🔗 Share this article

In the past, the popular pizza chain was the go-to for families and friends to feast on its unlimited dining experience, endless salad selection, and ice cream with toppings.

However not as many diners are frequenting the chain currently, and it is closing half of its British outlets after being rescued from insolvency for the second time this calendar year.

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

For a diner in her twenties, some of the very things Pizza Hut has been famous for since it launched in the UK in the 1970s are now less appealing.

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

Because grocery costs have risen sharply, Pizza Hut's buffet-style service has become quite costly to run. The same goes for its locations, which are being cut from over 130 to a smaller figure.

The business, in common with competitors, has also experienced its costs rise. In April this year, staffing costs rose due to rises in minimum wages and an rise in employer taxes.

Chris, 36, and Joanne, 29 say they would often visit at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “too expensive”.

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

Although Pizza Hut does offer pickup and delivery through third-party apps, it is falling behind to big rivals which solely cater to the delivery sector.

“Domino's has taken over the off-premise pizza industry thanks to strong promotions and constantly running deals that make consumers feel like they're getting a bargain, when in reality the base costs are on the higher side,” explains the specialist.

However for these customers it is worth it to get their evening together brought to their home.

“We absolutely dine at home now more than we eat out,” explains the female customer, matching latest data that show a decrease in people going to quick-service eateries.

During the summer months, casual and fast-food restaurants saw a notable decrease in patrons compared to the previous year.

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

An industry leader, senior partner at a major consultancy, explains that not only have retailers been selling high-quality prepared pies for a long time – some are even promoting home-pizza ovens.

“Shifts in habits are also having an impact in the popularity of casual eateries,” comments the expert.

The growing trend of protein-rich eating plans has boosted sales at grilled chicken brands, while affecting sales of high-carbohydrate options, he adds.

Since people visit restaurants more rarely, they may seek out a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and red and white checked plastic table cloths can feel more old-fashioned than upmarket.

The growth of high-quality pizzerias” over the last 10 to 15 years, such as popular brands, has “fundamentally changed the public's perception of what quality pizza is,” notes the industry commentator.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she comments.

“Who would choose to spend nearly eighteen pounds on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made Margherita 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 Smokey Deez based in Suffolk explains: “People haven’t lost interest in pizza – they just want better pizza for their money.”

He says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it failed to adapt with changing preferences.

At a small pizza brand in a city in southwest England, the proprietor says the sector is broadening but Pizza Hut has neglected to introduce anything innovative.

“You now have by-the-slice options, regional varieties, thin crust, fermented dough, Neapolitan, deep-dish – it's a wonderful array for a pizza-loving consumer to explore.”

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

Gradually, Pizza Hut's share has been sliced up and spread to its fresher, faster alternatives. To sustain its costly operations, it would have to increase costs – which experts say is challenging at a time when family finances are tightening.

A senior executive of Pizza Hut's global operations said the rescue aimed “to safeguard our customer service and save employment where possible”.

He said its key goal was to maintain service at the surviving locations and delivery sites and to assist staff through the change.

However with so much money going into operating its locations, it may be unable to invest too much in its delivery service because the industry is “complex and using existing third-party platforms comes at a cost”, commentators say.

However, it's noted, lowering overhead by exiting crowded locations could be a smart move to evolve.