How the Nation Lost Its Craving for the Pizza Hut Chain

In the past, the popular pizza chain was the top choice for groups and loved ones to feast on its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

But fewer diners are visiting the restaurant currently, and it is reducing half of its British restaurants after being rescued from insolvency for the second instance this calendar year.

I remember going Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she says “it's fallen out of favor.”

For young customer Martina, some of the very things Pizza Hut has been known and loved for since it started in the UK in the 1970s are now outdated.

“The way they do their all-you-can-eat and their salad bar, it seems as if they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”

As grocery costs have soared, Pizza Hut's buffet-style service has become increasingly pricey to maintain. As have its restaurants, which are being reduced from a large number to a smaller figure.

The company, like many others, has also seen its operating costs go up. In April this year, labor expenses rose due to higher minimum pay and an higher rate of employer national insurance contributions.

Two diners say they used to go at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “very overpriced”.

Depending on your selection, Pizza Hut and Domino's costs are similar, notes a culinary author.

Even though Pizza Hut has off-premise options through external services, it is missing out to big rivals which solely cater to this market.

“Another pizza company has taken over the takeaway pizza sector thanks to intensive advertising and frequent offers that make customers feel like they're finding a good deal, when in reality the original prices are on the higher side,” notes the specialist.

But for the couple it is justified to get their special meal sent directly.

“We predominantly have meals at home now more than we eat out,” comments one of the diners, matching recent statistics that show a decline in people visiting informal dining spots.

During the summer months, quick-service eateries saw a notable decrease in diners compared to the previous year.

Moreover, one more competitor to pizza from eateries: the supermarket pizza.

A hospitality expert, senior partner at an advisory group, explains that not only have grocery stores been selling premium oven-ready pizzas for years – some are even selling pizza-making appliances.

“Shifts in habits are also playing a factor in the popularity of fast-food chains,” states the expert.

The rising popularity of low-carb regimens has boosted sales at poultry outlets, while reducing sales of high-carbohydrate options, he continues.

Since people dine out not as often, they may seek out a more premium experience, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more dated than luxurious.

The rise of artisanal pizza places” over the last several years, for example popular brands, has “dramatically shifted the general opinion of what quality pizza is,” notes the food expert.

“A thin, flavorful, gentle crust with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she comments.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“The decision is simple.”
Dan Puddle, who operates a pizza van based in Suffolk says: “It's not that fallen out of love with pizza – they just want improved value.”

The owner says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with changing preferences.

According to Pizzarova in Bristol, the proprietor says the pizza market is expanding but Pizza Hut has neglected to introduce anything new.

“There are now individual slices, regional varieties, new haven, artisan base, traditional Italian, deep-dish – it's a heavenly minefield for a pie fan to explore.”

He says Pizza Hut “should transform” as the youth don't have any fond memories or allegiance to the company.

Over time, Pizza Hut's customer base has been fragmented and allocated to its more modern, agile rivals. To maintain its expensive staffing and restaurants, it would have to raise prices – which experts say is tough at a time when household budgets are decreasing.

The leadership of Pizza Hut's global operations said the acquisition aimed “to safeguard our guest experience and protect jobs where possible”.

He said its immediate priority was to keep running at the remaining 64 restaurants and takeaway hubs and to support colleagues through the transition.

Yet with large sums going into operating its locations, it probably cannot to spend heavily in its off-premise division because the sector is “complex and working with existing third-party platforms comes at a cost”, commentators say.

But, he adds, lowering overhead by exiting competitive urban areas could be a good way to adapt.

Thomas Hill
Thomas Hill

A seasoned digital marketer with over a decade of experience in SEO and content strategy, passionate about helping businesses thrive online.

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