Pizza Hut is shutting 68 of its UK restaurants, putting up to 1,200 jobs at risk, after the company behind its UK venues, DC London Pie, fell into administration. Administrators from FTI were appointed on Monday, and 11 delivery-only sites will also close.
The US hospitality company Yum! Brands, which owns the global Pizza Hut brand, has bought the remainder of the UK restaurant operation in a pre-pack administration deal. This will save 64 Pizza Hut sites and secure the future of 1,277 workers, with those sites owned directly by Yum.
The closures come just nine months after US private equity firm Directional Capital bought the UK franchise. Directional, which already operates Pizza Hut restaurants in Sweden and Denmark, claims to manage more than $5bn in assets, focusing on mid-market companies needing to raise cash.
Pizza Hut opened its first UK restaurant in London's Islington in 1973. Staff numbers rose to more than 14,000 in 1999, with nearly 700 locations by 2006. However, the chain has struggled in recent years as casual dining faces stiff competition and consumers grapple with inflation and rising costs, including higher energy bills and the national insurance hike introduced in the 2024 budget.
HM Revenue and Customs filed a winding-up petition against DC London Pie on 11 September due to unpaid tax bills. Nicolas Burquier, managing director of Pizza Hut Europe and Canada, said: 'This targeted acquisition aims to safeguard our guest experience and protect jobs where possible. Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition.'
