How the Country Turned Away from Its Craving for Pizza Hut

Once, Pizza Hut was the favorite for parents and children to feast on its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.

But fewer customers are choosing the chain currently, and it is closing half of its UK locations after being bought out of administration for the second occasion this calendar year.

It was common to visit Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, as a young adult, she says “it's not a thing anymore.”

According to a diner in her twenties, certain features Pizza Hut has been known and loved for since it launched in the UK in the seventies are now outdated.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 all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

Since food prices have soared, Pizza Hut's unlimited dining format has become quite costly to run. As have its restaurants, which are being sliced from a large number to 64.

The company, similar to other firms, has also faced its expenses go up. Earlier this year, labor expenses jumped due to higher minimum pay and an increase in employer taxes.

A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

According to your selection, Pizza Hut and Domino's rates are close, says an industry analyst.

Even though Pizza Hut does offer off-premise options through third-party apps, it is falling behind to major competitors which specialize to this market.

“Domino's has succeeded in leading the delivery market thanks to strong promotions and frequent offers that make consumers feel like they're saving money, when in reality the base costs are quite high,” says the expert.

Yet for these customers it is justified to get their special meal delivered to their door.

“We definitely eat at home now rather than we eat out,” explains Joanne, reflecting current figures that show a decline in people visiting casual and fast-food restaurants.

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

There is also one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.

An industry leader, head of leisure and hospitality at a major consultancy, notes that not only have retailers been selling high-quality ready-to-bake pizzas for quite a while – some are even selling pizza-making appliances.

“Shifts in habits are also having an impact in the popularity of casual eateries,” states the analyst.

The growing trend of low-carb regimens has increased sales at chicken shops, while affecting sales of dough-based meals, he notes.

Since people visit restaurants more rarely, they may look for a more premium experience, and Pizza Hut's retro theme with vinyl benches and red and white checked plastic table cloths can feel more old-fashioned than upmarket.

The “explosion of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “fundamentally changed the public's perception of what excellent pie is,” says the culinary analyst.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” 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 traditional pie for under a tenner at one of the many real Italian restaurants around the country?

“It's a no-brainer.”

Dan Puddle, who owns a pizza van based in a county in England explains: “It's not that lost interest in pizza – they just want better pizza for their money.”

He says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.

According to a small pizza brand in a city in southwest England, the founder says the sector is diversifying but Pizza Hut has neglected to introduce anything fresh.

“Currently available are by-the-slice options, artisanal styles, new haven, sourdough, traditional Italian, rectangular – it's a heavenly minefield for a pizza enthusiast to explore.”

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

Gradually, Pizza Hut's share has been sliced up and spread to its fresher, faster alternatives. To sustain its expensive staffing and restaurants, it would have to charge more – which commentators say is difficult at a time when household budgets are decreasing.

A senior executive of Pizza Hut's global operations said the rescue aimed “to ensure our customer service and protect jobs where possible”.

He said its key goal was to maintain service at the remaining 64 restaurants and takeaway hubs and to help employees through the change.

Yet with significant funds going into running its restaurants, it probably cannot to spend heavily in its takeaway operation because the sector is “difficult and using existing external services comes at a cost”, analysts say.

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