How the Nation Lost Its Craving for Pizza Hut

At one time, Pizza Hut was the favorite for parents and children to feast on its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

However a declining number of customers are visiting the restaurant currently, and it is closing a significant portion of its UK restaurants after being rescued from insolvency for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she says “it's fallen out of favor.”

For a diner in her twenties, 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of the very things Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now outdated.

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

As grocery costs have soared, Pizza Hut's all-you-can-eat model has become very expensive to maintain. As have its locations, which are being sliced from over 130 to a smaller figure.

The company, like many others, has also experienced its operating costs go up. Earlier this year, labor expenses rose due to rises in minimum wages and an rise in employer national insurance contributions.

Two diners mention they frequently dined at Pizza Hut for a date “occasionally”, but now they order in Domino's and think Pizza Hut is “too expensive”.

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

Although Pizza Hut does offer pickup and delivery through delivery platforms, it is falling behind to major competitors which focus exclusively to off-premise dining.

“The rival chain has managed to dominate the takeaway pizza sector thanks to intensive advertising and ongoing discounts that make customers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” says the analyst.

But for Chris and Joanne it is acceptable to get their evening together sent directly.

“We predominantly have meals at home now instead of we eat out,” comments Joanne, reflecting recent statistics that show a decrease in people going to quick-service eateries.

In the warmer season, informal dining venues saw a notable decrease in customers compared to last summer.

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

A hospitality expert, head of leisure and hospitality at an advisory group, notes that not only have grocery stores been offering high-quality ready-to-bake pizzas for years – some are even selling countertop ovens.

“Shifts in habits are also playing a factor in the success of quick-service brands,” comments the analyst.

The increased interest of high protein diets has driven sales at chicken shops, while hitting sales of carb-heavy pizza, he adds.

Since people visit restaurants more rarely, they may prefer a more high-quality meal, and Pizza Hut's classic look with booth seating and traditional décor can feel more retro than premium.

The growth of premium pizza outlets” over the last decade and a half, such as new entrants, has “completely altered the consumer view of what quality pizza is,” says the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she says.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
Dan Puddle, who runs a small business based in a county in England says: “It's not that stopped liking pizza – they just want higher quality at a fair price.”

He says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the industry is broadening but Pizza Hut has failed to offer anything new.

“There are now slice concepts, London pizza, new haven, fermented dough, traditional Italian, rectangular – it's a heavenly minefield for a pizza enthusiast to try.”

Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any emotional connection or loyalty to the company.

Gradually, Pizza Hut's market has been divided and distributed to its more modern, agile alternatives. To sustain its costly operations, it would have to charge more – which commentators say is tough at a time when household budgets are tightening.

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

He said its first focus was to keep running at the open outlets and takeaway hubs and to assist staff through the transition.

However with significant funds going into operating its locations, it likely can't afford to invest too much in its off-premise division because the sector is “complex and partnering with existing external services comes at a expense”, analysts say.

However, it's noted, lowering overhead by exiting oversaturated towns and city centres could be a effective strategy to adapt.

Gina Martinez
Gina Martinez

Tech enthusiast and journalist with a passion for exploring innovations and sharing practical advice.