🔗 Share this article

Once, Pizza Hut was the favorite for parents and children to feast on its unlimited dining experience, unlimited salad bar, and ice cream with toppings.

Yet a declining number of diners are frequenting the restaurant nowadays, and it is reducing 50% of its British outlets after being acquired following financial trouble for the second time this calendar year.

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

In the view of 23-year-old Martina, certain features Pizza Hut has been recognized for since it opened in the UK in the seventies are now less appealing.

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

As food prices have risen sharply, Pizza Hut's unlimited dining format has become very expensive to maintain. As have its locations, which are being reduced from over 130 to just over 60.

The business, in common with competitors, has also seen its expenses go up. This spring, labor expenses jumped due to increases in the legal wage floor and an rise in employer social security payments.

Chris, 36, and Joanne, 29 explain they used to go at Pizza Hut for a date “occasionally”, but now they order in Domino's and think Pizza Hut is “very overpriced”.

Based on your choices, Pizza Hut and Domino's prices are comparable, says a culinary author.

Even though Pizza Hut has takeaway and deliveries through delivery platforms, it is losing out to larger chains which specialize to the delivery sector.

“The rival chain has succeeded in leading the delivery market thanks to strong promotions and ongoing discounts that make consumers feel like they're getting a bargain, when in reality the standard rates are on the higher side,” says the expert.

However for Chris and Joanne it is worth it to get their date night brought to their home.

“We absolutely dine at home now more than we eat out,” explains one of the diners, echoing latest data that show a decrease in people going to informal dining spots.

In the warmer season, informal dining venues saw a 6% drop in customers compared to last summer.

Moreover, another rival to restaurant and takeaway pizzas: the cook-at-home oven pizza.

Will Hawkley, senior partner at a leading firm, explains that not only have retailers been selling high-quality prepared pies for years – some are even selling countertop ovens.

“Evolving preferences are also having an impact in the performance of quick-service brands,” says Mr. Hawkley.

The increased interest of high protein diets has boosted sales at grilled chicken brands, while affecting sales of carb-heavy pizza, he continues.

Because people visit restaurants more rarely, they may prefer a more premium experience, and Pizza Hut's retro theme with vinyl benches and nostalgic table settings can feel more retro than premium.

The rise of high-quality pizzerias” over the last decade and a half, for example boutique chains, has “completely altered the public's perception of what excellent pie is,” explains the industry commentator.

“A light, fresh, easy-to-digest product with a few choice toppings, not the massively greasy, heavy and overloaded pizzas of the past. This, in my view, is what's led to Pizza Hut's decline,” she states.

“What person would spend £17.99 on a small, substandard, disappointing pizza from a large brand when you can get a stunning, expertly crafted traditional pie for less than ten pounds at one of the many real Italian restaurants around the country?

“It's an easy choice.”

A mobile pizza vendor, who operates a pizza van based in a county in England comments: “People haven’t fallen out of love with pizza – they just want better pizza for their money.”

He says his flexible operation can offer premium pizza at affordable costs, and that Pizza Hut had difficulty because it failed to adapt with new customer habits.

At an independent chain in a city in southwest England, the proprietor says the pizza market is diversifying but Pizza Hut has neglected to introduce anything new.

“You now have individual slices, artisanal styles, new haven, sourdough, Neapolitan, Detroit – it's a wonderful array for a pizza-loving consumer to try.”

He says Pizza Hut “must rebrand” as younger people don't have any fond memories or allegiance to the brand.

Gradually, Pizza Hut's market has been sliced up and spread to its more modern, agile competitors. To maintain its costly operations, it would have to increase costs – which industry analysts say is difficult at a time when family finances are tightening.

The managing director of Pizza Hut's overseas branches said the acquisition aimed “to protect our dining experience and retain staff where possible”.

He said its key goal was to continue operating at the open outlets and takeaway hubs and to assist staff through the restructure.

However with significant funds going into operating its locations, it may be unable to invest too much in its takeaway operation because the industry is “complex and using existing external services comes at a cost”, analysts say.

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