🔗 Share this article

Once, the popular pizza chain was the go-to for groups and loved ones to enjoy its all-you-can-eat buffet, help-yourself greens station, and ice cream with toppings.

Yet fewer diners are visiting the brand currently, and it is closing 50% of its British locations after being rescued from insolvency for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” However, at present, as a young adult, she comments “it's not a thing anymore.”

In the view of 23-year-old Martina, some of the very things Pizza Hut has been famous for since it opened in the UK in the 1970s are now less appealing.

“The way they do their buffet and their salad station, it seems as if they are cheapening on their quality and have reduced quality... They provide so much food and you're like ‘How?’”

Because food prices have soared, Pizza Hut's all-you-can-eat model has become quite costly to run. As have its locations, which are being reduced from a large number to 64.

The chain, similar to other firms, has also seen its costs go up. In April this year, labor expenses increased due to increases in the legal wage floor and an increase in employer national insurance contributions.

Two diners say they would often visit at Pizza Hut for a date “from time to time”, but now they choose a rival chain and think Pizza Hut is “too expensive”.

Based on your order, Pizza Hut and Domino's costs are similar, notes a culinary author.

Even though Pizza Hut provides pickup and delivery through delivery platforms, it is falling behind to big rivals which solely cater to the delivery sector.

“Another pizza company has managed to dominate the takeaway pizza sector thanks to strong promotions and ongoing discounts that make shoppers feel like they're finding a good deal, when in reality the original prices are quite high,” notes the expert.

Yet for these customers it is acceptable to get their date night sent directly.

“We definitely eat at home now instead of we eat out,” comments the female customer, matching current figures that show a decrease in people going to quick-service eateries.

Over the summer, quick-service eateries saw a six percent decline in customers compared to the year before.

Additionally, one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, head of leisure and hospitality at an advisory group, points out that not only have supermarkets been providing good-standard oven-ready pizzas for years – some are even selling countertop ovens.

“Lifestyle changes are also having an impact in the performance of fast-food chains,” says Mr. Hawkley.

The increased interest of protein-rich eating plans has increased sales at poultry outlets, while hitting sales of high-carbohydrate options, he continues.

As people go out to eat less frequently, they may seek out a more high-quality meal, and Pizza Hut's American-diner style with comfortable booths and traditional décor can feel more old-fashioned than premium.

The “explosion of premium pizza outlets” over the last decade and a half, including popular brands, has “fundamentally changed the consumer view of what good pizza is,” notes the food expert.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she states.

“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a large brand when you can get a stunning, expertly crafted classic pizza for under a tenner at one of the many authentic Italian pizzerias around the country?

“It's an easy choice.”

An independent operator, who operates a pizza van based in a regional area explains: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer gourmet pizza at reasonable rates, and that Pizza Hut struggled because it could not keep up with new customer habits.

At a small pizza brand in a city in southwest England, owner Jack Lander says the industry is broadening but Pizza Hut has not provided anything innovative.

“There are now slice concepts, London pizza, new haven, sourdough, traditional Italian, deep-dish – it's a heavenly minefield for a pizza-loving consumer to try.”

The owner says Pizza Hut “should transform” as younger people don't have any emotional connection or loyalty to the brand.

In recent years, Pizza Hut's share has been fragmented and allocated to its fresher, faster competitors. To sustain its high labor and location costs, it would have to increase costs – which commentators say is tough at a time when household budgets are tightening.

The managing director of Pizza Hut's international markets said the acquisition aimed “to protect our guest experience and save employment where possible”.

He said its immediate priority was to maintain service at the surviving locations and off-premise points and to help employees through the transition.

However with significant funds going into operating its locations, it likely can't afford to invest too much in its takeaway operation because the market is “complex and using existing third-party platforms comes at a price”, commentators say.

Still, experts suggest, reducing expenses by withdrawing from competitive urban areas could be a effective strategy to evolve.