🔗 Share this article

In the past, the popular pizza chain was the top choice for families and friends to feast on its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.

But a declining number of patrons are visiting the chain these days, and it is closing a significant portion of its British restaurants after being bought out of administration for the second instance this year.

It was common to visit Pizza Hut when I was a child,” says one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she states “it's fallen out of favor.”

For young customer Martina, certain features Pizza Hut has been recognized for since it launched in the UK in the mid-20th century are now not-so-hot.

“The way they do their buffet and their salad station, it feels like they are cutting corners and have reduced quality... They provide so much food and you're like ‘How?’”

As grocery costs have soared, Pizza Hut's all-you-can-eat model has become quite costly to maintain. As have its outlets, which are being cut from over 130 to just over 60.

The chain, in common with competitors, has also faced its operating costs rise. Earlier this year, employee wages increased due to increases in the legal wage floor and an increase in employer national insurance contributions.

Two diners say they frequently dined at Pizza Hut for a date “every now and then”, but now they get delivery from another pizza brand and think Pizza Hut is “too expensive”.

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

Even though Pizza Hut provides pickup and delivery through third-party apps, it is falling behind to larger chains which specialize to off-premise dining.

“The rival chain has managed to dominate the off-premise pizza industry thanks to intensive advertising and frequent offers that make shoppers feel like they're saving money, when in reality the standard rates are relatively expensive,” notes the specialist.

However for these customers it is worth it to get their evening together sent directly.

“We predominantly have meals at home now instead of we eat out,” says the female customer, reflecting recent statistics that show a drop in people visiting quick-service eateries.

During the summer months, quick-service eateries saw a six percent decline in customers compared to the year before.

Additionally, another rival to ordered-in pies: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at a major consultancy, notes that not only have grocery stores been providing high-quality prepared pies for a long time – some are even offering countertop ovens.

“Shifts in habits are also playing a factor in the performance of casual eateries,” comments Mr. Hawkley.

The growing trend of low-carb regimens has increased sales at poultry outlets, while affecting sales of dough-based meals, he notes.

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

The growth of high-quality pizzerias” over the last 10 to 15 years, such as new entrants, has “fundamentally changed the general opinion of what good pizza is,” says the food expert.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. This, in my view, is what's caused Pizza Hut's downfall,” she comments.

“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted traditional pie for a lower price at one of the many real Italian restaurants around the country?

“It's an easy choice.”

A mobile pizza vendor, who operates a pizza van based in Suffolk comments: “The issue isn’t that fallen out of love with pizza – they just want improved value.”

The owner says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with changing preferences.

At a small pizza brand in a UK location, the proprietor says the pizza market is broadening but Pizza Hut has not provided anything fresh.

“Currently available are slice concepts, London pizza, new haven, sourdough, wood-fired, deep-dish – it's a wonderful array for a pie fan to discover.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any fond memories or attachment to the brand.

Over time, Pizza Hut's share has been sliced up and spread to its fresher, faster competitors. To sustain its expensive staffing and restaurants, it would have to raise prices – which experts say is difficult at a time when personal spending are tightening.

The leadership of Pizza Hut's international markets said the rescue aimed “to protect our guest experience and save employment where possible”.

It was explained its key goal was to continue operating at the open outlets and off-premise points and to assist staff through the change.

But with so much money going into running its restaurants, it probably cannot to invest too much in its delivery service because the market is “difficult and working with existing external services comes at a price”, commentators say.

Still, experts suggest, reducing expenses by withdrawing from competitive urban areas could be a smart move to adjust.