🔗 Share this article

At one time, the popular pizza chain was the top choice for families and friends to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and self-serve ice-cream.

But a declining number of patrons are frequenting the restaurant nowadays, and it is closing a significant portion of its British locations after being bought out of administration for the second instance this year.

“We used to go Pizza Hut when I was a child,” explains a young adult. “It was a regular outing, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she states “it's no longer popular.”

For a diner in her twenties, the very elements Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now less appealing.

“How they do their buffet and their salad station, it seems as if they are lowering standards and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

As ingredient expenses have soared, Pizza Hut's unlimited dining format has become increasingly pricey to run. The same goes for its locations, which are being reduced from 132 to a smaller figure.

The company, like many others, has also experienced its costs go up. This spring, employee wages rose due to increases in the legal wage floor and an increase in employer taxes.

A couple in their thirties and twenties explain they frequently dined at Pizza Hut for a date “every now and then”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

Depending on your order, Pizza Hut and Domino's costs are comparable, says a food expert.

While Pizza Hut has takeaway and deliveries through external services, it is missing out to big rivals which specialize to this market.

“Another pizza company has managed to dominate the delivery market thanks to intensive advertising and constantly running deals that make shoppers feel like they're getting a bargain, when in reality the base costs are on the higher side,” notes the expert.

But for these customers it is worth it to get their evening together brought to their home.

“We definitely eat at home now more than we eat out,” comments Joanne, reflecting recent statistics that show a decline in people going to informal dining spots.

Over the summer, quick-service eateries saw a six percent decline in customers compared to the previous year.

There is also one more competitor to pizza from eateries: the cook-at-home oven pizza.

Will Hawkley, global lead for leisure at an advisory group, explains that not only have retailers been providing good-standard ready-to-bake pizzas for years – some are even offering countertop ovens.

“Lifestyle changes are also contributing in the performance of casual eateries,” says the expert.

The increased interest of protein-rich eating plans has driven sales at grilled chicken brands, while reducing sales of dough-based meals, he notes.

As people visit restaurants less frequently, they may seek out a more premium experience, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more old-fashioned than luxurious.

The rise of premium pizza outlets” over the last several years, for example boutique chains, has “dramatically shifted the consumer view of what good pizza is,” says the culinary analyst.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she states.

“What person would spend a high price on a modest, low-quality, underwhelming pizza from a franchise when you can get a stunning, expertly crafted Margherita for a lower price at one of the many traditional pizzerias around the country?

“It's a no-brainer.”

An independent operator, who runs a small business based in a regional area says: “It's not that fallen out of love with pizza – they just want better pizza for their money.”

He says his flexible operation can offer premium pizza at reasonable rates, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.

At an independent chain in a city in southwest England, the proprietor says the sector is broadening but Pizza Hut has not provided anything new.

“Currently available are individual slices, regional varieties, new haven, sourdough, traditional Italian, deep-dish – it's a wonderful array for a pie fan to explore.”

He says Pizza Hut “needs to reinvent itself” as the youth don't have any fond memories or allegiance to the brand.

In recent years, Pizza Hut's share has been sliced up and allocated to its more modern, agile rivals. To sustain its costly operations, it would have to raise prices – which experts say is challenging at a time when family finances are shrinking.

A senior executive of Pizza Hut's international markets said the buyout aimed “to protect our customer service and protect jobs where possible”.

He said its immediate priority was to maintain service at the surviving locations and delivery sites and to support colleagues through the change.

Yet with so much money going into maintaining its outlets, it probably cannot to invest too much in its off-premise division because the market is “complex and working with existing external services comes at a expense”, experts say.

But, he adds, cutting its costs by withdrawing from oversaturated towns and city centres could be a smart move to adapt.