How the Nation Turned Away from Its Appetite for the Pizza Hut Chain

In the past, the popular pizza chain was the go-to for families and friends to feast on its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.

Yet not as many diners are choosing the chain nowadays, and it is closing a significant portion of its UK locations after being rescued from insolvency for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, as a young adult, she says “it's no longer popular.”

According to 23-year-old Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now not-so-hot.

“The way they do their buffet and their salad station, it appears that they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How can they?’”

As grocery costs have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. As have its locations, which are being reduced from a large number to a smaller figure.

The company, like many others, has also experienced its expenses increase. This spring, labor expenses increased due to higher minimum pay and an higher rate of employer social security payments.

Two diners explain they frequently dined at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

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

While Pizza Hut has off-premise options through external services, it is missing out to big rivals which solely cater to the delivery sector.

“The rival chain has taken over the takeaway pizza sector thanks to strong promotions and constantly running deals that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” explains the specialist.

Yet for Chris and Joanne it is worth it to get their special meal brought to their home.

“We predominantly have meals at home now rather than we eat out,” comments Joanne, matching recent statistics that show a decrease in people visiting quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a six percent decline in diners compared to last summer.

There is also another rival to restaurant and takeaway pizzas: the frozen or fresh pizza.

Will Hawkley, senior partner at a leading firm, notes that not only have grocery stores been providing premium prepared pies for a long time – some are even offering home-pizza ovens.

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

The increased interest of protein-rich eating plans has boosted sales at chicken shops, while affecting sales of high-carbohydrate options, he notes.

Since people go out to eat not as often, they may prefer a more upscale outing, and Pizza Hut's retro theme with vinyl benches and red and white checked plastic table cloths can feel more retro than premium.

The “explosion of artisanal pizza places” over the last decade and a half, for example popular brands, has “fundamentally changed the general opinion of what good pizza is,” notes the culinary analyst.

“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 resulted in Pizza Hut's decline,” she states.
“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
A mobile pizza vendor, who operates Smokey Deez based in a regional area comments: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

He says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it failed to adapt with changing preferences.

From the perspective of a small pizza brand in Bristol, owner Jack Lander says the pizza market is expanding but Pizza Hut has failed to offer anything new.

“There are now by-the-slice options, artisanal styles, new haven, fermented dough, Neapolitan, Detroit – it's a heavenly minefield for a pizza enthusiast to try.”

He says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or allegiance to the brand.

Gradually, Pizza Hut's market has been divided and distributed to its more modern, agile competitors. To maintain its costly operations, it would have to raise prices – which commentators say is tough at a time when family finances are decreasing.

The managing director of Pizza Hut's global operations said the rescue aimed “to safeguard our dining experience and retain staff where possible”.

The executive stated its key goal was to continue operating at the surviving locations and takeaway hubs and to support colleagues through the transition.

However with significant funds going into operating its locations, it probably cannot to spend heavily in its takeaway operation because the market is “complex and using existing external services comes at a cost”, commentators say.

Still, experts suggest, reducing expenses by withdrawing from competitive urban areas could be a effective strategy to adapt.

Brittany Goodwin
Brittany Goodwin

A seasoned digital marketer with over a decade of experience in SEO and content strategy, passionate about driving measurable results for clients.