🔗 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, help-yourself greens station, and make-your-own dessert.

But a declining number of customers are frequenting the brand these days, and it is reducing 50% of its UK outlets after being rescued from insolvency for the second occasion this calendar year.

I remember going Pizza Hut when I was a child,” explains Prudence. “It was like a family thing, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she says “it's no longer popular.”

For young customer Martina, some of the very things Pizza Hut has been recognized for since it started in the UK in the seventies are now not-so-hot.

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

Since grocery costs have soared, Pizza Hut's unlimited dining format has become quite costly to maintain. Similarly, its restaurants, which are being reduced from a large number to a smaller figure.

The company, like many others, has also seen its costs rise. This spring, labor expenses rose due to higher minimum pay and an increase in employer taxes.

A couple in their thirties and twenties explain 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 “very overpriced”.

Depending on your order, Pizza Hut and Domino's rates are comparable, notes a food expert.

Although Pizza Hut does offer off-premise options through external services, it is losing out to major competitors which specialize to the delivery sector.

“Another pizza company has taken over the off-premise pizza industry thanks to aggressive marketing and frequent offers that make consumers feel like they're finding a good deal, when in reality the base costs are quite high,” says the expert.

But for the couple it is acceptable to get their special meal sent directly.

“We predominantly have meals at home now instead of we eat out,” says the female customer, matching recent statistics that show a decline in people visiting informal dining spots.

During the summer months, quick-service eateries saw a notable decrease in customers compared to last summer.

There is also one more competitor to ordered-in pies: the supermarket pizza.

An industry leader, senior partner at a leading firm, points out that not only have retailers been selling high-quality oven-ready pizzas for a long time – some are even selling pizza-making appliances.

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

The rising popularity of low-carb regimens has boosted sales at grilled chicken brands, while affecting sales of dough-based meals, he adds.

As people dine out not as often, they may look for a more high-quality meal, and Pizza Hut's classic look with booth seating and red and white checked plastic table cloths can feel more retro than premium.

The “explosion of premium pizza outlets” over the last 10 to 15 years, such as boutique chains, has “completely altered the consumer view of what excellent pie is,” says the industry commentator.

“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 led to Pizza Hut's decline,” she says.

“Who would choose to spend a high price on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted Margherita for less than ten pounds at one of the many real Italian restaurants around the country?

“It's an easy choice.”

Dan Puddle, who runs a small business based in Suffolk says: “People haven’t lost interest in pizza – they just want improved value.”

Dan says his adaptable business can offer gourmet pizza at accessible prices, and that Pizza Hut struggled because it failed to adapt with changing preferences.

From the perspective of a small pizza brand in Bristol, the founder says the pizza market is expanding but Pizza Hut has neglected to introduce anything fresh.

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

The owner says Pizza Hut “should transform” as newer generations don't have any fond memories or allegiance to the chain.

In recent years, Pizza Hut's customer base has been divided and distributed to its trendier, more nimble rivals. To keep up its expensive staffing and restaurants, it would have to raise prices – which commentators say is difficult at a time when family finances are tightening.

The leadership of Pizza Hut's international markets said the acquisition aimed “to safeguard our guest experience and retain staff where possible”.

The executive stated its immediate priority was to continue operating at the surviving locations and delivery sites and to assist staff through the restructure.

But with so much money going into operating its locations, it probably cannot to allocate significant resources in its off-premise division because the sector is “complicated and working with existing external services comes at a expense”, experts say.

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