How the Country Lost Its Craving for the Pizza Hut Chain

Once, the popular pizza chain was the go-to for groups and loved ones to feast on its unlimited dining experience, endless salad selection, and self-serve ice-cream.

Yet not as many diners are choosing the restaurant currently, and it is shutting down half of its British locations after being rescued from insolvency for the second time this year.

It was common to visit Pizza Hut when I was a child,” explains one London shopper. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she says “it's fallen out of favor.”

For young customer Martina, the very elements Pizza Hut has been known and loved for since it launched in the UK in the mid-20th century are now not-so-hot.

“How they do their all-you-can-eat and their salad station, it appears that they are lowering standards and have reduced quality... They offer so much food and you're like ‘How?’”

As food prices have increased significantly, Pizza Hut's buffet-style service has become very expensive to operate. As have its outlets, which are being cut from over 130 to 64.

The chain, similar to other firms, has also seen its expenses rise. In April this year, staffing costs rose due to rises in minimum wages and an increase in employer national insurance contributions.

A couple in their thirties and twenties say they used to go at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “not good value”.

According to your choices, Pizza Hut and Domino's prices are close, explains an industry analyst.

While Pizza Hut does offer off-premise options through external services, it is losing out to major competitors which solely cater to this market.

“Domino's has managed to dominate the off-premise pizza industry thanks to intensive advertising and frequent offers that make shoppers feel like they're getting a bargain, when in reality the original prices are quite high,” notes the analyst.

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

“We definitely eat at home now more than we eat out,” comments one of the diners, reflecting current figures that show a drop in people visiting casual and fast-food restaurants.

During the summer months, casual and fast-food restaurants saw a notable decrease in patrons compared to the previous year.

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

An industry leader, head of leisure and hospitality at an advisory group, explains that not only have retailers been providing premium prepared pies for a long time – some are even promoting pizza-making appliances.

“Evolving preferences are also contributing in the popularity of quick-service brands,” states Mr. Hawkley.

The increased interest of protein-rich eating plans has increased sales at poultry outlets, while hitting sales of dough-based meals, he continues.

Because people visit restaurants more rarely, they may look for a more premium experience, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more retro than luxurious.

The growth of high-quality pizzerias” over the last decade and a half, including boutique chains, has “dramatically shifted the public's perception of what good pizza is,” notes the food expert.

“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's caused Pizza Hut's decline,” she states.
“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many real Italian restaurants around the country?
“It's an easy choice.”
Dan Puddle, who operates Smokey Deez based in a regional area says: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer high-quality pie at reasonable rates, and that Pizza Hut struggled because it could not keep up with changing preferences.

According to a small pizza brand in a UK location, the founder says the industry is expanding but Pizza Hut has not provided anything innovative.

“Currently available are individual slices, artisanal styles, new haven, fermented dough, Neapolitan, deep-dish – it's a heavenly minefield for a pizza-loving consumer to discover.”

The owner says Pizza Hut “should transform” as newer generations don't have any emotional connection or loyalty to the brand.

Over time, Pizza Hut's share has been fragmented and spread to its more modern, agile rivals. To maintain its high labor and location costs, it would have to charge more – which commentators say is challenging at a time when household budgets are decreasing.

A senior executive of Pizza Hut's overseas branches said the rescue aimed “to safeguard our dining experience and retain staff where possible”.

He said its immediate priority was to keep running at the open outlets and off-premise points and to help employees through the change.

However with significant funds going into running its restaurants, it may be unable to invest too much in its takeaway operation because the industry is “complex and using existing external services comes at a price”, commentators say.

However, it's noted, lowering overhead by withdrawing from oversaturated towns and city centres could be a good way to evolve.

Deborah Lewis
Deborah Lewis

Digital marketing specialist with over 10 years of experience, passionate about helping businesses succeed online through data-driven strategies.

November 2025 Blog Roll

Popular Post