Why the Country Lost Its Taste for Pizza Hut

Once, the popular pizza chain was the favorite for families and friends to enjoy its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

But not as many patrons are visiting the restaurant nowadays, and it is shutting down half of its British restaurants after being acquired following financial trouble for the second time this year.

I remember going Pizza Hut when I was a child,” explains Prudence. “It was a tradition, 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 23-year-old Martina, the very elements Pizza Hut has been recognized for since it launched in the UK in the 1970s are now outdated.

“The manner in which they do their buffet and their salad station, it appears that they are lowering standards 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 all-you-can-eat model has become very expensive to run. As have its outlets, which are being sliced from a large number to just over 60.

The company, similar to other firms, has also faced its expenses go up. In April this year, employee wages jumped due to rises in minimum wages and an increase in employer national insurance contributions.

Chris, 36, and Joanne, 29 explain they would often visit at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “not good value”.

According to your choices, Pizza Hut and Domino's prices are similar, notes a culinary author.

Even though Pizza Hut does offer pickup and delivery through delivery platforms, it is falling behind to major competitors which solely cater to this market.

“Domino's has managed to dominate the delivery market thanks to strong promotions and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” notes the analyst.

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

“We definitely eat at home now more than we eat out,” says Joanne, reflecting latest data that show a drop in people frequenting informal dining spots.

In the warmer season, informal dining venues saw a six percent decline in diners compared to the year before.

Additionally, another rival to pizza from eateries: the cook-at-home oven pizza.

An industry leader, senior partner at an advisory group, notes that not only have supermarkets been selling premium oven-ready pizzas for quite a while – some are even selling countertop ovens.

“Lifestyle changes are also playing a factor in the performance of casual eateries,” states the expert.

The increased interest of protein-rich eating plans has increased sales at chicken shops, while reducing sales of dough-based meals, he notes.

As people dine out not as often, they may prefer a more premium experience, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more dated than luxurious.

The “explosion of high-quality pizzerias” over the last 10 to 15 years, including boutique chains, has “completely altered the general opinion of what excellent pie is,” notes the culinary analyst.

“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she states.
“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who owns Smokey Deez based in a county in England comments: “People haven’t fallen out of love with pizza – they just want improved value.”

He says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it could not keep up with evolving tastes.

According to a small pizza brand in a city in southwest England, the proprietor says the industry is broadening but Pizza Hut has not provided anything new.

“You now have slice concepts, artisanal styles, New Haven-style, artisan base, Neapolitan, Detroit – it's a heavenly minefield for a pizza enthusiast to explore.”

He says Pizza Hut “must rebrand” as newer generations don't have any fond memories or loyalty to the chain.

Gradually, Pizza Hut's market has been fragmented and distributed to its more modern, agile alternatives. To keep up its expensive staffing and restaurants, it would have to increase costs – which commentators say is difficult at a time when personal spending are tightening.

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

The executive stated its immediate priority was to keep running at the open outlets and off-premise points and to support colleagues through the change.

However with significant funds going into running its restaurants, it may be unable to allocate significant resources in its off-premise division because the industry is “difficult and partnering with existing delivery apps comes at a expense”, commentators say.

Still, experts suggest, lowering overhead by exiting competitive urban areas could be a smart move to evolve.

Daniel Arias
Daniel Arias

Digital marketing strategist with over 10 years of experience, specializing in SEO and content creation for tech startups.