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

Once, Pizza Hut was the favorite for parents and children to enjoy its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

But not as many customers are frequenting the brand nowadays, and it is shutting down a significant portion of its UK locations after being rescued from insolvency for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, aged 24, she comments “it's fallen out of favor.”

For 23-year-old Martina, certain features Pizza Hut has been famous for since it opened in the UK in the 1970s are now outdated.

“The way they do their buffet and their salad station, it seems as if they are lowering standards and have reduced quality... They offer so much food and you're like ‘How can they?’”

Since grocery costs have soared, Pizza Hut's buffet-style service has become very expensive to run. As have its outlets, which are being cut from a large number to 64.

The business, in common with competitors, has also faced its expenses increase. Earlier this year, employee wages jumped due to rises in minimum wages and an rise in employer national insurance contributions.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from a rival chain and think Pizza Hut is “too expensive”.

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

While Pizza Hut does offer pickup and delivery through delivery platforms, it is losing out to major competitors which specialize to off-premise dining.

“Another pizza company has succeeded in leading the delivery market thanks to strong promotions and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” explains the analyst.

However for the couple it is justified to get their evening together delivered to their door.

“We absolutely dine at home now more than we eat out,” comments Joanne, echoing recent statistics that show a drop in people going to informal dining spots.

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

Additionally, one more competitor to ordered-in pies: the cook-at-home oven pizza.

Will Hawkley, head of leisure and hospitality at an advisory group, notes that not only have retailers been selling premium oven-ready pizzas for years – some are even offering home-pizza ovens.

“Evolving preferences are also playing a factor in the popularity of quick-service brands,” comments the expert.

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

As people dine out not as often, they may look for a more high-quality meal, and Pizza Hut's retro theme with vinyl benches and nostalgic table settings can feel more old-fashioned than upmarket.

The rise of premium pizza outlets” over the last decade and a half, for example new entrants, has “dramatically shifted the general opinion of what quality pizza is,” explains the food expert.

“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she says.
“Who would choose to spend a high price on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who operates a small business based in a regional area explains: “The issue isn’t that lost interest in pizza – they just want improved value.”

Dan says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with changing preferences.

At an independent chain in a city in southwest England, the proprietor says the industry is diversifying but Pizza Hut has neglected to introduce anything new.

“You now have individual slices, London pizza, new haven, sourdough, traditional Italian, Detroit – it's a wonderful array for a pizza-loving consumer to explore.”

Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or attachment to the brand.

In recent years, Pizza Hut's customer base has been fragmented and spread to its trendier, more nimble competitors. To sustain its costly operations, it would have to charge more – which experts say is difficult at a time when personal spending are decreasing.

The leadership of Pizza Hut's overseas branches said the rescue aimed “to safeguard our dining 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 support colleagues through the transition.

But with significant funds going into maintaining its outlets, it likely can't afford to allocate significant resources in its takeaway operation because the sector is “complex and partnering with existing third-party platforms comes at a cost”, analysts say.

Still, experts suggest, lowering overhead by leaving competitive urban areas could be a good way to adjust.

Jason Baker
Jason Baker

A passionate coffee roaster and writer with over a decade of experience in specialty coffee and sustainable sourcing practices.