Why the Country Lost Its Taste for the Pizza Hut Chain

Once, the popular pizza chain was the favorite for parents and children to feast on its unlimited dining experience, unlimited salad bar, and make-your-own dessert.

Yet not as many patrons are visiting the chain currently, and it is shutting down half of its British restaurants after being bought out of administration for the second time this year.

“We used to go Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she says “it's no longer popular.”

In the view of 23-year-old Martina, certain features Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now outdated.

“How they do their buffet and their salad bar, it appears that they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How is that possible?’”

Since food prices have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. Similarly, its restaurants, which are being sliced from over 130 to just over 60.

The chain, like many others, has also faced its costs rise. This spring, staffing costs increased due to increases in the legal wage floor and an higher rate of employer taxes.

Two diners mention they frequently dined at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “not good value”.

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

Although Pizza Hut does offer pickup and delivery through third-party apps, it is missing out to larger chains which focus exclusively to this market.

“Another pizza company has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and frequent offers that make shoppers feel like they're saving money, when in reality the standard rates are quite high,” says the expert.

However for these customers it is acceptable to get their evening together brought to their home.

“We absolutely dine at home now rather than we eat out,” explains Joanne, matching current figures that show a decline in people visiting casual and fast-food restaurants.

During the summer months, informal dining venues saw a six percent decline in patrons compared to the year before.

Additionally, another rival to restaurant and takeaway pizzas: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at an advisory group, points out that not only have supermarkets been providing high-quality prepared pies for quite a while – some are even promoting countertop ovens.

“Lifestyle changes are also playing a factor in the popularity of fast-food chains,” says the expert.

The increased interest of low-carb regimens has increased sales at poultry outlets, while reducing sales of dough-based meals, he adds.

As people visit restaurants more rarely, they may look for a more premium experience, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more retro than luxurious.

The growth of premium pizza outlets” over the last decade and a half, such as new entrants, has “dramatically shifted the public's perception of what good pizza is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's downfall,” she comments.

“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying 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 a no-brainer.”

Dan Puddle, who runs a pizza van based in a county in England comments: “The issue isn’t that stopped liking pizza – they just want improved value.”

He says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it failed to adapt with changing preferences.

According to an independent chain in Bristol, the founder says the sector is expanding but Pizza Hut has neglected to introduce anything fresh.

“Currently available are individual slices, artisanal styles, New Haven-style, artisan base, traditional Italian, Detroit – it's a heavenly minefield for a pizza-loving consumer to discover.”

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

Gradually, Pizza Hut's market has been sliced up and spread to its fresher, faster rivals. To sustain its high labor and location costs, it would have to increase costs – which commentators say is tough at a time when personal spending are shrinking.

The leadership of Pizza Hut's overseas branches said the buyout aimed “to safeguard our guest experience and retain staff where possible”.

The executive stated its first focus was to keep running at the open outlets and takeaway hubs and to assist staff through the change.

However with significant funds going into maintaining its outlets, it probably cannot to allocate significant resources in its takeaway operation because the sector is “difficult and partnering with existing third-party platforms comes at a price”, experts say.

However, it's noted, reducing expenses by exiting oversaturated towns and city centres could be a effective strategy to adapt.