and delivery sites and to support colleagues through the restructure.

However with significant funds going into running its restaurants, it probably cannot to invest too much in its takeaway operation because the sector is “complex and working with existing external services comes at a expense”, experts say.

But, he adds, lowering overhead by leaving competitive urban areas could be a smart move to adapt.

Anthony Robbins
Anthony Robbins

A tech-savvy journalist passionate about digital trends and storytelling, with a background in media and communications.