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

In the past, the popular pizza chain was the favorite for parents and children to indulge in its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

However fewer diners are visiting the restaurant these days, and it is closing a significant portion of its UK outlets after being rescued from insolvency for the second instance this year.

“We used to go Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she comments “it's no longer popular.”

For 23-year-old Martina, some of the very things Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now not-so-hot.

“How they do their buffet and their salad bar, it seems as if they are lowering standards and have inferior offerings... They offer so much food and you're like ‘How?’”

Because food prices have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. The same goes for its outlets, which are being sliced from 132 to just over 60.

The chain, in common with competitors, has also experienced its expenses increase. This spring, employee wages rose due to rises in minimum wages and an increase in employer taxes.

Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's costs are comparable, notes a culinary author.

While Pizza Hut has off-premise options through delivery platforms, it is missing out to big rivals which focus exclusively to this market.

“Domino's has taken over the off-premise pizza industry thanks to aggressive marketing and frequent offers that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” notes the expert.

But for the couple it is justified to get their evening together sent directly.

“We absolutely dine at home now rather than we eat out,” explains the female customer, matching recent statistics that show a decline in people going to quick-service eateries.

During the summer months, casual and fast-food restaurants saw a six percent decline in patrons compared to the previous year.

Additionally, one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, global lead for leisure at an advisory group, explains that not only have retailers been providing high-quality oven-ready pizzas for years – some are even promoting countertop ovens.

“Evolving preferences are also having an impact in the popularity of quick-service brands,” says the analyst.

The increased interest of high protein diets has increased sales at chicken shops, while affecting sales of dough-based meals, he continues.

As people dine out more rarely, they may seek out a more upscale outing, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more dated than luxurious.

The “explosion of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “dramatically shifted the consumer view of what quality pizza is,” explains the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she states.
“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who runs a small business based in a county in England comments: “It's not that stopped liking pizza – they just want improved value.”

Dan says his mobile setup can offer gourmet 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 UK location, owner Jack Lander says the industry is expanding but Pizza Hut has failed to offer anything innovative.

“There are now individual slices, London pizza, new haven, artisan base, traditional Italian, deep-dish – it's a heavenly minefield for a pie fan to explore.”

Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any fond memories or attachment to the chain.

Gradually, Pizza Hut's market has been divided and allocated to its more modern, agile competitors. To sustain its costly operations, it would have to increase costs – which industry analysts say is difficult at a time when household budgets are tightening.

A senior executive of Pizza Hut's international markets said the buyout aimed “to protect our customer service and save employment where possible”.

He said its immediate priority was to keep running at the remaining 64 restaurants and takeaway hubs and to assist staff through the transition.

Yet with significant funds going into maintaining its outlets, it may be unable to spend heavily in its off-premise division because the sector is “complex and using existing third-party platforms comes at a expense”, commentators say.

However, it's noted, cutting its costs by exiting crowded locations could be a effective strategy to adjust.

Nicholas Forbes
Nicholas Forbes

A tech writer and digital strategist with a passion for emerging technologies and their impact on society.