How the Nation Turned Away from Its Taste 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 all-you-can-eat buffet, endless salad selection, and make-your-own dessert.

However fewer patrons are frequenting the restaurant these days, and it is shutting down 50% of its UK restaurants after being bought out of administration for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, as a young adult, she says “it's fallen out of favor.”

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

“The way they do their buffet and their salad bar, it seems as if they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How is that possible?’”

Because ingredient expenses have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. Similarly, its locations, which are being cut from over 130 to just over 60.

The chain, similar to other firms, has also experienced its operating costs go up. In April this year, employee wages rose due to increases in the legal wage floor and an rise in employer national insurance contributions.

Two diners mention they used to go at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “not good value”.

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

Although Pizza Hut provides takeaway and deliveries through external services, it is falling behind to major competitors which specialize to off-premise dining.

“Domino's has succeeded in leading the delivery market thanks to strong promotions and frequent offers that make consumers feel like they're getting a bargain, when in reality the original prices are quite high,” says the analyst.

Yet for the couple it is justified to get their evening together delivered to their door.

“We absolutely dine at home now instead of we eat out,” says Joanne, echoing recent statistics that show a decline in people going to casual and fast-food restaurants.

In the warmer season, casual and fast-food restaurants saw a notable decrease in customers compared to last summer.

There is also one more competitor to pizza from eateries: the supermarket pizza.

A hospitality expert, global lead for leisure at an advisory group, points out that not only have retailers been providing premium oven-ready pizzas for a long time – some are even selling pizza-making appliances.

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

The growing trend of high protein diets has boosted sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he adds.

As people visit restaurants more rarely, they may look for a more premium experience, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more dated than upmarket.

The “explosion of high-quality pizzerias” over the last 10 to 15 years, such as popular brands, has “completely altered the general opinion of what excellent pie is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she comments.
“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who owns Smokey Deez based in Suffolk comments: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”

The owner says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.

From the perspective of Pizzarova in a city in southwest England, owner Jack Lander says the pizza market is diversifying but Pizza Hut has not provided anything innovative.

“There are now by-the-slice options, regional varieties, New Haven-style, sourdough, wood-fired, Detroit – it's a delightful challenge for a pizza enthusiast to discover.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or loyalty to the company.

Over time, Pizza Hut's share has been fragmented and distributed to its more modern, agile rivals. To keep up its high labor and location costs, it would have to raise prices – which experts say is challenging at a time when family finances are tightening.

The managing director of Pizza Hut's overseas branches said the acquisition aimed “to protect our guest experience and retain staff where possible”.

He said its immediate priority was to maintain service at the remaining 64 restaurants and takeaway hubs and to help employees through the restructure.

But with large sums going into operating its locations, it likely can't afford to allocate significant resources in its takeaway operation because the industry is “difficult and using existing third-party platforms comes at a price”, commentators say.

Still, experts suggest, reducing expenses by leaving crowded locations could be a good way to adjust.

Brittney Evans
Brittney Evans

A passionate traveler and mindfulness coach, sharing insights from global adventures to inspire personal transformation.