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

In the past, the popular pizza chain was the go-to for groups and loved ones to feast on its unlimited dining experience, unlimited salad bar, and make-your-own dessert.

However a declining number of customers are visiting the chain nowadays, and it is reducing a significant portion of its UK outlets after being rescued from insolvency for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she states “it's not a thing anymore.”

In the view of 23-year-old Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the 1970s are now not-so-hot.

“How they do their buffet and their salad station, it seems as if they are cutting corners and have lower standards... They offer so much food and you're like ‘How?’”

Since grocery costs have soared, Pizza Hut's buffet-style service has become increasingly pricey to run. The same goes for its locations, which are being sliced from a large number to just over 60.

The business, in common with competitors, has also faced its expenses go up. Earlier this year, employee wages increased due to increases in the legal wage floor and an rise in employer national insurance contributions.

Two diners mention they would often visit at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “not good value”.

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

While Pizza Hut provides off-premise options through third-party apps, it is missing out to major competitors which focus exclusively to off-premise dining.

“Another pizza company has taken over the takeaway pizza sector thanks to strong promotions and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the base costs are quite high,” notes the analyst.

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

“We absolutely dine at home now more than we eat out,” comments the female customer, reflecting current figures that show a decrease in people visiting casual and fast-food restaurants.

In the warmer season, quick-service eateries saw a 6% drop in patrons compared to the previous year.

There is also one more competitor to pizza from eateries: the frozen or fresh pizza.

A hospitality expert, senior partner at a major consultancy, explains that not only have supermarkets been providing high-quality prepared pies for years – some are even offering pizza-making appliances.

“Evolving preferences are also playing a factor in the success of casual eateries,” comments the expert.

The rising popularity of low-carb regimens has driven sales at poultry outlets, while hitting sales of high-carbohydrate options, he adds.

Since people dine out less frequently, they may look for a more premium experience, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more dated than luxurious.

The growth of artisanal pizza places” over the last several years, such as new entrants, has “dramatically shifted the public's perception of what quality pizza is,” explains the industry commentator.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she says.
“What person would spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
Dan Puddle, who operates a pizza van based in a regional area comments: “People haven’t stopped liking pizza – they just want improved value.”

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

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

“There are now individual slices, regional varieties, thin crust, fermented dough, wood-fired, Detroit – it's a wonderful array for a pizza-loving consumer to discover.”

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

In recent years, Pizza Hut's share has been sliced up and spread to its fresher, faster alternatives. To maintain its expensive staffing and restaurants, it would have to charge more – which commentators say is tough at a time when personal spending are tightening.

The managing director of Pizza Hut's international markets said the buyout aimed “to safeguard our customer service and protect jobs where possible”.

The executive stated its key goal was to maintain service at the open outlets and takeaway hubs and to support colleagues through the transition.

However with so much money going into operating its locations, it may be unable to allocate significant resources in its takeaway operation because the market is “complicated and working with existing delivery apps comes at a cost”, commentators say.

However, it's noted, cutting its costs by exiting crowded locations could be a smart move to evolve.

Brittany Bruce MD
Brittany Bruce MD

A logistics expert with over a decade of experience in global shipping and travel efficiency, passionate about simplifying complex processes.