Why the Nation Lost Its Appetite for Pizza Hut

At one time, Pizza Hut was the favorite for groups and loved ones to indulge in its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.

However a declining number of diners are choosing the brand currently, and it is closing half of its British outlets after being acquired following financial trouble for the second occasion this year.

I remember going Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she states “it's fallen out of favor.”

According to 23-year-old Martina, some of the very things Pizza Hut has been recognized for since it launched in the UK in the 1970s are now outdated.

“The manner in which they do their buffet and their salad station, it appears that they are cutting corners and have reduced quality... They're giving away so much food and you're like ‘How?’”

As ingredient expenses have soared, Pizza Hut's buffet-style service has become increasingly pricey to operate. As have its outlets, which are being reduced from a large number to 64.

The business, like many others, has also seen its costs go up. This spring, labor expenses jumped due to increases in the legal wage floor and an rise in employer taxes.

Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.

Based on your choices, Pizza Hut and Domino's rates are similar, notes a food expert.

Even though Pizza Hut has off-premise options through delivery platforms, it is falling behind to major competitors which solely cater to off-premise dining.

“Domino's has managed to dominate the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the original prices are quite high,” notes the analyst.

However for these customers it is worth it to get their date night delivered to their door.

“We definitely eat at home now more than we eat out,” explains one of the diners, matching recent statistics that show a drop in people frequenting informal dining spots.

During the summer months, informal dining venues saw a notable decrease in customers compared to last summer.

There is also another rival to ordered-in pies: the cook-at-home oven pizza.

A hospitality expert, head of leisure and hospitality at a major consultancy, points out that not only have retailers been providing good-standard oven-ready pizzas for a long time – some are even promoting countertop ovens.

“Lifestyle changes are also having an impact in the performance of casual eateries,” comments Mr. Hawkley.

The rising popularity of protein-rich eating plans has boosted sales at poultry outlets, while reducing sales of carb-heavy pizza, he adds.

As people visit restaurants less frequently, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more retro than luxurious.

The growth of artisanal pizza places” over the last decade and a half, such as new entrants, has “dramatically shifted the public's perception of what good pizza is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she states.
“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a large brand when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
An independent operator, who operates Smokey Deez based in a regional area comments: “It's not that lost interest in pizza – they just want higher quality at a fair price.”

He says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.

According to an independent chain in a city in southwest England, owner Jack Lander says the pizza market is broadening but Pizza Hut has neglected to introduce anything fresh.

“You now have slice concepts, regional varieties, thin crust, sourdough, traditional Italian, Detroit – it's a delightful challenge for a pizza enthusiast to discover.”

Jack says Pizza Hut “must rebrand” as the youth don't have any emotional connection or allegiance to the company.

In recent years, Pizza Hut's market has been fragmented and spread to its fresher, faster alternatives. To maintain its costly operations, it would have to increase costs – which experts say is challenging at a time when family finances are decreasing.

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

The executive stated its immediate priority was to keep running at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.

However with significant funds going into running its restaurants, it probably cannot to invest too much in its off-premise division because the market is “difficult and working with existing third-party platforms comes at a expense”, analysts say.

However, it's noted, cutting its costs by withdrawing from oversaturated towns and city centres could be a good way to adjust.

Robert Johnson
Robert Johnson

A seasoned sports analyst with over a decade of experience in betting strategies and statistical modeling.