Pizza Hut Faces Major Cutbacks: 68 Restaurants to Close Amid Struggling UK Operations

In a stunning turn of events, Pizza Hut has announced it will close 68 restaurants and 11 delivery sites across the UK, resulting in the loss of 1,210 jobs. This decision follows the administration of DC London Pie Limited, the firm operating the UK outlets, which appointed FTI Consulting as administrators. However, there’s a silver lining—as Pizza Hut’s global parent company, Yum! Brands, has stepped in to save 64 locations, preserving 1,276 jobs.

Once celebrated for its family-friendly dining and salad bar, the brand’s UK operations have encountered significant challenges, having previously entered administration less than a year ago. DC London Pie had only recently acquired Pizza Hut UK’s assets from insolvency in January 2023. A spokesperson for Pizza Hut UK expressed relief at safeguarding operational continuity, emphasizing, “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, highlighted the aim of this acquisition as a means to ensure a continued positive guest experience and provide job security.

However, experts like Zoe Adjay, a senior lecturer in hospitality, noted that Pizza Hut has struggled to adapt to the evolving food landscape, facing competition from more upmarket pizza options that have captured a significant portion of the market. Furthermore, the brand has lagged behind in social media engagement when compared to competitors.

Economic factors, including increasing operating costs and ongoing consumer caution, have compounded these difficulties. Danni Hewson, from AJ Bell, underscored the challenges that come with operating a prominent casual dining brand like Pizza Hut. Despite these obstacles, Yum! Brands taking back control of the UK operations could be a strategic move, armed with decades of data on what pizza enthusiasts crave. The article paints a picture of a once-thriving restaurant chain in decline, now facing a crucial moment to reassess and adapt to an intensely competitive market.