🔗 Share this article

At one time, Pizza Hut was the go-to for groups and loved ones to enjoy its eat-as-much-as-you-like offering, help-yourself greens station, and ice cream with toppings.

However a declining number of diners are frequenting the chain these days, and it is closing a significant portion of its British locations after being bought out of administration for the second instance this year.

“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” But now, as a young adult, she says “it's not a thing anymore.”

For a diner in her twenties, certain features Pizza Hut has been famous for since it started in the UK in the seventies are now outdated.

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

Because ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become quite costly to operate. Similarly, its outlets, which are being cut from 132 to a smaller figure.

The chain, like many others, has also seen its expenses rise. This spring, staffing costs increased due to increases in the legal wage floor and an increase in employer social security payments.

Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “every now and then”, but now they order in another pizza brand and think Pizza Hut is “too expensive”.

According to your selection, Pizza Hut and Domino's costs are close, explains an industry analyst.

Even though Pizza Hut does offer takeaway and deliveries through delivery platforms, it is falling behind to larger chains which solely cater to this market.

“The rival chain has taken over the off-premise pizza industry thanks to strong promotions and frequent offers that make customers feel like they're saving money, when in reality the original prices are quite high,” notes the analyst.

But for Chris and Joanne it is justified to get their evening together delivered to their door.

“We absolutely dine at home now more than we eat out,” comments one of the diners, echoing recent statistics that show a decrease in people visiting informal dining spots.

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

Additionally, a further alternative to ordered-in pies: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at an advisory group, explains that not only have grocery stores been offering high-quality oven-ready pizzas for quite a while – some are even promoting countertop ovens.

“Lifestyle changes are also having an impact in the performance of casual eateries,” comments the analyst.

The increased interest of low-carb regimens has boosted sales at chicken shops, while reducing sales of dough-based meals, he continues.

Since people dine out more rarely, they may prefer a more premium experience, and Pizza Hut's classic look with comfortable booths and nostalgic table settings can feel more dated than upmarket.

The rise of high-quality pizzerias” over the last decade and a half, for example boutique chains, has “dramatically shifted the consumer view of what excellent pie is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she states.

“What person would spend nearly eighteen pounds on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted Margherita for a lower price at one of the many real Italian restaurants around the country?

“The decision is simple.”

An independent operator, who operates a small business based in a county in England comments: “The issue isn’t that fallen out of love with pizza – they just want better pizza for their money.”

The owner says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with new customer habits.

At a small pizza brand in a UK location, the proprietor says the sector is diversifying but Pizza Hut has failed to offer anything innovative.

“There are now by-the-slice options, London pizza, new haven, artisan base, Neapolitan, rectangular – it's a heavenly minefield for a pie fan to discover.”

Jack says Pizza Hut “needs to reinvent itself” as newer generations don't have any emotional connection or allegiance to the brand.

In recent years, Pizza Hut's market has been fragmented and allocated to its more modern, agile competitors. To maintain its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is challenging at a time when family finances are tightening.

A senior executive of Pizza Hut's overseas branches said the rescue aimed “to ensure our guest experience and protect jobs where possible”.

The executive stated its key goal was to keep running at the open outlets and off-premise points and to help employees through the change.

However with large sums going into maintaining its outlets, it likely can't afford to allocate significant resources in its delivery service because the sector is “difficult and using existing third-party platforms comes at a price”, commentators say.

However, it's noted, reducing expenses by leaving crowded locations could be a good way to adapt.