🔗 Share this article

Once, the popular pizza chain was the favorite for parents and children to feast on its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.

Yet fewer patrons are visiting the brand currently, and it is closing 50% of its British locations after being bought out of administration for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” But now, as a young adult, she states “it's fallen out of favor.”

According to a diner in her twenties, some of the very things Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now not-so-hot.

“The manner in which they do their buffet and their salad station, it seems as if they are cutting corners and have reduced quality... They offer so much food and you're like ‘How can they?’”

Since grocery costs have risen sharply, Pizza Hut's all-you-can-eat model has become quite costly to maintain. Similarly, its restaurants, which are being reduced from 132 to 64.

The company, in common with competitors, has also experienced its expenses increase. In April this year, staffing costs increased due to rises in minimum wages and an rise in employer taxes.

Two diners mention they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

Based on your selection, Pizza Hut and Domino's prices are comparable, explains an industry analyst.

While Pizza Hut does offer off-premise options through delivery platforms, it is falling behind to major competitors which specialize to off-premise dining.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to intensive advertising and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are relatively expensive,” notes the analyst.

Yet for the couple it is justified to get their evening together sent directly.

“We predominantly have meals at home now more than we eat out,” comments the female customer, echoing latest data that show a decrease in people visiting casual and fast-food restaurants.

Over the summer, informal dining venues saw a notable decrease in patrons compared to the year before.

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

An industry leader, head of leisure and hospitality at an advisory group, points out that not only have grocery stores been selling good-standard prepared pies for quite a while – some are even promoting pizza-making appliances.

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

The growing trend of low-carb regimens has boosted sales at chicken shops, while hitting sales of high-carbohydrate options, he adds.

Since people dine out more rarely, they may seek out a more premium experience, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than luxurious.

The “explosion of premium pizza outlets” over the last decade and a half, including new entrants, has “dramatically shifted the general opinion of what quality pizza is,” explains the industry commentator.

“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's struggles,” she says.

“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many real Italian restaurants around the country?

“It's a no-brainer.”

A mobile pizza vendor, who runs Smokey Deez based in Suffolk says: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

Dan says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it could not keep up with new customer habits.

From the perspective of a small pizza brand in Bristol, the founder says the pizza market is diversifying but Pizza Hut has not provided anything innovative.

“You now have individual slices, artisanal styles, New Haven-style, sourdough, wood-fired, deep-dish – it's a delightful challenge for a pie fan to discover.”

The owner says Pizza Hut “should transform” as newer generations don't have any sense of nostalgia or loyalty to the company.

In recent years, Pizza Hut's market has been fragmented and spread to its more modern, agile competitors. To maintain its costly operations, it would have to raise prices – which experts say is tough at a time when family finances are decreasing.

The managing director of Pizza Hut's global operations said the acquisition aimed “to safeguard our guest experience and retain staff where possible”.

The executive stated its first focus was to continue operating at the remaining 64 restaurants and delivery sites and to assist staff through the transition.

Yet with large sums going into maintaining its outlets, it probably cannot to allocate significant resources in its takeaway operation because the market is “complicated and using existing external services comes at a expense”, experts say.

But, he adds, lowering overhead by withdrawing from competitive urban areas could be a effective strategy to adjust.