Why the Nation Turned Away from Its Appetite for Pizza Hut

At one time, Pizza Hut was the go-to for groups and loved ones to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

But a declining number of diners are choosing the brand these days, and it is closing a significant portion of its UK restaurants after being bought out of administration for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she says “it's fallen out of favor.”

According to young customer Martina, the very elements Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now outdated.

“The manner in which they do their buffet and their salad bar, it feels like they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How?’”

Because ingredient expenses have soared, Pizza Hut's buffet-style service has become increasingly pricey to operate. Similarly, its outlets, which are being sliced from over 130 to just over 60.

The company, like many others, has also faced its costs rise. This spring, labor expenses increased due to rises in minimum wages and an higher rate of employer social security payments.

A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “too expensive”.

According to your order, Pizza Hut and Domino's prices are close, notes a culinary author.

Although Pizza Hut has off-premise options through delivery platforms, it is missing out to larger chains which solely cater to this market.

“Domino's has taken over the delivery market thanks to intensive advertising and constantly running deals that make consumers feel like they're saving money, when in reality the standard rates are relatively expensive,” notes the analyst.

But for these customers it is justified to get their special meal brought to their home.

“We predominantly have meals at home now instead of we eat out,” says Joanne, echoing latest data that show a decline in people frequenting informal dining spots.

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.

A hospitality expert, head of leisure and hospitality at an advisory group, explains that not only have supermarkets been offering high-quality ready-to-bake pizzas for a long time – some are even selling pizza-making appliances.

“Lifestyle changes are also having an impact in the success of quick-service brands,” says Mr. Hawkley.

The increased interest of high protein diets has driven sales at poultry outlets, while hitting sales of high-carbohydrate options, he continues.

Since people go out to eat less frequently, they may look for a more premium experience, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more dated than luxurious.

The rise of artisanal pizza places” over the last 10 to 15 years, including popular brands, has “completely altered the public's perception of what excellent pie is,” says the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she comments.

“What person would spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many traditional pizzerias around the country?

“It's a no-brainer.”

Dan Puddle, who runs Smokey Deez based in a regional area comments: “It's not that lost interest in pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with changing preferences.

From the perspective of an independent chain in Bristol, the proprietor says the sector is broadening but Pizza Hut has not provided anything fresh.

“You now have slice concepts, artisanal styles, New Haven-style, sourdough, traditional Italian, rectangular – it's a heavenly minefield for a pizza enthusiast to explore.”

He says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or loyalty to the chain.

Gradually, Pizza Hut's customer base has been fragmented and allocated to its fresher, faster rivals. To maintain its high labor and location costs, it would have to increase costs – which industry analysts say is difficult at a time when household budgets are shrinking.

The managing director of Pizza Hut's overseas branches said the rescue aimed “to safeguard our dining experience and retain staff where possible”.

It was explained its first focus was to continue operating at the remaining 64 restaurants and takeaway hubs and to assist staff through the change.

Yet with so much money going into running its restaurants, it likely can't afford to spend heavily in its takeaway operation because the sector is “difficult and working with existing delivery apps comes at a price”, experts say.

However, it's noted, lowering overhead by exiting crowded locations could be a good way to adjust.