🔗 Share this article How the Country Turned Away from Its Craving for the Pizza Hut Chain In the past, the popular pizza chain was the top choice for families and friends to enjoy its all-you-can-eat buffet, unlimited salad bar, and make-your-own dessert. Yet a declining number of diners are choosing the chain currently, and it is shutting down half of its British locations after being bought out of administration for the second occasion this year. “We used to go Pizza Hut when I was a child,” notes a young adult. “It was a regular outing, you'd go on a Sunday – make a day of it.” However, at present, aged 24, she says “it's not a thing anymore.” According to young customer Martina, certain features Pizza Hut has been known and loved for since it started in the UK in the 1970s are now outdated. “The manner in which they do their all-you-can-eat and their salad station, it appears that they are cutting corners and have reduced quality... They offer so much food and you're like ‘How is that possible?’” Because ingredient expenses have risen sharply, Pizza Hut's unlimited dining format has become very expensive to operate. The same goes for its locations, which are being reduced from 132 to just over 60. The company, similar to other firms, has also experienced its operating costs rise. This spring, labor expenses rose due to increases in the legal wage floor and an higher rate of employer taxes. A couple in their thirties and twenties say 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 “too expensive”. Depending on your order, Pizza Hut and Domino's prices are similar, notes an industry analyst. Although Pizza Hut has takeaway and deliveries through delivery platforms, it is falling behind to big rivals which focus exclusively to the delivery sector. “Domino's has taken over the takeaway pizza sector thanks to aggressive marketing and constantly running deals that make customers feel like they're saving money, when in reality the base costs are on the higher side,” says the analyst. However for these customers it is acceptable to get their date night brought to their home. “We predominantly have meals at home now more than we eat out,” explains one of the diners, reflecting latest data that show a drop in people frequenting informal dining spots. Over the summer, informal dining venues saw a 6% drop in diners compared to the previous year. Moreover, another rival to restaurant and takeaway pizzas: the supermarket pizza. Will Hawkley, global lead for leisure at a major consultancy, notes that not only have grocery stores been providing good-standard prepared pies for a long time – some are even selling home-pizza ovens. “Shifts in habits are also contributing in the popularity of fast-food chains,” comments the analyst. The increased interest of low-carb regimens has boosted sales at poultry outlets, while affecting sales of high-carbohydrate options, he adds. Since people go out to eat more rarely, they may prefer a more high-quality meal, and Pizza Hut's retro theme with booth seating and red and white checked plastic table cloths can feel more old-fashioned than luxurious. The growth of high-quality pizzerias” over the last decade and a half, such as boutique chains, has “dramatically shifted the consumer view of what excellent pie is,” notes the culinary analyst. “A thin, flavorful, gentle crust with a select ingredients, not the massively greasy, heavy and overloaded pizzas of the past. That, arguably, is what's caused Pizza Hut's struggles,” she says. “Why would anyone spend £17.99 on a modest, low-quality, underwhelming pizza from a franchise when you can get a gorgeous, skillfully prepared classic pizza for a lower price at one of the many real Italian restaurants around the country? “It's an easy choice.” Dan Puddle, who runs a small business based in a county in England comments: “People haven’t fallen out of love with pizza – they just want improved value.” Dan says his adaptable business can offer premium pizza at accessible prices, and that Pizza Hut struggled because it could not keep up with changing preferences. According to an independent chain in a city in southwest England, the proprietor says the industry is expanding but Pizza Hut has neglected to introduce anything new. “Currently available are by-the-slice options, artisanal styles, new haven, sourdough, traditional Italian, deep-dish – it's a delightful challenge for a pizza-loving consumer to discover.” He says Pizza Hut “should transform” as the youth don't have any fond memories or loyalty to the company. Over time, Pizza Hut's market has been divided and distributed to its trendier, more nimble competitors. To sustain its costly operations, it would have to increase costs – which industry analysts say is challenging at a time when family finances are decreasing. A senior executive of Pizza Hut's global operations said the rescue aimed “to protect our dining experience and retain staff where possible”. He said its key goal was to continue operating at the surviving locations and delivery sites and to help employees through the transition. But with significant funds going into maintaining its outlets, it may be unable to invest too much in its takeaway operation because the sector is “complex and using existing third-party platforms comes at a price”, experts say. However, it's noted, lowering overhead by leaving competitive urban areas could be a effective strategy to evolve.