Pizza Hut to Close 68 UK Restaurants as Administration Looms

Pizza Hut is set to shutter 68 restaurants across the United Kingdom following the collapse of its franchise owner, DC London Pie, into administration. The move is poised to put up to 1,200 jobs at risk, marking a significant blow to the UK hospitality sector.

This development comes just nine months after US private equity firm Directional Capital acquired the UK franchise. Directional Capital, known for managing over $5 billion in assets and specialising in mid-market companies seeking capital, had expanded its portfolio to include Pizza Hut operations in Sweden and Denmark alongside the UK business. However, the rapid deterioration of trading conditions has triggered this abrupt retrenchment.

Yum Brands, the American parent company behind Pizza Hut globally and also the owner of KFC and Taco Bell, has stepped in to acquire the remaining UK operations in a pre-pack administration deal. This strategic move will preserve 64 UK Pizza Hut sites and safeguard 1,277 jobs. The rescued locations will now be owned directly by Yum, ensuring continuity for customers and staff at those restaurants.

The current crisis is the latest in a series of setbacks for Pizza Hut’s British operations. After weathering the challenges posed by the Covid pandemic—when 29 branches were already closed—the chain has struggled with surging energy costs and higher taxes, including the national insurance rise introduced by the Labour government in the 2024 budget. Intensifying competition among casual dining brands and the ongoing squeeze on consumers’ disposable incomes have further hampered recovery efforts.

Earlier this year, DC London Pie came under scrutiny when HM Revenue and Customs filed a winding-up petition over unpaid tax liabilities. The business had changed hands several times in recent years, first sold to Pricoa for a reported £100 million in 2018, after previously being owned by Rutland Partners, another private equity investor.

Nicolas Burquier, managing director for Pizza Hut Europe and Canada, emphasised that the acquisition is aimed at safeguarding the experience for guests and protecting employment where practical. He indicated that support for affected employees and operational continuity at the acquired locations will be the immediate focus as the group navigates this period of transition.