How the Country Lost Interest in Its Taste for Pizza Hut

At one time, the popular pizza chain was the top choice for groups and loved ones to feast on its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.

But not as many diners are visiting the brand these days, and it is shutting down a significant portion of its UK locations after being bought out of administration for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she says “it's fallen out of favor.”

In the view of 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it started 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 station, it feels like they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How?’”

Since food prices have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to run. As have its restaurants, which are being cut from over 130 to a smaller figure.

The company, like many others, has also seen its costs increase. Earlier this year, employee wages rose due to rises in minimum wages and an increase in employer social security payments.

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 Domino's and think Pizza Hut is “not good value”.

According to your choices, Pizza Hut and Domino's prices are comparable, explains a culinary author.

Although Pizza Hut does offer off-premise options through delivery platforms, it is missing out to major competitors which specialize to off-premise dining.

“The rival chain has taken over the takeaway pizza sector thanks to intensive advertising and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” notes the specialist.

Yet for these customers it is justified to get their special meal brought to their home.

“We absolutely dine at home now instead of we eat out,” comments one of the diners, reflecting recent statistics that show a decrease in people frequenting casual and fast-food restaurants.

In the warmer season, informal dining venues saw a notable decrease in patrons compared to last summer.

Additionally, one more competitor to pizza from eateries: the frozen or fresh pizza.

An industry leader, senior partner at an advisory group, explains that not only have grocery stores been selling high-quality prepared pies for a long time – some are even offering countertop ovens.

“Shifts in habits are also playing a factor in the performance of fast-food chains,” states the analyst.

The increased interest of high protein diets has driven sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he adds.

As people visit restaurants more rarely, they may seek out a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more retro than upmarket.

The rise of artisanal pizza places” over the last 10 to 15 years, including new entrants, has “dramatically shifted the public's perception of what good pizza is,” explains the industry commentator.

“A light, fresh, easy-to-digest product with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's resulted in Pizza Hut's downfall,” she says.

“What person would spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many authentic Italian pizzerias around the country?

“It's a no-brainer.”

A mobile pizza vendor, who operates Smokey Deez based in Suffolk says: “It's not that stopped liking pizza – they just want better pizza for their money.”

He says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

According to an independent chain in Bristol, owner Jack Lander says the industry is diversifying but Pizza Hut has failed to offer anything innovative.

“You now have slice concepts, regional varieties, thin crust, artisan base, traditional Italian, deep-dish – it's a delightful challenge for a pie fan to explore.”

He says Pizza Hut “must rebrand” as younger people don't have any emotional connection or loyalty to the company.

Gradually, Pizza Hut's share has been sliced up and allocated to its fresher, faster alternatives. To keep up its high labor and location costs, it would have to charge more – which commentators say is challenging at a time when household budgets are decreasing.

The leadership of Pizza Hut's global operations said the buyout aimed “to protect our dining experience and save employment where possible”.

The executive stated its immediate priority was to keep running at the open outlets and delivery sites and to assist staff through the change.

Yet with large sums going into operating its locations, it likely can't afford to allocate significant resources in its off-premise division because the sector is “complicated and partnering with existing third-party platforms comes at a cost”, commentators say.

However, it's noted, lowering overhead by withdrawing from oversaturated towns and city centres could be a good way to adapt.