How the Nation Lost Interest in Its Craving for Pizza Hut

In the past, the popular pizza chain was the go-to for parents and children to indulge in its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.

However a declining number of diners are visiting the restaurant nowadays, and it is reducing 50% of its UK outlets after being bought out of administration for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” explains Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, in her mid-twenties, she comments “it's fallen out of favor.”

In the view of young customer Martina, certain features Pizza Hut has been famous for since it opened in the UK in the seventies are now not-so-hot.

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

Since grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become very expensive to run. As have its locations, which are being cut from 132 to a smaller figure.

The chain, similar to other firms, has also faced its expenses go up. In April this year, staffing costs rose due to increases in the legal wage floor and an increase in employer social security payments.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “not good value”.

Based on your choices, Pizza Hut and Domino's costs are similar, says an industry analyst.

Although Pizza Hut provides pickup and delivery through third-party apps, it is falling behind to big rivals which specialize to the delivery sector.

“Another pizza company has taken over the delivery market thanks to strong promotions and constantly running deals that make customers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” says the specialist.

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

“We definitely eat at home now instead of we eat out,” comments Joanne, reflecting recent statistics that show a drop in people visiting quick-service eateries.

During the summer months, quick-service eateries saw a six percent decline in diners compared to last summer.

Moreover, another rival to ordered-in pies: the frozen or fresh pizza.

An industry leader, global lead for leisure at a major consultancy, notes that not only have supermarkets been selling good-standard prepared pies for a long time – some are even selling home-pizza ovens.

“Shifts in habits are also having an impact in the success of casual eateries,” says the expert.

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

Because people dine out more rarely, they may seek out a more upscale outing, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more old-fashioned than premium.

The growth of high-quality pizzerias” over the last 10 to 15 years, such as popular brands, has “completely altered the general opinion of what excellent pie is,” notes the culinary analyst.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's caused Pizza Hut's struggles,” she states.

“Who would choose to spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for under a tenner at one of the many traditional pizzerias around the country?

“It's an easy choice.”

An independent operator, who owns a pizza van based in Suffolk comments: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

He says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with new customer habits.

At a small pizza brand in Bristol, the founder says the pizza market is broadening but Pizza Hut has failed to offer anything innovative.

“There are now individual slices, London pizza, New Haven-style, artisan base, wood-fired, rectangular – it's a delightful challenge for a pizza enthusiast to explore.”

Jack says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or allegiance to the chain.

In recent years, Pizza Hut's market has been fragmented and distributed to its fresher, faster alternatives. To keep up its costly operations, it would have to increase costs – which industry analysts say is tough at a time when personal spending are tightening.

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

He said its first focus was to maintain service at the open outlets and delivery sites and to help employees through the restructure.

Yet with significant funds going into operating its locations, it likely can't afford to allocate significant resources in its off-premise division because the sector is “difficult and partnering with existing third-party platforms comes at a expense”, analysts say.

However, it's noted, lowering overhead by leaving crowded locations could be a effective strategy to adapt.