Why the Nation Lost Interest in Its Appetite for Pizza Hut

In the past, the popular pizza chain was the go-to for families and friends to enjoy its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

Yet not as many diners are frequenting the brand nowadays, and it is shutting down 50% of its UK restaurants after being rescued from insolvency for the second instance this year.

“We used to go Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, aged 24, she says “it's no longer popular.”

For young customer Martina, certain features Pizza Hut has been famous for since it started in the UK in the mid-20th century are now not-so-hot.

“How 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 provide so much food and you're like ‘How?’”

Because ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become quite costly to operate. As have its locations, which are being sliced from 132 to just over 60.

The company, like many others, has also experienced its costs increase. This spring, staffing costs rose due to rises in minimum wages and an rise in employer national insurance contributions.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from a rival chain and think Pizza Hut is “not good value”.

Depending on your order, Pizza Hut and Domino's prices are similar, explains a food expert.

Even though Pizza Hut has takeaway and deliveries through third-party apps, it is missing out to larger chains which specialize to this market.

“Domino's has succeeded in leading the delivery market thanks to aggressive marketing and frequent offers that make customers feel like they're finding a good deal, when in reality the base costs are quite high,” notes the expert.

Yet for the couple it is worth it to get their special meal sent directly.

“We predominantly have meals at home now instead of we eat out,” explains the female customer, matching latest data that show a decline in people frequenting casual and fast-food restaurants.

In the warmer season, quick-service eateries saw a notable decrease in diners compared to the year before.

There is also one more competitor to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, senior partner at a major consultancy, notes that not only have grocery stores been providing premium prepared pies for a long time – some are even promoting home-pizza ovens.

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

The growing trend of high protein diets has driven sales at chicken shops, while hitting sales of dough-based meals, he continues.

Because people dine out not as often, they may seek out a more upscale outing, and Pizza Hut's American-diner style with comfortable booths and red and white checked plastic table cloths can feel more retro than premium.

The growth of premium pizza outlets” over the last 10 to 15 years, for example boutique chains, has “completely altered the consumer view of what excellent pie is,” explains the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, 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 a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many real Italian restaurants around the country?
“It's a no-brainer.”
An independent operator, who owns a small business based in Suffolk explains: “It's not that lost interest in 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 could not keep up with new customer habits.

At an independent chain in a city in southwest England, the proprietor says the pizza market is broadening but Pizza Hut has neglected to introduce anything innovative.

“You now have slice concepts, London pizza, thin crust, sourdough, traditional Italian, rectangular – it's a wonderful array for a pizza-loving consumer to try.”

Jack says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or allegiance to the brand.

Gradually, Pizza Hut's share has been fragmented and allocated to its more modern, agile competitors. To keep up its costly operations, it would have to charge more – which industry analysts say is difficult at a time when personal spending are decreasing.

A senior executive of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and save employment where possible”.

It was explained its first focus was to continue operating at the remaining 64 restaurants and delivery sites and to help employees through the change.

But with large sums going into operating its locations, it may be unable to allocate significant resources in its takeaway operation because the market is “complicated and partnering with existing delivery apps comes at a expense”, experts say.

But, he adds, cutting its costs by withdrawing from competitive urban areas could be a smart move to evolve.

Lindsey Foster
Lindsey Foster

A tech enthusiast and writer with a passion for demystifying complex technologies and sharing practical insights.