How the Nation Lost Interest in Its Taste for Pizza Hut

Once, Pizza Hut was the favorite for groups and loved ones to feast on its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.

Yet a declining number of customers are visiting the brand currently, and it is closing a significant portion of its British locations after being bought out of administration for the second time this calendar 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 – turn it into an event.” However, at present, in her mid-twenties, she comments “it's fallen out of favor.”

For 23-year-old Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the seventies are now outdated.

“The way they do their buffet and their salad bar, it seems as if they are lowering standards and have inferior offerings... They offer so much food and you're like ‘How?’”

Since grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. Similarly, its locations, which are being reduced from a large number to a smaller figure.

The business, similar to other firms, has also faced its expenses rise. In April this year, staffing costs jumped due to rises in minimum wages and an rise in employer national insurance contributions.

A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.

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

Even though Pizza Hut does offer takeaway and deliveries through third-party apps, it is falling behind to major competitors which specialize to the delivery sector.

“Domino's has succeeded in leading the off-premise pizza industry thanks to intensive advertising and frequent offers that make customers feel like they're getting a bargain, when in reality the standard rates are quite high,” says the analyst.

Yet for Chris and Joanne it is worth it to get their evening together brought to their home.

“We absolutely dine at home now more than we eat out,” comments one of the diners, matching current figures that show a drop in people frequenting casual and fast-food restaurants.

In the warmer season, informal dining venues saw a 6% drop in customers compared to the year before.

Moreover, one more competitor to pizza from eateries: the supermarket pizza.

Will Hawkley, global lead for leisure at an advisory group, notes that not only have grocery stores been offering good-standard prepared pies for quite a while – some are even promoting home-pizza ovens.

“Lifestyle changes are also contributing in the success of quick-service brands,” says the analyst.

The increased interest of low-carb regimens has boosted sales at poultry outlets, while reducing sales of dough-based meals, he continues.

Since people go out to eat more rarely, they may look for a more upscale outing, and Pizza Hut's retro theme with vinyl benches and red and white checked plastic table cloths can feel more old-fashioned than premium.

The “explosion of high-quality pizzerias” over the last 10 to 15 years, such as popular brands, has “fundamentally changed the public's perception of what quality pizza is,” explains the food expert.

“A thin, flavorful, gentle crust with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she comments.

“Who would choose to spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many real Italian restaurants around the country?

“It's an easy choice.”

Dan Puddle, who owns a small business based in a county in England comments: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”

He says his flexible operation can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it could not keep up with changing preferences.

From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the sector is broadening but Pizza Hut has failed to offer anything new.

“You now have individual slices, regional varieties, New Haven-style, sourdough, wood-fired, Detroit – it's a delightful challenge for a pie fan to try.”

Jack says Pizza Hut “should transform” as the youth don't have any fond memories or attachment to the brand.

Gradually, Pizza Hut's share has been divided and spread to its more modern, agile alternatives. To sustain its costly operations, it would have to charge more – which industry analysts say is challenging at a time when family finances are tightening.

The leadership of Pizza Hut's global operations said the acquisition aimed “to safeguard our guest experience and retain staff where possible”.

It was explained its first focus was to maintain service at the remaining 64 restaurants and takeaway hubs and to assist staff through the transition.

However with so much money going into operating its locations, it likely can't afford to allocate significant resources in its off-premise division because the sector is “complicated and working with existing delivery apps comes at a price”, commentators say.

However, it's noted, reducing expenses by leaving competitive urban areas could be a good way to evolve.