🔗 Share this article

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

However a declining number of patrons are frequenting the brand currently, and it is closing 50% of its British outlets after being acquired following financial trouble for the second occasion this year.

It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” However, at present, in her mid-twenties, she comments “it's no longer popular.”

For young customer Martina, some of the very things Pizza Hut has been famous for since it launched in the UK in the mid-20th century are now less appealing.

“How 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 is that possible?’”

Since ingredient expenses have soared, Pizza Hut's buffet-style service has become quite costly to maintain. Similarly, its locations, which are being reduced from over 130 to a smaller figure.

The business, similar to other firms, has also experienced its costs go up. This spring, employee wages rose due to higher minimum pay and an higher rate of employer taxes.

Two diners mention they used to go at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “not good value”.

Based on your choices, Pizza Hut and Domino's costs are similar, explains a food expert.

Although Pizza Hut does offer pickup and delivery through external services, it is losing out to larger chains which focus exclusively to this market.

“The rival chain has managed to dominate the takeaway pizza sector thanks to aggressive marketing and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the base costs are relatively expensive,” notes the expert.

However for the couple it is acceptable to get their special meal delivered to their door.

“We absolutely dine at home now rather than we eat out,” says one of the diners, echoing recent statistics that show a drop in people going to informal dining spots.

During the summer months, informal dining venues saw a notable decrease in diners compared to last summer.

Additionally, a further alternative to pizza from eateries: the supermarket pizza.

A hospitality expert, global lead for leisure at an advisory group, explains that not only have grocery stores been providing high-quality oven-ready pizzas for years – some are even promoting pizza-making appliances.

“Evolving preferences are also playing a factor in the success of casual eateries,” states the analyst.

The growing trend of low-carb regimens has driven sales at grilled chicken brands, while reducing sales of carb-heavy pizza, he continues.

As people dine out not as often, they may seek out a more high-quality meal, and Pizza Hut's classic look with vinyl benches and nostalgic table settings can feel more dated than premium.

The rise of artisanal pizza places” over the last decade and a half, including popular brands, has “dramatically shifted the public's perception of what quality pizza is,” notes the food expert.

“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 resulted in Pizza Hut's downfall,” she comments.

“What person would spend a high price on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a stunning, expertly crafted classic pizza for less than ten pounds at one of the many authentic Italian pizzerias around the country?

“It's an easy choice.”

Dan Puddle, who operates a pizza van based in a regional area comments: “People haven’t stopped liking pizza – they just want improved value.”

Dan says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with evolving tastes.

At Pizzarova in a city in southwest England, the founder says the pizza market is expanding but Pizza Hut has neglected to introduce anything new.

“Currently available are slice concepts, London pizza, thin crust, sourdough, traditional Italian, rectangular – it's a heavenly minefield for a pizza-loving consumer to discover.”

He says Pizza Hut “needs to reinvent itself” as newer generations don't have any fond memories or allegiance to the company.

In recent years, Pizza Hut's market has been sliced up and distributed to its trendier, more nimble competitors. To maintain its high labor and location costs, it would have to raise prices – which industry analysts say is tough at a time when household budgets are shrinking.

The managing director of Pizza Hut's international markets said the acquisition aimed “to protect our customer service and protect jobs where possible”.

It was explained its first focus was to maintain service at the open outlets and delivery sites and to support colleagues through the transition.

Yet with so much money going into running its restaurants, it may be unable to allocate significant resources in its takeaway operation because the market is “difficult and using existing delivery apps comes at a price”, commentators say.

Still, experts suggest, lowering overhead by withdrawing from oversaturated towns and city centres could be a effective strategy to adjust.