How the Nation Lost Interest in Its Craving for the Pizza Hut Chain

In the past, the popular pizza chain was the top choice for families and friends to feast on its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

Yet not as many diners are choosing the chain nowadays, and it is reducing half of its British outlets after being bought out of administration for the second instance this 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 – spend the whole day there.” But now, in her mid-twenties, she says “it's not a thing anymore.”

According to 23-year-old Martina, the very elements Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now not-so-hot.

“The way they do their all-you-can-eat and their salad bar, it appears that they are cutting corners and have lower standards... They provide so much food and you're like ‘How can they?’”

Because grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to operate. Similarly, its outlets, which are being reduced from over 130 to just over 60.

The business, like many others, has also faced its costs increase. Earlier this year, employee wages rose due to rises in minimum wages and an higher rate of employer taxes.

Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “very overpriced”.

According to your choices, Pizza Hut and Domino's prices are similar, notes an industry analyst.

While Pizza Hut provides takeaway and deliveries through delivery platforms, it is losing out to larger chains which solely cater to off-premise dining.

“Domino's has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” explains the analyst.

However for the couple it is worth it to get their evening together brought to their home.

“We absolutely dine at home now more than we eat out,” says one of the diners, echoing latest data that show a decline in people going to quick-service eateries.

During the summer months, informal dining venues saw a 6% drop in diners compared to the previous year.

There is also a further alternative to pizza from eateries: the supermarket pizza.

Will Hawkley, global lead for leisure at a major consultancy, notes that not only have retailers been providing high-quality ready-to-bake pizzas for quite a while – some are even promoting pizza-making appliances.

“Shifts in habits are also having an impact in the success of fast-food chains,” comments Mr. Hawkley.

The increased interest of low-carb regimens has driven sales at grilled chicken brands, while affecting sales of dough-based meals, he continues.

Because people go out to eat not as often, they may prefer a more premium experience, and Pizza Hut's American-diner style with booth seating and nostalgic table settings can feel more old-fashioned than premium.

The rise of premium pizza outlets” over the last 10 to 15 years, including boutique chains, has “completely altered the general opinion of what quality pizza is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she comments.

“Who would choose to spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared 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 Suffolk comments: “The issue isn’t that lost interest in pizza – they just want improved value.”

He says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.

According to a small pizza brand in Bristol, owner Jack Lander says the industry is broadening but Pizza Hut has failed to offer anything innovative.

“You now have slice concepts, regional varieties, new haven, artisan base, traditional Italian, deep-dish – it's a heavenly minefield for a pizza-loving consumer to discover.”

The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any emotional connection or allegiance to the company.

In recent years, Pizza Hut's share has been sliced up and allocated to its fresher, faster alternatives. To keep up its expensive staffing and restaurants, it would have to charge more – which industry analysts say is tough at a time when family finances are tightening.

The leadership of Pizza Hut's global operations said the acquisition aimed “to ensure our customer service and protect jobs where possible”.

It was explained its first focus was to continue operating at the remaining 64 restaurants and delivery sites and to support colleagues through the restructure.

Yet with so much money going into operating its locations, it may be unable to allocate significant resources in its delivery service because the sector is “difficult and partnering with existing external services comes at a expense”, analysts say.

Still, experts suggest, reducing expenses by withdrawing from oversaturated towns and city centres could be a good way to evolve.