How the Nation Turned Away from Its Appetite for Pizza Hut

At one time, Pizza Hut was the favorite for families and friends to enjoy its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.

But fewer patrons are frequenting the chain these days, and it is shutting down a significant portion of its British locations after being rescued from insolvency for the second occasion this calendar year.

“We used to go Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she comments “it's no longer popular.”

In the view of 23-year-old Martina, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the seventies are now outdated.

“The way they do their buffet and their salad bar, it appears that they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How?’”

Since food prices have risen sharply, Pizza Hut's unlimited dining format has become quite costly to maintain. Similarly, its outlets, which are being cut from a large number to just over 60.

The chain, similar to other firms, has also seen its expenses rise. This spring, labor expenses jumped due to increases in the legal wage floor and an rise in employer national insurance contributions.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

Based on your selection, Pizza Hut and Domino's prices are comparable, notes an industry analyst.

Even though Pizza Hut does offer takeaway and deliveries through delivery platforms, it is losing out to major competitors which focus exclusively to the delivery sector.

“Another pizza company has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and frequent offers that make shoppers feel like they're finding a good deal, when in reality the standard rates are relatively expensive,” says the specialist.

Yet for the couple it is acceptable to get their date night delivered to their door.

“We absolutely dine at home now instead of we eat out,” explains one of the diners, reflecting latest data that show a decline in people frequenting informal dining spots.

During the summer months, informal dining venues saw a six percent decline in customers compared to the year before.

There is also one more competitor to pizza from eateries: the cook-at-home oven pizza.

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

“Lifestyle changes are also contributing in the success of quick-service brands,” comments the expert.

The growing trend of low-carb regimens has increased sales at grilled chicken brands, while reducing sales of dough-based meals, he continues.

Since people dine out less frequently, they may look for a more upscale outing, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than premium.

The growth of artisanal pizza places” over the last 10 to 15 years, including popular brands, has “fundamentally changed the general opinion of what good pizza is,” says the industry commentator.

“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 decline,” she states.
“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
An independent operator, who runs a small business based in a county in England explains: “People haven’t stopped liking pizza – they just want higher quality at a fair price.”

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

According to an independent chain in Bristol, the proprietor says the pizza market is expanding but Pizza Hut has failed to offer anything innovative.

“Currently available are individual slices, regional varieties, New Haven-style, sourdough, traditional Italian, deep-dish – it's a heavenly minefield for a pizza-loving consumer to explore.”

Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or allegiance to the chain.

In recent years, Pizza Hut's market has been sliced up and allocated to its fresher, faster alternatives. To sustain its high labor and location costs, it would have to raise prices – which industry analysts say is tough at a time when household budgets are decreasing.

A senior executive of Pizza Hut's overseas branches said the rescue aimed “to protect our customer service and retain staff where possible”.

It was explained its key goal was to keep running at the surviving locations and off-premise points and to help employees through the restructure.

But with large sums going into running its restaurants, it likely can't afford to allocate significant resources in its takeaway operation because the industry is “complicated and partnering with existing delivery apps comes at a expense”, experts say.

However, it's noted, lowering overhead by leaving oversaturated towns and city centres could be a effective strategy to adapt.

Heather Schultz
Heather Schultz

Tech enthusiast and writer with a passion for exploring how innovation shapes our future, sharing insights from years of industry experience.