🔗 Share this article

Once, the popular pizza chain was the go-to for families and friends to indulge in its eat-as-much-as-you-like offering, endless salad selection, and self-serve ice-cream.

However not as many customers are frequenting the restaurant currently, and it is closing 50% of its British outlets after being acquired following financial trouble for the second instance this year.

“We used to go Pizza Hut when I was a child,” notes a young adult. “It was like a family thing, you'd go on a Sunday – spend the whole day there.” Today, as a young adult, she says “it's not a thing anymore.”

In the view of young customer Martina, certain features Pizza Hut has been famous for since it opened in the UK in the 1970s are now less appealing.

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

Because grocery costs have soared, Pizza Hut's all-you-can-eat model has become very expensive to operate. As have its restaurants, which are being reduced from over 130 to a smaller figure.

The business, similar to other firms, has also faced its costs rise. Earlier this year, labor expenses rose due to higher minimum pay and an increase in employer social security payments.

Chris, 36, and Joanne, 29 say they frequently dined at Pizza Hut for a date “from time to time”, but now they order in Domino's and think Pizza Hut is “not good value”.

Based on your order, Pizza Hut and Domino's prices are similar, explains a food expert.

While Pizza Hut provides takeaway and deliveries through external services, it is missing out to larger chains which specialize to the delivery sector.

“The rival chain has managed to dominate the takeaway pizza sector thanks to aggressive marketing and frequent offers that make customers feel like they're finding a good deal, when in reality the base costs are relatively expensive,” explains the analyst.

However for Chris and Joanne it is justified to get their date night brought to their home.

“We absolutely dine at home now more than we eat out,” comments one of the diners, reflecting latest data that show a decrease in people visiting informal dining spots.

During the summer months, informal dining venues saw a 6% drop in patrons compared to the year before.

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

An industry leader, global lead for leisure at a leading firm, notes that not only have retailers been providing premium prepared pies for a long time – some are even selling countertop ovens.

“Lifestyle changes are also contributing in the performance of quick-service brands,” comments the expert.

The rising popularity of protein-rich eating plans has increased sales at grilled chicken brands, while hitting sales of dough-based meals, he notes.

As people visit restaurants more rarely, they may seek out a more high-quality meal, and Pizza Hut's retro theme with vinyl benches and nostalgic table settings can feel more old-fashioned than upmarket.

The rise of high-quality pizzerias” over the last decade and a half, such as new entrants, has “completely altered the public's perception of what excellent pie is,” explains the culinary analyst.

“A light, fresh, easy-to-digest product with a select ingredients, not the excessively rich, thick and crowded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she says.

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

“The decision is simple.”

Dan Puddle, who runs a small business based in Suffolk says: “People haven’t fallen out of love with pizza – they just want improved value.”

Dan says his mobile setup can offer gourmet pizza at reasonable rates, and that Pizza Hut had difficulty because it failed to adapt with evolving tastes.

At Pizzarova in a city in southwest England, owner Jack Lander says the industry is expanding but Pizza Hut has failed to offer anything fresh.

“There are now individual slices, London pizza, thin crust, sourdough, traditional Italian, deep-dish – it's a wonderful array for a pizza-loving consumer to explore.”

He says Pizza Hut “must rebrand” as the youth don't have any fond memories or allegiance to the chain.

In recent years, Pizza Hut's share has been divided and distributed to its more modern, agile rivals. To sustain its high labor and location costs, it would have to charge more – which commentators say is difficult at a time when family finances are shrinking.

The leadership of Pizza Hut's international markets said the rescue aimed “to safeguard our customer service and save employment where possible”.

It was explained its key goal was to keep running at the surviving locations and takeaway hubs and to assist staff through the transition.

Yet with large sums going into maintaining its outlets, it may be unable to invest too much in its off-premise division because the sector is “complex and working with existing third-party platforms comes at a price”, analysts say.

However, it's noted, lowering overhead by withdrawing from competitive urban areas could be a smart move to evolve.