How the Country Lost Interest in Its Appetite for the Pizza Hut Chain

In the past, the popular pizza chain was the favorite for parents and children to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.

Yet fewer customers are frequenting the restaurant currently, and it is shutting down 50% of its UK 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, aged 24, she comments “it's no longer popular.”

For a diner in her twenties, the very elements Pizza Hut has been famous for since it launched in the UK in the 1970s are now not-so-hot.

“The way they do their buffet and their salad station, it appears that they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How can they?’”

Since food prices have increased significantly, Pizza Hut's buffet-style service has become very expensive to maintain. The same goes for its locations, which are being sliced from 132 to 64.

The company, similar to other firms, has also experienced its expenses go up. In April this year, staffing costs jumped 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 get delivery from a rival chain and think Pizza Hut is “very overpriced”.

Depending on your selection, Pizza Hut and Domino's prices are close, says a food expert.

Even though Pizza Hut provides takeaway and deliveries through third-party apps, it is falling behind to major competitors which focus exclusively to off-premise dining.

“The rival chain has taken over the takeaway pizza sector thanks to aggressive marketing and frequent offers that make consumers feel like they're saving money, when in reality the base costs are quite high,” notes the specialist.

Yet for the couple it is worth it to get their date night sent directly.

“We definitely eat at home now rather than we eat out,” says the female customer, reflecting latest data that show a drop in people visiting casual and fast-food restaurants.

Over the summer, quick-service eateries saw a six percent decline in diners compared to the previous year.

Moreover, a further alternative to pizza from eateries: the supermarket pizza.

An industry leader, global lead for leisure at a leading firm, points out that not only have retailers been providing premium prepared pies for quite a while – some are even offering home-pizza ovens.

“Evolving preferences are also contributing in the performance of quick-service brands,” says Mr. Hawkley.

The rising popularity of high protein diets has driven sales at chicken shops, while affecting sales of carb-heavy pizza, he adds.

Since people visit restaurants not as often, they may prefer a more upscale outing, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more retro than upmarket.

The “explosion of high-quality pizzerias” over the last 10 to 15 years, including popular brands, has “dramatically shifted the public's perception of what excellent pie is,” explains the culinary analyst.

“A thin, flavorful, gentle crust with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,” she says.

“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many real Italian restaurants around the country?

“The decision is simple.”

A mobile pizza vendor, who operates a small business based in a county in England explains: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

The owner says his adaptable business can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it was unable to evolve with new customer habits.

According to Pizzarova in a UK location, owner Jack Lander says the pizza market is diversifying but Pizza Hut has not provided anything innovative.

“Currently available are slice concepts, London pizza, New Haven-style, artisan base, traditional Italian, deep-dish – it's a heavenly minefield for a pizza enthusiast to discover.”

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

Gradually, Pizza Hut's market has been fragmented and spread to its fresher, faster alternatives. To keep up its costly operations, it would have to charge more – which commentators say is difficult at a time when household budgets are shrinking.

The managing director of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and save employment where possible”.

It was explained its immediate priority was to continue operating at the surviving locations and delivery sites and to support colleagues through the change.

Yet with significant funds going into maintaining its outlets, it probably cannot to allocate significant resources in its delivery service because the industry is “complex and working with existing delivery apps comes at a price”, experts say.

However, it's noted, reducing expenses by leaving crowded locations could be a smart move to adjust.