Why the Nation Turned Away from Its Appetite for the Pizza Hut Chain

At one time, Pizza Hut was the top choice for parents and children to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.

Yet a declining number of patrons are choosing the chain these days, and it is reducing 50% of its British locations after being acquired following financial trouble for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” says one London shopper. “It was a regular outing, you'd go on a Sunday – make a day of it.” However, at present, as a young adult, she comments “it's not a thing anymore.”

In the view of 23-year-old Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the seventies are now not-so-hot.

“The manner in which they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have reduced quality... They offer so much food and you're like ‘How?’”

Because food prices have soared, Pizza Hut's buffet-style service has become very expensive to operate. The same goes for its outlets, which are being cut from over 130 to just over 60.

The business, similar to other firms, has also experienced its expenses go up. This spring, employee wages jumped due to higher minimum pay and an higher rate of employer taxes.

Two diners say they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “too expensive”.

According to your choices, Pizza Hut and Domino's costs are close, explains a food expert.

While Pizza Hut provides off-premise options through external services, it is missing out to major competitors which specialize to this market.

“Domino's has managed to dominate the takeaway pizza sector thanks to strong promotions and ongoing discounts that make customers feel like they're saving money, when in reality the base costs are quite high,” notes the specialist.

But for these customers it is acceptable to get their evening together sent directly.

“We predominantly have meals at home now more than we eat out,” comments one of the diners, echoing current figures that show a decline in people going to quick-service eateries.

Over the summer, casual and fast-food restaurants saw a 6% drop in patrons compared to the previous year.

Additionally, another rival to pizza from eateries: the frozen or fresh pizza.

A hospitality expert, senior partner at a major consultancy, notes that not only have retailers been offering premium oven-ready pizzas for years – some are even selling home-pizza ovens.

“Evolving preferences are also contributing in the performance of casual eateries,” comments the expert.

The increased interest of high protein diets has increased sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he continues.

Since people visit restaurants not as often, they may seek out a more premium experience, and Pizza Hut's classic look with booth seating and nostalgic table settings can feel more old-fashioned than luxurious.

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

“A light, fresh, easy-to-digest product with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she says.

“What person would spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a stunning, expertly crafted Margherita for a lower price at one of the many authentic Italian pizzerias around the country?

“It's an easy choice.”

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

Dan says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.

At an independent chain in Bristol, the founder says the industry is broadening but Pizza Hut has not provided anything new.

“You now have by-the-slice options, artisanal styles, thin crust, artisan base, Neapolitan, Detroit – it's a heavenly minefield for a pie fan to discover.”

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

Gradually, Pizza Hut's share has been sliced up and spread to its trendier, more nimble alternatives. To maintain its high labor and location costs, it would have to charge more – which experts say is difficult at a time when family finances are shrinking.

The managing director of Pizza Hut's overseas branches said the buyout aimed “to ensure our customer service and retain staff where possible”.

The executive stated its immediate priority was to continue operating at the surviving locations and delivery sites and to help employees through the change.

But with large sums going into operating its locations, it likely can't afford to spend heavily in its takeaway operation because the sector is “difficult and working with existing external services comes at a cost”, analysts say.

Still, experts suggest, reducing expenses by withdrawing from oversaturated towns and city centres could be a good way to evolve.