Why the Nation Turned Away from Its Taste for the Pizza Hut Chain

At one time, the popular pizza chain was the go-to for parents and children to indulge in its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

Yet not as many patrons are frequenting the restaurant nowadays, and it is reducing 50% of its UK outlets after being bought out of administration for the second instance this year.

“We used to go Pizza Hut when I was a child,” says Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she states “it's no longer popular.”

For young customer Martina, some of the very things Pizza Hut has been famous for since it launched in the UK in the 1970s are now less appealing.

“The manner in which they do their all-you-can-eat 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?’”

Since food prices have increased significantly, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. The same goes for its outlets, which are being cut from a large number to a smaller figure.

The business, similar to other firms, has also seen its costs increase. This spring, labor expenses jumped due to higher minimum pay and an increase in employer social security payments.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.

Depending on your selection, Pizza Hut and Domino's rates are close, explains a culinary author.

Even though Pizza Hut provides takeaway and deliveries through delivery platforms, it is losing out to larger chains which solely cater to this market.

“The rival chain has taken over the delivery market thanks to strong promotions and frequent offers that make customers feel like they're saving money, when in reality the original prices are relatively expensive,” explains the analyst.

Yet for these customers it is acceptable to get their evening together delivered to their door.

“We predominantly have meals at home now more than we eat out,” explains Joanne, matching current figures that show a decrease in people going to informal dining spots.

In the warmer season, quick-service eateries saw a six percent decline in customers compared to the previous year.

Additionally, a further alternative to ordered-in pies: the cook-at-home oven pizza.

An industry leader, head of leisure and hospitality at an advisory group, points out that not only have retailers been selling good-standard prepared pies for years – some are even selling pizza-making appliances.

“Shifts in habits are also contributing in the success of fast-food chains,” comments the analyst.

The increased interest of protein-rich eating plans has increased sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he notes.

As people go out to eat not as often, they may look for a more premium experience, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more old-fashioned than upmarket.

The growth of artisanal pizza places” over the last decade and a half, such as boutique chains, has “dramatically shifted the public's perception of what quality pizza is,” notes the industry commentator.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she says.

“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?

“It's a no-brainer.”

An independent operator, who operates a small business based in a regional area explains: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it was unable to evolve with new customer habits.

From the perspective of an independent chain in a city in southwest England, the proprietor says the pizza market is diversifying but Pizza Hut has neglected to introduce anything new.

“There are now slice concepts, London pizza, New Haven-style, artisan base, Neapolitan, 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 emotional connection or allegiance to the company.

Over time, Pizza Hut's share has been fragmented and allocated to its fresher, faster competitors. To keep up its costly operations, it would have to raise prices – which experts say is tough at a time when household budgets are shrinking.

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

The executive stated its first focus was to continue operating at the surviving locations and takeaway hubs and to support colleagues through the change.

However with significant funds going into maintaining its outlets, it likely can't afford to invest too much in its delivery service because the market is “complex and working with existing third-party platforms comes at a expense”, experts say.

But, he adds, reducing expenses by exiting oversaturated towns and city centres could be a smart move to adjust.