🔗 Share this article

At one time, the popular pizza chain was the go-to for families and friends to indulge in its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.

However not as many customers are frequenting the restaurant nowadays, and it is shutting down 50% of its British outlets after being bought out of administration for the second instance this year.

I remember going Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she comments “it's no longer popular.”

For young customer Martina, some of the very things Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now less appealing.

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

As ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to operate. The same goes for its outlets, which are being reduced from a large number to 64.

The chain, in common with competitors, has also faced its operating costs rise. Earlier this year, staffing costs increased due to rises in minimum wages and an increase in employer social security payments.

Two diners mention they frequently dined at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.

Based on your choices, Pizza Hut and Domino's rates are comparable, says a culinary author.

While Pizza Hut provides pickup and delivery through delivery platforms, it is falling behind to major competitors which specialize to the delivery sector.

“Domino's has taken over the delivery market thanks to strong promotions and ongoing discounts that make customers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” notes the analyst.

But for these customers it is justified to get their special meal brought to their home.

“We absolutely dine at home now more than we eat out,” comments Joanne, reflecting current figures that show a drop in people visiting casual and fast-food restaurants.

During the summer months, informal dining venues saw a notable decrease in customers compared to last summer.

Additionally, one more competitor to ordered-in pies: the cook-at-home oven pizza.

Will Hawkley, head of leisure and hospitality at a leading firm, explains that not only have supermarkets been providing good-standard ready-to-bake pizzas for years – some are even promoting pizza-making appliances.

“Lifestyle changes are also contributing in the success of fast-food chains,” comments the expert.

The growing trend of high protein diets has driven sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he continues.

Because people dine out not as often, they may look for a more premium experience, and Pizza Hut's classic look with booth seating and traditional décor can feel more old-fashioned than premium.

The “explosion of premium pizza outlets” over the last several years, for example boutique chains, has “fundamentally changed the public's perception of what quality pizza is,” notes the food expert.

“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 decline,” she says.

“What person would spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many real Italian restaurants around the country?

“The decision is simple.”

Dan Puddle, who owns Smokey Deez based in Suffolk comments: “The issue isn’t that lost interest in pizza – they just want improved value.”

He says his mobile setup can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.

At an independent chain in Bristol, the proprietor says the sector is broadening but Pizza Hut has failed to offer anything innovative.

“Currently available are by-the-slice options, regional varieties, thin crust, sourdough, wood-fired, rectangular – it's a heavenly minefield for a pizza-loving consumer to discover.”

He says Pizza Hut “should transform” as the youth don't have any sense of nostalgia or loyalty to the company.

In recent years, Pizza Hut's share has been fragmented and distributed to its trendier, more nimble alternatives. To keep up its costly operations, it would have to increase costs – which industry analysts say is difficult at a time when personal spending are decreasing.

The leadership of Pizza Hut's overseas branches said the acquisition aimed “to protect our customer service and retain staff where possible”.

It was explained its first focus was to maintain service at the remaining 64 restaurants and delivery sites and to help employees through the change.

However with significant funds going into operating its locations, it likely can't afford to allocate significant resources in its off-premise division because the industry is “complicated and using existing delivery apps comes at a price”, analysts say.

However, it's noted, lowering overhead by exiting competitive urban areas could be a good way to adapt.