How the Country Turned Away from Its Appetite for Pizza Hut

Once, Pizza Hut was the go-to for groups and loved ones to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.

But fewer patrons are visiting the brand currently, and it is closing 50% of its British restaurants after being rescued from insolvency for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she says “it's no longer popular.”

According to a diner in her twenties, certain features Pizza Hut has been famous for since it opened in the UK in the seventies are now outdated.

“The way they do their all-you-can-eat and their salad station, it seems as if they are cheapening on their quality and have lower standards... They're giving away so much food and you're like ‘How?’”

Since ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. Similarly, its locations, which are being reduced from over 130 to 64.

The chain, like many others, has also faced its costs go up. This spring, labor expenses increased due to increases in the legal wage floor and an rise in employer taxes.

Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's rates are similar, notes an industry analyst.

Even though Pizza Hut has takeaway and deliveries through third-party apps, it is losing out to big rivals which focus exclusively to off-premise dining.

“The rival chain has managed to dominate the delivery market thanks to aggressive marketing and constantly running deals that make consumers feel like they're getting a bargain, when in reality the original prices are relatively expensive,” notes the expert.

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

“We absolutely dine at home now instead of we eat out,” explains Joanne, matching latest data that show a decline in people visiting quick-service eateries.

In the warmer season, quick-service eateries saw a notable decrease in customers compared to the previous year.

Additionally, a further alternative to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at a major consultancy, explains that not only have retailers been providing premium oven-ready pizzas for years – some are even promoting home-pizza ovens.

“Evolving preferences are also playing a factor in the popularity of fast-food chains,” comments the expert.

The growing trend of low-carb regimens has boosted sales at poultry outlets, while hitting sales of carb-heavy pizza, he continues.

As people dine out not as often, they may seek out a more premium experience, and Pizza Hut's retro theme with comfortable booths and traditional décor can feel more retro than luxurious.

The “explosion of high-quality pizzerias” over the last decade and a half, for example popular brands, has “fundamentally changed the general opinion of what excellent pie is,” notes the industry commentator.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she states.
“What person would spend a high price on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?
“The decision is simple.”
An independent operator, who runs a small business based in a county in England comments: “People haven’t lost interest in pizza – they just want improved value.”

He says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.

From the perspective of an independent chain in a city in southwest England, the founder says the pizza market is broadening but Pizza Hut has failed to offer anything fresh.

“You now have individual slices, regional varieties, New Haven-style, artisan base, traditional Italian, rectangular – it's a wonderful array for a pie fan to try.”

He says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or loyalty to the company.

Gradually, Pizza Hut's customer base has been sliced up and spread to its more modern, agile 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 tightening.

The leadership of Pizza Hut's international markets said the rescue aimed “to safeguard our guest experience and retain staff where possible”.

The executive stated its key goal was to maintain service at the surviving locations and delivery sites and to support colleagues through the transition.

Yet 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 market is “complicated and working with existing delivery apps comes at a expense”, analysts say.

But, he adds, reducing expenses by leaving oversaturated towns and city centres could be a good way to adapt.

Daniel Cline
Daniel Cline

Travel enthusiast and hospitality expert with a passion for sharing authentic Italian experiences and luxury travel tips.