🔗 Share this article How the Public Lost Its Appetite for Pizza Hut At one time, the popular pizza chain was the top choice for groups and loved ones to feast on its all-you-can-eat buffet, unlimited salad bar, and self-serve ice-cream. However a declining number of diners are choosing the restaurant nowadays, and it is reducing a significant portion of its UK locations after being rescued from insolvency for the second instance this year. “We used to go Pizza Hut when I was a child,” explains Prudence. “It was a tradition, you'd go on a Sunday – spend the whole day there.” Today, aged 24, she says “it's not a thing anymore.” For 23-year-old Martina, certain features Pizza Hut has been famous for since it started in the UK in the mid-20th century are now less appealing. “The manner in which they do their buffet and their salad station, it appears that they are cutting corners and have reduced quality... They provide so much food and you're like ‘How is that possible?’” Because food prices have risen sharply, Pizza Hut's buffet-style service has become quite costly to run. Similarly, its locations, which are being cut from 132 to 64. The chain, in common with competitors, has also faced its expenses go up. Earlier this year, staffing costs increased due to increases in the legal wage floor and an higher rate of employer national insurance contributions. Chris, 36, and Joanne, 29 say they used to go at Pizza Hut for a date “from time to time”, but now they get delivery from another pizza brand and think Pizza Hut is “very overpriced”. According to your selection, Pizza Hut and Domino's prices are similar, explains an industry analyst. Although Pizza Hut has pickup and delivery through external services, it is missing out to major competitors which specialize to this market. “The rival chain has succeeded in leading the off-premise pizza industry thanks to aggressive marketing and frequent offers that make shoppers feel like they're getting a bargain, when in reality the standard rates are relatively expensive,” notes the analyst. However for these customers it is justified to get their date night sent directly. “We predominantly have meals at home now more than we eat out,” comments Joanne, reflecting recent statistics that show a decline in people visiting informal dining spots. During the summer months, informal dining venues saw a six percent decline in diners compared to last summer. Moreover, another rival to restaurant and takeaway pizzas: the frozen or fresh pizza. An industry leader, global lead for leisure at a major consultancy, explains that not only have retailers been offering good-standard oven-ready pizzas for a long time – some are even promoting countertop ovens. “Lifestyle changes are also having an impact in the popularity of fast-food chains,” comments the analyst. The growing trend of low-carb regimens has driven sales at poultry outlets, while reducing sales of carb-heavy pizza, he adds. As people dine out not as often, they may prefer a more high-quality meal, and Pizza Hut's classic look with vinyl benches and traditional décor can feel more old-fashioned than luxurious. The growth of premium pizza outlets” over the last several years, such as popular brands, has “fundamentally changed the general opinion of what good pizza is,” explains the industry commentator. “A thin, flavorful, gentle crust with a carefully curated additions, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's led to Pizza Hut's decline,” she comments. “Who would choose to spend a high price on a small, substandard, disappointing pizza from a chain when you can get a beautiful, masterfully-made classic pizza for under a tenner at one of the many traditional pizzerias around the country? “The decision is simple.” A mobile pizza vendor, who operates a pizza van based in a county in England comments: “The issue isn’t that stopped liking pizza – they just want better pizza for their money.” Dan says his flexible operation can offer gourmet pizza at reasonable rates, and that Pizza Hut faced challenges because it failed to adapt with new customer habits. From the perspective of a small pizza brand in a UK location, owner Jack Lander says the sector is expanding but Pizza Hut has neglected to introduce anything new. “Currently available are individual slices, regional varieties, new haven, artisan base, traditional Italian, deep-dish – it's a delightful challenge for a pie fan to discover.” He says Pizza Hut “must rebrand” as the youth don't have any sense of nostalgia or allegiance to the chain. Gradually, Pizza Hut's share has been fragmented and distributed to its trendier, more nimble rivals. To keep up its high labor and location costs, it would have to raise prices – which industry analysts say is challenging at a time when personal spending are decreasing. The leadership of Pizza Hut's international markets said the buyout aimed “to ensure our dining experience and save employment where possible”. The executive stated its first focus was to maintain service at the surviving locations and delivery sites and to help employees through the transition. But with large sums going into running its restaurants, it may be unable to allocate significant resources in its takeaway operation because the sector is “difficult and partnering with existing third-party platforms comes at a price”, experts say. But, he adds, lowering overhead by exiting crowded locations could be a good way to evolve.