Pizza Hut in the UK is poised to shut down 68 restaurants and 11 delivery sites, resulting in the loss of 1,210 jobs. DC London Pie Limited, a franchisee of Pizza Hut dine-in restaurants, has appointed FTI Consulting as administrators. Yum! Brands, the global owner of Pizza Hut, has agreed to salvage 64 locations and 1,277 jobs through a pre-pack administration deal.
A pre-pack administration involves finalizing the sale of a business or its assets before the administration process commences. A spokesperson for Pizza Hut UK announced the acquisition of Pizza Hut dine-in operations through a pre-packaged administration. The move secures the continuation of 64 sites to ensure guest experience and job protection. Approximately 1,277 team members will transition to the new Yum! equity business under UK TUPE legislation, including leaders and support teams.
Nicolas Burquier, Managing Director of Pizza Hut Europe and Canada, emphasized that the targeted acquisition aims to safeguard guest experience and preserve jobs where feasible. The immediate focus is on maintaining operational continuity at the acquired locations and supporting colleagues through the transition.
Directional Capital took control of 139 Pizza Hut restaurants in January 2025, rescuing 3,000 jobs following the collapse of the previous operator, Heart with Smart Limited, which owed nearly £40 million to investor Pricoa Capital. DC London Pie was established by Directional Capital to operate Pizza Hut restaurants in the UK. The first UK Pizza Hut opened in 1973 in Islington, London, and the chain once ran over 260 restaurants nationwide with 10,000 employees.
The closure of Pizza Hut restaurants adds to a series of struggling businesses announcing shutdowns recently. Poundland has closed multiple stores after a significant business restructure, post its sale for £1 to an investment firm. Bodycare shuttered all its stores last month following its collapse into administration, leading to the closure of 32 stores initially, followed by the announcement of 30 more closures, and ultimately deciding to close all remaining 56 stores permanently.