Pizza Hut is set to shut down 68 restaurants and 11 delivery sites across the United Kingdom, resulting in the loss of more than 1,200 jobs. The move follows the collapse of DC London Pie Limited, the company operating Pizza Hut’s UK branches.
Administrators from FTI Consulting were appointed on Monday after the firm fell into financial distress. However, there’s a partial lifeline for some employees — Pizza Hut’s global owner, Yum! Brands, has stepped in to save 64 restaurants, preserving approximately 1,276 jobs.
A Struggle to Stay Afloat
The latest Pizza Hut UK closures mark another blow to the country’s casual dining sector, which has struggled with high operational costs and declining consumer spending. Pizza Hut’s UK business had already entered administration less than a year ago before being rescued by DC London Pie Limited in January.
DC London Pie also owns Pizza Hut franchises in Sweden and Denmark, but its UK operations failed to recover amid rising rents, energy costs, and intense competition in the fast-food and casual dining market.
A Pizza Hut UK spokesperson said, “We are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs.”
Industry Experts React
Nicolas Burquier, Managing Director for Pizza Hut Europe and Canada, emphasized that the acquisition aims to protect jobs and ensure stability. “Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition,” he said.
Hospitality experts say the brand’s struggles stem from both market shifts and changing consumer expectations.
Zoe Adjay, senior lecturer at the University of East London, said that Pizza Hut was once a pioneer in UK fast dining but has failed to adapt.
“The pizza market has become much more upmarket,” she explained. “High-end pizza brands have taken a huge share, and Pizza Hut hasn’t built the same online or social media presence as its competitors.”
Financial Pressure and Future Outlook
Rising costs, consumer caution, and the growing popularity of takeaway apps have made it harder for traditional sit-down chains to compete.
Danni Hewson, head of financial analysis at AJ Bell, said that DC London Pie’s earlier rescue was ambitious but difficult to sustain.
“Running big-name casual dining businesses is a tough job,” she noted. “Taking back the brand looks like a smart move by Yum! Brands, which has decades of data about consumer habits and location success.”
While Pizza Hut UK closures signal the end for dozens of local outlets, Yum! Brands’ intervention may keep the brand’s presence alive in key markets. The focus now turns to restructuring operations and reviving Pizza Hut’s once-dominant reputation in Britain’s evolving food landscape.
In other news also read about Nestlé to Cut 16,000 Jobs in Global Restructuring Push
