How the Country Turned Away from Its Craving for Pizza Hut

Once, the popular pizza chain was the top choice for families and friends to feast on its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

But a declining number of patrons are visiting the restaurant these days, and it is closing 50% of its UK locations after being rescued from insolvency for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she comments “it's not a thing anymore.”

In the view of young customer Martina, some of the very things Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now less appealing.

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

Since food prices have soared, Pizza Hut's unlimited dining format has become very expensive to operate. The same goes for its restaurants, which are being reduced from a large number to a smaller figure.

The chain, like many others, has also seen its expenses go up. In April this year, employee wages rose due to higher minimum pay and an increase in employer national insurance contributions.

Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.

According to your order, Pizza Hut and Domino's prices are similar, says a food expert.

Although Pizza Hut does offer off-premise options through external services, it is falling behind to larger chains which specialize to off-premise dining.

“Domino's has succeeded in leading the takeaway pizza sector thanks to strong promotions and ongoing discounts that make shoppers feel like they're saving money, when in reality the base costs are quite high,” says the specialist.

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

“We absolutely dine at home now more than we eat out,” says Joanne, matching recent statistics that show a drop in people visiting casual and fast-food restaurants.

In the warmer season, casual and fast-food restaurants saw a notable decrease in customers compared to the year before.

Additionally, another rival to ordered-in pies: the frozen or fresh pizza.

A hospitality expert, global lead for leisure at a major consultancy, explains that not only have retailers been selling premium prepared pies for a long time – some are even offering pizza-making appliances.

“Evolving preferences are also playing a factor in the popularity of fast-food chains,” states Mr. Hawkley.

The increased interest of protein-rich eating plans has boosted sales at poultry outlets, while hitting sales of high-carbohydrate options, he adds.

Because people go out to eat less frequently, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more retro than upmarket.

The rise of premium pizza outlets” over the last several years, such as boutique chains, has “completely altered the general opinion of what excellent pie is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's struggles,” she says.
“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a large brand when you can get a stunning, expertly crafted Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns a small business based in a county in England says: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”

Dan says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut faced challenges because it could not keep up with evolving tastes.

At a small pizza brand in Bristol, the founder says the industry is diversifying but Pizza Hut has neglected to introduce anything innovative.

“There are now by-the-slice options, London pizza, new haven, artisan base, traditional Italian, Detroit – it's a heavenly minefield for a pizza enthusiast to explore.”

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

Over time, Pizza Hut's market has been divided and distributed to its fresher, faster competitors. To maintain its high labor and location costs, it would have to charge more – which commentators say is tough at a time when household budgets are tightening.

The managing director of Pizza Hut's overseas branches said the rescue aimed “to safeguard our dining experience and save employment where possible”.

The executive stated its key goal was to maintain service at the surviving locations and takeaway hubs and to assist staff through the change.

Yet with large sums going into maintaining its outlets, it likely can't afford to invest too much in its delivery service because the industry is “difficult and partnering with existing external services comes at a price”, analysts say.

But, he adds, reducing expenses by exiting competitive urban areas could be a effective strategy to adapt.

Elizabeth Lee
Elizabeth Lee

Digital artist and blockchain enthusiast with a passion for exploring NFT ecosystems and sharing actionable insights.