How the Nation Lost Interest in Its Craving for the Pizza Hut Chain

In the past, Pizza Hut was the go-to for groups and loved ones to enjoy its unlimited dining experience, unlimited salad bar, and make-your-own dessert.

However not as many diners are visiting the chain nowadays, and it is shutting down half of its UK restaurants after being rescued from insolvency for the second occasion this year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she comments “it's fallen out of favor.”

According to 23-year-old Martina, some of the very things Pizza Hut has been recognized 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 appears that they are cheapening on their quality and have reduced quality... They offer so much food and you're like ‘How can they?’”

Because ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to maintain. As have its locations, which are being sliced from 132 to a smaller figure.

The company, similar to other firms, has also seen its costs increase. Earlier this year, labor expenses increased due to rises in minimum wages and an rise in employer taxes.

A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “not good value”.

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

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

“Another pizza company has succeeded in leading the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the base costs are on the higher side,” explains the specialist.

But for Chris and Joanne it is acceptable to get their date night delivered to their door.

“We absolutely dine at home now instead of we eat out,” says Joanne, reflecting recent statistics that show a decrease in people going to quick-service eateries.

In the warmer season, quick-service eateries saw a 6% drop in customers compared to last summer.

There is also a further alternative to ordered-in pies: the cook-at-home oven pizza.

A hospitality expert, senior partner at a major consultancy, points out that not only have grocery stores been providing premium oven-ready pizzas for years – some are even selling home-pizza ovens.

“Shifts in habits are also contributing in the popularity of casual eateries,” comments Mr. Hawkley.

The increased interest of high protein diets has driven sales at poultry outlets, while reducing sales of high-carbohydrate options, he continues.

As people go out to eat more rarely, they may prefer a more high-quality meal, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more retro than premium.

The growth of artisanal pizza places” over the last 10 to 15 years, for example popular brands, has “fundamentally changed the consumer view of what excellent pie is,” says the culinary analyst.

“A light, fresh, easy-to-digest product 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 downfall,” she states.
“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who runs Smokey Deez based in Suffolk says: “It's not that lost interest in pizza – they just want better pizza for their money.”

Dan says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.

From the perspective of a small pizza brand in Bristol, the founder says the pizza market is expanding but Pizza Hut has neglected to introduce anything new.

“There are now individual slices, regional varieties, New Haven-style, fermented dough, Neapolitan, rectangular – it's a heavenly minefield for a pizza enthusiast to explore.”

The owner says Pizza Hut “should transform” as the youth don't have any sense of nostalgia or attachment to the chain.

Over time, Pizza Hut's market has been fragmented and spread to its more modern, agile rivals. To maintain its expensive staffing and restaurants, it would have to charge more – which experts say is difficult at a time when household budgets are decreasing.

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

It was explained its immediate priority was to keep running at the open outlets and takeaway hubs and to support colleagues through the transition.

But with so much money going into maintaining its outlets, it may be unable to spend heavily in its takeaway operation because the sector is “difficult and working with existing delivery apps comes at a price”, experts say.

Still, experts suggest, lowering overhead by leaving crowded locations could be a smart move to evolve.

Lori Jackson
Lori Jackson

A tech enthusiast and lifestyle blogger with a passion for sharing actionable tips and inspiring stories.