Pizza Hut’s global owner has rescued a number of UK outlets after a franchisee plunged into administration for the second time in less than a year, with 68 restaurants across the UK closing.
The company behind the UK restaurants, DC London Pie, which rescued the chain from insolvency in only January, appointed administrators at FTI Consulting earlier today, with 1,200 jobs being axed.
However, 1,277 jobs have been protected after Yum! Brands, Pizza Hut’s global owner and the company behind KFC and Taco Bell, agreed to acquire 64 restaurants in the UK.
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.”
A spokesperson said: “Pizza Hut UK announces the acquisition of the Pizza Hut dine-in operations through a pre-packaged administration, after FTI was announced today as administrators of DC London Pie Limited, a franchisee of Pizza Hut.
“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.”
No details of which restuarants are closing and which are transfering to Yum! have been released at the time of publication.
Nick Sherrard, managing director of Label Sessions, said: “Pizza Hut is a brand that has done lots of the right things. Its problem, though, is competition and costs are unforgiving in the UK right now.
“The company has adapted to the increased importance of delivery, launched new formats, and has managed to maintain a distinctive proposition in the market, especially for families.
“However, the costs of running its traditional restaurants in the UK require either higher prices than the market will stomach or volume that is hard to achieve, given competition from all the other pizza formats that have proliferated
“A smart buyer could turn Pizza Hut into a successful business again by backing its new formats. Sadly though, it’s hard to see the restaurants that so many people associate with childhood making a return anytime soon.”.
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