How the Country Lost Interest in Its Taste for the Pizza Hut Chain

At one time, Pizza Hut was the go-to for groups and loved ones to indulge in its unlimited dining experience, endless salad selection, and self-serve ice-cream.

But a declining number of diners are choosing the brand currently, and it is shutting down a significant portion of its British locations after being rescued from insolvency for the second time 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 – turn it into an event.” But now, in her mid-twenties, she states “it's not a thing anymore.”

According to a diner in her twenties, some of the very things Pizza Hut has been famous for since it opened in the UK in the 1970s are now outdated.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 feels like they are cheapening on their quality and have lower standards... They're giving away so much food and you're like ‘How?’”

Because food prices have risen sharply, Pizza Hut's unlimited dining format has become increasingly pricey to run. Similarly, its locations, which are being reduced from 132 to 64.

The company, like many others, has also faced its operating costs go up. In April this year, employee wages increased due to higher minimum pay and an rise in employer national insurance contributions.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.

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

While Pizza Hut has off-premise options through external services, it is falling behind to larger chains which specialize to off-premise dining.

“The rival chain has succeeded in leading the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” says the analyst.

But for the couple it is acceptable to get their special meal delivered to their door.

“We absolutely dine at home now instead of we eat out,” comments Joanne, matching recent statistics that show a decrease in people going to quick-service eateries.

During the summer months, quick-service eateries saw a six percent decline in diners compared to the previous year.

Moreover, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.

An industry leader, senior partner at a major consultancy, notes that not only have grocery stores been providing good-standard ready-to-bake pizzas for quite a while – some are even promoting countertop ovens.

“Evolving preferences are also contributing in the popularity of casual eateries,” states the expert.

The increased interest of protein-rich eating plans has increased sales at grilled chicken brands, while affecting sales of dough-based meals, he adds.

Because people go out to eat more rarely, they may look for a more upscale outing, and Pizza Hut's retro theme with vinyl benches and red and white checked plastic table cloths can feel more retro than luxurious.

The growth of high-quality pizzerias” over the last several years, such as popular brands, has “completely altered the consumer view of what excellent pie is,” says the food expert.

“A crisp, airy, digestible pizza with a select ingredients, 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.
“Why would anyone spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many traditional pizzerias around the country?
“The decision is simple.”
Dan Puddle, who owns a small business based in a regional area explains: “It's not that stopped liking pizza – they just want improved value.”

He says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with evolving tastes.

According to an independent chain in Bristol, owner Jack Lander says the pizza market is expanding but Pizza Hut has failed to offer anything fresh.

“You now have by-the-slice options, artisanal styles, New Haven-style, fermented dough, wood-fired, Detroit – it's a wonderful array for a pizza-loving consumer to try.”

He says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or allegiance to the company.

Gradually, Pizza Hut's share has been sliced up and distributed to its trendier, more nimble rivals. To keep up its expensive staffing and restaurants, it would have to charge more – which commentators say is challenging at a time when family finances are tightening.

A senior executive of Pizza Hut's global operations said the rescue aimed “to safeguard our guest experience and protect jobs where possible”.

The executive stated its first focus was to continue operating at the remaining 64 restaurants and off-premise points and to support colleagues through the change.

But with large sums going into operating its locations, it probably cannot to allocate significant resources in its off-premise division because the market is “complicated and using existing external services comes at a expense”, experts say.

However, it's noted, cutting its costs by leaving crowded locations could be a good way to evolve.

Mark Bird
Mark Bird

A seasoned entrepreneur and business strategist with over a decade of experience in scaling startups and fostering innovation.