Pizza Hut to Shut 68 UK Restaurants, Over 1,200 Jobs Lost as Operator Collapses
Pizza Hut is set to close 68 restaurants and 11 delivery sites across the UK, resulting in the loss of 1,210 jobs, after the company managing its UK operations fell into administration.
DC London Pie Limited, the firm that owns and operates Pizza Hut’s UK restaurants, appointed FTI Consulting as administrators on Monday. The move marks the second financial collapse for Pizza Hut’s UK business in less than a year.
In a partial rescue deal, Yum! Brands – Pizza Hut’s global parent company – has stepped in to acquire 64 restaurants, preserving 1,276 jobs and ensuring continued operations at those locations.
A Pizza Hut UK spokesperson said the company was “pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs.”
Nicolas Burquier, Managing Director for Pizza Hut Europe and Canada, said the acquisition was aimed at maintaining customer experience while supporting employees during the transition. “Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition,” he added.
Founded in the 1970s, Pizza Hut was once a pioneer in casual dining in the UK, known for its family-friendly atmosphere and salad bar. However, experts say the brand has struggled to keep pace with a rapidly evolving food market.
Zoe Adjay, Senior Lecturer in Hospitality at the University of East London, noted that Pizza Hut had “failed to stay relevant amid rising competition from high-end and artisanal pizza chains.” She added that newer, trendier pizza brands had “taken a huge market share,” while Pizza Hut lagged in social media engagement.
Financial analysts say rising costs and cautious consumer spending have deepened Pizza Hut’s troubles. Danni Hewson, Head of Financial Analysis at AJ Bell, said: “Making a success of a big-name casual dining business is a tough job. Increased operating costs and ongoing consumer caution have likely contributed to Pizza Hut’s challenges.”
Hewson added that Yum! Brands’ decision to retake control of UK operations “looks a smart move,” given the company’s decades of insight into customer preferences and store performance.
DC London Pie Limited, which also runs Pizza Hut franchises in Sweden and Denmark, had purchased Pizza Hut’s UK business out of insolvency earlier this year. Despite efforts to revive the brand, mounting pressures in the casual dining sector ultimately forced the operator into administration once again.
