Pizza Hut has announced the closure of 68 of its UK restaurants following the company behind its UK operations, DC London Pie, falling into administration. The closures come less than a year after the company was rescued from insolvency, raising concerns about the future of jobs and the brand’s operations in the UK.
What Happened?
On Monday, DC London Pie, the firm running Pizza Hut’s dine-in restaurants in the UK, appointed administrators from corporate finance firm FTI Consulting. This decision led to the closure of 68 locations across the UK, although the company has yet to disclose the number of workers impacted by these closures.
The closure of these sites marks a significant setback for the company, which had previously struggled with financial difficulties. Just under a year ago, the business had been rescued from insolvency, and now, amid continued challenges, it has been forced to make further cuts to its operations.
Acquisition by Yum! Brands
In a twist, Yum! Brands, the American hospitality giant that owns the global Pizza Hut brand, has stepped in to acquire the UK restaurant operations in a pre-packaged administration deal. This deal aims to secure the future of 64 sites and safeguard approximately 1,277 jobs.
The acquisition will ensure that 64 Pizza Hut UK locations will continue to operate, preserving the jobs of over 1,200 employees. These team members, including above-restaurant leaders and support teams, will transfer to Yum! Brands’ equity business under UK TUPE (Transfer of Undertakings Protection of Employment) legislation, which helps protect the employment rights of workers.
Statements from Yum! Brands and Company Leadership
A spokesperson for Pizza Hut UK expressed relief over the rescue deal, stating: “We are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs. Approximately 1,277 team members will transfer to the new Yum! equity business under UK TUPE legislation.”
Nicolas Burquier, Managing Director of International Operating Markets at Yum! Brands, added: “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.”
Impact on Employees and Consumers
Although the rescue deal will preserve jobs at 64 locations, the closure of 68 Pizza Hut restaurants will undoubtedly have a significant impact on workers and customers. While the company has not disclosed the exact number of employees affected by the closures, it is expected that many jobs will be lost in the affected restaurants.
For consumers, the closure of these sites means fewer dining-in options for Pizza Hut fans across the UK. However, the acquisition of the remaining sites by Yum! Brands is seen as a positive move to ensure that the brand’s presence continues in the UK, maintaining the availability of Pizza Hut’s popular menu offerings.
What’s Next?
As the transition process continues, Yum! Brands will focus on ensuring operational continuity at the 64 locations that are being acquired. The company’s priority is to support employees through the transition and to maintain the customer experience at the locations that will remain open.
While the deal offers hope for the future of Pizza Hut in the UK, the closures highlight ongoing challenges in the casual dining sector, which has been significantly affected by economic pressures and changing consumer habits. The next few months will be crucial for Pizza Hut to stabilize its operations and continue serving its UK customers.
This story may be updated with more information as it becomes available.
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