How the Nation Lost Its Taste for the Pizza Hut Chain

Once, the popular pizza chain was the favorite for groups and loved ones to enjoy its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.

Yet not as many patrons are visiting the restaurant currently, and it is reducing a significant portion of its UK outlets after being bought out of administration for the second time this year.

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

According to young customer Martina, the very elements Pizza Hut has been famous for since it started in the UK in the mid-20th century are now outdated.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 cheapening on their quality and have reduced quality... They offer so much food and you're like ‘How can they?’”

Since food prices have risen sharply, Pizza Hut's all-you-can-eat model has become very expensive to maintain. Similarly, its restaurants, which are being cut from over 130 to 64.

The chain, similar to other firms, has also faced its costs rise. This spring, employee wages rose due to increases in the legal wage floor and an rise in employer national insurance contributions.

Two diners explain 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 selection, Pizza Hut and Domino's rates are close, explains an industry analyst.

While Pizza Hut provides pickup and delivery through external services, it is losing out to big rivals which specialize to the delivery sector.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to strong promotions and constantly running deals that make customers feel like they're finding a good deal, when in reality the base costs are on the higher side,” notes the expert.

However for these customers it is acceptable to get their special meal sent directly.

“We predominantly have meals at home now more than we eat out,” comments one of the diners, echoing current figures that show a decrease in people frequenting informal dining spots.

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

Moreover, another rival to restaurant and takeaway pizzas: the supermarket pizza.

Will Hawkley, senior partner at an advisory group, points out that not only have supermarkets been selling high-quality prepared pies for a long time – some are even selling pizza-making appliances.

“Shifts in habits are also playing a factor in the performance of quick-service brands,” says the expert.

The growing trend of protein-rich eating plans has increased sales at chicken shops, while affecting sales of high-carbohydrate options, he notes.

As people visit restaurants more rarely, they may prefer a more upscale outing, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more old-fashioned than luxurious.

The “explosion of high-quality pizzerias” over the last 10 to 15 years, including boutique chains, has “fundamentally changed the consumer view of what quality pizza is,” explains the food expert.

“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she comments.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“The decision is simple.”
A mobile pizza vendor, who owns Smokey Deez based in a regional area says: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”

The owner says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with evolving tastes.

At a small pizza brand in a UK location, the proprietor says the pizza market is expanding but Pizza Hut has not provided anything fresh.

“There are now slice concepts, London pizza, new haven, artisan base, traditional Italian, rectangular – it's a heavenly minefield for a pizza-loving consumer to discover.”

Jack says Pizza Hut “must rebrand” as younger people don't have any fond memories or allegiance to the brand.

Gradually, Pizza Hut's customer base has been sliced up and spread to its more modern, agile alternatives. To keep up its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is challenging at a time when household budgets are shrinking.

The managing director of Pizza Hut's overseas branches said the rescue aimed “to protect our customer service and protect jobs where possible”.

The executive stated its first focus was to maintain service at the remaining 64 restaurants and takeaway hubs and to assist staff through the restructure.

However with so much money going into operating its locations, it may be unable to spend heavily in its off-premise division because the market is “difficult and working with existing delivery apps comes at a price”, commentators say.

But, he adds, cutting its costs by withdrawing from crowded locations could be a effective strategy to adapt.

Justin Hart
Justin Hart

A passionate sports journalist with over a decade of experience covering local and international events in Rome.