🔗 Share this article

In the past, Pizza Hut was the top choice for groups and loved ones to feast on its unlimited dining experience, help-yourself greens station, and make-your-own dessert.

But a declining number of diners are choosing the restaurant currently, and it is reducing half of its UK restaurants after being bought out of administration for the second time 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 – spend the whole day there.” But now, in her mid-twenties, she states “it's no longer popular.”

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.

“The way they do their buffet and their salad bar, it feels like they are lowering standards and have inferior offerings... They offer so much food and you're like ‘How is that possible?’”

Since ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to run. As have its locations, which are being reduced from over 130 to 64.

The chain, similar to other firms, has also faced its costs rise. This spring, labor expenses jumped due to higher minimum pay and an higher rate of employer taxes.

Two diners mention 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 “not good value”.

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

Although Pizza Hut does offer off-premise options through delivery platforms, it is falling behind to big rivals which focus exclusively to off-premise dining.

“Domino's has managed to dominate the off-premise pizza industry thanks to intensive advertising and constantly running deals that make shoppers feel like they're saving money, when in reality the standard rates are on the higher side,” notes the analyst.

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

“We definitely eat at home now instead of we eat out,” explains one of the diners, reflecting current figures that show a drop in people going to quick-service eateries.

During the summer months, informal dining venues saw a six percent decline in patrons compared to the previous year.

Additionally, another rival to pizza from eateries: the frozen or fresh pizza.

An industry leader, head of leisure and hospitality at a major consultancy, explains that not only have supermarkets been offering premium prepared pies for quite a while – some are even promoting pizza-making appliances.

“Lifestyle changes are also having an impact in the success of casual eateries,” states Mr. Hawkley.

The growing trend of high protein diets has boosted sales at poultry outlets, while reducing sales of dough-based meals, he notes.

Because people go out to eat less frequently, they may look for a more premium experience, and Pizza Hut's American-diner style with vinyl benches and nostalgic table settings can feel more retro than upmarket.

The growth of high-quality pizzerias” over the last 10 to 15 years, including popular brands, has “fundamentally changed the consumer view of what quality pizza is,” says the culinary analyst.

“A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's struggles,” she comments.

“What person would spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared Margherita for less than ten pounds at one of the many real Italian restaurants around the country?

“It's a no-brainer.”

A mobile pizza vendor, who runs a pizza van based in Suffolk comments: “It's not that stopped liking pizza – they just want better pizza for their money.”

The owner says his adaptable business can offer gourmet pizza at affordable costs, and that Pizza Hut had difficulty because it could not keep up with changing preferences.

At Pizzarova in a city in southwest England, the founder says the pizza market is diversifying but Pizza Hut has not provided anything new.

“There are now slice concepts, artisanal styles, thin crust, artisan base, traditional Italian, rectangular – it's a heavenly minefield for a pizza enthusiast to discover.”

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

Gradually, Pizza Hut's market has been fragmented and distributed to its more modern, agile rivals. To keep up its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is challenging at a time when household budgets are decreasing.

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

The executive stated its immediate priority was to continue operating at the remaining 64 restaurants and takeaway hubs and to support colleagues through the change.

However with large sums going into maintaining its outlets, it may be unable to invest too much in its off-premise division because the industry is “complex and partnering with existing delivery apps comes at a expense”, analysts say.

But, he adds, reducing expenses by leaving crowded locations could be a smart move to adjust.