🔗 Share this article

At one time, the popular pizza chain was the favorite for parents and children to feast on its unlimited dining experience, help-yourself greens station, and self-serve ice-cream.

But not as many diners are visiting the brand nowadays, and it is reducing half of its UK restaurants after being rescued from insolvency for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” notes one London shopper. “It was a tradition, you'd go on a Sunday – turn it into an event.” However, at present, as a young adult, she comments “it's fallen out of favor.”

According to 23-year-old Martina, the very elements Pizza Hut has been famous for since it started in the UK in the 1970s are now outdated.

“How they do their buffet and their salad station, it seems as if they are lowering standards and have lower standards... They offer so much food and you're like ‘How can they?’”

As ingredient expenses have increased significantly, Pizza Hut's all-you-can-eat model has become quite costly to maintain. The same goes for its locations, which are being reduced from over 130 to 64.

The business, like many others, has also seen its costs increase. This spring, staffing costs rose due to increases in the legal wage floor and an higher rate of employer national insurance contributions.

Two diners mention they would often visit at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

Based on your selection, Pizza Hut and Domino's rates are close, says an industry analyst.

Even though Pizza Hut does offer off-premise options through third-party apps, it is falling behind to big rivals which focus exclusively to off-premise dining.

“Another pizza company has managed to dominate the delivery market thanks to aggressive marketing and ongoing discounts that make customers feel like they're saving money, when in reality the standard rates are on the higher side,” notes the analyst.

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

“We predominantly have meals at home now more than we eat out,” explains the female customer, reflecting latest data that show a decline in people going to quick-service eateries.

In the warmer season, quick-service eateries saw a 6% drop in diners compared to the year before.

Additionally, another rival to pizza from eateries: the cook-at-home oven pizza.

Will Hawkley, senior partner at an advisory group, explains that not only have supermarkets been offering good-standard ready-to-bake pizzas for quite a while – some are even selling pizza-making appliances.

“Lifestyle changes are also having an impact in the performance of quick-service brands,” states the analyst.

The rising popularity of high protein diets has increased sales at grilled chicken brands, while reducing sales of dough-based meals, he adds.

Because people dine out less frequently, they may look for a more upscale outing, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more dated than luxurious.

The “explosion of artisanal pizza places” over the last several years, including boutique chains, has “dramatically shifted the public's perception of what excellent pie is,” notes the food expert.

“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. This, in my view, is what's resulted in Pizza Hut's struggles,” she states.

“Who would choose to spend £17.99 on a small, substandard, disappointing pizza from a franchise when you can get a beautiful, masterfully-made Margherita for a lower price at one of the many real Italian restaurants around the country?

“The decision is simple.”

A mobile pizza vendor, who operates a small business based in Suffolk says: “It's not that fallen out of love with pizza – they just want improved value.”

He says his mobile setup can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it was unable to evolve with changing preferences.

According to Pizzarova in a UK location, the proprietor says the pizza market is diversifying but Pizza Hut has neglected to introduce anything fresh.

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

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

Gradually, Pizza Hut's market has been fragmented and spread to its more modern, agile alternatives. To maintain its expensive staffing and restaurants, it would have to raise prices – which experts say is tough at a time when household budgets are decreasing.

A senior executive of Pizza Hut's overseas branches said the acquisition aimed “to protect our guest experience and protect jobs where possible”.

It was explained its first focus was to continue operating at the open outlets and takeaway hubs and to assist staff through the change.

However with large sums going into running its restaurants, it probably cannot to spend heavily in its takeaway operation because the market is “complicated and partnering with existing delivery apps comes at a cost”, commentators say.

But, he adds, lowering overhead by leaving competitive urban areas could be a smart move to evolve.