How the Nation Lost Its Taste for Pizza Hut

In the past, Pizza Hut was the favorite for families and friends to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and ice cream with toppings.

Yet not as many patrons are choosing the restaurant these days, and it is reducing half of its British locations after being rescued from insolvency for the second instance this calendar year.

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

In the view of a diner in her twenties, the very elements Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now less appealing.

“How they do their buffet and their salad bar, it feels like they are lowering standards and have lower standards... They're giving away so much food and you're like ‘How?’”

Because ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become increasingly pricey to operate. As have its outlets, which are being cut from a large number to 64.

The business, similar to other firms, has also experienced its costs increase. In April this year, staffing costs increased due to rises in minimum wages and an rise in employer social security payments.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “not good value”.

Based on your choices, Pizza Hut and Domino's rates are close, explains a culinary author.

Although Pizza Hut has takeaway and deliveries through delivery platforms, it is missing out to larger chains which solely cater to the delivery sector.

“Domino's has managed to dominate the delivery market thanks to intensive advertising and ongoing discounts that make consumers feel like they're saving money, when in reality the original prices are quite high,” explains the specialist.

But for the couple it is worth it to get their evening together sent directly.

“We predominantly have meals at home now instead of we eat out,” comments the female customer, matching recent statistics that show a decline in people going to casual and fast-food restaurants.

During the summer months, quick-service eateries saw a 6% drop in customers compared to the year before.

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

Will Hawkley, senior partner at a leading firm, explains that not only have supermarkets been providing high-quality prepared pies for a long time – some are even selling home-pizza ovens.

“Shifts in habits are also having an impact in the performance of quick-service brands,” says the analyst.

The increased interest of high protein diets has driven sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he notes.

Because people go out to eat not as often, they may prefer a more upscale outing, and Pizza Hut's classic look with comfortable booths and red and white checked plastic table cloths can feel more retro than luxurious.

The rise of premium pizza outlets” over the last several years, including popular brands, has “fundamentally changed the general opinion of what good pizza is,” says the industry commentator.

“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she comments.

“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a stunning, expertly crafted classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?

“It's an easy choice.”

Dan Puddle, who operates Smokey Deez based in a county in England explains: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”

He says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.

From the perspective of Pizzarova in a UK location, the proprietor says the industry is diversifying but Pizza Hut has neglected to introduce anything new.

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

Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any fond memories or loyalty to the chain.

Gradually, Pizza Hut's share has been sliced up and allocated to its trendier, more nimble rivals. To sustain its expensive staffing and restaurants, it would have to increase costs – which experts say is tough at a time when personal spending are decreasing.

A senior executive of Pizza Hut's international markets said the acquisition aimed “to protect our guest experience and save employment where possible”.

The executive stated its immediate priority was to keep running at the remaining 64 restaurants and delivery sites and to help employees through the change.

But with so much money going into maintaining its outlets, it may be unable to invest too much in its off-premise division because the sector is “difficult and using existing third-party platforms comes at a price”, analysts say.

Still, experts suggest, lowering overhead by exiting competitive urban areas could be a good way to adapt.