What happened to Pizza Hut? How many Pizza Hut restaurants are closing in the UK?

In a dramatic twist for one of Britain’s most popular restaurant chains, Pizza Hut’s UK dine-in arm has entered administration, leading to sweeping changes across its operations. While the move will safeguard over 1,277 jobs, it also marks the closure of 68 restaurants nationwide, leaving hundreds of employees facing uncertainty.

The restructuring follows the financial collapse of DLC London Pie Limited, the company that managed Pizza Hut’s dine-in restaurants across the UK. Administrators from corporate finance specialists FTI Consulting were officially appointed on Monday to oversee the process. The company had only taken over Pizza Hut’s dine-in sites less than a year ago after purchasing them from a previous insolvency deal — a sign of the ongoing financial turbulence in the casual dining sector.

A Swift Rescue by Yum! Brands

Within hours of the administration announcement, Yum! Brands, the American hospitality powerhouse and global owner of Pizza Hut, stepped in to purchase the UK dine-in operations in what is known as a pre-pack administration deal. The move immediately saved 64 restaurants and secured employment for over 1,277 staff members, including restaurant teams, management, and support staff.

In a statement, Nicolas Burquier, Managing Director of International Operating Markets for Yum! Brands, emphasized the company’s commitment to stabilizing operations:

“This targeted acquisition aims to safeguard our guest experience and protect jobs where possible. Our immediate priority is ensuring operational continuity at the acquired locations and supporting colleagues through this transition.”

What Is a Pre-Pack Administration?

A pre-pack administration is a legal process that allows a company to sell its assets to a buyer before officially entering administration. This often helps protect valuable parts of the business — such as jobs, key sites, and intellectual property — from complete collapse. In this case, Yum! Brands’ quick intervention prevented an even wider shutdown of Pizza Hut’s dine-in network.

The Human Cost

Despite the positive impact of the rescue, over 740 jobs remain at risk, as approximately 75 restaurants were not included in the deal. These sites face potential closure as administrators work to recover funds for creditors.

Meanwhile, Pizza Hut’s delivery and takeaway operations remain unaffected, ensuring customers can still order from their local branches.

FTI Consulting confirmed that redundancies may occur where sites cannot be transferred or sustained. “Our goal is to preserve as much of the business as possible, but where closures are unavoidable, affected staff will be supported,” the administrators said.

Pizza Hut’s Global Presence

Headquartered in Texas, Pizza Hut operates more than 19,800 restaurants globally. The UK dine-in crisis highlights the ongoing challenges faced by international franchises operating in an inflationary environment where high energy costs, rent, and changing consumer habits have hit the hospitality sector hard.

Looking Ahead

For now, Yum! Brands’ intervention has kept Pizza Hut’s UK presence from collapsing entirely. However, with dozens of sites still in limbo, the coming months will determine whether the company can revive its dine-in experience in a post-pandemic world increasingly dominated by delivery services.

FAQ

1. How many Pizza Hut restaurants are closing in the UK?

68 dine-in restaurants are set to close following the administration of DLC London Pie Limited.

2. How many jobs have been saved?

Approximately 1,277 employees will keep their jobs after Yum! Brands’ acquisition of 64 restaurants.

3. Who owns Pizza Hut globally?

Pizza Hut is owned by Yum! Brands, Inc., the American hospitality group that also owns KFC and Taco Bell.

• 4. Can

Delivery and takeaway branches are not affected and continue to operate as usual.

5. Why did Pizza Hut UK go into administration?

Rising operational costs, declining dine-in traffic, and market pressures have been key factors behind the collapse.