🔗 Share this article

In the past, the popular pizza chain was the top choice for families and friends to indulge in its all-you-can-eat buffet, endless salad selection, and self-serve ice-cream.

But not as many patrons are visiting the brand currently, and it is reducing a significant portion of its UK outlets after being rescued from insolvency for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” explains a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” 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 known and loved for since it opened in the UK in the 1970s are now less appealing.

“How they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How is that possible?’”

Because ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. The same goes for its outlets, which are being reduced from 132 to 64.

The company, like many others, has also faced its costs rise. Earlier this year, staffing costs increased due to rises in minimum wages and an higher rate of employer social security payments.

Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.

According to your order, Pizza Hut and Domino's prices are comparable, says a culinary author.

While Pizza Hut provides pickup and delivery through external services, it is missing out to major competitors which focus exclusively to this market.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to intensive advertising and ongoing discounts that make consumers feel like they're saving money, when in reality the standard rates are quite high,” says the specialist.

Yet for the couple it is worth it to get their special meal brought to their home.

“We predominantly have meals at home now instead of we eat out,” comments Joanne, echoing current figures that show a decline in people going to quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a 6% drop in patrons compared to the year before.

Moreover, a further alternative to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at an advisory group, explains that not only have supermarkets been selling premium prepared pies for years – some are even offering home-pizza ovens.

“Lifestyle changes are also playing a factor in the popularity of casual eateries,” comments the analyst.

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

Because people go out to eat more rarely, they may prefer a more premium experience, and Pizza Hut's retro theme with booth seating and traditional décor can feel more retro than premium.

The “explosion of premium pizza outlets” over the last several years, for example boutique chains, has “completely altered the public's perception of what good pizza is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a carefully curated additions, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she says.

“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared traditional pie for a lower price at one of the many real Italian restaurants around the country?

“It's an easy choice.”

An independent operator, who runs Smokey Deez based in Suffolk comments: “People haven’t lost interest in pizza – they just want improved value.”

Dan says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with evolving tastes.

From the perspective of a small pizza brand in Bristol, the proprietor says the sector is broadening but Pizza Hut has neglected to introduce anything fresh.

“There are now by-the-slice options, artisanal styles, new haven, artisan base, Neapolitan, Detroit – it's a delightful challenge for a pizza enthusiast to explore.”

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

Over time, Pizza Hut's share has been sliced up and allocated to its more modern, agile rivals. To maintain its expensive staffing and restaurants, it would have to raise prices – which commentators say is tough at a time when personal spending are tightening.

The managing director of Pizza Hut's overseas branches said the buyout aimed “to safeguard our guest experience and protect jobs where possible”.

He said its key goal was to continue operating at the open outlets and off-premise points and to assist staff through the transition.

Yet with so much money going into operating its locations, it may be unable to invest too much in its takeaway operation because the market is “complicated and using existing third-party platforms comes at a cost”, analysts say.

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