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

At one time, Pizza Hut was the top choice for groups and loved ones to indulge in its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

However not as many customers are choosing the brand currently, and it is reducing half of its UK restaurants after being acquired following financial trouble for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she comments “it's fallen out of favor.”

For a diner in her twenties, the very elements Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now outdated.

“The way they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have lower standards... They provide so much food and you're like ‘How can they?’”

As food prices have soared, Pizza Hut's unlimited dining format has become increasingly pricey to operate. Similarly, its restaurants, which are being sliced from over 130 to 64.

The company, similar to other firms, has also experienced its costs increase. In April this year, staffing costs jumped due to rises in minimum wages and an rise in employer national insurance contributions.

Two diners say they would often visit at Pizza Hut for a date “every now and then”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

Depending on your choices, Pizza Hut and Domino's costs are similar, says an industry analyst.

While Pizza Hut does offer off-premise options through third-party apps, it is falling behind to major competitors which solely cater to off-premise dining.

“Another pizza company has managed to dominate the takeaway pizza sector thanks to strong promotions and frequent offers that make customers feel like they're saving money, when in reality the original prices are on the higher side,” notes the specialist.

Yet for Chris and Joanne it is worth it to get their date night delivered to their door.

“We predominantly have meals at home now rather than we eat out,” explains Joanne, reflecting current figures that show a decline in people going to informal dining spots.

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

Moreover, a further alternative to ordered-in pies: the cook-at-home oven pizza.

A hospitality expert, global lead for leisure at an advisory group, notes that not only have grocery stores been selling good-standard ready-to-bake pizzas for a long time – some are even promoting pizza-making appliances.

“Shifts in habits are also playing a factor in the performance of quick-service brands,” comments Mr. Hawkley.

The growing trend of high protein diets has increased sales at chicken shops, while hitting sales of carb-heavy pizza, he continues.

As people dine out more rarely, they may prefer a more premium experience, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more dated than upmarket.

The rise of artisanal pizza places” over the last decade and a half, including boutique chains, has “fundamentally changed the consumer view of what good pizza is,” explains the industry commentator.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she says.
“Why would anyone spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who operates Smokey Deez based in Suffolk comments: “It's not that stopped liking pizza – they just want better pizza for their money.”

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.

According to an independent chain in a UK location, the founder says the industry is broadening but Pizza Hut has not provided anything fresh.

“Currently available are by-the-slice options, regional varieties, New Haven-style, sourdough, wood-fired, rectangular – it's a wonderful array for a pizza enthusiast to try.”

The owner says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or allegiance to the chain.

Over time, Pizza Hut's market has been sliced up and spread to its fresher, faster alternatives. To keep up its high labor and location costs, it would have to charge more – which experts say is difficult at a time when household budgets are shrinking.

A senior executive of Pizza Hut's international markets said the buyout aimed “to ensure our dining experience and retain staff where possible”.

The executive stated its first focus was to maintain service at the surviving locations and delivery sites and to help employees through the restructure.

However with large sums going into running its restaurants, it likely can't afford to invest too much in its takeaway operation because the sector is “complex and working with existing external services comes at a price”, analysts say.

However, it's noted, cutting its costs by leaving competitive urban areas could be a smart move to adjust.

Michael Nelson
Michael Nelson

Experienced journalist specializing in political and economic news with a passion for investigative reporting.