It is the second time the franchise business has been sold out of administration this year
Nearly 70 of Pizza Hut’s dine-in UK restaurants are to close after one of its franchise businesses was sold out of pre-pack administration for the second time this year.
The deal will see 68 restaurants and 11 delivery outlets across the country close with 1,210 potential job losses.
However, 64 sites will continue to trade, securing around 1,277 staff jobs.
DC London Pie Limited, a franchisee of Pizza Hut dine-in restaurants, appointed FTI Consulting as administrators on Monday.
The business has been rescued by Pizza Hut UK, part of the chain’s parent company Yum! Brands, which licenses the restaurant name in the UK.
It comes less than a year after the franchisee behind Pizza Hut’s UK dine-in restaurants was sold to private equity firm Directional Capital in a pre-pack deal for £10m.
Administrators’ documents said the business had suffered a “significant decline in revenue” and posted a loss of £9.4m in 2024.
A spokesperson for Pizza Hut UK said: “We are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs. Approximately 1,277 team members will transfer to the new Yum! equity business under UK TUPE legislation, including above-restaurant leaders and support teams.”
Nicolas Burquier, managing director of Pizza Hut Europe and Canada, said: “This targeted acquisition aims to safeguard our guest experience and protect jobs where possible. Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition.”
Pizza Hut opened its first UK restaurant in the early 1970s and expanded to hundreds of sites at its peak.
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