🔗 Share this article

At one time, the popular pizza chain was the top choice for groups and loved ones to enjoy its unlimited dining experience, unlimited salad bar, and make-your-own dessert.

Yet not as many diners are frequenting the restaurant these days, and it is reducing 50% of its UK locations after being acquired following financial trouble for the second time this year.

“We used to go Pizza Hut when I was a child,” says one London shopper. “It was like a family thing, you'd go on a Sunday – turn it into an event.” However, at present, aged 24, she says “it's not a thing anymore.”

For young customer Martina, certain features Pizza Hut has been recognized for since it launched in the UK in the mid-20th century are now not-so-hot.

“The manner in which they do their buffet and their salad bar, it appears that they are cutting corners and have reduced quality... They offer so much food and you're like ‘How?’”

Since grocery costs have soared, Pizza Hut's unlimited dining format has become very expensive to maintain. The same goes for its restaurants, which are being reduced from a large number to a smaller figure.

The company, similar to other firms, has also seen its expenses go up. In April this year, employee wages increased due to higher minimum pay and an increase in employer taxes.

Chris, 36, and Joanne, 29 mention they used to go at Pizza Hut for a date “from time to time”, but now they order in a rival chain and think Pizza Hut is “very overpriced”.

Depending on your selection, Pizza Hut and Domino's costs are similar, says a culinary author.

Even though Pizza Hut has off-premise options through delivery platforms, it is missing out to larger chains which solely cater to the delivery sector.

“Another pizza company has managed to dominate the takeaway pizza sector thanks to intensive advertising and frequent offers that make shoppers feel like they're finding a good deal, when in reality the original prices are quite high,” explains the analyst.

But for these customers it is acceptable to get their evening together sent directly.

“We predominantly have meals at home now rather than we eat out,” comments the female customer, matching recent statistics that show a drop in people going to informal dining spots.

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

There is also one more competitor to pizza from eateries: the supermarket pizza.

Will Hawkley, senior partner at a major consultancy, points out that not only have supermarkets been providing premium oven-ready pizzas for quite a while – some are even offering countertop ovens.

“Lifestyle changes are also contributing in the popularity of casual eateries,” states the expert.

The growing trend of protein-rich eating plans has boosted sales at chicken shops, while reducing sales of carb-heavy pizza, he notes.

As people visit restaurants less frequently, they may prefer a more premium experience, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more old-fashioned than upmarket.

The growth of artisanal pizza places” over the last decade and a half, including popular brands, has “fundamentally changed the general opinion of what excellent pie is,” says the food expert.

“A light, fresh, easy-to-digest product with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's resulted in Pizza Hut's decline,” she states.

“Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many authentic Italian pizzerias around the country?

“It's a no-brainer.”

A mobile pizza vendor, who runs a pizza van based in a regional area says: “It's not that stopped liking pizza – they just want improved value.”

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

From the perspective of an independent chain in a city in southwest England, the founder says the pizza market is expanding but Pizza Hut has failed to offer anything new.

“Currently available are individual slices, regional varieties, new haven, artisan base, Neapolitan, deep-dish – it's a heavenly minefield for a pizza enthusiast to discover.”

He says Pizza Hut “needs to reinvent itself” as younger people 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 trendier, more nimble competitors. To sustain its costly operations, it would have to raise prices – which experts say is difficult at a time when family finances are tightening.

A senior executive of Pizza Hut's international markets said the acquisition aimed “to ensure our customer service and protect jobs where possible”.

The executive stated its first focus was to continue operating at the open outlets and off-premise points and to help employees through the change.

However with significant funds going into operating its locations, it likely can't afford to spend heavily in its takeaway operation because the market is “complicated and partnering with existing external services comes at a price”, analysts say.

Still, experts suggest, cutting its costs by leaving crowded locations could be a smart move to adapt.