🔗 Share this article

In the past, Pizza Hut was the go-to for groups and loved ones to indulge in its eat-as-much-as-you-like offering, help-yourself greens station, and self-serve ice-cream.

However fewer customers are visiting the chain nowadays, and it is shutting down 50% of its British restaurants after being acquired following financial trouble for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” says Prudence. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she comments “it's not a thing anymore.”

According to 23-year-old Martina, 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 manner in which they do their all-you-can-eat and their salad station, it seems as if they are lowering standards and have inferior offerings... They provide so much food and you're like ‘How can they?’”

Since ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become very expensive to maintain. As have its locations, which are being cut from a large number to just over 60.

The company, in common with competitors, has also experienced its operating costs increase. Earlier this year, labor expenses increased due to increases in the legal wage floor and an rise in employer taxes.

Chris, 36, and Joanne, 29 explain they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “very overpriced”.

Depending on your choices, Pizza Hut and Domino's prices are similar, notes a culinary author.

While Pizza Hut does offer takeaway and deliveries through delivery platforms, it is falling behind to major competitors which specialize to the delivery sector.

“Domino's has taken over 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 original prices are on the higher side,” notes the analyst.

However for the couple it is worth it to get their evening together sent directly.

“We absolutely dine at home now more than we eat out,” comments the female customer, matching latest data that show a decrease in people frequenting casual and fast-food restaurants.

In the warmer season, casual and fast-food restaurants saw a notable decrease in patrons compared to the year before.

Additionally, a further alternative to pizza from eateries: the supermarket pizza.

A hospitality expert, head of leisure and hospitality at a major consultancy, points out that not only have retailers been providing premium oven-ready pizzas for quite a while – some are even offering countertop ovens.

“Evolving preferences are also having an impact in the success of fast-food chains,” says the expert.

The increased interest of high protein diets has increased sales at chicken shops, while affecting sales of dough-based meals, he adds.

Because people go out to eat less frequently, they may seek out a more high-quality meal, and Pizza Hut's retro theme with booth seating and traditional décor can feel more dated than luxurious.

The rise of high-quality pizzerias” over the last several years, including new entrants, has “dramatically shifted the general opinion of what quality pizza is,” notes the industry commentator.

“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's downfall,” she says.

“Why would anyone spend a high price on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?

“The decision is simple.”

An independent operator, who owns a small business based in a regional area explains: “The issue isn’t that stopped liking pizza – they just want higher quality at a fair price.”

He says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut struggled because it was unable to evolve with new customer habits.

At an independent chain in Bristol, the founder says the industry is expanding but Pizza Hut has not provided anything fresh.

“You now have individual slices, London pizza, thin crust, artisan base, wood-fired, deep-dish – it's a wonderful array for a pizza-loving consumer to discover.”

The owner says Pizza Hut “must rebrand” as younger people don't have any sense of nostalgia or allegiance to the chain.

Over time, Pizza Hut's share has been sliced up and distributed to its trendier, more nimble competitors. To keep up its expensive staffing and restaurants, it would have to charge more – which commentators say is challenging at a time when personal spending are tightening.

The managing director of Pizza Hut's international markets said the buyout aimed “to protect our customer service and protect jobs where possible”.

The executive stated its first focus was to continue operating at the remaining 64 restaurants and delivery sites and to help employees through the change.

However with so much money going into operating its locations, it likely can't afford to spend heavily in its delivery service because the industry is “complex and using existing delivery apps comes at a expense”, experts say.

However, it's noted, lowering overhead by leaving oversaturated towns and city centres could be a effective strategy to adjust.