Why the Nation Lost Its Taste for Pizza Hut

In the past, the popular pizza chain was the top choice for parents and children to enjoy its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

But not as many diners are choosing the brand currently, and it is closing 50% of its British restaurants after being rescued from insolvency for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – make a day of it.” But now, as a young adult, she says “it's fallen out of favor.”

For young customer Martina, certain features Pizza Hut has been famous for since it opened in the UK in the seventies are now not-so-hot.

“How they do their all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have reduced quality... They provide so much food and you're like ‘How can they?’”

Because food prices have soared, Pizza Hut's unlimited dining format has become very expensive to run. The same goes for its outlets, which are being reduced from 132 to a smaller figure.

The chain, in common with competitors, has also seen its operating costs rise. This spring, employee wages jumped due to higher minimum pay and an higher rate of employer national insurance contributions.

Two diners say they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from Domino's and think Pizza Hut is “very overpriced”.

According to your selection, Pizza Hut and Domino's prices are close, explains a culinary author.

Even though Pizza Hut provides pickup and delivery through external services, it is falling behind to big rivals which specialize to off-premise dining.

“The rival chain has taken over the off-premise pizza industry thanks to strong promotions and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” notes the specialist.

Yet for Chris and Joanne it is justified to get their date night brought to their home.

“We definitely eat at home now more than we eat out,” comments the female customer, echoing current figures that show a decrease in people going to quick-service eateries.

During the summer months, casual and fast-food restaurants saw a notable decrease in diners compared to last summer.

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

An industry leader, global lead for leisure at an advisory group, points out that not only have retailers been offering good-standard prepared pies for a long time – some are even selling home-pizza ovens.

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

The increased interest of protein-rich eating plans has boosted sales at chicken shops, while reducing sales of dough-based meals, he notes.

Because people dine out not as often, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more dated than luxurious.

The growth of premium pizza outlets” over the last 10 to 15 years, including popular brands, has “fundamentally changed the general opinion of what good pizza is,” notes the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she states.

“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

Dan Puddle, who owns a pizza van based in Suffolk says: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”

He says his mobile setup can offer premium pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with evolving tastes.

At an independent chain in Bristol, the founder says the industry is diversifying but Pizza Hut has neglected to introduce anything innovative.

“You now have slice concepts, artisanal styles, thin crust, sourdough, Neapolitan, deep-dish – it's a heavenly minefield for a pizza enthusiast to try.”

The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or allegiance to the company.

Gradually, Pizza Hut's customer base has been fragmented and spread to its more modern, agile alternatives. To maintain its expensive staffing and restaurants, it would have to raise prices – which experts say is challenging at a time when household budgets are tightening.

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

The executive stated its key goal was to continue operating at the open outlets and takeaway hubs and to assist staff through the transition.

However with large sums going into operating its locations, it likely can't afford to invest too much in its delivery service because the sector is “complex and partnering with existing delivery apps comes at a expense”, experts say.

Still, experts suggest, reducing expenses by withdrawing from crowded locations could be a good way to adapt.