🔗 Share this article

At one time, Pizza Hut was the go-to for parents and children to feast on its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

However not as many customers are visiting the chain currently, and it is shutting down a significant portion 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,” says a young adult. “It was like a family thing, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she says “it's not a thing anymore.”

In the view of a diner in her twenties, some of the very things Pizza Hut has been known and loved for since it launched in the UK in the seventies are now outdated.

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

Because ingredient expenses have soared, Pizza Hut's buffet-style service has become very expensive to maintain. As have its locations, which are being reduced from a large number to a smaller figure.

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

Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “occasionally”, but now they get delivery from another pizza brand and think Pizza Hut is “very overpriced”.

Based on your order, Pizza Hut and Domino's prices are close, explains an industry analyst.

Even though Pizza Hut does offer takeaway and deliveries through third-party apps, it is losing out to larger chains which specialize to off-premise dining.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to strong promotions and constantly running deals that make shoppers feel like they're finding a good deal, when in reality the standard rates are quite high,” notes the analyst.

However for Chris and Joanne it is acceptable to get their date night sent directly.

“We predominantly have meals at home now rather than we eat out,” says one of the diners, echoing latest data that show a drop in people going to informal dining spots.

Over the summer, informal dining venues saw a 6% drop in customers compared to the previous year.

Moreover, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.

An industry leader, global lead for leisure at a leading firm, notes that not only have grocery stores been providing good-standard prepared pies for years – some are even selling pizza-making appliances.

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

The rising popularity of high protein diets has driven sales at chicken shops, 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 retro theme with vinyl benches and red and white checked plastic table cloths can feel more retro than luxurious.

The growth of premium pizza outlets” over the last 10 to 15 years, including boutique chains, has “fundamentally changed the consumer view of what quality pizza is,” explains the food expert.

“A thin, flavorful, gentle crust with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she states.

“What person would spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?

“It's an easy choice.”

An independent operator, who operates Smokey Deez based in Suffolk comments: “It's not that fallen out of love with pizza – they just want higher quality at a fair price.”

Dan says his flexible operation can offer high-quality pie at accessible prices, and that Pizza Hut had difficulty because it was unable to evolve with new customer habits.

At a small pizza brand in a city in southwest England, the founder says the industry is diversifying but Pizza Hut has neglected to introduce anything innovative.

“Currently available are slice concepts, London pizza, thin crust, artisan base, Neapolitan, Detroit – it's a wonderful array for a pizza-loving consumer to explore.”

Jack says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or attachment to the company.

Gradually, Pizza Hut's customer base has been sliced up and spread to its trendier, more nimble competitors. To maintain its costly operations, it would have to charge more – which experts say is challenging at a time when personal spending are decreasing.

The managing director of Pizza Hut's global operations said the acquisition aimed “to ensure our customer service and save employment where possible”.

He said its immediate priority was to keep running at the open outlets and off-premise points and to help employees through the change.

However with significant funds going into running its restaurants, it likely can't afford to invest too much in its off-premise division because the industry is “difficult and using existing delivery apps comes at a cost”, experts say.

But, he adds, lowering overhead by leaving crowded locations could be a good way to adjust.