How the Country Lost Its Appetite for Pizza Hut

Once, the popular pizza chain was the top choice for parents and children to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

But a declining number of patrons are frequenting the brand currently, and it is shutting down half of its UK locations after being acquired following financial trouble for the second instance this year.

“We used to go Pizza Hut when I was a child,” explains a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she states “it's no longer popular.”

According to 23-year-old Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the mid-20th century are now less appealing.

“The way they do their all-you-can-eat and their salad station, it seems as if they are cheapening on their quality and have inferior offerings... They're giving away so much food and you're like ‘How can they?’”

As grocery costs have increased significantly, Pizza Hut's buffet-style service has become quite costly to run. Similarly, its outlets, which are being reduced from over 130 to just over 60.

The business, like many others, has also faced its costs rise. Earlier this year, labor expenses increased due to rises in minimum wages and an increase in employer taxes.

Chris, 36, and Joanne, 29 mention they frequently dined at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “not good value”.

Depending on your selection, Pizza Hut and Domino's prices are close, notes an industry analyst.

Even though Pizza Hut provides off-premise options through external services, it is missing out to larger chains which focus exclusively to this market.

“Domino's has succeeded in leading the takeaway pizza sector thanks to strong promotions and frequent offers that make customers feel like they're getting a bargain, when in reality the base costs are relatively expensive,” explains the specialist.

Yet for Chris and Joanne it is worth it to get their evening together brought to their home.

“We predominantly have meals at home now instead of we eat out,” comments one of the diners, reflecting latest data that show a decline in people going to quick-service eateries.

During the summer months, quick-service eateries saw a notable decrease in diners compared to the previous year.

Additionally, a further alternative to pizza from eateries: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, notes that not only have grocery stores been selling premium ready-to-bake pizzas for a long time – some are even offering pizza-making appliances.

“Lifestyle changes are also playing a factor in the popularity of casual eateries,” comments the expert.

The increased interest of low-carb regimens has increased sales at poultry outlets, while reducing sales of high-carbohydrate options, he continues.

As people dine out more rarely, they may look for a more upscale outing, and Pizza Hut's classic look with booth seating and traditional décor can feel more old-fashioned than premium.

The growth of premium pizza outlets” over the last several years, such as boutique chains, has “completely altered the public's perception of what excellent pie is,” says the industry commentator.

“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, 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 stunning, expertly crafted classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?

“It's a no-brainer.”

A mobile pizza vendor, who operates a small business based in a county in England explains: “People haven’t fallen out of love with pizza – they just want improved value.”

Dan says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it could not keep up with evolving tastes.

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

“There are now individual slices, London pizza, thin crust, fermented dough, traditional Italian, rectangular – it's a wonderful array for a pizza-loving consumer to discover.”

Jack says Pizza Hut “should transform” as the youth don't have any emotional connection or loyalty to the company.

Gradually, Pizza Hut's market has been fragmented and allocated to its more modern, agile competitors. To maintain its costly operations, it would have to increase costs – which commentators say is challenging at a time when family finances are shrinking.

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

It was explained its first focus was to continue operating at the surviving locations and off-premise points and to assist staff through the transition.

However with large sums going into operating its locations, it probably cannot to invest too much in its off-premise division because the market is “complicated and using existing delivery apps comes at a cost”, analysts say.

Still, experts suggest, lowering overhead by withdrawing from oversaturated towns and city centres could be a good way to adapt.