Why the Nation Lost Interest in Its Taste for Pizza Hut

At one time, Pizza Hut was the favorite for families and friends to indulge in its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

But a declining number of diners are choosing the chain nowadays, and it is closing a significant portion of its UK locations after being acquired following financial trouble for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's no longer popular.”

For a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the seventies are now less appealing.

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

Because ingredient expenses have soared, Pizza Hut's buffet-style service has become increasingly pricey to operate. Similarly, its locations, which are being reduced from 132 to just over 60.

The chain, similar to other firms, has also seen its expenses increase. Earlier this year, staffing costs jumped due to increases in the legal wage floor and an rise in employer taxes.

Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.

Based on your order, Pizza Hut and Domino's prices are comparable, notes a food expert.

While Pizza Hut does offer off-premise options through delivery platforms, it is missing out to big rivals which focus exclusively to this market.

“Another pizza company has taken over the takeaway pizza sector thanks to strong promotions and frequent offers that make consumers feel like they're saving money, when in reality the standard rates are quite high,” says the specialist.

However for the couple it is justified to get their evening together brought to their home.

“We definitely eat at home now instead of we eat out,” comments one of the diners, echoing current figures that show a drop in people frequenting quick-service eateries.

Over the summer, casual and fast-food restaurants saw a 6% drop in customers compared to the previous year.

Additionally, one more competitor to pizza from eateries: the cook-at-home oven pizza.

Will Hawkley, global lead for leisure at a leading firm, notes that not only have supermarkets been providing high-quality ready-to-bake pizzas for a long time – some are even selling countertop ovens.

“Lifestyle changes are also contributing in the performance of fast-food chains,” says the expert.

The increased interest of low-carb regimens has driven sales at poultry outlets, while affecting sales of carb-heavy pizza, he notes.

As people visit restaurants not as often, they may look for a more premium experience, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more dated than premium.

The “explosion of premium pizza outlets” over the last several years, including boutique chains, has “fundamentally changed the consumer view of what good pizza is,” says the industry commentator.

“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's decline,” she says.

“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a chain when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

An independent operator, who runs a pizza van based in a regional area explains: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.

At Pizzarova in a UK location, owner Jack Lander says the pizza market is expanding but Pizza Hut has failed to offer anything fresh.

“You now have slice concepts, regional varieties, new haven, fermented dough, Neapolitan, Detroit – it's a delightful challenge for a pie fan to try.”

Jack says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or loyalty to the chain.

In recent years, Pizza Hut's share has been fragmented and allocated to its fresher, faster alternatives. To keep up its costly operations, it would have to raise prices – which industry analysts say is tough at a time when household budgets are decreasing.

The leadership of Pizza Hut's global operations said the acquisition aimed “to ensure our guest experience and save employment where possible”.

It was explained its key goal was to keep running at the open outlets and off-premise points and to help employees through the transition.

However with large sums going into operating its locations, it probably cannot to invest too much in its delivery service because the sector is “difficult and using existing delivery apps comes at a price”, experts say.

Still, experts suggest, cutting its costs by exiting oversaturated towns and city centres could be a good way to evolve.