Why the Nation Lost Its Taste for the Pizza Hut Chain

In the past, the popular pizza chain was the top choice for parents and children to enjoy its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

However a declining number of diners are visiting the brand currently, and it is reducing 50% of its British locations 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,” notes one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she comments “it's not a thing anymore.”

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

“The way they do their all-you-can-eat and their salad bar, it feels like they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How can they?’”

Because grocery costs have increased significantly, Pizza Hut's unlimited dining format has become very expensive to run. Similarly, its outlets, which are being sliced from a large number to just over 60.

The business, like many others, has also faced its expenses increase. In April this year, labor expenses jumped due to rises in minimum wages and an rise in employer national insurance contributions.

A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “every now and then”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.

Depending on your selection, Pizza Hut and Domino's costs are comparable, says a food expert.

Although Pizza Hut does offer pickup and delivery through third-party apps, it is losing out to big rivals which specialize to off-premise dining.

“Domino's has managed to dominate the delivery market thanks to aggressive marketing and constantly running deals that make shoppers feel like they're saving money, when in reality the original prices are on the higher side,” explains the expert.

However 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 Joanne, reflecting latest data that show a drop in people frequenting informal dining spots.

Over the summer, quick-service eateries saw a 6% drop in diners compared to the year before.

Additionally, one more competitor to pizza from eateries: the cook-at-home oven pizza.

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

“Shifts in habits are also contributing in the popularity of fast-food chains,” says the analyst.

The increased interest of low-carb regimens has boosted sales at poultry outlets, while reducing sales of carb-heavy pizza, he notes.

As people dine out more rarely, they may look for a more premium experience, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more old-fashioned than premium.

The growth of artisanal pizza places” over the last decade and a half, including boutique chains, has “dramatically shifted the public's perception of what good pizza is,” notes the food expert.

“A crisp, airy, digestible pizza with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. That, I think, is what's resulted in Pizza Hut's decline,” she states.

“Who would choose to spend a high price 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 traditional pizzerias around the country?

“The decision is simple.”

Dan Puddle, who runs a pizza van based in Suffolk explains: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

He says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with evolving tastes.

From the perspective of an independent chain in a UK location, owner Jack Lander says the sector is broadening but Pizza Hut has failed to offer anything innovative.

“You now have individual slices, regional varieties, thin crust, sourdough, wood-fired, Detroit – it's a delightful challenge for a pie fan to try.”

Jack says Pizza Hut “needs to reinvent itself” as younger people don't have any emotional connection or loyalty to the brand.

Over time, Pizza Hut's customer base has been fragmented and allocated to its more modern, agile rivals. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is tough at a time when family finances are decreasing.

The managing director of Pizza Hut's global operations said the buyout aimed “to protect our guest experience and save employment where possible”.

It was explained its key goal was to continue operating at the surviving locations and off-premise points and to help employees through the restructure.

But with large sums going into running its restaurants, it likely can't afford to spend heavily in its off-premise division because the market is “complicated and working with existing third-party platforms comes at a price”, commentators say.

Still, experts suggest, cutting its costs by leaving oversaturated towns and city centres could be a effective strategy to evolve.