Why the Country Turned Away from Its Craving for Pizza Hut

In the past, Pizza Hut was the favorite for groups and loved ones to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.

But fewer patrons are choosing the restaurant these days, and it is reducing a significant portion of its UK outlets after being bought out of administration for the second instance this year.

“We used to go Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she states “it's no longer popular.”

For a diner in her twenties, certain features Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now less appealing.

“How they do their buffet and their salad bar, it appears that they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How?’”

Since food prices have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to maintain. Similarly, its outlets, which are being sliced from over 130 to just over 60.

The company, in common with competitors, has also seen its operating costs go up. Earlier this year, employee wages jumped due to higher minimum pay and an increase in employer taxes.

A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “occasionally”, but now they order in Domino's and think Pizza Hut is “not good value”.

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

Even though Pizza Hut provides pickup and delivery through external services, it is missing out to major competitors which specialize to the delivery sector.

“Domino's has managed to dominate the delivery market thanks to intensive advertising and frequent offers that make customers feel like they're finding a good deal, when in reality the original prices are quite high,” notes the specialist.

Yet for these customers it is acceptable to get their special meal delivered to their door.

“We absolutely dine at home now instead of we eat out,” explains one of the diners, matching current figures that show a decrease in people visiting casual and fast-food restaurants.

Over the summer, informal dining venues saw a six percent decline in diners compared to the year before.

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

An industry leader, head of leisure and hospitality at a major consultancy, points out that not only have retailers been selling good-standard oven-ready pizzas for years – some are even selling pizza-making appliances.

“Lifestyle changes are also playing a factor in the performance of casual eateries,” states Mr. Hawkley.

The growing trend of high protein diets has increased sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he adds.

Since people visit restaurants more rarely, they may seek out a more upscale outing, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more retro than upmarket.

The growth of high-quality pizzerias” over the last decade and a half, such as new entrants, has “fundamentally changed the general opinion of what good pizza is,” explains the industry commentator.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's resulted in Pizza Hut's decline,” she says.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who operates a pizza van based in a county in England explains: “The issue isn’t that stopped liking pizza – they just want improved value.”

The owner says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with evolving tastes.

At a small pizza brand in Bristol, the founder says the sector is expanding but Pizza Hut has failed to offer anything fresh.

“There are now by-the-slice options, artisanal styles, new haven, artisan base, Neapolitan, Detroit – it's a wonderful array for a pizza enthusiast to explore.”

Jack says Pizza Hut “should transform” as newer generations don't have any emotional connection or loyalty to the company.

In recent years, Pizza Hut's share has been divided and spread to its more modern, agile rivals. To keep up its high labor and location costs, it would have to raise prices – which experts say is difficult at a time when household budgets are tightening.

The managing director of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and retain staff where possible”.

He said its first focus was to continue operating at the open outlets and takeaway hubs and to assist staff through the transition.

However with significant funds going into running its restaurants, it probably cannot to allocate significant resources in its off-premise division because the industry is “complex and working with existing external services comes at a cost”, commentators say.

Still, experts suggest, lowering overhead by withdrawing from oversaturated towns and city centres could be a effective strategy to adapt.

Marc Salinas
Marc Salinas

Environmental scientist and writer passionate about sustainable solutions and community-driven eco-projects.