🔗 Share this article

In the past, the popular pizza chain was the favorite for families and friends to feast on its all-you-can-eat buffet, unlimited salad bar, and ice cream with toppings.

However not as many diners are choosing the chain these days, and it is shutting down 50% of its British locations after being bought out of administration for the second instance this year.

“We used to go Pizza Hut when I was a child,” explains a young adult. “It was a tradition, you'd go on a Sunday – turn it into an event.” Today, aged 24, she comments “it's no longer popular.”

For 23-year-old Martina, certain features Pizza Hut has been recognized for since it started in the UK in the seventies are now less appealing.

“How they do their buffet and their salad bar, it seems as if they are cutting corners and have reduced quality... They offer so much food and you're like ‘How can they?’”

As food prices have increased significantly, Pizza Hut's buffet-style service has become increasingly pricey to run. The same goes for its outlets, which are being reduced from 132 to just over 60.

The chain, in common with competitors, has also experienced its expenses increase. This spring, employee wages jumped due to higher minimum pay and an increase in employer taxes.

Two diners say they used to go at Pizza Hut for a date “every now and then”, but now they order in Domino's and think Pizza Hut is “very overpriced”.

According to your choices, Pizza Hut and Domino's rates are comparable, says an industry analyst.

Even though Pizza Hut has takeaway and deliveries through external services, it is missing out to major competitors which specialize to off-premise dining.

“Domino's has managed to dominate the off-premise pizza industry thanks to intensive advertising and ongoing discounts that make consumers feel like they're finding a good deal, when in reality the standard rates are quite high,” says the specialist.

Yet for the couple it is acceptable to get their evening together brought to their home.

“We predominantly have meals at home now instead of we eat out,” explains the female customer, matching recent statistics that show a drop in people frequenting informal dining spots.

Over the summer, casual and fast-food restaurants saw a six percent decline in diners compared to last summer.

Moreover, a further alternative to restaurant and takeaway pizzas: the cook-at-home oven pizza.

An industry leader, global lead for leisure at a leading firm, points out that not only have retailers been selling good-standard prepared pies for a long time – some are even offering countertop ovens.

“Evolving preferences are also contributing in the popularity of fast-food chains,” says Mr. Hawkley.

The growing trend of protein-rich eating plans has boosted sales at grilled chicken brands, while hitting sales of dough-based meals, he continues.

Because people dine out more rarely, they may seek out a more high-quality meal, and Pizza Hut's retro theme with vinyl benches and red and white checked plastic table cloths can feel more dated than premium.

The “explosion of artisanal pizza places” over the last 10 to 15 years, such as popular brands, has “completely altered the public's perception of what good pizza is,” explains the industry commentator.

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

“Who would choose to spend £17.99 on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many authentic Italian pizzerias around the country?

“It's a no-brainer.”

An independent operator, who owns a pizza van based in a regional area comments: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”

The owner says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it failed to adapt with changing preferences.

At Pizzarova in Bristol, owner Jack Lander says the sector is broadening but Pizza Hut has failed to offer anything fresh.

“You now have individual slices, artisanal styles, New Haven-style, fermented dough, wood-fired, deep-dish – it's a heavenly minefield for a pizza enthusiast to try.”

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

In recent years, Pizza Hut's market has been divided and spread to its fresher, faster rivals. To maintain its costly operations, it would have to charge more – which experts say is challenging at a time when personal spending are shrinking.

The leadership of Pizza Hut's global operations said the rescue aimed “to ensure our dining experience and retain staff where possible”.

It was explained its immediate priority was to maintain service at the open outlets and off-premise points and to assist staff through the transition.

Yet with significant funds going into running its restaurants, it likely can't afford to spend heavily in its takeaway operation because the industry is “difficult and using existing external services comes at a cost”, commentators say.

Still, experts suggest, lowering overhead by leaving competitive urban areas could be a effective strategy to adjust.