🔗 Share this article

At one time, the popular pizza chain was the go-to for groups and loved ones to indulge in its unlimited dining experience, endless salad selection, and self-serve ice-cream.

However a declining number of patrons are visiting the brand currently, and it is shutting down half of its UK locations after being rescued from insolvency for the second time this calendar year.

It was common to visit Pizza Hut when I was a child,” notes Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she states “it's fallen out of favor.”

For young customer Martina, some of the very things Pizza Hut has been recognized for since it started in the UK in the 1970s are now less appealing.

“The way they do their all-you-can-eat and their salad bar, it appears that they are lowering standards and have lower standards... They provide so much food and you're like ‘How is that possible?’”

Since food prices have soared, Pizza Hut's unlimited dining format has become very expensive to run. Similarly, its outlets, which are being cut from over 130 to just over 60.

The company, similar to other firms, has also experienced its costs rise. In April this year, employee wages rose due to increases in the legal wage floor and an higher rate of employer taxes.

A couple in their thirties and twenties explain they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from Domino's and think Pizza Hut is “too expensive”.

Depending on your choices, Pizza Hut and Domino's rates are close, says a culinary author.

Although Pizza Hut does offer takeaway and deliveries through external services, it is missing out to major competitors which focus exclusively to the delivery sector.

“Domino's has taken over 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 specialist.

However for the couple it is acceptable to get their evening together delivered to their door.

“We absolutely dine at home now rather than we eat out,” says one of the diners, echoing current figures that show a decrease in people visiting casual and fast-food restaurants.

In the warmer season, informal dining venues saw a notable decrease in patrons compared to last summer.

Additionally, another rival to pizza from eateries: the supermarket pizza.

Will Hawkley, head of leisure and hospitality at an advisory group, notes that not only have supermarkets been selling good-standard oven-ready pizzas for quite a while – some are even offering pizza-making appliances.

“Lifestyle changes are also playing a factor in the success of casual eateries,” says the expert.

The rising popularity of high protein diets has driven sales at chicken shops, while hitting sales of dough-based meals, he notes.

As people go out to eat less frequently, they may prefer a more premium experience, and Pizza Hut's retro theme with booth seating and nostalgic table settings can feel more old-fashioned than luxurious.

The growth of premium pizza outlets” over the last several years, for example boutique chains, has “dramatically shifted the general opinion of what excellent pie is,” notes the food expert.

“A crisp, airy, digestible pizza with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she comments.

“What person would spend nearly eighteen pounds on a modest, low-quality, underwhelming pizza from a chain when you can get a beautiful, masterfully-made Margherita for under a tenner at one of the many real Italian restaurants around the country?

“It's an easy choice.”

An independent operator, who owns a small business based in Suffolk explains: “The issue isn’t that fallen out of love with pizza – they just want higher quality at a fair price.”

Dan says his mobile setup can offer high-quality pie at accessible prices, and that Pizza Hut faced challenges because it was unable to evolve with changing preferences.

From the perspective of Pizzarova in a UK location, the founder says the pizza market is broadening but Pizza Hut has not provided anything fresh.

“You now have slice concepts, London pizza, thin crust, fermented dough, Neapolitan, rectangular – it's a wonderful array for a pie fan to try.”

The owner says Pizza Hut “must rebrand” as newer generations don't have any sense of nostalgia or loyalty to the chain.

Over time, Pizza Hut's customer base has been fragmented and spread to its more modern, agile rivals. To keep up its costly operations, it would have to raise prices – which industry analysts say is difficult at a time when personal spending are shrinking.

A senior executive of Pizza Hut's international markets said the rescue aimed “to protect our guest experience and save employment where possible”.

The executive stated its key goal was to continue operating at the open outlets and delivery sites and to support colleagues through the transition.

However with significant funds going into maintaining its outlets, it probably cannot to spend heavily in its off-premise division because the industry is “complicated and working with existing delivery apps comes at a cost”, experts say.

Still, experts suggest, lowering overhead by exiting competitive urban areas could be a smart move to evolve.