Pizza Hut to Shut 68 UK Restaurants as Franchisee Arm Collapses into Administration

LONDON – Pizza Hut is set to close 68 of its dine-in restaurants across the UK after the company responsible for operating the venues fell into administration. The move comes as part of a rescue deal that will see 64 other locations saved.

The franchisee, DC London Pie Ltd, appointed administrators from the corporate finance firm FTI Consulting on Monday, marking the second time this year the UK dine-in operation has faced insolvency. The company has not yet confirmed which specific locations will be closing or the total number of jobs that will be affected by the shutdowns.

In a pre-pack administration deal, the global parent company, Yum! Brands, has acquired the remaining UK restaurant operation. This intervention will secure the future of 64 sites and protect 1,277 jobs. The employees at the saved locations will be transferred to the new Yum! equity business.

“This targeted acquisition aims to safeguard our guest experience and protect jobs where possible,” said Nicolas Burquier, Managing Director of Pizza Hut Europe and Canada. “Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition.”

It’s important to note that Pizza Hut’s extensive network of takeaway and delivery branches operates as a separate business and is not affected by this administration process.

The collapse follows a period of significant financial pressure on DC London Pie Ltd, including a winding-up petition filed by HMRC over unpaid taxes. The wider UK hospitality sector has been struggling with the combined effects of falling consumer spending, intense market competition, and rising operational costs, including increases in the national living wage.