🔗 Share this article

At one time, Pizza Hut was the favorite for families and friends to indulge in its all-you-can-eat buffet, help-yourself greens station, and make-your-own dessert.

But not as many patrons are visiting the restaurant these days, and it is closing a significant portion of its UK locations after being rescued from insolvency for the second instance this calendar year.

I remember going Pizza Hut when I was a child,” says Prudence. “It was a regular outing, you'd go on a Sunday – spend the whole day there.” Today, in her mid-twenties, she states “it's fallen out of favor.”

For a diner in her twenties, some of the very things Pizza Hut has been famous for since it launched in the UK in the seventies are now outdated.

“How they do their all-you-can-eat and their salad station, it seems as if they are cheapening on their quality and have reduced quality... They offer so much food and you're like ‘How is that possible?’”

Since grocery costs have soared, Pizza Hut's buffet-style service has become quite costly to maintain. As have its locations, which are being sliced from 132 to just over 60.

The company, in common with competitors, has also seen its costs increase. This spring, staffing costs increased due to rises in minimum wages and an higher rate of employer taxes.

Chris, 36, and Joanne, 29 explain they frequently dined at Pizza Hut for a date “from time to time”, but now they get delivery from a rival chain and think Pizza Hut is “too expensive”.

According to your selection, Pizza Hut and Domino's rates are comparable, notes a food expert.

Although Pizza Hut has off-premise options through external services, it is missing out to big rivals which solely cater to the delivery sector.

“The rival chain has succeeded in leading the off-premise pizza industry thanks to strong promotions and frequent offers that make shoppers feel like they're finding a good deal, when in reality the standard rates are on the higher side,” notes the expert.

However for the couple it is worth it to get their date night sent directly.

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

In the warmer season, informal dining venues saw a 6% drop in customers compared to last summer.

Additionally, a further alternative to restaurant and takeaway pizzas: the supermarket pizza.

An industry leader, senior partner at a major consultancy, points out that not only have grocery stores been selling premium oven-ready pizzas for a long time – some are even promoting countertop ovens.

“Shifts in habits are also contributing in the popularity of casual eateries,” states the analyst.

The rising popularity of protein-rich eating plans has driven sales at chicken shops, while hitting sales of carb-heavy pizza, he adds.

Since people go out to eat less frequently, they may seek out a more premium experience, and Pizza Hut's classic look with vinyl benches and red and white checked plastic table cloths can feel more dated than upmarket.

The growth of premium pizza outlets” over the last decade and a half, including boutique chains, has “completely altered the consumer view of what good pizza is,” explains the food expert.

“A crisp, airy, digestible pizza with a carefully curated additions, not the excessively rich, thick and crowded pizzas of the past. That, I think, is what's led to Pizza Hut's decline,” she says.

“Why would anyone spend £17.99 on a tiny, mediocre, unsatisfying pizza from a large brand when you can get a gorgeous, skillfully prepared Margherita for under a tenner at one of the many real Italian restaurants around the country?

“The decision is simple.”

A mobile pizza vendor, who owns Smokey Deez based in a regional area says: “People haven’t fallen out of love with pizza – they just want higher quality at a fair price.”

He says his flexible operation can offer high-quality pie at reasonable rates, and that Pizza Hut had difficulty because it could not keep up with evolving tastes.

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

“You now have slice concepts, regional varieties, New Haven-style, artisan base, wood-fired, deep-dish – it's a delightful challenge for a pie fan to explore.”

The owner says Pizza Hut “needs to reinvent itself” as newer generations don't have any sense of nostalgia or loyalty to the brand.

In recent years, Pizza Hut's market has been fragmented and spread to its more modern, agile rivals. To sustain its expensive staffing and restaurants, it would have to raise prices – which industry analysts say is challenging at a time when household budgets are shrinking.

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

It was explained its key goal was to keep running at the open outlets and delivery sites and to support colleagues through the restructure.

However with significant funds going into operating its locations, it may be unable to invest too much in its delivery service because the sector is “complex and working with existing third-party platforms comes at a price”, commentators say.

However, it's noted, reducing expenses by exiting competitive urban areas could be a effective strategy to evolve.