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

At one time, the popular pizza chain was the go-to for groups and loved ones to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.

Yet not as many patrons are visiting the chain these days, and it is shutting down half of its British locations after being acquired following financial trouble for the second instance this year.

I remember going Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she says “it's fallen out of favor.”

In the view of a diner in her twenties, some of the very things Pizza Hut has been famous for since it started in the UK in the mid-20th century are now less appealing.

“How they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have inferior offerings... They're giving away so much food and you're like ‘How can they?’”

Because grocery costs have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. As have its outlets, which are being sliced from a large number to a smaller figure.

The company, like many others, has also faced its operating costs rise. This spring, employee wages rose due to higher minimum pay and an increase in employer taxes.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

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

Although Pizza Hut does offer pickup and delivery through delivery platforms, it is falling behind to major competitors which focus exclusively to this market.

“Another pizza company has taken over the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” notes the specialist.

However for these customers it is worth it to get their special meal sent directly.

“We definitely eat at home now rather than we eat out,” comments Joanne, echoing latest data that show a drop in people visiting casual and fast-food restaurants.

Over the summer, informal dining venues saw a 6% drop in diners compared to the previous year.

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

Will Hawkley, senior partner at an advisory group, explains that not only have grocery stores been selling premium prepared pies for a long time – some are even offering pizza-making appliances.

“Shifts in habits are also playing a factor in the performance of fast-food chains,” comments the expert.

The growing trend of low-carb regimens has boosted sales at chicken shops, while affecting sales of high-carbohydrate options, he continues.

As people dine out not as often, they may prefer a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more old-fashioned than premium.

The growth of high-quality pizzerias” over the last 10 to 15 years, including boutique chains, has “completely altered the consumer view of what good pizza is,” says the food expert.

“A thin, flavorful, gentle crust 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 struggles,” she says.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who runs a pizza van based in Suffolk explains: “People haven’t lost interest in pizza – they just want improved value.”

Dan says his mobile setup can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it could not keep up with evolving tastes.

At a small pizza brand in a UK location, owner Jack Lander says the pizza market is diversifying but Pizza Hut has not provided anything innovative.

“There are now slice concepts, regional varieties, thin crust, fermented dough, wood-fired, Detroit – it's a delightful challenge for a pie fan to discover.”

The owner says Pizza Hut “should transform” as the youth don't have any sense of nostalgia or allegiance to the brand.

In recent years, Pizza Hut's market has been divided and allocated to its fresher, faster alternatives. To keep up its costly operations, it would have to raise prices – which commentators say is challenging at a time when personal spending are shrinking.

The leadership of Pizza Hut's global operations said the acquisition aimed “to protect our guest experience and retain staff where possible”.

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

Yet with large sums going into operating its locations, it may be unable to allocate significant resources in its delivery service because the sector is “complicated and working with existing external services comes at a cost”, commentators say.

However, it's noted, reducing expenses by leaving competitive urban areas could be a smart move to evolve.

Monica Fitzgerald
Monica Fitzgerald

A seasoned gaming enthusiast with a passion for sharing winning strategies and insights.