Why the Country Lost Interest in Its Taste for Pizza Hut

In the past, the popular pizza chain was the top choice for groups and loved ones to feast on its unlimited dining experience, unlimited salad bar, and make-your-own dessert.

But a declining number of patrons are choosing the brand these days, and it is closing 50% of its British restaurants after being rescued from insolvency for the second instance this year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she states “it's fallen out of favor.”

In the view of a diner in her twenties, certain features Pizza Hut has been recognized for since it started in the UK in the seventies are now not-so-hot.

“How they do their buffet and their salad bar, it seems as if they are lowering standards and have reduced quality... They provide so much food and you're like ‘How is that possible?’”

Because food prices have soared, Pizza Hut's buffet-style service has become quite costly to run. Similarly, its restaurants, which are being reduced from 132 to 64.

The chain, in common with competitors, has also seen its operating costs rise. This spring, labor expenses jumped due to higher minimum pay and an increase in employer social security payments.

Two diners say they would often visit at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.

According to your choices, Pizza Hut and Domino's prices are similar, explains a culinary author.

Even though Pizza Hut has pickup and delivery through third-party apps, it is losing out to major competitors which specialize to this market.

“Domino's has taken over the takeaway pizza sector thanks to intensive advertising and constantly running deals that make customers feel like they're saving money, when in reality the standard rates are on the higher side,” says the analyst.

But for Chris and Joanne it is justified to get their date night brought to their home.

“We predominantly have meals at home now rather than we eat out,” says the female customer, reflecting current figures that show a decline in people going to casual and fast-food restaurants.

Over the summer, informal dining venues saw a 6% drop in patrons compared to the year before.

Additionally, another rival to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, senior partner at a major consultancy, points out that not only have supermarkets been providing premium prepared pies for quite a while – some are even promoting home-pizza ovens.

“Shifts in habits are also playing a factor in the popularity of fast-food chains,” says the analyst.

The rising popularity of high protein diets has increased sales at poultry outlets, while hitting sales of carb-heavy pizza, he notes.

As people dine out more rarely, they may look for a more high-quality meal, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more dated than premium.

The rise of artisanal pizza places” over the last decade and a half, for example new entrants, has “completely altered the public's perception of what good pizza is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she says.
“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying 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?
“The decision is simple.”
An independent operator, who operates a small business based in Suffolk says: “People haven’t fallen out of love with pizza – they just want improved value.”

The owner says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with new customer habits.

According to an independent chain in Bristol, the founder says the pizza market is broadening but Pizza Hut has not provided anything innovative.

“There are now by-the-slice options, artisanal styles, new haven, sourdough, Neapolitan, Detroit – it's a delightful challenge for a pizza enthusiast to try.”

He says Pizza Hut “must rebrand” as younger people don't have any emotional connection or loyalty to the company.

Gradually, Pizza Hut's customer base has been sliced up and distributed to its fresher, faster alternatives. To keep up its high labor and location costs, it would have to raise prices – which experts say is challenging at a time when personal spending are tightening.

The leadership of Pizza Hut's global operations said the buyout aimed “to safeguard our customer service and retain staff where possible”.

He said its first focus was to continue operating at the surviving locations and delivery sites and to assist staff through the change.

But with large sums going into operating its locations, it likely can't afford to allocate significant resources in its takeaway operation because the industry is “complicated and partnering with existing external services comes at a cost”, commentators say.

However, it's noted, reducing expenses by leaving competitive urban areas could be a good way to adapt.

Stacey Drake
Stacey Drake

A seasoned sports analyst with over a decade of experience in betting strategies and odds analysis.