🔗 Share this article

In the past, Pizza Hut was the favorite for groups and loved ones to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.

But a declining number of customers are visiting the chain currently, and it is closing half 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,” says a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she states “it's fallen out of favor.”

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23-year-old Martina, the very elements Pizza Hut has been famous for since it opened in the UK in the seventies are now outdated.

“The manner in which they do their buffet and their salad station, it appears that they are cutting corners and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

As ingredient expenses have increased significantly, Pizza Hut's buffet-style service has become increasingly pricey to run. As have its locations, which are being sliced from over 130 to a smaller figure.

The business, like many others, has also experienced its expenses rise. In April this year, staffing costs increased due to increases in the legal wage floor and an increase in employer social security payments.

A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “occasionally”, but now they order in Domino's and think Pizza Hut is “very overpriced”.

Based on your selection, Pizza Hut and Domino's rates are comparable, notes an industry analyst.

While Pizza Hut provides takeaway and deliveries through delivery platforms, it is missing out to major competitors which focus exclusively to off-premise dining.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to strong promotions and frequent offers that make shoppers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” explains the specialist.

Yet for the couple it is acceptable to get their evening together delivered to their door.

“We definitely eat at home now rather than we eat out,” says Joanne, echoing latest data that show a decline in people visiting quick-service eateries.

During the summer months, quick-service eateries saw a notable decrease in patrons compared to last summer.

Moreover, another rival to pizza from eateries: the frozen or fresh pizza.

Will Hawkley, global lead for leisure at a leading firm, notes that not only have grocery stores been offering good-standard oven-ready pizzas for quite a while – some are even promoting pizza-making appliances.

“Evolving preferences are also contributing in the success of casual eateries,” comments the analyst.

The increased interest of low-carb regimens has boosted sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he continues.

Since people dine out more rarely, they may seek out a more premium experience, and Pizza Hut's classic look with comfortable booths and traditional décor can feel more retro than premium.

The “explosion of high-quality pizzerias” over the last several years, including new entrants, has “completely altered the general opinion of what quality pizza is,” explains the food expert.

“A light, fresh, easy-to-digest product with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she says.

“What person would spend a high price on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted 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 Suffolk says: “It's not that lost interest in pizza – they just want improved value.”

Dan says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it failed to adapt with changing preferences.

From the perspective of Pizzarova in a UK location, the founder says the industry is broadening but Pizza Hut has not provided anything fresh.

“You now have slice concepts, artisanal styles, new haven, fermented dough, wood-fired, rectangular – it's a wonderful array for a pizza-loving consumer to try.”

The owner says Pizza Hut “should transform” as the youth don't have any fond memories or loyalty to the chain.

Gradually, Pizza Hut's market has been fragmented and distributed to its more modern, agile competitors. To sustain its high labor and location costs, it would have to charge more – which commentators say is challenging at a time when personal spending are decreasing.

A senior executive of Pizza Hut's global operations said the buyout aimed “to ensure our dining experience and retain staff where possible”.

It was explained its key goal was to keep running at the remaining 64 restaurants and takeaway hubs and to help employees through the restructure.

But with so much money going into maintaining its outlets, it may be unable to spend heavily in its takeaway operation because the sector is “complex and working with existing third-party platforms comes at a expense”, analysts say.

Still, experts suggest, lowering overhead by leaving competitive urban areas could be a smart move to adapt.