🔗 Share this article

At one time, the popular pizza chain was the go-to for groups and loved ones to feast on its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.

But a declining number of customers are choosing the brand nowadays, and it is closing a significant portion of its British restaurants after being rescued from insolvency for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” But now, in her mid-twenties, she states “it's no longer popular.”

In the view of 23-year-old Martina, the very elements Pizza Hut has been famous for since it started in the UK in the seventies are now outdated.

“How they do their all-you-can-eat and their salad bar, it seems as if they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How can they?’”

Because food prices have increased significantly, Pizza Hut's all-you-can-eat model has become increasingly pricey to run. As have its outlets, which are being cut from over 130 to just over 60.

The chain, in common with competitors, has also seen its costs rise. Earlier this year, labor expenses rose due to increases in the legal wage floor and an rise in employer social security payments.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “not good value”.

According to your order, Pizza Hut and Domino's prices are comparable, says a food expert.

Although Pizza Hut has takeaway and deliveries through delivery platforms, it is missing out to larger chains which solely cater to off-premise dining.

“Domino's has managed to dominate the takeaway pizza sector thanks to strong promotions and frequent offers that make consumers feel like they're finding a good deal, when in reality the base costs are on the higher side,” notes the specialist.

Yet for these customers it is worth it to get their special meal delivered to their door.

“We absolutely dine at home now rather than we eat out,” explains one of the diners, matching recent statistics that show a decrease in people frequenting informal dining spots.

In the warmer season, informal dining venues saw a notable decrease in diners compared to last summer.

Moreover, one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

A hospitality expert, head of leisure and hospitality at a major consultancy, notes that not only have supermarkets been providing high-quality ready-to-bake pizzas for years – some are even offering pizza-making appliances.

“Evolving preferences are also playing a factor in the success of fast-food chains,” comments Mr. Hawkley.

The rising popularity of low-carb regimens has increased sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he notes.

Because people dine out not as often, they may look for a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more dated than premium.

The rise of artisanal pizza places” over the last 10 to 15 years, including new entrants, has “dramatically shifted the consumer view of what good pizza is,” says the industry commentator.

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

“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a chain when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?

“It's a no-brainer.”

Dan Puddle, who owns a small business based in a county in England says: “People haven’t lost interest in pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer gourmet pizza at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.

According to Pizzarova in a UK location, owner Jack Lander says the sector is broadening but Pizza Hut has not provided anything new.

“There are now slice concepts, regional varieties, thin crust, artisan base, wood-fired, Detroit – it's a delightful challenge for a pizza enthusiast to discover.”

He says Pizza Hut “needs to reinvent itself” as the youth don't have any sense of nostalgia or allegiance to the company.

Over time, Pizza Hut's share has been divided and distributed to its fresher, faster alternatives. To sustain its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is difficult at a time when household budgets are tightening.

The leadership of Pizza Hut's overseas branches said the buyout aimed “to safeguard our dining experience and protect jobs where possible”.

He said its first focus was to maintain service at the surviving locations and takeaway hubs and to support colleagues through the change.

But with so much money going into running its restaurants, it probably cannot to allocate significant resources in its off-premise division because the sector is “complex and working with existing third-party platforms comes at a cost”, analysts say.

Still, experts suggest, reducing expenses by withdrawing from oversaturated towns and city centres could be a effective strategy to evolve.