How the Country Turned Away from Its Appetite for Pizza Hut

Once, the popular pizza chain was the favorite for families and friends to enjoy its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

But fewer diners are choosing the chain nowadays, and it is closing a significant portion of its British locations after being acquired following financial trouble for the second time this year.

I remember going Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” But now, as a young adult, she comments “it's fallen out of favor.”

In the view of 23-year-old Martina, the very elements Pizza Hut has been recognized for since it opened in the UK in the seventies are now less appealing.

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

Because grocery costs have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. As have its restaurants, which are being reduced from 132 to 64.

The chain, like many others, has also faced its expenses go up. Earlier this year, staffing costs jumped due to higher minimum pay and an increase in employer taxes.

Two diners say they would often visit at Pizza Hut for a date “occasionally”, but now they order in Domino's and think Pizza Hut is “not good value”.

According to your selection, Pizza Hut and Domino's rates are comparable, explains an industry analyst.

Even though Pizza Hut has takeaway and deliveries through third-party apps, it is falling behind to larger chains which specialize to off-premise dining.

“Another pizza company has succeeded in leading the delivery market thanks to strong promotions and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the original prices are relatively expensive,” explains the specialist.

However for these customers it is justified to get their special meal brought to their home.

“We definitely eat at home now instead of we eat out,” comments the female customer, matching latest data that show a decrease in people going to informal dining spots.

In the warmer season, informal dining venues saw a six percent decline in patrons compared to the year before.

Moreover, a further alternative to ordered-in pies: the supermarket pizza.

An industry leader, global lead for leisure at a leading firm, explains that not only have grocery stores been selling good-standard ready-to-bake pizzas for quite a while – some are even promoting pizza-making appliances.

“Shifts in habits are also playing a factor in the performance of casual eateries,” says the expert.

The rising popularity of high protein diets has increased sales at chicken shops, while hitting sales of high-carbohydrate options, he adds.

Since people dine out less frequently, they may prefer a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and nostalgic table settings can feel more retro than luxurious.

The rise of artisanal pizza places” over the last 10 to 15 years, including new entrants, 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 select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she states.
“Who would choose to spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted classic pizza for under a tenner at one of the many traditional pizzerias around the country?
“It's a no-brainer.”
Dan Puddle, who owns a small business based in Suffolk explains: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

Dan says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut faced challenges because it could not keep up with new customer habits.

From the perspective of Pizzarova in a UK location, the founder says the pizza market is diversifying but Pizza Hut has not provided anything innovative.

“Currently available are individual slices, London pizza, new haven, fermented dough, traditional Italian, deep-dish – it's a wonderful array for a pizza enthusiast to try.”

The owner says Pizza Hut “should transform” as the youth don't have any fond memories or allegiance to the company.

In recent years, Pizza Hut's share has been sliced up and spread to its trendier, more nimble alternatives. To keep up its high labor and location costs, it would have to increase costs – which industry analysts say is tough at a time when family finances are tightening.

The leadership of Pizza Hut's international markets said the rescue aimed “to protect our customer service and save employment where possible”.

He said its key goal was to maintain service at the remaining 64 restaurants and delivery sites and to help employees through the transition.

But with large sums going into running its restaurants, it likely can't afford to allocate significant resources in its takeaway operation because the industry is “complicated and working with existing delivery apps comes at a price”, analysts say.

But, he adds, reducing expenses by leaving crowded locations could be a good way to evolve.

Lori Whitaker
Lori Whitaker

A passionate historian and outdoor enthusiast, sharing expertise on Italian cultural sites and nature explorations.

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