🔗 Share this article

In the past, Pizza Hut was the favorite for parents and children to enjoy its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream.

However fewer patrons are choosing the chain nowadays, and it is shutting down a significant portion of its British locations after being bought out of administration for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” But now, aged 24, she states “it's fallen out of favor.”

For 23-year-old Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the 1970s are now outdated.

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

Because grocery costs have increased significantly, Pizza Hut's all-you-can-eat model has become quite costly to maintain. The same goes for its outlets, which are being sliced from 132 to a smaller figure.

The company, similar to other firms, has also faced its operating costs go up. In April this year, employee wages rose due to higher minimum pay and an rise in employer social security payments.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “occasionally”, but now they get delivery from a rival chain and think Pizza Hut is “too expensive”.

Based on your selection, Pizza Hut and Domino's costs are close, says a food expert.

Even though Pizza Hut does offer off-premise options through third-party apps, it is falling behind to major competitors which focus exclusively to the delivery sector.

“Another pizza company has managed to dominate the off-premise pizza industry thanks to aggressive marketing and constantly running deals that make customers feel like they're finding a good deal, when in reality the original prices are on the higher side,” says the expert.

But for these customers it is worth it to get their date night delivered to their door.

“We definitely eat at home now instead of we eat out,” says Joanne, echoing recent statistics that show a decrease in people going to quick-service eateries.

During the summer months, informal dining venues saw a 6% drop in patrons compared to last summer.

Additionally, another rival to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, senior partner at an advisory group, points out that not only have supermarkets been providing premium ready-to-bake pizzas for quite a while – some are even selling pizza-making appliances.

“Shifts in habits are also having an impact in the popularity of casual eateries,” states Mr. Hawkley.

The growing trend of low-carb regimens has increased sales at chicken shops, while reducing sales of dough-based meals, he notes.

Because people go out to eat more rarely, they may look for a more upscale outing, and Pizza Hut's retro theme with vinyl benches and traditional décor can feel more dated than upmarket.

The rise of high-quality pizzerias” over the last 10 to 15 years, such as popular brands, has “dramatically shifted the public's perception of what quality pizza is,” notes 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. That, arguably, is what's caused Pizza Hut's decline,” she states.

“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

A mobile pizza vendor, who operates a pizza van based in a regional area says: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

From the perspective of a small pizza brand in Bristol, the proprietor says the industry is diversifying but Pizza Hut has failed to offer anything innovative.

“There are now by-the-slice options, artisanal styles, New Haven-style, artisan base, Neapolitan, Detroit – it's a wonderful array for a pie fan to try.”

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

Over time, Pizza Hut's market has been sliced up and allocated to its fresher, faster rivals. To sustain its expensive staffing and restaurants, it would have to increase costs – which commentators say is challenging at a time when personal spending are decreasing.

A senior executive of Pizza Hut's global operations said the acquisition aimed “to safeguard our guest experience and protect jobs where possible”.

He said its first focus was to maintain service at the remaining 64 restaurants and delivery sites and to assist staff through the change.

Yet with so much money going into running its restaurants, it likely can't afford to invest too much in its delivery service because the market is “complex and using existing third-party platforms comes at a cost”, commentators say.

But, he adds, reducing expenses by withdrawing from oversaturated towns and city centres could be a good way to adjust.