Why the Nation Lost Its Appetite for the Pizza Hut Chain

In the past, Pizza Hut was the favorite for groups and loved ones to indulge in its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

However a declining number of diners are choosing the brand these days, and it is shutting down half of its UK restaurants after being acquired following financial trouble for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she states “it's no longer popular.”

For young customer Martina, the very elements Pizza Hut has been recognized for since it launched in the UK in the seventies are now less appealing.

“The manner in which they do their buffet and their salad station, it seems as if they are cutting corners and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

Since food prices have soared, Pizza Hut's buffet-style service has become increasingly pricey to maintain. The same goes for its restaurants, which are being cut from a large number to 64.

The company, like many others, has also experienced its operating costs go up. This spring, labor expenses increased due to rises in minimum wages and an increase in employer social security payments.

Two diners explain they used to go at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.

According to your order, Pizza Hut and Domino's rates are similar, says a food expert.

While Pizza Hut provides takeaway and deliveries through external services, it is falling behind to major competitors which focus exclusively to off-premise dining.

“Another pizza company has succeeded in leading the delivery market 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,” says the expert.

But for these customers it is justified to get their special meal sent directly.

“We predominantly have meals at home now instead of we eat out,” comments Joanne, reflecting current figures that show a drop in people frequenting casual and fast-food restaurants.

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

Moreover, one more competitor to pizza from eateries: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at an advisory group, notes that not only have supermarkets been selling premium prepared pies for years – some are even promoting countertop ovens.

“Lifestyle changes are also contributing in the popularity of quick-service brands,” comments Mr. Hawkley.

The growing trend of high protein diets has boosted sales at chicken shops, while affecting sales of carb-heavy pizza, he notes.

Since people go out to eat more rarely, they may look for a more high-quality meal, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more dated than upmarket.

The growth of high-quality pizzerias” over the last 10 to 15 years, such as boutique chains, has “fundamentally changed the consumer view of what excellent pie is,” explains the food expert.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she says.
“What person would spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who operates Smokey Deez based in a regional area says: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”

He says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with evolving tastes.

At an independent chain in a city in southwest England, the founder says the industry is expanding but Pizza Hut has neglected to introduce anything new.

“Currently available are by-the-slice options, London pizza, new haven, sourdough, Neapolitan, rectangular – it's a wonderful array for a pizza enthusiast to discover.”

He says Pizza Hut “must rebrand” as younger people don't have any sense of nostalgia or allegiance to the brand.

In recent years, Pizza Hut's share has been divided and allocated to its trendier, more nimble alternatives. To keep up its costly operations, it would have to increase costs – which industry analysts say is tough at a time when family finances are shrinking.

A senior executive of Pizza Hut's overseas branches said the rescue aimed “to protect our guest experience and protect jobs where possible”.

The executive stated its first focus was to maintain service at the surviving locations and takeaway hubs and to assist staff through the change.

But with so much money going into maintaining its outlets, it may be unable to spend heavily in its delivery service because the market is “complicated and using existing third-party platforms comes at a cost”, commentators say.

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

William Thompson
William Thompson

A seasoned crypto trader with over a decade of experience, specializing in technical analysis and signal generation.