Why the Nation Lost Interest in Its Taste for Pizza Hut

At one time, the popular pizza chain was the favorite for families and friends to enjoy its all-you-can-eat buffet, help-yourself greens station, and self-serve ice-cream.

But fewer customers are frequenting the chain nowadays, and it is closing half of its British outlets after being rescued from insolvency for the second occasion this year.

“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she comments “it's not a thing anymore.”

For 23-year-old Martina, certain features Pizza Hut has been recognized for since it started in the UK in the 1970s are now less appealing.

“How they do their buffet and their salad station, it seems as if they are lowering standards and have reduced quality... They provide so much food and you're like ‘How can they?’”

As grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to run. Similarly, its restaurants, which are being sliced from a large number to just over 60.

The company, similar to other firms, has also seen its operating costs increase. Earlier this year, staffing costs increased due to higher minimum pay and an increase in employer social security payments.

Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “from time to time”, but now they choose Domino's and think Pizza Hut is “not good value”.

Depending on your order, Pizza Hut and Domino's rates are close, explains an industry analyst.

Even though Pizza Hut does offer takeaway and deliveries through delivery platforms, it is losing out to major competitors which specialize to off-premise dining.

“The rival chain has managed to dominate the delivery market thanks to aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the original prices are quite high,” explains the expert.

However for the couple it is justified to get their date night delivered to their door.

“We predominantly have meals at home now instead of we eat out,” says the female customer, matching recent statistics that show a decrease in people going to casual and fast-food restaurants.

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

There is also another rival to ordered-in pies: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at a leading firm, notes that not only have retailers been selling high-quality ready-to-bake pizzas for quite a while – some are even selling countertop ovens.

“Lifestyle changes are also contributing in the popularity of fast-food chains,” states the analyst.

The rising popularity of protein-rich eating plans has boosted sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he adds.

As people go out to eat not as often, they may look for a more upscale outing, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more retro than upmarket.

The growth of high-quality pizzerias” over the last several years, for example popular brands, has “dramatically shifted the general opinion of what excellent pie is,” notes the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's led to Pizza Hut's downfall,” she states.

“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

Dan Puddle, who runs a small business based in a regional area says: “People haven’t fallen out of love with pizza – they just want improved value.”

Dan says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it failed to adapt with evolving tastes.

According to Pizzarova in a city in southwest England, owner Jack Lander says the industry is diversifying but Pizza Hut has not provided anything fresh.

“You now have slice concepts, artisanal styles, new haven, fermented dough, wood-fired, rectangular – it's a wonderful array for a pizza-loving consumer to explore.”

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

In recent years, Pizza Hut's customer base has been divided and distributed to its fresher, faster alternatives. To sustain its high labor and location costs, it would have to raise prices – which industry analysts say is difficult at a time when personal spending are decreasing.

The managing director of Pizza Hut's international markets said the rescue aimed “to ensure our guest experience and retain staff where possible”.

It was explained its key goal was to maintain service at the remaining 64 restaurants and delivery sites and to help employees through the transition.

However with significant funds going into operating its locations, it likely can't afford to spend heavily in its off-premise division because the industry is “difficult and using existing external services comes at a cost”, commentators say.

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