Why the Country Turned Away from Its Taste for the Pizza Hut Chain

In the past, the popular pizza chain was the top choice for groups and loved ones to feast on its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

However not as many patrons are choosing the brand nowadays, and it is reducing a significant portion of its UK restaurants after being bought out of administration for the second occasion this year.

I remember going 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.” However, at present, aged 24, she states “it's fallen out of favor.”

For a diner in her twenties, the very elements Pizza Hut has been known and loved for since it opened in the UK in the mid-20th century are now outdated.

“The manner in which they do their all-you-can-eat and their salad station, it appears that they are lowering standards and have reduced quality... They provide so much food and you're like ‘How is that possible?’”

Since grocery costs have risen sharply, Pizza Hut's unlimited dining format has become very expensive to maintain. As have its restaurants, which are being reduced from 132 to 64.

The chain, in common with competitors, has also experienced its expenses rise. This spring, staffing costs increased due to higher minimum pay and an higher rate of employer taxes.

A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “very overpriced”.

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

Although Pizza Hut does offer pickup and delivery through external services, it is falling behind to larger chains which focus exclusively to off-premise dining.

“Domino's has succeeded in leading the delivery market thanks to strong promotions and constantly running deals that make consumers feel like they're saving money, when in reality the original prices are on the higher side,” explains the specialist.

However for Chris and Joanne it is justified to get their date night sent directly.

“We definitely eat at home now more than we eat out,” comments the female customer, reflecting latest data that show a decrease in people visiting informal dining spots.

In the warmer season, informal dining venues saw a six percent decline in diners compared to the year before.

Additionally, a further alternative to ordered-in pies: the supermarket pizza.

A hospitality expert, global lead for leisure at a major consultancy, explains that not only have supermarkets been selling premium ready-to-bake pizzas for years – some are even offering countertop ovens.

“Evolving preferences are also playing a factor in the success of quick-service brands,” comments Mr. Hawkley.

The rising popularity of low-carb regimens has increased sales at chicken shops, while hitting sales of high-carbohydrate options, he continues.

Since people go out to eat not as often, they may seek out a more upscale outing, and Pizza Hut's classic look with booth seating and traditional décor can feel more old-fashioned than upmarket.

The growth of artisanal pizza places” over the last decade and a half, including popular brands, has “dramatically shifted the consumer view of what quality pizza is,” explains the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's resulted in Pizza Hut's struggles,” she comments.
“What person would spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's an easy choice.”
An independent operator, who operates Smokey Deez based in a regional area comments: “It's not that lost interest in pizza – they just want improved value.”

Dan says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it could not keep up with changing preferences.

At Pizzarova in Bristol, the founder says the pizza market is diversifying but Pizza Hut has failed to offer anything new.

“You now have individual slices, regional varieties, new haven, fermented dough, traditional Italian, deep-dish – it's a heavenly minefield for a pizza-loving consumer to try.”

The owner says Pizza Hut “should transform” as the youth don't have any emotional connection or attachment to the company.

Over time, Pizza Hut's share has been divided and distributed to its trendier, more nimble alternatives. To sustain its expensive staffing and restaurants, it would have to charge more – which industry analysts say is tough at a time when personal spending are decreasing.

The managing director of Pizza Hut's international markets said the acquisition aimed “to safeguard our customer service and retain staff where possible”.

It was explained its immediate priority was to continue operating at the surviving locations and off-premise points and to help employees through the change.

Yet with so much money going into running its restaurants, it likely can't afford to invest too much in its delivery service because the market is “complex and partnering with existing delivery apps comes at a expense”, experts say.

Still, experts suggest, lowering overhead by withdrawing from competitive urban areas could be a good way to adapt.

Brian Jimenez
Brian Jimenez

A certified financial planner with over a decade of experience in helping individuals build wealth and secure their financial future.