How the Country Lost Interest in Its Appetite for the Pizza Hut Chain

Once, the popular pizza chain was the favorite for groups and loved ones to indulge in its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

But not as many diners are frequenting the chain nowadays, and it is shutting down a significant portion of its British restaurants after being acquired following financial trouble for the second time this year.

It was common to visit Pizza Hut when I was a child,” says a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she states “it's fallen out of favor.”

According to 23-year-old Martina, some of the very things Pizza Hut has been recognized for since it launched in the UK in the seventies are now not-so-hot.

“The way they do their buffet and their salad bar, it appears that they are lowering standards and have reduced quality... They offer so much food and you're like ‘How?’”

As food prices have soared, Pizza Hut's all-you-can-eat model has become quite costly to operate. As have its outlets, which are being cut from a large number to just over 60.

The company, similar to other firms, has also faced its operating costs rise. Earlier this year, staffing costs increased due to higher minimum pay and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

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

Even though Pizza Hut provides takeaway and deliveries through delivery platforms, it is losing out to big rivals which solely cater to the delivery sector.

“The rival chain has taken over the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the base costs are quite high,” says the specialist.

However for the couple it is justified to get their date night sent directly.

“We predominantly have meals at home now instead of we eat out,” explains Joanne, matching current figures that show a decline in people visiting casual and fast-food restaurants.

Over the summer, quick-service eateries saw a notable decrease in diners compared to the previous year.

Additionally, another rival to ordered-in pies: the supermarket pizza.

A hospitality expert, senior partner at an advisory group, notes that not only have retailers been selling high-quality oven-ready pizzas for years – some are even selling home-pizza ovens.

“Lifestyle changes are also contributing in the popularity of casual eateries,” states the expert.

The rising popularity of protein-rich eating plans has driven sales at grilled chicken brands, while affecting sales of dough-based meals, he continues.

Because people go out to eat less frequently, they may look for a more premium experience, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more old-fashioned than upmarket.

The “explosion of premium pizza outlets” over the last several years, such as boutique chains, has “dramatically shifted the public's perception of what quality pizza is,” says the food expert.

“A thin, flavorful, gentle crust with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's caused Pizza Hut's struggles,” she comments.

“What person would spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?

“It's a no-brainer.”

A mobile pizza vendor, who runs a small business based in a county in England comments: “People haven’t stopped liking pizza – they just want better pizza for their money.”

He says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

From the perspective of an independent chain in Bristol, the proprietor says the industry is broadening but Pizza Hut has neglected to introduce anything new.

“Currently available are by-the-slice options, London pizza, thin crust, sourdough, wood-fired, rectangular – it's a wonderful array for a pizza-loving consumer to try.”

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

Gradually, Pizza Hut's share has been fragmented and distributed to its trendier, more nimble rivals. To keep up its high labor and location costs, it would have to raise prices – which commentators say is tough at a time when household budgets are tightening.

The leadership of Pizza Hut's international markets said the rescue aimed “to ensure our dining experience and save employment where possible”.

The executive stated its first focus was to keep running at the open outlets and takeaway hubs and to support colleagues through the restructure.

But with large sums going into operating its locations, it may be unable to invest too much in its delivery service because the market is “complex and using existing third-party platforms comes at a cost”, commentators say.

But, he adds, reducing expenses by withdrawing from oversaturated towns and city centres could be a effective strategy to evolve.