🔗 Share this article

At one time, Pizza Hut was the top choice for families and friends to enjoy its unlimited dining experience, endless salad selection, and ice cream with toppings.

Yet fewer customers are choosing the brand these days, and it is shutting down half of its UK locations after being acquired following financial trouble for the second time this year.

It was common to visit Pizza Hut when I was a child,” says a young adult. “It was a regular outing, you'd go on a Sunday – turn it into an event.” But now, aged 24, she states “it's no longer popular.”

For young customer Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the 1970s are now outdated.

“The manner in which they do their buffet and their salad bar, it feels like they are lowering standards and have reduced quality... They provide so much food and you're like ‘How is that possible?’”

Because ingredient expenses have soared, Pizza Hut's all-you-can-eat model has become very expensive to maintain. The same goes for its outlets, which are being cut from 132 to 64.

The company, similar to other firms, has also seen its expenses go up. In April this year, employee wages increased due to rises in minimum wages and an higher rate of employer taxes.

Two diners explain they would often visit at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “too expensive”.

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

Even though Pizza Hut provides takeaway and deliveries through external services, it is falling behind to big rivals which focus exclusively to off-premise dining.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to strong promotions and frequent offers that make consumers feel like they're finding a good deal, when in reality the original prices are relatively expensive,” notes the analyst.

But for Chris and Joanne it is worth it to get their evening together brought to their home.

“We absolutely dine at home now more than we eat out,” says one of the diners, echoing current figures that show a decrease in people going to informal dining spots.

During the summer months, casual and fast-food restaurants saw a notable decrease in customers compared to last summer.

Moreover, another rival to ordered-in pies: the cook-at-home oven pizza.

An industry leader, global lead for leisure at an advisory group, points out that not only have grocery stores been selling good-standard oven-ready pizzas for quite a while – some are even offering pizza-making appliances.

“Shifts in habits are also contributing in the success of quick-service brands,” states Mr. Hawkley.

The increased interest of protein-rich eating plans has driven sales at chicken shops, while affecting sales of carb-heavy pizza, he adds.

Because people visit restaurants not as often, they may prefer a more upscale outing, and Pizza Hut's American-diner style with vinyl benches and traditional décor can feel more dated than luxurious.

The rise of premium pizza outlets” over the last several years, such as popular brands, has “dramatically shifted the consumer view of what good pizza is,” explains the food expert.

“A thin, flavorful, gentle crust with a few choice toppings, not the overly oily, dense and piled-high pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,” she says.

“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

Dan Puddle, who operates a small business based in a regional area says: “The issue isn’t that lost interest in pizza – they just want higher quality at a fair price.”

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

According to Pizzarova in a UK location, owner Jack Lander says the sector is diversifying but Pizza Hut has not provided anything new.

“There are now slice concepts, London pizza, new haven, artisan base, traditional Italian, deep-dish – it's a wonderful array for a pizza-loving consumer to try.”

He says Pizza Hut “should transform” as the youth don't have any fond memories or loyalty to the company.

In recent years, Pizza Hut's market has been divided and allocated to its fresher, faster rivals. To sustain its costly operations, it would have to raise prices – which industry analysts say is difficult at a time when personal spending are decreasing.

A senior executive of Pizza Hut's global operations said the rescue aimed “to protect our guest experience and save employment where possible”.

He said its key goal was to keep running at the remaining 64 restaurants and delivery sites and to support colleagues through the change.

Yet with large sums going into running its restaurants, it probably cannot to spend heavily in its takeaway operation because the market is “difficult and using existing delivery apps comes at a cost”, analysts say.

Still, experts suggest, reducing expenses by leaving competitive urban areas could be a smart move to evolve.