Pizza Hut is set to close dozens of locations in the UK, putting hundreds of jobs at risk. The company’s dine-in segment has entered administration, leading to significant operational changes.
Details of the Closures
Pizza Hut UK has announced the closure of 68 dining venues. This decision comes after the franchise’s dine-in operations faced substantial financial challenges. In a rescue effort, 64 locations will remain open, securing 1,277 jobs.
Administrative Actions
- The company’s administration was managed by FTI, appointed as administrators of DC London Pie Limited, a Pizza Hut franchisee.
- Yum! III (UK) Limited, a subsidiary of Yum! Brands, is behind the acquisition aimed at preserving some operations.
- The administration process allows directors to appoint an administrator to take control of a business facing insolvency.
Impact on Employment
The closures will affect over 740 jobs. A separate group of 75 restaurants did not make it into the acquisition deal, further jeopardizing employment. Approximately 1,277 employees will transition to the newly structured Yum! equity business, protected under UK TUPE legislation.
Company Statements
Nicolas Burquier, Managing Director of International Operating Markets, emphasized the goal of maintaining operational continuity and supporting employees during this transition. He stated: “This targeted acquisition aims to safeguard our guest experience and protect jobs where possible.”
Pizza Hut’s Global Operations
Pizza Hut operates globally, with a reported 19,866 restaurants as of 2023. The challenges faced in the UK spotlight broader issues within the dine-in segment of the restaurant industry.
As the situation develops, the focus remains on ensuring that guest experiences are preserved at the surviving locations while navigating the complexities of corporate restructuring.
