🔗 Share this article

At one time, the popular pizza chain was the favorite for families and friends to indulge in its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

But a declining number of diners are visiting the chain nowadays, and it is closing half of its UK locations after being bought out of administration for the second time this calendar year.

I remember going Pizza Hut when I was a child,” explains Prudence. “It was a regular outing, you'd go on a Sunday – turn it into an event.” However, at present, in her mid-twenties, she states “it's fallen out of favor.”

According to young customer Martina, the very elements Pizza Hut has been known and loved for since it opened in the UK in the seventies are now less appealing.

“The way they do their all-you-can-eat and their salad bar, it appears that they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How?’”

As grocery costs have risen sharply, Pizza Hut's unlimited dining format has become increasingly pricey to operate. Similarly, its locations, which are being sliced from over 130 to 64.

The chain, similar to other firms, has also faced its expenses increase. In April this year, staffing costs jumped due to increases in the legal wage floor and an rise in employer national insurance contributions.

Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “not good value”.

According to your choices, Pizza Hut and Domino's rates are similar, says a food expert.

While Pizza Hut has off-premise options through external services, it is falling behind to big rivals which solely cater to off-premise dining.

“Domino's has taken over the takeaway pizza sector thanks to strong promotions and frequent offers that make customers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” notes the specialist.

But for the couple it is worth it to get their evening together brought to their home.

“We definitely eat at home now instead of we eat out,” says one of the diners, reflecting recent statistics that show a decline in people visiting quick-service eateries.

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

There is also a further alternative to ordered-in pies: the cook-at-home oven pizza.

A hospitality expert, global lead for leisure at a leading firm, notes that not only have supermarkets been providing premium prepared pies for years – some are even promoting home-pizza ovens.

“Lifestyle changes are also having an impact in the performance of fast-food chains,” states the analyst.

The increased interest of low-carb regimens has boosted sales at chicken shops, while reducing sales of carb-heavy pizza, he notes.

Since people go out to eat more rarely, they may seek out a more high-quality meal, and Pizza Hut's classic look with booth seating and traditional décor can feel more dated than luxurious.

The rise of artisanal pizza places” over the last several years, such as boutique chains, has “completely altered the general opinion of what excellent pie is,” explains the industry commentator.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's led to Pizza Hut's struggles,” she says.

“Why would anyone spend a high price 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 traditional pizzerias around the country?

“The decision is simple.”

A mobile pizza vendor, who owns Smokey Deez based in a county in England comments: “People haven’t lost interest in pizza – they just want improved value.”

The owner says his mobile setup can offer premium pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with evolving tastes.

At a small pizza brand in a UK location, the founder says the pizza market is broadening but Pizza Hut has neglected to introduce anything new.

“You now have by-the-slice options, London pizza, thin crust, fermented dough, wood-fired, Detroit – it's a delightful challenge for a pizza enthusiast to discover.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any fond memories or loyalty to the brand.

In recent years, Pizza Hut's market has been fragmented and spread to its fresher, faster rivals. To maintain its expensive staffing and restaurants, it would have to increase costs – which industry analysts say is difficult at a time when household budgets are tightening.

The leadership of Pizza Hut's international markets said the buyout aimed “to safeguard our dining experience and save employment where possible”.

It was explained its first focus was to maintain service at the open outlets and takeaway hubs and to assist staff through the restructure.

Yet with so much money going into running its restaurants, it may be unable to invest too much in its takeaway operation because the sector is “complicated and working with existing external services comes at a cost”, commentators say.

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