🔗 Share this article

Once, Pizza Hut was the top choice for groups and loved ones to enjoy its eat-as-much-as-you-like offering, endless salad selection, and ice cream with toppings.

However a declining number of diners are frequenting the chain these days, and it is closing 50% of its British locations after being acquired following financial trouble for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, as a young adult, she comments “it's not a thing anymore.”

In the view of a diner in her twenties, certain features Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now less appealing.

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

Because ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become quite costly to maintain. Similarly, its restaurants, which are being sliced from 132 to 64.

The chain, similar to other firms, has also seen its expenses go up. Earlier this year, labor expenses jumped due to higher minimum pay and an increase in employer national insurance contributions.

Two diners say they would often visit 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”.

Based on your selection, Pizza Hut and Domino's costs are comparable, notes a food expert.

While Pizza Hut has takeaway and deliveries through third-party apps, it is losing out to larger chains which specialize to the delivery sector.

“The rival chain has managed to dominate the delivery market thanks to aggressive marketing and frequent offers that make customers feel like they're getting a bargain, when in reality the base costs are on the higher side,” says the expert.

Yet for the couple it is justified to get their evening together delivered to their door.

“We absolutely dine at home now more than we eat out,” comments Joanne, echoing latest data that show a drop in people visiting quick-service eateries.

During the summer months, quick-service eateries saw a notable decrease in customers compared to the year before.

Moreover, another rival to ordered-in pies: the supermarket pizza.

A hospitality expert, global lead for leisure at an advisory group, explains that not only have supermarkets been offering good-standard prepared pies for years – some are even offering pizza-making appliances.

“Lifestyle changes are also playing a factor in the performance of fast-food chains,” comments Mr. Hawkley.

The growing trend of protein-rich eating plans has increased sales at poultry outlets, while hitting sales of dough-based meals, he adds.

Because people go out to eat not as often, they may prefer a more upscale outing, and Pizza Hut's retro theme with comfortable booths and red and white checked plastic table cloths can feel more old-fashioned than upmarket.

The “explosion of artisanal pizza places” over the last decade and a half, for example boutique chains, has “fundamentally changed the public's perception of what excellent pie is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's downfall,” she says.

“Who would choose to spend a high price on a tiny, mediocre, unsatisfying pizza from a chain when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

Dan Puddle, who operates Smokey Deez based in a county in England comments: “People haven’t stopped liking pizza – they just want improved value.”

The owner says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with new customer habits.

From the perspective of a small pizza brand in Bristol, owner Jack Lander says the industry is expanding but Pizza Hut has failed to offer anything new.

“You now have by-the-slice options, London pizza, New Haven-style, artisan base, Neapolitan, rectangular – it's a wonderful array for a pizza enthusiast to try.”

Jack says Pizza Hut “should transform” as younger people don't have any emotional connection or allegiance to the company.

Gradually, Pizza Hut's share has been divided and allocated to its fresher, faster rivals. To maintain its high labor and location costs, it would have to raise prices – which industry analysts say is tough at a time when family finances are decreasing.

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

It was explained its immediate priority was to continue operating at the remaining 64 restaurants and off-premise points and to assist staff through the change.

But with significant funds going into running its restaurants, it probably cannot to spend heavily in its takeaway operation because the sector is “difficult and working with existing delivery apps comes at a cost”, commentators say.

Still, experts suggest, reducing expenses by withdrawing from competitive urban areas could be a smart move to adjust.