How the Country Lost Interest in Its Taste for Pizza Hut

In the past, Pizza Hut was the top choice for families and friends to indulge in its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

But not as many customers are visiting the chain nowadays, and it is closing half of its UK restaurants after being acquired following financial trouble for the second instance this calendar year.

“We used to go Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she states “it's no longer popular.”

For 23-year-old Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now not-so-hot.

“How they do their buffet and their salad station, it feels like they are lowering standards and have lower standards... They provide so much food and you're like ‘How?’”

As food prices have risen sharply, Pizza Hut's unlimited dining format has become very expensive to operate. Similarly, its restaurants, which are being reduced from 132 to just over 60.

The chain, similar to other firms, has also seen its operating costs rise. In April this year, labor expenses rose due to increases in the legal wage floor and an increase in employer social security payments.

Two diners explain they frequently dined at Pizza Hut for a date “every now and then”, but now they choose another pizza brand and think Pizza Hut is “not good value”.

Based on your selection, Pizza Hut and Domino's costs are comparable, notes a food expert.

Even though Pizza Hut provides pickup and delivery through third-party apps, it is missing out to larger chains which specialize to off-premise dining.

“Domino's has managed to dominate the off-premise pizza industry thanks to strong promotions and ongoing discounts that make consumers feel like they're saving money, when in reality the base costs are on the higher side,” explains the analyst.

However for these customers it is acceptable to get their special meal brought to their home.

“We absolutely dine at home now rather than we eat out,” says the female customer, echoing latest data that show a decrease in people frequenting casual and fast-food restaurants.

In the warmer season, informal dining venues saw a six percent decline in patrons compared to the year before.

Moreover, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, senior partner at a leading firm, notes that not only have retailers been providing good-standard oven-ready pizzas for quite a while – some are even promoting countertop ovens.

“Shifts in habits are also having an impact in the success 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 go out to eat more rarely, they may seek out a more premium experience, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more dated than luxurious.

The growth of artisanal pizza places” over the last decade and a half, such as popular brands, has “fundamentally changed 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 overly oily, dense and piled-high pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she states.

“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?

“It's an easy choice.”

A mobile pizza vendor, who owns a small business based in Suffolk comments: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

The owner says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it could not keep up with changing preferences.

At Pizzarova in Bristol, the proprietor says the industry is diversifying but Pizza Hut has neglected to introduce anything fresh.

“You now have slice concepts, artisanal styles, thin crust, sourdough, traditional Italian, rectangular – it's a wonderful array for a pizza-loving consumer to explore.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any fond memories or attachment to the chain.

Over time, Pizza Hut's market has been fragmented and distributed to its trendier, more nimble rivals. To sustain its high labor and location costs, it would have to raise prices – which industry analysts say is difficult at a time when household budgets are tightening.

The leadership of Pizza Hut's international markets said the rescue aimed “to protect our dining experience and retain staff where possible”.

It was explained its first focus was to keep running at the surviving locations and takeaway hubs and to assist staff through the change.

However with so much money going into operating its locations, it probably cannot to allocate significant resources in its delivery service because the market is “complex and working with existing external services comes at a price”, experts say.

But, he adds, cutting its costs by withdrawing from competitive urban areas could be a good way to adapt.