🔗 Share this article

At one time, the popular pizza chain was the top choice for families and friends to feast on its unlimited dining experience, endless salad selection, and self-serve ice-cream.

Yet not as many diners are visiting the brand nowadays, and it is reducing 50% of its UK outlets after being acquired following financial trouble for the second occasion this calendar year.

“We used to go 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.” Today, aged 24, she states “it's fallen out of favor.”

For young customer Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the mid-20th century are now outdated.

“The way they do their all-you-can-eat and their salad station, it appears that they are lowering standards and have reduced quality... They're giving away so much food and you're like ‘How is that possible?’”

As grocery costs have soared, Pizza Hut's all-you-can-eat model has become increasingly pricey to maintain. Similarly, its locations, which are being reduced from a large number to 64.

The company, in common with competitors, has also faced its costs rise. This spring, labor expenses rose due to rises in minimum wages and an increase in employer national insurance contributions.

Two diners explain they frequently dined at Pizza Hut for a date “occasionally”, but now they order in a rival chain and think Pizza Hut is “too expensive”.

Based on your selection, Pizza Hut and Domino's rates are similar, notes a food expert.

While Pizza Hut does offer off-premise options through delivery platforms, it is missing out to major competitors which specialize to this market.

“Another pizza company has taken over the takeaway pizza sector thanks to intensive advertising and ongoing discounts that make shoppers feel like they're saving money, when in reality the original prices are on the higher side,” notes the expert.

However for Chris and Joanne it is worth it to get their date night sent directly.

“We absolutely dine at home now rather than we eat out,” explains Joanne, echoing current figures that show a drop in people going to casual and fast-food restaurants.

In the warmer season, informal dining venues saw a notable decrease in diners compared to the previous year.

Moreover, one more competitor to restaurant and takeaway pizzas: the cook-at-home oven pizza.

An industry leader, head of leisure and hospitality at an advisory group, explains that not only have grocery stores been selling high-quality prepared pies for a long time – some are even offering countertop ovens.

“Evolving preferences are also contributing in the performance of casual eateries,” says the expert.

The increased interest of low-carb regimens has boosted sales at chicken shops, while hitting sales of high-carbohydrate options, he adds.

Since people go out to eat less frequently, they may prefer a more premium experience, and Pizza Hut's American-diner style with booth seating and traditional décor can feel more retro than upmarket.

The growth of high-quality pizzerias” over the last several years, including boutique chains, has “dramatically shifted the consumer view of what excellent pie is,” says the food expert.

“A light, fresh, easy-to-digest product with a few choice toppings, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's caused Pizza Hut's decline,” she comments.

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

“It's a no-brainer.”

Dan Puddle, who owns Smokey Deez based in a county in England says: “People haven’t lost interest in pizza – they just want improved value.”

Dan says his adaptable business can offer premium pizza at reasonable rates, and that Pizza Hut faced challenges because it was unable to evolve with new customer habits.

From the perspective of a small pizza brand in Bristol, the proprietor says the sector is diversifying but Pizza Hut has neglected to introduce anything innovative.

“There are now slice concepts, artisanal styles, thin crust, artisan base, traditional Italian, Detroit – it's a wonderful array for a pizza-loving consumer to try.”

The owner says Pizza Hut “needs to reinvent itself” as younger people don't have any fond memories or allegiance to the brand.

Gradually, Pizza Hut's market has been divided and allocated to its more modern, agile alternatives. To keep up its costly operations, it would have to increase costs – which industry analysts say is difficult at a time when household budgets are shrinking.

A senior executive of Pizza Hut's international markets said the acquisition aimed “to safeguard our dining experience and retain staff where possible”.

The executive stated its key goal was to keep running at the open outlets and off-premise points and to support colleagues through the change.

Yet with large sums going into operating its locations, it probably cannot to allocate significant resources in its delivery service because the sector is “difficult and working with existing delivery apps comes at a expense”, experts say.

However, it's noted, reducing expenses by exiting oversaturated towns and city centres could be a good way to evolve.