How the Country Lost Its Craving for Pizza Hut

Once, the popular pizza chain was the favorite for groups and loved ones to enjoy its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.

However a declining number of patrons are frequenting the chain these days, and it is closing 50% of its UK locations after being acquired following financial trouble for the second occasion this year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, aged 24, she states “it's fallen out of favor.”

According to a diner in her twenties, certain features Pizza Hut has been famous for since it opened in the UK in the seventies are now outdated.

“The manner in which they do their all-you-can-eat and their salad station, it seems as if they are cutting corners and have reduced quality... They provide so much food and you're like ‘How is that possible?’”

As food prices have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. The same goes for its outlets, which are being sliced from 132 to just over 60.

The company, in common with competitors, has also experienced its costs increase. In April this year, labor expenses increased due to higher minimum pay and an rise in employer taxes.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “too expensive”.

Depending on your order, Pizza Hut and Domino's prices are close, says a food expert.

Although Pizza Hut provides pickup and delivery through third-party apps, it is missing out to larger chains which specialize to the delivery sector.

“Domino's has managed to dominate the delivery market thanks to intensive advertising and constantly running deals that make customers feel like they're getting a bargain, when in reality the base costs are quite high,” notes the expert.

But for Chris and Joanne it is worth it to get their special meal sent directly.

“We absolutely dine at home now more than we eat out,” comments the female customer, matching recent statistics that show a drop in people going to casual and fast-food restaurants.

During the summer months, casual and fast-food restaurants saw a six percent decline in customers compared to the year before.

Moreover, another rival to pizza from eateries: the frozen or fresh pizza.

Will Hawkley, global lead for leisure at a leading firm, explains that not only have supermarkets been offering premium ready-to-bake pizzas for quite a while – some are even offering pizza-making appliances.

“Shifts in habits are also contributing in the success of fast-food chains,” comments Mr. Hawkley.

The growing trend of low-carb regimens has boosted sales at poultry outlets, while affecting sales of high-carbohydrate options, he adds.

As people dine out more rarely, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more dated than upmarket.

The growth of artisanal pizza places” over the last 10 to 15 years, such as boutique chains, has “fundamentally changed the consumer view of what quality pizza is,” notes the food expert.

“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 caused Pizza Hut's downfall,” she comments.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
A mobile pizza vendor, who owns a small business based in a county in England comments: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.

At a small pizza brand in Bristol, the proprietor says the industry is broadening but Pizza Hut has not provided anything innovative.

“Currently available are by-the-slice options, artisanal styles, new haven, artisan base, Neapolitan, rectangular – it's a delightful challenge for a pie fan to explore.”

Jack says Pizza Hut “should transform” as newer generations don't have any fond memories or loyalty to the brand.

Gradually, Pizza Hut's share has been fragmented and spread to its trendier, more nimble rivals. To keep up its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is tough at a time when personal spending are shrinking.

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

He said its key goal was to maintain service at the surviving locations and off-premise points and to support colleagues through the restructure.

Yet with large sums going into maintaining its outlets, it may be unable to allocate significant resources in its delivery service because the market is “difficult and working with existing external services comes at a price”, analysts say.

But, he adds, lowering overhead by withdrawing from crowded locations could be a smart move to adapt.

Michelle Davis
Michelle Davis

A seasoned manufacturing engineer with over 15 years of experience in CNC programming and optimization techniques.