Why the Country Lost Its Taste for the Pizza Hut Chain

In the past, Pizza Hut was the go-to for families and friends to indulge in its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.

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

“We used to go Pizza Hut when I was a child,” says Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she comments “it's fallen out of favor.”

In the view of a diner in her twenties, certain features Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now outdated.

“The manner in which 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're giving away so much food and you're like ‘How can they?’”

Because food prices have soared, Pizza Hut's buffet-style service has become increasingly pricey to operate. As have its outlets, which are being sliced from a large number to just over 60.

The company, similar to other firms, has also seen its operating costs rise. Earlier this year, staffing costs increased due to increases in the legal wage floor and an rise in employer national insurance contributions.

A couple in their thirties and twenties say they would often visit at Pizza Hut for a date “from time to time”, but now they order in another pizza brand and think Pizza Hut is “very overpriced”.

According to your selection, Pizza Hut and Domino's rates are comparable, explains a culinary author.

While Pizza Hut has pickup and delivery through external services, it is losing out to major competitors which solely cater to off-premise dining.

“Another pizza company has succeeded in leading the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make consumers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” says the analyst.

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

“We absolutely dine at home now rather than we eat out,” explains the female customer, matching recent statistics that show a drop in people frequenting casual and fast-food restaurants.

In the warmer season, informal dining venues saw a 6% drop in diners compared to the previous year.

Additionally, another rival to ordered-in pies: the frozen or fresh pizza.

Will Hawkley, senior partner at an advisory group, points out that not only have retailers been providing good-standard oven-ready pizzas for a long time – some are even offering countertop ovens.

“Evolving preferences are also contributing in the popularity of casual eateries,” comments Mr. Hawkley.

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

Since people go out to eat less frequently, they may seek out a more premium experience, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more dated than luxurious.

The growth of high-quality pizzerias” over the last decade and a half, including popular brands, has “fundamentally changed the general opinion of what excellent pie is,” says the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's struggles,” she states.

“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many traditional pizzerias around the country?

“The decision is simple.”

An independent operator, who operates a pizza van based in a regional area explains: “People haven’t stopped liking pizza – they just want improved value.”

The owner says his mobile setup can offer premium pizza at reasonable rates, and that Pizza Hut struggled because it was unable to evolve with changing preferences.

At Pizzarova in a city in southwest England, the proprietor says the pizza market is expanding but Pizza Hut has neglected to introduce anything fresh.

“Currently available are by-the-slice options, London pizza, thin crust, sourdough, wood-fired, Detroit – it's a delightful challenge for a pizza-loving consumer to discover.”

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

Gradually, Pizza Hut's share has been fragmented and allocated to its trendier, more nimble competitors. To maintain its costly operations, it would have to raise prices – which experts say is challenging at a time when personal spending are decreasing.

A senior executive of Pizza Hut's international markets said the buyout aimed “to protect our guest experience and protect jobs where possible”.

He said its immediate priority was to maintain service at the open outlets and takeaway hubs and to assist staff through the transition.

Yet with so much money going into maintaining its outlets, it likely can't afford to invest too much in its delivery service because the industry is “complex and working with existing external services comes at a cost”, analysts say.

But, he adds, lowering overhead by exiting competitive urban areas could be a effective strategy to evolve.