Monday 20 October 2025 2:58 pm
| Updated:
Monday 20 October 2025 5:50 pm
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Pizza Hut will close 68 stores
The dine-in arm of Pizza Hut has collapsed into administration, putting dozens of restaurants and hundreds of jobs at risk.
DC London Pie Limited, which operates Pizza Hut’s UK restaurants, appointed FTI Consulting as administrators on Monday.
The 67-year-old chain has said it will shutter 68 venues permanently, while 1,723 workers face uncertainty on their futures.
As part of the administration, Pizza Hut UK announced 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.
A statement read: “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 International Operating Markets, 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.”
‘Stark warning’ for hospitality
Analysts said the collapse was more evidence of a hospitality sector bettered by a high cost-of-living, bills and taxes.
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“The real story here isn’t just about Pizza Hut, it’s about the brutal mathematics facing casual dining chains,” Gary Hemming, commercial lending director at abcfinance.co.uk, said.
“With energy costs up 300 per cent, labour shortages pushing wages higher, and customers pivoting to delivery apps, the traditional restaurant model is broken,” he added.
Isabelle Shepherd, partner at HaysMac added: “Budget uncertainty has prompted falls in spending, causing falling sales for many restaurant chains… The pizza market is particularly competitive.”
“Hospitality businesses are suffering from the twin pressures of reduced sales and significantly increased labour costs, squeezing cashflows and working capital… Sadly, these pressures are too high for many to bear, including some beloved household names.”
Pizza Hut had previously collapsed in January before being saved by an entity controlled by investment firm Directional Capital in a deal which salvaged all but one Pizza Hut location.
The pre-pack administration, which was overseen by Interpath Advisory, came at the end of a two-month process to find new investors for the company.
“For investors and creditors, the message is clear: scrutinise rescue deals carefully. A pre-pack that doesn’t fundamentally restructure the business model isn’t a rescue – it’s just kicking the can down the road to find new investors for the company,” Hemming said.
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