🔗 Share this article

In the past, Pizza Hut was the top choice for groups and loved ones to indulge in its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert.

Yet a declining number of diners are visiting the chain currently, and it is shutting down a significant portion of its British outlets after being rescued from insolvency for the second instance this calendar year.

It was common to visit Pizza Hut when I was a child,” explains a young adult. “It was like a family thing, you'd go on a Sunday – turn it into an event.” Today, in her mid-twenties, she comments “it's not a thing anymore.”

For a diner in her twenties, the very elements Pizza Hut has been known and loved for since it started in the UK in the 1970s are now not-so-hot.

“How they do their buffet and their salad bar, it seems as if they are lowering standards and have reduced quality... They provide so much food and you're like ‘How?’”

Since food prices have risen sharply, Pizza Hut's buffet-style service has become increasingly pricey to operate. Similarly, its locations, which are being sliced from 132 to 64.

The company, in common with competitors, has also faced its operating costs go up. In April this year, labor expenses rose due to rises in minimum wages and an increase in employer social security payments.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “from time to time”, but now they choose another pizza brand and think Pizza Hut is “very overpriced”.

According to your selection, Pizza Hut and Domino's costs are close, notes a culinary author.

While Pizza Hut has off-premise options through third-party apps, it is missing out to larger chains which specialize to this market.

“Another pizza company has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and frequent offers that make shoppers feel like they're finding a good deal, when in reality the original prices are on the higher side,” explains the analyst.

Yet 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.

During the summer months, casual and fast-food restaurants saw a 6% drop in diners compared to last summer.

Moreover, one more competitor to restaurant and takeaway pizzas: the frozen or fresh pizza.

An industry leader, senior partner at a leading firm, points out that not only have retailers been offering premium prepared pies for a long time – some are even promoting countertop ovens.

“Evolving preferences are also having an impact in the popularity of fast-food chains,” comments Mr. Hawkley.

The growing trend of high protein diets has increased sales at chicken shops, while affecting sales of dough-based meals, he adds.

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

The rise of artisanal pizza places” over the last several years, such as new entrants, has “fundamentally changed the consumer view of what excellent pie is,” notes the industry commentator.

“A thin, flavorful, gentle crust with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, I think, is what's led to Pizza Hut's downfall,” she says.

“Why would anyone spend nearly eighteen pounds on a tiny, mediocre, unsatisfying pizza from a franchise when you can get a beautiful, masterfully-made classic pizza for a lower price at one of the many traditional pizzerias around the country?

“The decision is simple.”

An independent operator, who owns Smokey Deez based in a county in England says: “It's not that lost interest in pizza – they just want better pizza for their money.”

He says his adaptable business can offer high-quality pie at accessible prices, and that Pizza Hut struggled because it failed to adapt with changing preferences.

From the perspective of an independent chain in Bristol, the proprietor says the pizza market is broadening but Pizza Hut has not provided anything new.

“Currently available are slice concepts, regional varieties, thin crust, sourdough, Neapolitan, deep-dish – it's a wonderful array for a pizza enthusiast to try.”

Jack says Pizza Hut “should transform” as newer generations don't have any fond memories or loyalty to the company.

Over time, Pizza Hut's customer base has been sliced up and allocated to its trendier, more nimble alternatives. To maintain its costly operations, it would have to charge more – which industry analysts say is tough at a time when personal spending are decreasing.

The leadership of Pizza Hut's global operations said the buyout aimed “to ensure our guest experience and retain staff where possible”.

The executive stated its key goal was to keep running at the remaining 64 restaurants and off-premise points and to help employees through the change.

But with large sums going into running its restaurants, it likely can't afford to spend heavily in its takeaway operation because the market is “difficult and working with existing third-party platforms comes at a cost”, analysts say.

However, it's noted, lowering overhead by withdrawing from crowded locations could be a good way to adjust.