🔗 Share this article

In the past, the popular pizza chain was the top choice for families and friends to feast on its eat-as-much-as-you-like offering, help-yourself greens station, and make-your-own dessert.

Yet fewer customers are frequenting the brand currently, and it is shutting down 50% of its British restaurants after being rescued from insolvency for the second time 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.” Today, in her mid-twenties, she states “it's fallen out of favor.”

According to a diner in her twenties, the very elements Pizza Hut has been recognized for since it opened in the UK in the seventies are now not-so-hot.

“The way they do their buffet and their salad station, it feels like they are lowering standards and have lower standards... They provide so much food and you're like ‘How is that possible?’”

Since grocery costs have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. Similarly, its outlets, which are being reduced from over 130 to just over 60.

The chain, similar to other firms, has also faced its operating costs rise. Earlier this year, staffing costs jumped due to rises in minimum wages and an higher rate of employer social security payments.

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

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

Even though Pizza Hut has takeaway and deliveries through third-party apps, it is missing out to larger chains which focus exclusively to the delivery sector.

“Domino's has managed to dominate the off-premise pizza industry thanks to intensive advertising and frequent offers that make consumers feel like they're finding a good deal, when in reality the base costs are quite high,” notes the specialist.

However for Chris and Joanne it is worth it to get their date night brought to their home.

“We absolutely dine at home now more than we eat out,” comments Joanne, matching latest data that show a decline in people frequenting casual and fast-food restaurants.

In the warmer season, casual and fast-food restaurants saw a notable decrease in patrons compared to the previous year.

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

A hospitality expert, senior partner at an advisory group, explains that not only have supermarkets been providing good-standard prepared pies for quite a while – some are even promoting countertop ovens.

“Lifestyle changes are also contributing in the performance of fast-food chains,” states the analyst.

The growing trend of low-carb regimens has driven sales at chicken shops, while affecting sales of high-carbohydrate options, he continues.

Since people dine out less frequently, they may prefer a more premium experience, and Pizza Hut's retro theme with vinyl benches and nostalgic table settings can feel more dated than luxurious.

The rise of artisanal pizza places” over the last decade and a half, for example popular brands, has “dramatically shifted the consumer view of what excellent pie 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 says.

“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made traditional pie for a lower price at one of the many authentic Italian pizzerias around the country?

“It's an easy choice.”

An independent operator, who operates a small business based in Suffolk explains: “The issue isn’t that lost interest in pizza – they just want improved value.”

Dan says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut struggled because it could not keep up with new customer habits.

At an independent chain in a UK location, owner Jack Lander says the sector is broadening but Pizza Hut has neglected to introduce anything innovative.

“You now have slice concepts, artisanal styles, new haven, artisan base, traditional Italian, Detroit – it's a heavenly minefield for a pie fan to discover.”

Jack says Pizza Hut “needs to reinvent itself” as the youth don't have any emotional connection or allegiance to the chain.

Over time, Pizza Hut's market has been fragmented and allocated to its more modern, agile alternatives. To sustain its costly operations, it would have to raise prices – which industry analysts say is difficult at a time when family finances are decreasing.

The managing director of Pizza Hut's overseas branches said the buyout aimed “to safeguard our guest experience and protect jobs where possible”.

The executive stated its immediate priority was to maintain service at the open outlets and takeaway hubs and to assist staff through the change.

However with large sums going into maintaining its outlets, it may be unable to allocate significant resources in its takeaway operation because the industry is “difficult and working with existing third-party platforms comes at a cost”, analysts say.

Still, experts suggest, reducing expenses by exiting crowded locations could be a good way to adapt.