🔗 Share this article

At one time, Pizza Hut was the favorite for families and friends to indulge in its all-you-can-eat buffet, endless salad selection, and ice cream with toppings.

Yet a declining number of diners are visiting the restaurant these days, and it is closing a significant portion of its UK restaurants 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 one London shopper. “It was a regular outing, 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 23-year-old Martina, the very elements Pizza Hut has been famous for since it started in the UK in the seventies are now not-so-hot.

“The way they do their buffet and their salad bar, it feels like they are cheapening on their quality and have inferior offerings... They offer so much food and you're like ‘How can they?’”

Because ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to run. Similarly, its outlets, which are being sliced from a large number to 64.

The company, like many others, has also seen its expenses go up. In April this year, staffing costs jumped due to higher minimum pay and an higher rate of employer social security payments.

A couple in their thirties and twenties mention they would often visit at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “too expensive”.

According to your choices, Pizza Hut and Domino's prices are similar, says a food expert.

Although Pizza Hut provides takeaway and deliveries through third-party apps, it is losing out to big rivals which focus exclusively to this market.

“The rival chain has succeeded in leading the takeaway pizza sector thanks to intensive advertising and constantly running deals that make customers feel like they're saving money, when in reality the original prices are on the higher side,” notes the analyst.

Yet for these customers it is justified to get their date night brought to their home.

“We absolutely dine at home now rather than we eat out,” comments Joanne, matching latest data that show a decline in people frequenting informal dining spots.

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

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

A hospitality expert, senior partner at a leading firm, notes that not only have retailers been providing premium prepared pies for a long time – some are even offering countertop ovens.

“Evolving preferences are also having an impact in the performance of quick-service brands,” says the analyst.

The rising popularity of low-carb regimens has driven sales at poultry outlets, while affecting sales of carb-heavy pizza, he continues.

Because people visit restaurants less frequently, they may look for a more upscale outing, and Pizza Hut's retro theme with booth seating and traditional décor can feel more retro than upmarket.

The growth of high-quality pizzerias” over the last several years, for example new entrants, has “fundamentally changed the general opinion of what excellent pie is,” notes 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 resulted in Pizza Hut's downfall,” she states.

“Who would choose to spend a high price on a small, substandard, disappointing 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 authentic Italian pizzerias around the country?

“The decision is simple.”

Dan Puddle, who owns a small business based in a county in England comments: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

Dan says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut struggled because it failed to adapt with new customer habits.

According to an independent chain in a city in southwest England, owner Jack Lander says the pizza market is diversifying but Pizza Hut has failed to offer anything new.

“You now have slice concepts, artisanal styles, New Haven-style, artisan base, traditional Italian, deep-dish – it's a delightful challenge for a pizza enthusiast to explore.”

The owner says Pizza Hut “should transform” as younger people don't have any sense of nostalgia or attachment to the brand.

Gradually, Pizza Hut's customer base has been divided and spread to its more modern, agile alternatives. To sustain its high labor and location costs, it would have to raise prices – which experts say is difficult at a time when household budgets 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”.

It was explained its key goal was to continue operating at the remaining 64 restaurants and delivery sites and to help employees through the transition.

But with large sums going into operating its locations, it probably cannot to allocate significant resources in its takeaway operation because the market is “complicated and using existing external services comes at a price”, commentators say.

Still, experts suggest, lowering overhead by exiting crowded locations could be a good way to adjust.