Why the Country Lost Interest in Its Taste for the Pizza Hut Chain

At one time, the popular pizza chain was the favorite for families and friends to feast on its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.

However fewer customers are visiting the restaurant currently, and it is closing 50% of its British outlets after being acquired following financial trouble for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, in her mid-twenties, she states “it's no longer popular.”

In the view of 23-year-old Martina, some of the very things Pizza Hut has been recognized for since it started in the UK in the 1970s are now not-so-hot.

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

Because ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become very expensive to run. The same goes for its restaurants, which are being cut from 132 to a smaller figure.

The company, in common with competitors, has also experienced its costs go up. This spring, employee wages jumped due to higher minimum pay and an higher rate of employer social security payments.

Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “from time to time”, but now they choose Domino's and think Pizza Hut is “too expensive”.

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

While Pizza Hut provides pickup and delivery through external services, it is missing out to larger chains which specialize to off-premise dining.

“Another pizza company has taken over the off-premise pizza industry thanks to intensive advertising and constantly running deals that make consumers feel like they're saving money, when in reality the original prices are relatively expensive,” explains the expert.

Yet for Chris and Joanne it is justified to get their special meal sent directly.

“We predominantly have meals at home now instead of we eat out,” says one of the diners, reflecting recent statistics that show a decline in people visiting quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a notable decrease in customers compared to the previous year.

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

A hospitality expert, head of leisure and hospitality at a major consultancy, explains that not only have retailers been providing premium prepared pies for quite a while – some are even offering home-pizza ovens.

“Lifestyle changes are also having an impact in the performance of quick-service brands,” says the expert.

The growing trend of high protein diets has boosted sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he continues.

Since people go out to eat more rarely, they may look for a more high-quality meal, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more dated than premium.

The growth of high-quality pizzerias” over the last decade and a half, such as new entrants, has “fundamentally changed the general opinion of what quality pizza is,” explains the food expert.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she says.

“What person would spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for a lower price at one of the many real Italian restaurants around the country?

“The decision is simple.”

A mobile pizza vendor, who operates a small business based in Suffolk explains: “The issue isn’t that lost interest in pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

According to a small pizza brand in Bristol, the proprietor says the sector is expanding but Pizza Hut has neglected to introduce anything new.

“Currently available are by-the-slice options, London pizza, thin crust, artisan base, wood-fired, rectangular – it's a wonderful array for a pizza enthusiast to explore.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or loyalty to the chain.

Gradually, Pizza Hut's market has been divided and distributed to its fresher, faster alternatives. To keep up its expensive staffing and restaurants, it would have to raise prices – which commentators say is challenging at a time when household budgets are shrinking.

The managing director of Pizza Hut's overseas branches said the acquisition aimed “to protect our guest experience and protect jobs where possible”.

It was explained its first focus was to continue operating at the open outlets and off-premise points and to support colleagues through the transition.

Yet with large sums going into running its restaurants, it likely can't afford to invest too much in its delivery service because the sector is “complicated and working with existing external services comes at a cost”, analysts say.

But, he adds, reducing expenses by withdrawing from competitive urban areas could be a smart move to adapt.