Pizza Hut is to shut 68 of its restaurants, putting as many as 1,200 jobs at risk, after the company behind its UK venues fell into administration.
DC London Pie, which owned the UK Pizza Hut franchise, appointed administrators from FTI on Monday. Eleven delivery-only sites will also close.
The US hospitality company Yum! Brands, which owns the global Pizza Hut brand as well as KFC and Taco Bell, said it had bought the remainder of the UK restaurant operation in a pre-pack administration deal. The deal will save 64 Pizza Hut sites in the UK and secure the future of 1,277 workers, the company said. Those sites will be owned directly by Yum.
The closures come only nine months after the purchase of the UK Pizza Hut franchise by Directional Capital, a US private equity firm that already operated Pizza Hut restaurants in Sweden and Denmark. Directional claims to manage more than $5bn (£3.7bn) in assets, with a focus on mid-market companies that need to raise cash.
Pizza Hut opened its first UK restaurant in London’s Islington in 1973. Staff numbers at the company rose to more than 14,000 in 1999 and it counted nearly 700 locations by 2006. However, it has struggled in recent years as casual dining chains have faced stiff competition to attract hard-pressed consumers suffering the effects of inflation on their disposable incomes.
Pizza Hut survived the Covid pandemic lockdowns – albeit while closing 29 branches – only to be hit by higher costs such as rising energy bills as well as increased taxes such as the national insurance hike introduced by the Labour government in the 2024 budget.
Last year Pizza Hut faced criticism for a promotion that offered customers “free spins” at online casinos with their takeaway. It has also faced scrutiny for a previous “cheeseburger pizza” that contained 2,880 calories, more than the recommended daily intake for an adult man.
HM Revenue and Customs filed a winding-up petition against DC London Pie on 11 September – a move generally made by the tax authority when a company has been unable to pay its tax bill because of financial difficulties.
Directional bought the business from Pizza Hut UK’s previous management, led by the chief executive, Jens Hofma, and the investor Pricoa (now known as PGIM Private Capital), who had acquired it for a reported £100m in 2018. It was previously owned by Rutland Partners, yet another private equity firm.
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Nicolas Burquier, the 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.”
