🔗 Share this article

At one time, Pizza Hut was the go-to for parents and children to enjoy its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

But a declining number of diners are frequenting the brand these days, and it is closing a significant portion of its British locations after being rescued from insolvency for the second occasion this year.

I remember going 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.” However, at present, as a young adult, she states “it's fallen out of favor.”

According to a diner in her twenties, certain features Pizza Hut has been known and loved for since it opened in the UK in the 1970s are now not-so-hot.

“How they do their all-you-can-eat and their salad bar, it seems as if they are cutting corners and have lower standards... They provide so much food and you're like ‘How is that possible?’”

Since food prices have soared, Pizza Hut's unlimited dining format has become very expensive to operate. As have its restaurants, which are being reduced from 132 to just over 60.

The business, similar to other firms, has also faced its expenses rise. This spring, labor expenses jumped due to rises in minimum wages and an higher rate of employer taxes.

A couple in their thirties and twenties say they frequently dined at Pizza Hut for a date “occasionally”, but now they choose a rival chain and think Pizza Hut is “not good value”.

According to your order, Pizza Hut and Domino's rates are close, explains an industry analyst.

Although Pizza Hut provides off-premise options through third-party apps, it is falling behind to major competitors which specialize to the delivery sector.

“Another pizza company has taken over the takeaway pizza sector thanks to strong promotions and frequent offers that make customers feel like they're getting a bargain, when in reality the base costs are on the higher side,” notes the expert.

Yet for the couple it is worth it to get their date night delivered to their door.

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

Over the summer, casual and fast-food restaurants saw a six percent decline in patrons compared to the previous year.

There is also one more competitor to pizza from eateries: the cook-at-home oven pizza.

Will Hawkley, global lead for leisure at a leading firm, explains that not only have supermarkets been offering good-standard prepared pies for quite a while – some are even offering countertop ovens.

“Evolving preferences are also playing a factor in the popularity of quick-service brands,” comments Mr. Hawkley.

The growing trend of protein-rich eating plans has boosted sales at grilled chicken brands, while reducing sales of high-carbohydrate options, he notes.

As people go out to eat not as often, they may seek out a more premium experience, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more old-fashioned than premium.

The rise of premium pizza outlets” over the last decade and a half, including popular brands, has “dramatically shifted the public's perception of what quality pizza is,” notes the industry commentator.

“A crisp, airy, digestible pizza 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 struggles,” she states.

“What person would spend a high price on a small, substandard, disappointing pizza from a chain when you can get a stunning, expertly crafted traditional pie for under a tenner at one of the many traditional pizzerias around the country?

“It's a no-brainer.”

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

The owner says his mobile setup can offer gourmet pizza at accessible prices, and that Pizza Hut had difficulty because it failed to adapt with evolving tastes.

From the perspective of Pizzarova in a city in southwest England, the proprietor says the pizza market is expanding but Pizza Hut has failed to offer anything innovative.

“You now have by-the-slice options, regional varieties, thin crust, sourdough, 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 emotional connection or allegiance to the company.

In recent years, Pizza Hut's market has been fragmented and distributed to its more modern, agile alternatives. To sustain its costly operations, it would have to raise prices – which commentators say is tough at a time when household budgets are decreasing.

The leadership of Pizza Hut's overseas branches said the acquisition aimed “to safeguard our guest experience and retain staff where possible”.

The executive stated its immediate priority was to maintain service at the open outlets and takeaway hubs and to support colleagues through the change.

Yet with significant funds going into running its restaurants, it likely can't afford to allocate significant resources in its off-premise division because the sector is “complicated and working with existing external services comes at a expense”, commentators say.

Still, experts suggest, cutting its costs by leaving oversaturated towns and city centres could be a good way to evolve.