Why the Country Lost Its Taste for Pizza Hut

At one time, Pizza Hut was the go-to for parents and children to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.

Yet fewer customers are visiting the restaurant these days, and it is closing 50% of its UK locations after being bought out of administration for the second time this calendar year.

“We used to go Pizza Hut when I was a child,” explains one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she states “it's no longer popular.”

According to young customer Martina, some of the very things Pizza Hut has been recognized for since it launched in the UK in the mid-20th century are now less appealing.

“The way they do their buffet and their salad station, it seems as if they are cutting corners and have reduced quality... They offer so much food and you're like ‘How?’”

Because grocery costs have risen sharply, Pizza Hut's unlimited dining format has become quite costly to maintain. As have its locations, which are being cut from over 130 to just over 60.

The chain, similar to other firms, has also faced its expenses rise. Earlier this year, staffing costs jumped due to increases in the legal wage floor and an rise in employer national insurance contributions.

A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.

According to your order, Pizza Hut and Domino's rates are close, says a culinary author.

Even though Pizza Hut does offer takeaway and deliveries through delivery platforms, it is losing out to larger chains which solely cater to the delivery sector.

“Another pizza company has succeeded in leading the takeaway pizza sector thanks to intensive advertising and ongoing discounts that make customers feel like they're saving money, when in reality the original prices are relatively expensive,” says the expert.

However for these customers it is acceptable to get their special meal sent directly.

“We predominantly have meals at home now rather than we eat out,” comments the female customer, echoing latest data that show a drop in people going to quick-service eateries.

In the warmer season, quick-service eateries saw a notable decrease in diners compared to the previous year.

There is also one more competitor to ordered-in pies: the supermarket pizza.

An industry leader, head of leisure and hospitality at a leading firm, explains that not only have retailers been selling good-standard oven-ready pizzas for quite a while – some are even promoting pizza-making appliances.

“Evolving preferences are also contributing in the performance of fast-food chains,” comments the expert.

The growing trend of low-carb regimens has increased sales at chicken shops, while reducing sales of high-carbohydrate options, he notes.

Because people visit restaurants more rarely, they may seek out a more upscale outing, and Pizza Hut's retro theme with vinyl benches and traditional décor can feel more retro than upmarket.

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

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she says.

“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?

“It's a no-brainer.”

Dan Puddle, who runs a small business based in a regional area explains: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.

At an independent chain in a city in southwest England, the proprietor says the sector is broadening but Pizza Hut has failed to offer anything fresh.

“Currently available are slice concepts, regional varieties, New Haven-style, artisan base, traditional Italian, Detroit – it's a wonderful array for a pizza-loving consumer to discover.”

The owner says Pizza Hut “needs to reinvent itself” as the youth don't have any sense of nostalgia or attachment to the company.

In recent years, Pizza Hut's customer base has been sliced up and spread to its trendier, more nimble rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is tough at a time when family finances are decreasing.

The leadership of Pizza Hut's international markets said the rescue aimed “to ensure our guest experience and protect jobs where possible”.

The executive stated its first focus was to continue operating at the open outlets and off-premise points and to assist staff through the transition.

Yet with so much money going into running its restaurants, it likely can't afford to spend heavily in its delivery service because the sector is “complicated and working with existing external services comes at a expense”, experts say.

Still, experts suggest, lowering overhead by leaving crowded locations could be a effective strategy to adjust.