🔗 Share this article

At one time, the popular pizza chain was the top choice for parents and children to enjoy its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

But not as many patrons are choosing the restaurant currently, and it is shutting down 50% of its UK outlets after being rescued from insolvency for the second time this year.

“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, aged 24, she says “it's not a thing anymore.”

In the view of a diner in her twenties, certain features Pizza Hut has been famous for since it opened in the UK in the seventies are now not-so-hot.

“How they do their buffet and their salad bar, it seems as if they are cutting corners and have lower standards... They offer so much food and you're like ‘How can they?’”

Because ingredient expenses have increased significantly, Pizza Hut's unlimited dining format has become very expensive to run. As have its outlets, which are being reduced from over 130 to a smaller figure.

The business, in common with competitors, has also seen its operating costs go up. Earlier this year, staffing costs increased due to increases in the legal wage floor and an higher rate of employer social security payments.

Two diners say they used to go at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

Based on your order, Pizza Hut and Domino's prices are similar, says a culinary author.

While Pizza Hut provides takeaway and deliveries through third-party apps, it is falling behind to larger chains which focus exclusively to this market.

“The rival chain has managed to dominate the takeaway pizza sector thanks to intensive advertising and frequent offers that make customers feel like they're getting a bargain, when in reality the base costs are quite high,” explains the expert.

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

“We absolutely dine at home now rather than we eat out,” explains Joanne, echoing recent statistics that show a decline in people visiting casual and fast-food restaurants.

During the summer months, casual and fast-food restaurants saw a notable decrease in customers compared to last summer.

Additionally, a further alternative to pizza from eateries: the frozen or fresh pizza.

A hospitality expert, head of leisure and hospitality at a leading firm, notes that not only have supermarkets been selling good-standard prepared pies for a long time – some are even selling pizza-making appliances.

“Evolving preferences are also contributing in the success of fast-food chains,” states the expert.

The rising popularity of protein-rich eating plans has increased sales at poultry outlets, while affecting sales of carb-heavy pizza, he notes.

As people visit restaurants not as often, they may prefer a more premium experience, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more dated than premium.

The “explosion of high-quality pizzerias” over the last several years, for example popular brands, has “fundamentally changed the general opinion of what excellent pie is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she says.

“Why would anyone spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for under a tenner at one of the many authentic Italian pizzerias around the country?

“It's an easy choice.”

Dan Puddle, who runs Smokey Deez based in a county in England explains: “It's not that stopped liking pizza – they just want improved value.”

He says his adaptable business can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

According to an independent chain in a UK location, the founder says the pizza market is broadening but Pizza Hut has failed to offer anything innovative.

“You now have slice concepts, regional varieties, thin crust, fermented dough, traditional Italian, deep-dish – it's a delightful challenge for a pizza enthusiast to explore.”

The owner says Pizza Hut “should transform” as younger people don't have any fond memories or loyalty to the chain.

Gradually, Pizza Hut's customer base has been fragmented and allocated to its fresher, faster rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is challenging at a time when family finances are tightening.

The managing director of Pizza Hut's global operations said the rescue aimed “to safeguard our customer service and save employment where possible”.

He said its key goal was to maintain service at the open outlets and takeaway hubs and to support colleagues through the transition.

However with so much money going into running its restaurants, it may be unable to allocate significant resources in its off-premise division because the market is “complicated and using existing external services comes at a expense”, analysts say.

However, it's noted, lowering overhead by leaving crowded locations could be a good way to adapt.