How the Nation Turned Away from Its Taste for the Pizza Hut Chain

At one time, the popular pizza chain was the go-to for parents and children to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

But not as many customers are frequenting the chain these days, and it is reducing 50% of its UK locations after being bought out of administration for the second time this calendar year.

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

According to 23-year-old Martina, certain features Pizza Hut has been famous for since it launched in the UK in the 1970s are now less appealing.

“The manner in which they do their all-you-can-eat and their salad bar, it feels like they are cutting corners and have lower standards... They provide so much food and you're like ‘How is that possible?’”

As food prices have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to operate. Similarly, its outlets, which are being cut from over 130 to a smaller figure.

The company, similar to other firms, has also seen its costs rise. In April this year, staffing costs rose due to rises in minimum wages and an higher rate of employer national insurance contributions.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.

Based on your choices, Pizza Hut and Domino's rates are comparable, says a food expert.

Even though Pizza Hut provides off-premise options through external services, it is missing out to big rivals which specialize to the delivery sector.

“Another pizza company has managed to dominate the off-premise pizza industry thanks to intensive advertising and frequent offers that make shoppers feel like they're getting a bargain, when in reality the base costs are quite high,” explains the analyst.

Yet for these customers it is acceptable to get their evening together delivered to their door.

“We absolutely dine at home now instead of we eat out,” says one of the diners, matching current figures that show a drop in people frequenting quick-service eateries.

Over the summer, quick-service eateries saw a six percent decline in diners compared to the previous year.

Moreover, one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, senior partner at a leading firm, points out that not only have grocery stores been offering good-standard oven-ready pizzas for years – some are even promoting countertop ovens.

“Lifestyle changes are also playing a factor in the performance of fast-food chains,” states Mr. Hawkley.

The increased interest of low-carb regimens has boosted sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he continues.

As people visit restaurants not as often, they may seek out a more premium experience, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more old-fashioned than premium.

The growth of artisanal pizza places” over the last 10 to 15 years, including new entrants, has “completely altered the consumer view of what good pizza is,” notes the food expert.

“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 led to Pizza Hut's decline,” she states.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“The decision is simple.”
A mobile pizza vendor, who owns a pizza van based in a county in England explains: “It's not that lost interest in pizza – they just want better pizza for their money.”

He says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.

At Pizzarova in a city in southwest England, the founder says the industry is expanding but Pizza Hut has failed to offer anything fresh.

“You now have slice concepts, regional varieties, New Haven-style, fermented dough, wood-fired, rectangular – it's a delightful challenge for a pizza-loving consumer to discover.”

The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or loyalty to the company.

Over time, Pizza Hut's share has been sliced up and spread to its trendier, more nimble alternatives. To sustain its high labor and location costs, it would have to increase costs – which experts say is challenging at a time when personal spending are shrinking.

A senior executive of Pizza Hut's overseas branches said the rescue aimed “to safeguard our guest experience and protect jobs where possible”.

The executive stated its immediate priority was to keep running at the remaining 64 restaurants and delivery sites and to help employees through the restructure.

Yet with large sums going into running its restaurants, it probably cannot to spend heavily in its takeaway operation because the industry is “complex and working with existing external services comes at a cost”, analysts say.

But, he adds, cutting its costs by leaving competitive urban areas could be a smart move to adjust.

Madison Olson
Madison Olson

A seasoned content strategist with over a decade of experience in digital marketing and brand storytelling.