Why the Nation Lost Its Taste for Pizza Hut

Once, the popular pizza chain was the favorite for families and friends to enjoy its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.

However a declining number of customers are choosing the restaurant currently, and it is reducing 50% of its British locations after being acquired following financial trouble for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she comments “it's fallen out of favor.”

For young customer Martina, the very elements Pizza Hut has been known and loved 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 lowering standards and have inferior offerings... They provide so much food and you're like ‘How is that possible?’”

Since ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become increasingly pricey to maintain. As have its restaurants, which are being reduced from 132 to 64.

The chain, like many others, has also experienced its expenses rise. Earlier this year, labor expenses increased due to increases in the legal wage floor and an rise in employer taxes.

A couple in their thirties and twenties mention they frequently dined at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “too expensive”.

According to your order, Pizza Hut and Domino's prices are similar, says a food expert.

Although Pizza Hut provides pickup and delivery through external services, it is losing out to major competitors which specialize to the delivery sector.

“The rival chain has succeeded in leading the off-premise pizza industry thanks to strong promotions and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the base costs are quite high,” says the expert.

Yet for these customers it is acceptable to get their date night brought to their home.

“We predominantly have meals at home now instead of we eat out,” comments one of the diners, echoing current figures that show a decline in people visiting casual and fast-food restaurants.

Over the summer, quick-service eateries saw a 6% drop in customers compared to last summer.

Additionally, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.

A hospitality expert, global lead for leisure at an advisory group, explains that not only have grocery stores been providing premium ready-to-bake pizzas for quite a while – some are even promoting countertop ovens.

“Lifestyle changes are also contributing in the popularity of casual eateries,” states the expert.

The growing trend of protein-rich eating plans has increased sales at grilled chicken brands, while affecting sales of dough-based meals, he continues.

Because people go out to eat not as often, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more retro than premium.

The rise of high-quality pizzerias” over the last decade and a half, for example popular brands, has “fundamentally changed the general opinion of what good pizza is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she states.

“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

A mobile pizza vendor, who operates Smokey Deez based in a county in England explains: “The issue isn’t that lost interest in pizza – they just want improved value.”

He says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.

From the perspective of an independent chain in Bristol, the proprietor says the pizza market is diversifying but Pizza Hut has neglected to introduce anything fresh.

“Currently available are individual slices, London pizza, New Haven-style, sourdough, Neapolitan, rectangular – it's a wonderful array for a pizza enthusiast to explore.”

The owner says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or loyalty to the chain.

Gradually, Pizza Hut's market has been divided and allocated to its trendier, more nimble competitors. To keep up its high labor and location costs, it would have to raise prices – which industry analysts say is difficult at a time when household budgets are tightening.

The leadership of Pizza Hut's overseas branches said the acquisition aimed “to ensure our customer service and protect jobs where possible”.

It was explained its first focus was to continue operating at the open outlets and takeaway hubs and to support colleagues through the change.

But with significant funds going into operating its locations, it likely can't afford to invest too much in its delivery service because the sector is “complicated and using existing third-party platforms comes at a price”, commentators say.

Still, experts suggest, reducing expenses by leaving competitive urban areas could be a effective strategy to adjust.