Why the Nation Turned Away from Its Appetite 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 all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.

However fewer patrons are visiting the restaurant these days, and it is reducing 50% of its UK locations after being rescued from insolvency for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, as a young adult, she comments “it's not a thing anymore.”

According to young customer Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now less appealing.

“The way they do their all-you-can-eat and their salad station, it appears that they are lowering standards and have lower standards... They provide so much food and you're like ‘How is that possible?’”

Since grocery costs have increased significantly, Pizza Hut's buffet-style service has become increasingly pricey to maintain. The same goes for its locations, which are being sliced from a large number to just over 60.

The chain, similar to other firms, has also faced its expenses rise. Earlier this year, staffing costs jumped due to higher minimum pay and an higher rate of employer social security payments.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “too expensive”.

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

While Pizza Hut provides off-premise options through external services, it is missing out to big rivals which focus exclusively to the delivery sector.

“Another pizza company has succeeded in leading the off-premise pizza industry thanks to intensive advertising and constantly running deals that make consumers feel like they're finding a good deal, when in reality the original prices are on the higher side,” notes the analyst.

However for these customers it is justified to get their special meal sent directly.

“We absolutely dine at home now instead of we eat out,” says the female customer, reflecting latest data that show a drop in people visiting quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a six percent decline in patrons compared to last summer.

Moreover, one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

A hospitality expert, head of leisure and hospitality at a major consultancy, points out that not only have supermarkets been selling premium ready-to-bake pizzas for years – some are even offering pizza-making appliances.

“Evolving preferences are also having an impact in the popularity of casual eateries,” comments Mr. Hawkley.

The increased interest of low-carb regimens has boosted sales at chicken shops, while hitting sales of dough-based meals, he adds.

As people visit restaurants less frequently, they may look for a more premium experience, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than premium.

The “explosion of premium pizza outlets” over the last decade and a half, such as popular brands, has “fundamentally changed the general opinion of what good pizza is,” explains the food expert.

“A crisp, airy, digestible pizza with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's resulted in Pizza Hut's struggles,” she states.
“Who would choose to spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?
“It's a no-brainer.”
An independent operator, who runs a small business based in a regional area explains: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

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

According to an independent chain in a city in southwest England, the proprietor says the industry is broadening but Pizza Hut has failed to offer anything new.

“There are now slice concepts, regional varieties, New Haven-style, sourdough, traditional Italian, rectangular – it's a delightful challenge for a pizza enthusiast to try.”

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

In recent years, Pizza Hut's customer base has been fragmented and allocated to its trendier, more nimble alternatives. To keep up its high labor and location costs, it would have to increase costs – which industry analysts say is challenging at a time when personal spending are tightening.

The leadership of Pizza Hut's international markets said the buyout aimed “to ensure our customer service and protect jobs where possible”.

The executive stated its key goal was to maintain service at the surviving locations and delivery sites and to support colleagues through the restructure.

Yet with so much money going into maintaining its outlets, it probably cannot to invest too much in its off-premise division because the industry is “complex and partnering with existing delivery apps comes at a expense”, analysts say.

However, it's noted, lowering overhead by withdrawing from oversaturated towns and city centres could be a smart move to evolve.

Brandon Cook
Brandon Cook

A tech enthusiast and blockchain expert with a passion for decentralized systems and open-source innovation.