🔗 Share this article

In the past, the popular pizza chain was the favorite for parents and children to feast on its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

However not as many diners are visiting the brand currently, and it is closing 50% of its UK restaurants after being bought out of administration for the second time this year.

“We used to go Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's no longer popular.”

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her twenties, the very elements Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now outdated.

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

Since grocery costs have increased significantly, Pizza Hut's buffet-style service has become increasingly pricey to maintain. The same goes for its locations, which are being cut from 132 to just over 60.

The business, like many others, has also faced its costs rise. Earlier this year, labor expenses jumped due to increases in the legal wage floor and an increase in employer national insurance contributions.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “very overpriced”.

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

While Pizza Hut has takeaway and deliveries through third-party apps, it is missing out to big rivals which focus exclusively to this market.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to strong promotions and frequent offers that make consumers feel like they're saving money, when in reality the standard rates are quite high,” explains the analyst.

However for Chris and Joanne it is acceptable to get their date night delivered to their door.

“We absolutely dine at home now more than we eat out,” comments one of the diners, echoing recent statistics that show a decrease in people frequenting quick-service eateries.

Over the summer, informal dining venues saw a six percent decline in customers compared to last summer.

There is also another rival to ordered-in pies: the frozen or fresh pizza.

Will Hawkley, senior partner at a major consultancy, points out that not only have retailers been offering high-quality prepared pies for years – some are even promoting countertop ovens.

“Evolving preferences are also having an impact in the popularity of casual eateries,” comments the expert.

The increased interest of high protein diets has boosted sales at grilled chicken brands, while affecting sales of dough-based meals, he adds.

Because people go out to eat less frequently, they may prefer a more premium experience, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more dated than upmarket.

The rise of artisanal pizza places” over the last several years, including new entrants, has “dramatically shifted the general opinion of what quality pizza is,” explains the culinary analyst.

“A thin, flavorful, gentle crust with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she comments.

“What person would spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many traditional pizzerias around the country?

“The decision is simple.”

An independent operator, who owns Smokey Deez based in Suffolk says: “People haven’t lost interest in pizza – they just want improved value.”

He says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

At Pizzarova in a city in southwest England, owner Jack Lander says the pizza market is diversifying but Pizza Hut has neglected to introduce anything fresh.

“Currently available are by-the-slice options, regional varieties, thin crust, sourdough, wood-fired, deep-dish – it's a heavenly minefield for a pie fan to discover.”

He says Pizza Hut “needs to reinvent itself” as younger people don't have any emotional connection or loyalty to the chain.

Gradually, Pizza Hut's market has been divided and distributed to its fresher, faster competitors. To maintain its costly operations, it would have to charge more – which experts say is challenging at a time when family finances are decreasing.

The leadership 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 surviving locations and off-premise points and to assist staff through the change.

However with so much money going into operating its locations, it probably cannot to spend heavily in its takeaway operation because the industry is “complex and working with existing third-party platforms comes at a price”, commentators say.

However, it's noted, lowering overhead by withdrawing from oversaturated towns and city centres could be a effective strategy to adapt.