How the Country Turned Away from Its Taste for Pizza Hut

Once, the popular pizza chain was the go-to for groups and loved ones to enjoy its unlimited dining experience, endless salad selection, and ice cream with toppings.

But fewer patrons are choosing the chain currently, and it is shutting down 50% of its UK restaurants after being bought out of administration for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she says “it's no longer popular.”

In the view of young customer Martina, some of the very things Pizza Hut has been recognized for since it launched in the UK in the seventies are now not-so-hot.

“How they do their buffet and their salad station, it seems as if they are cutting corners and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

As food prices have risen sharply, Pizza Hut's unlimited dining format has become quite costly to operate. Similarly, its locations, which are being reduced from 132 to a smaller figure.

The chain, similar to other firms, has also faced its costs increase. Earlier this year, employee wages rose due to rises in minimum wages and an higher rate of employer national insurance contributions.

Chris, 36, and Joanne, 29 explain they used to go at Pizza Hut for a date “occasionally”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's prices are close, notes a culinary author.

Even though Pizza Hut has pickup and delivery through delivery platforms, it is losing out to major competitors which solely cater to the delivery sector.

“The rival chain has taken over the off-premise pizza industry thanks to strong promotions and ongoing discounts that make customers feel like they're saving money, when in reality the original prices are on the higher side,” notes the specialist.

But for the couple it is acceptable to get their special meal brought to their home.

“We predominantly have meals at home now more than we eat out,” comments one of the diners, reflecting current figures that show a decline in people going to casual and fast-food restaurants.

Over the summer, casual and fast-food restaurants saw a 6% drop in diners compared to last summer.

Moreover, another rival to pizza from eateries: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at a major consultancy, explains that not only have supermarkets been providing good-standard prepared pies for a long time – some are even promoting home-pizza ovens.

“Shifts in habits are also contributing in the popularity of casual eateries,” states the analyst.

The increased interest of protein-rich eating plans has driven sales at grilled chicken brands, while affecting sales of dough-based meals, he notes.

Since people go out to eat less frequently, they may look for a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more retro than premium.

The rise of artisanal pizza places” over the last decade and a half, such as popular brands, has “dramatically shifted the public's perception of what good pizza is,” notes the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she says.
“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?
“It's an easy choice.”
Dan Puddle, who owns Smokey Deez based in a county in England comments: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

He says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it was unable to evolve with changing preferences.

At Pizzarova in a UK location, the founder says the sector is diversifying but Pizza Hut has neglected to introduce anything fresh.

“Currently available are by-the-slice options, regional varieties, New Haven-style, fermented dough, traditional Italian, deep-dish – it's a heavenly minefield for a pizza enthusiast to explore.”

The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or attachment to the company.

In recent years, Pizza Hut's customer base has been fragmented and distributed to its fresher, faster competitors. To maintain its high labor and location costs, it would have to raise prices – which experts say is tough at a time when personal spending are tightening.

The leadership of Pizza Hut's global operations said the buyout 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 delivery sites and to assist staff through the change.

Yet with large sums going into running its restaurants, it probably cannot to spend heavily in its off-premise division because the industry is “difficult and working with existing third-party platforms comes at a expense”, experts say.

However, it's noted, cutting its costs by exiting competitive urban areas could be a smart move to evolve.

Meredith Quinn
Meredith Quinn

A passionate web developer and tech enthusiast with over a decade of experience in creating innovative digital solutions.