🔗 Share this article

Once, Pizza Hut was the favorite for groups and loved ones to enjoy its eat-as-much-as-you-like offering, endless salad selection, and make-your-own dessert.

But fewer diners are frequenting the restaurant nowadays, and it is closing 50% of its UK outlets after being bought out of administration for the second time this year.

It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” Today, aged 24, she says “it's not a thing anymore.”

For 23-year-old Martina, certain features Pizza Hut has been famous for since it opened in the UK in the mid-20th century are now not-so-hot.

“The manner in which they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have inferior offerings... They're giving away so much food and you're like ‘How can they?’”

Because grocery costs have soared, Pizza Hut's all-you-can-eat model has become very expensive to maintain. Similarly, its restaurants, which are being sliced from 132 to 64.

The company, similar to other firms, has also seen its operating costs rise. In April this year, staffing costs jumped due to rises in minimum wages and an rise in employer taxes.

Chris, 36, and Joanne, 29 explain they used to go at Pizza Hut for a date “occasionally”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.

According to your order, Pizza Hut and Domino's rates are comparable, explains a culinary author.

While Pizza Hut provides pickup and delivery through delivery platforms, it is missing out to major competitors which focus exclusively to this market.

“Domino's has succeeded in leading the delivery market thanks to intensive advertising and ongoing discounts that make shoppers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” notes the specialist.

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

“We absolutely dine at home now rather than we eat out,” says the female customer, matching current figures that show a decrease in people going to quick-service eateries.

Over the summer, casual and fast-food restaurants saw a six percent decline in patrons compared to the previous year.

There is also a further alternative to ordered-in pies: the supermarket pizza.

Will Hawkley, senior partner at an advisory group, points out that not only have retailers been selling good-standard prepared pies for quite a while – some are even promoting pizza-making appliances.

“Evolving preferences are also playing a factor in the popularity of quick-service brands,” states Mr. Hawkley.

The rising popularity of high protein diets has increased sales at chicken shops, while reducing sales of high-carbohydrate options, he adds.

As people go out to eat less frequently, they may look for a more high-quality meal, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more dated than upmarket.

The rise of artisanal pizza places” over the last several years, such as boutique chains, has “dramatically shifted the public's perception of what quality pizza is,” explains the industry commentator.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she says.

“Why would anyone spend a high price on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many traditional pizzerias around the country?

“It's a no-brainer.”

An independent operator, who runs Smokey Deez based in a county in England explains: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”

Dan says his mobile setup can offer gourmet pizza at affordable costs, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

From the perspective of a small pizza brand in a UK location, owner Jack Lander says the sector is broadening but Pizza Hut has not provided anything new.

“There are now individual slices, regional varieties, New Haven-style, sourdough, wood-fired, deep-dish – it's a delightful challenge for a pie fan to explore.”

The owner says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or allegiance to the company.

Gradually, Pizza Hut's market has been fragmented and distributed to its trendier, more nimble alternatives. To maintain its expensive staffing and restaurants, it would have to raise prices – which experts say is challenging at a time when family finances are shrinking.

A senior executive of Pizza Hut's overseas branches said the rescue aimed “to safeguard our customer service and retain staff where possible”.

He said its key goal was to continue operating at the remaining 64 restaurants and off-premise points and to assist staff through the restructure.

But with significant funds going into operating its locations, it may be unable to invest too much in its takeaway operation because the industry is “difficult and using existing external services comes at a expense”, experts say.

Still, experts suggest, lowering overhead by exiting oversaturated towns and city centres could be a effective strategy to adapt.