🔗 Share this article

In the past, the popular pizza chain was the favorite for families and friends to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.

But not as many diners are choosing the brand these days, and it is closing half of its British locations after being rescued from insolvency for the second occasion this year.

“We used to go Pizza Hut when I was a child,” explains a young adult. “It was a tradition, you'd go on a Sunday – spend the whole day there.” But now, aged 24, she says “it's not a thing anymore.”

In the view of young customer Martina, certain features Pizza Hut has been known and loved for since it launched in the UK in the 1970s are now less appealing.

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

As ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become very expensive to operate. The same goes for its locations, which are being cut from a large number to a smaller figure.

The chain, like many others, has also seen its operating costs rise. In April this year, staffing costs rose due to increases in the legal wage floor and an rise in employer national insurance contributions.

A couple in their thirties and twenties say they frequently dined at Pizza Hut for a date “every now and then”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.

According to your choices, Pizza Hut and Domino's rates are close, says a culinary author.

Although Pizza Hut has pickup and delivery through third-party apps, it is missing out to larger chains which focus exclusively to the delivery sector.

“Another pizza company has taken over the off-premise pizza industry thanks to aggressive marketing and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the base costs are on the higher side,” notes the expert.

However for these customers it is justified to get their date night sent directly.

“We absolutely dine at home now rather than we eat out,” explains one of the diners, echoing current figures that show a drop in people frequenting informal dining spots.

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

There is also another rival to pizza from eateries: the cook-at-home oven pizza.

A hospitality expert, global lead for leisure at a leading firm, notes that not only have retailers been providing good-standard oven-ready pizzas for a long time – some are even promoting countertop ovens.

“Lifestyle changes are also playing a factor in the performance of quick-service brands,” says the analyst.

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

As people go out to eat not as often, they may prefer a more premium experience, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more old-fashioned than upmarket.

The “explosion of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “dramatically shifted the consumer view of what quality pizza is,” notes the culinary analyst.

“A thin, flavorful, gentle crust with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she comments.

“Who would choose to spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a beautiful, masterfully-made classic pizza for less than ten pounds at one of the many traditional pizzerias around the country?

“It's an easy choice.”

A mobile pizza vendor, who runs a pizza van based in Suffolk explains: “People haven’t lost interest in pizza – they just want improved value.”

He says his mobile setup can offer high-quality pie at affordable costs, and that Pizza Hut faced challenges because it was unable to evolve with changing preferences.

From the perspective of an independent chain in Bristol, owner Jack Lander says the industry is diversifying but Pizza Hut has not provided anything new.

“You now have by-the-slice options, regional varieties, new haven, fermented dough, traditional Italian, rectangular – it's a wonderful array for a pie fan to try.”

The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any sense of nostalgia or allegiance to the chain.

Gradually, Pizza Hut's customer base has been divided and spread to its more modern, agile alternatives. To maintain its expensive staffing and restaurants, it would have to charge more – which industry analysts say is difficult at a time when family finances are tightening.

The managing director of Pizza Hut's global operations said the rescue aimed “to safeguard our customer service and retain staff where possible”.

The executive stated its key goal was to keep running at the remaining 64 restaurants and off-premise points and to support colleagues through the transition.

However with significant funds going into operating its locations, it may be unable to spend heavily in its delivery service because the sector is “complicated and using existing delivery apps comes at a price”, commentators say.

However, it's noted, cutting its costs by withdrawing from competitive urban areas could be a effective strategy to evolve.