How the Country Turned Away from Its Appetite for Pizza Hut

In the past, Pizza Hut was the top choice for groups and loved ones to enjoy its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

But a declining number of patrons are visiting the brand currently, and it is reducing a significant portion of its UK locations after being bought out of administration for the second occasion this year.

“We used to go Pizza Hut when I was a child,” explains a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, as a young adult, she says “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in her twenties, certain features Pizza Hut has been recognized for since it opened in the UK in the seventies are now outdated.

“The way they do their buffet and their salad bar, it feels like they are lowering standards and have inferior offerings... They're giving away so much food and you're like ‘How?’”

Since food prices have soared, Pizza Hut's unlimited dining format has become quite costly to run. As have its restaurants, which are being cut from a large number to a smaller figure.

The company, in common with competitors, has also seen its costs go up. In April this year, staffing costs increased due to rises in minimum wages and an increase in employer national insurance contributions.

Two diners explain they would often visit at Pizza Hut for a date “occasionally”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

According to your selection, Pizza Hut and Domino's costs are close, notes a culinary author.

Although Pizza Hut does offer takeaway and deliveries through delivery platforms, it is missing out to major competitors which focus exclusively to the delivery sector.

“Domino's has succeeded in leading the delivery market thanks to strong promotions and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the base costs are on the higher side,” says the specialist.

Yet for these customers it is acceptable to get their date night sent directly.

“We definitely eat at home now rather than we eat out,” explains the female customer, echoing recent statistics that show a decline in people going to informal dining spots.

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

Moreover, one more competitor to pizza from eateries: the cook-at-home oven pizza.

An industry leader, head of leisure and hospitality at a leading firm, points out that not only have retailers been providing good-standard oven-ready pizzas for a long time – some are even offering home-pizza ovens.

“Shifts in habits are also having an impact in the popularity of fast-food chains,” comments the expert.

The rising popularity of low-carb regimens has driven sales at chicken shops, while reducing sales of high-carbohydrate options, he continues.

Since people dine out less frequently, they may prefer a more premium experience, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more dated than luxurious.

The rise of high-quality pizzerias” over the last decade and a half, such as new entrants, has “completely altered the consumer view of what excellent pie is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she comments.

“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a stunning, expertly crafted Margherita for a lower price at one of the many real Italian restaurants around the country?

“The decision is simple.”

An independent operator, who runs a small business based in a regional area comments: “People haven’t lost interest in pizza – they just want improved value.”

Dan says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.

According to an independent chain in Bristol, the proprietor says the pizza market is broadening but Pizza Hut has neglected to introduce anything innovative.

“There are now by-the-slice options, London pizza, thin crust, fermented dough, wood-fired, Detroit – it's a wonderful array for a pie fan to explore.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any fond memories or allegiance to the brand.

Gradually, Pizza Hut's market has been sliced up and spread to its trendier, more nimble alternatives. To maintain its costly operations, it would have to increase costs – which commentators say is challenging at a time when household budgets are decreasing.

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

He said its immediate priority was to continue operating at the open outlets and takeaway hubs and to assist staff through the change.

But with significant funds going into running its restaurants, it likely can't afford to allocate significant resources in its off-premise division because the industry is “complicated and working with existing third-party platforms comes at a expense”, analysts say.

However, it's noted, lowering overhead by withdrawing from competitive urban areas could be a smart move to adjust.