How the Nation Turned Away from Its Appetite for Pizza Hut

At one time, Pizza Hut was the go-to for groups and loved ones to feast on its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

But fewer customers are visiting the restaurant nowadays, and it is reducing half of its UK locations after being acquired following financial trouble for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she states “it's fallen out of favor.”

According to a diner in her twenties, certain features Pizza Hut has been recognized for since it opened in the UK in the seventies are now not-so-hot.

“The manner in which they do their all-you-can-eat and their salad station, it appears that they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How is that possible?’”

Since grocery costs have increased significantly, Pizza Hut's unlimited dining format has become very expensive to maintain. The same goes for its outlets, which are being cut from a large number to just over 60.

The company, like many others, has also faced its operating costs rise. Earlier this year, labor expenses jumped due to higher minimum pay and an rise in employer taxes.

A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “not good value”.

According to your order, Pizza Hut and Domino's costs are close, says an industry analyst.

Even though Pizza Hut has off-premise options through third-party apps, it is losing out to major competitors which solely cater to off-premise dining.

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

Yet for Chris and Joanne it is worth it to get their special meal delivered to their door.

“We definitely eat at home now instead of we eat out,” comments one of the diners, reflecting recent statistics that show a decline in people going to quick-service eateries.

Over the summer, quick-service eateries saw a 6% drop in patrons compared to last summer.

Moreover, another rival to pizza from eateries: the supermarket pizza.

An industry leader, global lead for leisure at a major consultancy, points out that not only have retailers been selling high-quality ready-to-bake pizzas for quite a while – some are even promoting countertop ovens.

“Shifts in habits are also having an impact in the performance of fast-food chains,” says Mr. Hawkley.

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

As people go out to eat not as often, they may look for a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more retro than luxurious.

The rise of high-quality pizzerias” over the last decade and a half, such as popular brands, has “dramatically shifted the public's perception of what quality pizza is,” says 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 led to Pizza Hut's decline,” she states.
“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who operates a small business based in a regional area comments: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

Dan says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

At a small pizza brand in a UK location, the proprietor says the sector is diversifying but Pizza Hut has not provided anything new.

“There are now slice concepts, artisanal styles, thin crust, artisan base, wood-fired, rectangular – it's a wonderful array for a pizza-loving consumer to try.”

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

Gradually, Pizza Hut's customer base has been divided and distributed to its trendier, more nimble alternatives. To keep up its costly operations, it would have to increase costs – which experts say is tough at a time when family finances are decreasing.

The leadership of Pizza Hut's overseas branches said the buyout aimed “to ensure our customer service and retain staff where possible”.

It was explained its key goal was to maintain service at the open outlets and off-premise points and to help employees through the restructure.

But with large sums going into maintaining its outlets, it probably cannot to invest too much in its takeaway operation because the sector is “complex and working with existing external services comes at a expense”, commentators say.

However, it's noted, lowering overhead by exiting crowded locations could be a effective strategy to adjust.

Michael Kelly
Michael Kelly

A seasoned sports analyst with over a decade of experience in betting strategies and market trends.