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Pizza Hut is set to close 68 restaurants and 11 delivery sites across the UK, resulting in the loss of 1,210 jobs, following the administration of the operating company.
DC London Pie Limited, the entity responsible for managing Pizza Hut’s UK restaurant network, formally appointed FTI Consulting as administrators on Monday.
However, Yum! Brands, the global parent company of Pizza Hut, has stepped in to safeguard 64 restaurants, thereby preserving 1,276 jobs.
Known for its family-oriented dining experience and salad bar, Pizza Hut has faced headwinds in the UK market, having previously entered administration less than a year prior.
DC London Pie acquired Pizza Hut UK’s restaurants from insolvency in January of this year. The company also holds Pizza Hut franchise rights in Sweden and Denmark.
A spokesperson for Pizza Hut UK stated: “We are 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, commented: “This targeted acquisition aims to safeguard our guest experience and protect jobs where possible.”
Mr. Burquier further noted that the immediate priority for Pizza Hut is “operational continuity at the acquired locations and supporting colleagues through the transition”.
Zoe Adjay, Senior Lecturer in Hospitality at the University of East London, observed that Pizza Hut was “at the forefront of bringing fast food into the UK” during the 1970s but has since struggled to maintain its relevance amidst increasing competition.
“The pizza market has become a lot more upmarket,” she stated. “There’s a lot more high-end pizza and they’ve taken a huge market share.”
Ms. Adjay also suggested that Pizza Hut has not effectively established a strong presence on social media platforms compared to some of its competitors.
Increased operating costs and “ongoing consumer caution” are likely contributing factors to Pizza Hut’s challenges, according to Danni Hewson, Head of Financial Analysis at AJ Bell.
“DC London Pie had rescued Pizza Hut’s UK operations from insolvency less than a year ago, but making a success of a big-name casual dining businesses is a tough job.”
“Taking back the brand looks a smart move by Yum! Brands as it has decades of data about how pizza lovers like to consume and exactly what factors need to coalesce to make a location a success.”
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