🔗 Share this article

Once, the popular pizza chain was the top choice for families and friends to enjoy its unlimited dining experience, help-yourself greens station, and ice cream with toppings.

But fewer customers are visiting the brand these days, and it is closing a significant portion of its UK locations after being rescued from insolvency for the second instance this calendar year.

“We used to go Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she says “it's no longer popular.”

For 23-year-old Martina, the very elements Pizza Hut has been known and loved for since it opened in the UK in the seventies are now not-so-hot.

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

As grocery costs have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to operate. As have its restaurants, which are being sliced from over 130 to a smaller figure.

The chain, like many others, has also faced its costs rise. This spring, employee wages increased due to rises in minimum wages and an higher rate of employer taxes.

Two diners say they used to go at Pizza Hut for a date “every now and then”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

Based on your choices, Pizza Hut and Domino's prices are similar, notes a food expert.

Although Pizza Hut has off-premise options through external services, it is missing out to larger chains which focus exclusively to off-premise dining.

“The rival chain has taken over the off-premise pizza industry thanks to aggressive marketing and frequent offers that make shoppers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” explains the analyst.

However for Chris and Joanne it is acceptable to get their date night delivered to their door.

“We definitely eat at home now more than we eat out,” explains Joanne, matching recent statistics that show a decline in people going to quick-service eateries.

Over the summer, casual and fast-food restaurants saw a 6% drop in patrons compared to the previous year.

Additionally, one more competitor to pizza from eateries: the supermarket pizza.

An industry leader, head of leisure and hospitality at a leading firm, points out that not only have supermarkets been selling high-quality ready-to-bake pizzas for years – some are even selling home-pizza ovens.

“Shifts in habits are also playing a factor in the performance of quick-service brands,” comments the analyst.

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

Since people go out to eat less frequently, they may prefer a more high-quality meal, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more old-fashioned than luxurious.

The “explosion of artisanal pizza places” over the last 10 to 15 years, for example new entrants, has “fundamentally changed the consumer view of what excellent pie is,” says the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she states.

“What person would spend £17.99 on a modest, low-quality, underwhelming 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 a no-brainer.”

An independent operator, who operates a pizza van based in Suffolk says: “People haven’t fallen out of love with pizza – they just want improved value.”

The owner says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it failed to adapt with evolving tastes.

At a small pizza brand in a UK location, the proprietor says the pizza market is broadening but Pizza Hut has failed to offer anything fresh.

“You now have individual slices, artisanal styles, thin crust, sourdough, traditional Italian, deep-dish – it's a wonderful array for a pizza enthusiast to explore.”

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

Over time, 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 increase costs – which experts say is challenging at a time when personal spending are decreasing.

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

It was explained its first focus was to keep running at the open outlets and takeaway hubs and to assist staff through the transition.

Yet with large sums going into maintaining its outlets, it probably cannot to invest too much in its takeaway operation because the sector is “difficult and partnering with existing external services comes at a price”, analysts say.

Still, experts suggest, cutting its costs by exiting competitive urban areas could be a good way to adjust.