🔗 Share this article

In the past, Pizza Hut was the favorite for parents and children to feast on its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

However a declining number of patrons are visiting the restaurant currently, and it is closing 50% of its British outlets after being rescued from insolvency for the second instance this year.

I remember going Pizza Hut when I was a child,” says a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's no longer popular.”

According to 23-year-old Martina, the very elements Pizza Hut has been recognized for since it started in the UK in the mid-20th century are now outdated.

“The way they do their buffet and their salad bar, it feels like they are cutting corners and have lower standards... They're giving away so much food and you're like ‘How?’”

As ingredient expenses have increased significantly, Pizza Hut's unlimited dining format has become quite costly to run. The same goes for its restaurants, which are being sliced from over 130 to just over 60.

The business, similar to other firms, has also experienced its operating costs rise. This spring, labor expenses rose due to rises in minimum wages and an increase in employer social security payments.

Two diners say they frequently dined at Pizza Hut for a date “occasionally”, but now they choose Domino's and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's rates are comparable, notes an industry analyst.

While Pizza Hut provides takeaway and deliveries through third-party apps, it is missing out to big rivals which solely cater to this market.

“The rival chain has managed to dominate the delivery market thanks to aggressive marketing and ongoing discounts that make customers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” explains the analyst.

Yet for these customers it is acceptable to get their special meal brought to their home.

“We predominantly have meals at home now rather than we eat out,” says the female customer, reflecting recent statistics that show a decrease in people frequenting informal dining spots.

During the summer months, informal dining venues saw a 6% drop in customers compared to last summer.

There is also a further alternative to ordered-in pies: the cook-at-home oven pizza.

An industry leader, senior partner at a leading firm, notes that not only have grocery stores been providing good-standard prepared pies for quite a while – some are even promoting home-pizza ovens.

“Shifts in habits are also playing a factor in the performance of fast-food chains,” comments the expert.

The growing trend of protein-rich eating plans has increased sales at chicken shops, while reducing sales of carb-heavy pizza, he continues.

As people go out to eat less frequently, they may seek out a more upscale outing, and Pizza Hut's retro theme with comfortable booths and nostalgic table settings can feel more old-fashioned than premium.

The “explosion of premium pizza outlets” over the last 10 to 15 years, including popular brands, has “completely altered the consumer view of what quality pizza is,” notes the culinary analyst.

“A crisp, airy, digestible pizza with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's struggles,” she says.

“Why would anyone spend a high price on a modest, low-quality, underwhelming pizza from a large brand when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many real Italian restaurants around the country?

“It's an easy choice.”

Dan Puddle, who operates Smokey Deez based in a county in England explains: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

Dan says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut faced challenges because it failed to adapt with changing preferences.

According to Pizzarova in Bristol, the founder says the pizza market is diversifying but Pizza Hut has not provided anything innovative.

“There are now slice concepts, regional varieties, New Haven-style, fermented dough, traditional Italian, rectangular – it's a heavenly minefield for a pizza enthusiast to explore.”

The owner says Pizza Hut “must rebrand” as the youth don't have any emotional connection or attachment to the company.

Gradually, Pizza Hut's market has been divided and allocated to its trendier, more nimble competitors. To sustain its expensive staffing and restaurants, it would have to charge more – which commentators say is difficult at a time when personal spending are decreasing.

A senior executive of Pizza Hut's international markets said the rescue aimed “to safeguard our guest experience and protect jobs where possible”.

It was explained its key goal was to continue operating at the remaining 64 restaurants and takeaway hubs and to assist staff through the restructure.

Yet with large sums going into operating its locations, it probably cannot to spend heavily in its takeaway operation because the sector is “complicated and working with existing third-party platforms comes at a cost”, commentators say.

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