🔗 Share this article

At one time, Pizza Hut was the top choice for parents and children to indulge in its eat-as-much-as-you-like offering, unlimited salad bar, and make-your-own dessert.

But not as many customers are frequenting the restaurant these days, and it is closing a significant portion of its British locations after being bought out of administration for the second time this year.

“We used to go Pizza Hut when I was a child,” notes Prudence. “It was a regular outing, you'd go on a Sunday – make a day of it.” But now, in her mid-twenties, she comments “it's fallen out of favor.”

According to a diner in her twenties, some of the very things Pizza Hut has been recognized for since it launched in the UK in the seventies are now less appealing.

“The way they do their all-you-can-eat and their salad bar, it appears that they are cutting corners and have inferior offerings... They offer so much food and you're like ‘How can they?’”

As ingredient expenses have risen sharply, Pizza Hut's buffet-style service has become very expensive to operate. Similarly, its locations, which are being cut from a large number to 64.

The business, in common with competitors, has also experienced its operating costs rise. In April this year, employee wages increased due to increases in the legal wage floor and an higher rate of employer taxes.

A couple in their thirties and twenties mention they used to go at Pizza Hut for a date “every now and then”, but now they choose Domino's and think Pizza Hut is “too expensive”.

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

Although Pizza Hut has takeaway and deliveries through third-party apps, it is losing out to big rivals which focus exclusively 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 getting a bargain, when in reality the standard rates are relatively expensive,” notes the analyst.

However for these customers it is acceptable to get their special meal delivered to their door.

“We absolutely dine at home now instead of we eat out,” comments the female customer, matching latest data that show a drop in people frequenting casual and fast-food restaurants.

During the summer months, casual and fast-food restaurants saw a six percent decline in customers compared to the year before.

Moreover, one more competitor to ordered-in pies: the cook-at-home oven pizza.

Will Hawkley, global lead for leisure at an advisory group, notes that not only have grocery stores been providing premium prepared pies for quite a while – some are even selling pizza-making appliances.

“Lifestyle changes are also having an impact in the success of fast-food chains,” states the expert.

The increased interest of high protein diets has driven sales at poultry outlets, while reducing sales of high-carbohydrate options, he notes.

As people visit restaurants less frequently, they may prefer a more upscale outing, and Pizza Hut's American-diner style with booth seating and red and white checked plastic table cloths can feel more dated than premium.

The rise of artisanal pizza places” over the last decade and a half, for example new entrants, has “fundamentally changed the public's perception of what quality pizza is,” says 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, I think, is what's led to Pizza Hut's struggles,” she says.

“Why would anyone spend nearly eighteen pounds on a small, substandard, disappointing pizza from a franchise when you can get a stunning, expertly crafted Margherita for under a tenner at one of the many authentic Italian pizzerias around the country?

“The decision is simple.”

An independent operator, who runs a small business based in Suffolk explains: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.”

Dan says his flexible operation can offer high-quality pie at affordable costs, and that Pizza Hut struggled because it could not keep up with new customer habits.

From the perspective of Pizzarova in a UK location, the proprietor says the sector is diversifying but Pizza Hut has failed to offer anything new.

“Currently available are slice concepts, regional varieties, New Haven-style, sourdough, Neapolitan, Detroit – it's a heavenly minefield for a pizza-loving consumer to try.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any emotional connection or loyalty to the brand.

In recent years, Pizza Hut's customer base has been sliced up and distributed to its fresher, faster rivals. To maintain its high labor and location costs, it would have to raise prices – which industry analysts say is difficult at a time when personal spending are shrinking.

The leadership of Pizza Hut's overseas branches said the acquisition aimed “to protect our dining experience and protect jobs where possible”.

It was explained its key goal was to continue operating at the surviving locations and off-premise points and to assist staff through the transition.

But with significant funds going into operating its locations, it likely can't afford to invest too much in its delivery service because the sector is “difficult and working with existing third-party platforms comes at a cost”, commentators say.

However, it's noted, reducing expenses by leaving oversaturated towns and city centres could be a effective strategy to evolve.