Why the Country Lost Interest in Its Taste for Pizza Hut

In the past, Pizza Hut was the top choice for groups and loved ones to enjoy its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

Yet fewer diners are choosing the brand currently, and it is shutting down 50% of its UK restaurants after being acquired following financial trouble for the second time this year.

I remember going Pizza Hut when I was a child,” explains 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.”

For 23-year-old Martina, the very elements Pizza Hut has been famous for since it opened in the UK in the 1970s are now outdated.

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

Because grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to run. As have its restaurants, which are being reduced from over 130 to just over 60.

The chain, in common with competitors, has also faced its costs go up. Earlier this year, labor expenses jumped due to higher minimum pay and an rise in employer national insurance contributions.

Chris, 36, and Joanne, 29 explain they used to go at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “not good value”.

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

Although Pizza Hut has off-premise options through delivery platforms, it is losing out to major competitors which specialize to this market.

“Domino's has managed to dominate the delivery market thanks to aggressive marketing and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the standard rates are quite high,” explains the specialist.

Yet for the couple it is justified to get their special meal brought to their home.

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

In the warmer season, informal dining venues saw a notable decrease in patrons compared to the previous year.

Moreover, another rival to ordered-in pies: the frozen or fresh pizza.

Will Hawkley, head of leisure and hospitality at a major consultancy, notes that not only have grocery stores been selling good-standard oven-ready pizzas for a long time – some are even promoting countertop ovens.

“Evolving preferences are also playing a factor in the success of fast-food chains,” says Mr. Hawkley.

The rising popularity of protein-rich eating plans has driven sales at grilled chicken brands, while reducing sales of dough-based meals, he continues.

As people dine out more rarely, they may prefer a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more retro than luxurious.

The “explosion of premium pizza outlets” over the last 10 to 15 years, including new entrants, has “completely altered the public's perception of what quality pizza is,” notes the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she comments.
“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
A mobile pizza vendor, who owns a small business based in a regional area says: “People haven’t stopped liking pizza – they just want better pizza for their money.”

The owner says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with evolving tastes.

According to an independent chain in a UK location, the proprietor says the pizza market is diversifying but Pizza Hut has failed to offer anything innovative.

“You now have individual slices, regional varieties, new haven, fermented dough, traditional Italian, rectangular – it's a delightful challenge for a pizza-loving consumer to try.”

The owner says Pizza Hut “should transform” as younger people don't have any emotional connection or attachment to the brand.

In recent years, Pizza Hut's customer base has been fragmented and allocated to its fresher, faster rivals. To keep up its costly operations, it would have to increase costs – which commentators say is difficult at a time when household budgets are tightening.

The leadership of Pizza Hut's overseas branches said the rescue aimed “to ensure our customer service and save employment where possible”.

The executive stated its key goal was to keep running at the open outlets and delivery sites and to support colleagues through the transition.

Yet with significant funds going into operating its locations, it may be unable to spend heavily in its delivery service because the industry is “complex and using existing delivery apps comes at a cost”, commentators say.

Still, experts suggest, lowering overhead by withdrawing from competitive urban areas could be a good way to evolve.

Matthew Murphy
Matthew Murphy

A seasoned journalist with a passion for uncovering stories that matter, bringing years of experience in digital media and investigative reporting.