Why the Country Lost Interest in Its Craving for the Pizza Hut Chain

Once, Pizza Hut was the top choice for parents and children to enjoy its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

But not as many customers are choosing the chain currently, and it is shutting down half of its UK outlets after being rescued from insolvency 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, in her mid-twenties, she says “it's no longer popular.”

In the view of 23-year-old Martina, some of the very things 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 station, it appears that they are cheapening on their quality and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

As grocery costs have soared, Pizza Hut's buffet-style service has become increasingly pricey to maintain. As have its locations, which are being cut from 132 to just over 60.

The company, similar to other firms, has also seen its costs rise. Earlier this year, staffing costs rose due to rises in minimum wages and an increase in employer taxes.

Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “every now and then”, but now they choose another pizza brand and think Pizza Hut is “too expensive”.

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

Even though Pizza Hut provides pickup and delivery through third-party apps, it is falling behind to larger chains which specialize to the delivery sector.

“Another pizza company has succeeded in leading the delivery market thanks to aggressive marketing and ongoing discounts that make customers feel like they're getting a bargain, when in reality the base costs are quite high,” notes the analyst.

But for these customers it is acceptable to get their special meal sent directly.

“We absolutely dine at home now instead of we eat out,” says one of the diners, echoing latest data that show a decrease in people visiting informal dining spots.

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

Additionally, another rival to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at a leading firm, notes that not only have retailers been offering high-quality prepared pies for years – some are even selling countertop ovens.

“Lifestyle changes are also having an impact in the success of fast-food chains,” comments Mr. Hawkley.

The growing trend of low-carb regimens has boosted sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he continues.

Since people go out to eat less frequently, they may look for 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 rise of high-quality pizzerias” over the last 10 to 15 years, such as new entrants, has “completely altered the general opinion of what good pizza is,” explains the food expert.

“A thin, flavorful, gentle crust with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's resulted in Pizza Hut's struggles,” she comments.

“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a chain when you can get a gorgeous, skillfully prepared traditional pie for under a tenner at one of the many traditional pizzerias around the country?

“It's a no-brainer.”

Dan Puddle, who operates Smokey Deez based in Suffolk explains: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”

The owner says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

According to a small pizza brand in Bristol, the proprietor says the industry is broadening but Pizza Hut has failed to offer anything fresh.

“You now have by-the-slice options, London pizza, thin crust, fermented dough, Neapolitan, Detroit – it's a heavenly minefield for a pizza enthusiast to explore.”

He says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or attachment to the brand.

Over time, Pizza Hut's share has been fragmented and distributed to its trendier, more nimble rivals. To keep up its costly operations, it would have to raise prices – which commentators say is difficult at a time when household budgets are decreasing.

A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to protect our dining experience and save employment where possible”.

It was explained its first focus was to maintain service at the open outlets and delivery sites and to assist staff through the change.

However with significant funds going into maintaining its outlets, it may be unable to allocate significant resources in its takeaway operation because the sector is “complicated and working with existing third-party platforms comes at a expense”, commentators say.

However, it's noted, cutting its costs by withdrawing from crowded locations could be a effective strategy to adjust.