How the Country Lost Its Appetite for Pizza Hut
In the past, the popular pizza chain was the favorite for parents and children to feast on its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.
However not as many patrons are frequenting the chain these days, and it is reducing half of its British restaurants after being rescued from insolvency for the second time this calendar year.
“We used to go Pizza Hut when I was a child,” notes one London shopper. “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 fallen out of favor.”
According to young customer Martina, the very elements Pizza Hut has been famous for since it started in the UK in the mid-20th century are now not-so-hot.
“How they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How?’”
As grocery costs have increased significantly, Pizza Hut's buffet-style service has become very expensive to operate. The same goes for its restaurants, which are being reduced from 132 to just over 60.
The business, like many others, has also seen its costs go up. This spring, employee wages rose due to higher minimum pay and an rise in employer national insurance contributions.
Two diners explain they would often visit at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “not good value”.
According to your selection, Pizza Hut and Domino's rates are comparable, explains a culinary author.
Even though Pizza Hut does offer pickup and delivery through delivery platforms, it is missing out to major competitors which focus exclusively to the delivery sector.
“The rival chain has taken over the takeaway pizza sector thanks to strong promotions and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the standard rates are quite high,” explains the expert.
But for these customers it is worth it to get their evening together delivered to their door.
“We predominantly have meals at home now rather than we eat out,” comments the female customer, reflecting current figures that show a decrease in people going to quick-service eateries.
In the warmer season, quick-service eateries saw a notable decrease in diners compared to last summer.
There is also a further alternative to restaurant and takeaway pizzas: the frozen or fresh pizza.
Will Hawkley, global lead for leisure at an advisory group, notes that not only have retailers been providing premium prepared pies for quite a while – some are even selling pizza-making appliances.
“Shifts in habits are also having an impact in the success of fast-food chains,” says the expert.
The rising popularity of low-carb regimens has driven sales at grilled chicken brands, while hitting sales of high-carbohydrate options, he adds.
Since people visit restaurants more rarely, they may prefer a more premium experience, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more retro than luxurious.
The “explosion of artisanal pizza places” over the last decade and a half, for example popular brands, has “completely altered the consumer view of what excellent pie is,” says the industry commentator.
“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, 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 chain when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns a pizza van based in Suffolk comments: “People haven’t stopped liking pizza – they just want improved value.”
Dan says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.
According to a small pizza brand in Bristol, owner Jack Lander says the industry is diversifying but Pizza Hut has not provided anything fresh.
“You now have by-the-slice options, regional varieties, thin crust, sourdough, Neapolitan, deep-dish – it's a heavenly minefield for a pizza-loving consumer to explore.”
The owner says Pizza Hut “must rebrand” as the youth don't have any fond memories or loyalty to the chain.
In recent years, Pizza Hut's customer base has been divided and spread to its trendier, more nimble alternatives. To maintain its costly operations, it would have to raise prices – which experts say is difficult at a time when personal spending are decreasing.
A senior executive of Pizza Hut's global operations said the rescue aimed “to protect our dining 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 support colleagues through the transition.
But with large sums going into running its restaurants, it likely can't afford to allocate significant resources in its delivery service because the sector is “complex and working with existing external services comes at a cost”, experts say.
However, it's noted, reducing expenses by withdrawing from oversaturated towns and city centres could be a good way to evolve.