🔗 Share this article

At one time, Pizza Hut was the go-to for families and friends to indulge in its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

However fewer customers are choosing the chain currently, and it is closing a significant portion of its UK outlets after being acquired following financial trouble for the second instance this calendar year.

It was common to visit 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.” But now, as a young adult, she states “it's not a thing anymore.”

According to young customer Martina, some of the very things Pizza Hut has been famous for since it opened in the UK in the 1970s are now less appealing.

“The manner in which they do their buffet and their salad station, it feels like they are cheapening on their quality and have lower standards... They offer so much food and you're like ‘How?’”

Since food prices have risen sharply, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. As have its locations, which are being cut from 132 to a smaller figure.

The company, similar to other firms, has also experienced its operating costs rise. Earlier this year, staffing costs increased due to increases in the legal wage floor and an increase in employer national insurance contributions.

Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “not good value”.

Depending on your order, Pizza Hut and Domino's costs are similar, says a culinary author.

Even though Pizza Hut does offer takeaway and deliveries through delivery platforms, it is falling behind to major competitors which solely cater to off-premise dining.

“Domino's has succeeded in leading the delivery market thanks to strong promotions and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the base costs are quite high,” notes the analyst.

But for these customers it is worth it to get their evening together delivered to their door.

“We definitely eat at home now instead of we eat out,” explains Joanne, matching current figures that show a decrease in people going to quick-service eateries.

In the warmer season, casual and fast-food restaurants saw a notable decrease in patrons compared to the previous year.

Additionally, a further alternative to restaurant and takeaway pizzas: the frozen or fresh pizza.

A hospitality expert, head of leisure and hospitality at a leading firm, explains that not only have supermarkets been providing good-standard oven-ready pizzas for a long time – some are even selling home-pizza ovens.

“Lifestyle changes are also playing a factor in the popularity of quick-service brands,” comments the expert.

The rising popularity of protein-rich eating plans has driven sales at chicken shops, while affecting sales of dough-based meals, he continues.

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 traditional décor can feel more retro than upmarket.

The rise of artisanal pizza places” over the last several years, including popular brands, has “completely altered the general opinion of what good pizza is,” explains the industry commentator.

“A light, fresh, easy-to-digest product with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she says.

“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared traditional pie for a lower price at one of the many real Italian restaurants around the country?

“The decision is simple.”

An independent operator, who operates a small business based in a regional area says: “The issue isn’t that stopped liking pizza – they just want improved value.”

The owner says his flexible operation can offer premium pizza at accessible prices, and that Pizza Hut had difficulty because it could not keep up with new customer habits.

From the perspective of an independent chain in a city in southwest England, owner Jack Lander says the industry is broadening but Pizza Hut has failed to offer anything new.

“Currently available are slice concepts, regional varieties, new haven, artisan base, wood-fired, Detroit – it's a heavenly minefield for a pizza enthusiast to try.”

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

In recent years, Pizza Hut's customer base has been divided and distributed to its trendier, more nimble competitors. To maintain its high labor and location costs, it would have to charge more – which industry analysts say is tough at a time when household budgets are decreasing.

The leadership of Pizza Hut's international markets said the rescue aimed “to ensure our customer service and save employment where possible”.

It was explained its immediate priority was to maintain service at the remaining 64 restaurants and delivery sites and to support colleagues through the transition.

But with so much money going into running its restaurants, it likely can't afford to spend heavily in its off-premise division because the industry is “complicated and using existing third-party platforms comes at a expense”, experts say.

Still, experts suggest, lowering overhead by exiting competitive urban areas could be a effective strategy to adjust.