How the Country Lost Interest in Its Craving for Pizza Hut
In the past, Pizza Hut was the go-to for parents and children to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.
However a declining number of diners are frequenting the restaurant nowadays, and it is closing half of its UK outlets after being rescued from insolvency for the second instance this year.
“We used to go Pizza Hut when I was a child,” says a young adult. “It was a regular outing, you'd go on a Sunday – make a day of it.” But now, aged 24, she comments “it's fallen out of favor.”
According to a diner in her twenties, some of the very things Pizza Hut has been famous for since it started in the UK in the mid-20th century are now outdated.
“How they do their all-you-can-eat and their salad station, it appears that they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How?’”
Because ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become very expensive to operate. Similarly, its locations, which are being cut from over 130 to just over 60.
The business, like many others, has also experienced its costs rise. Earlier this year, staffing costs jumped due to higher minimum pay and an rise in employer taxes.
Chris, 36, and Joanne, 29 say they frequently dined 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”.
Based on your order, Pizza Hut and Domino's costs are comparable, notes an industry analyst.
Although Pizza Hut does offer off-premise options through third-party apps, it is losing out to larger chains which specialize to off-premise dining.
“Domino's has succeeded in leading the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the original prices are on the higher side,” explains the specialist.
However for the couple it is acceptable to get their evening together delivered to their door.
“We predominantly have meals at home now instead of we eat out,” says the female customer, matching current figures that show a decrease in people going to casual and fast-food restaurants.
During the summer months, quick-service eateries saw a six percent decline in diners compared to the year before.
Additionally, one more competitor to ordered-in pies: the supermarket pizza.
A hospitality expert, senior partner at an advisory group, points out that not only have grocery stores been selling premium prepared pies for a long time – some are even promoting pizza-making appliances.
“Shifts in habits are also playing a factor in the performance of casual eateries,” says the analyst.
The growing trend of low-carb regimens has driven sales at poultry outlets, while reducing sales of carb-heavy pizza, he continues.
Because people dine out more rarely, they may prefer a more upscale outing, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more old-fashioned than upmarket.
The growth of high-quality pizzerias” over the last decade and a half, including popular brands, has “dramatically shifted the general opinion of what excellent pie is,” notes the culinary analyst.
“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 struggles,” she says.
“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
Dan Puddle, who owns a small business based in a regional area comments: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”
Dan says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.
According to Pizzarova in Bristol, the founder says the pizza market is broadening but Pizza Hut has not provided anything new.
“Currently available are slice concepts, London pizza, new haven, artisan base, wood-fired, Detroit – it's a heavenly minefield for a pizza enthusiast to try.”
The owner says Pizza Hut “must rebrand” as younger people 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 more modern, agile competitors. To maintain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is challenging at a time when family finances are decreasing.
A senior executive of Pizza Hut's overseas branches said the buyout aimed “to ensure our dining experience and retain staff where possible”.
He said its key goal was to continue operating at the remaining 64 restaurants and delivery sites and to assist staff through the transition.
Yet with large sums going into maintaining its outlets, it probably cannot to invest too much in its delivery service because the industry is “difficult and partnering with existing third-party platforms comes at a expense”, commentators say.
But, he adds, cutting its costs by leaving crowded locations could be a good way to adjust.