Jobs at Risk Across 68 Pizza Hut Dine-In Restaurants

Administrators have been appointed to Pizza Hut’s dine-in operations, placing approximately 741 jobs in jeopardy across 68 restaurant sites.

FTI Consulting has been brought in to oversee the administration of DC London Pie Limited, the franchisee operating Pizza Hut’s eat-in establishments across Britain.

The development follows financial pressures on the business, including action initiated by tax authorities several weeks ago.

In a significant intervention, international restaurant group Yum! Brands has stepped in to acquire 64 of the affected locations through a pre-packaged administration arrangement.

This move will see roughly 1,277 employees transfer to the new ownership structure under TUPE regulations, including restaurant staff, management personnel and support functions.

Nicolas Burquier, Managing Director for Pizza Hut Europe and Canada, commented on the transaction: “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.”

However, the remaining 68 dine-in venues were not included in the rescue package, leaving their future – and that of hundreds of employees – uncertain.

The administration proceedings were initiated by Yum! III (UK) Limited, a subsidiary of American hospitality giant Yum! Brands, Inc, which holds security over the business assets.
This latest crisis comes less than twelve months after the restaurant portfolio changed hands.

DC London Pie Limited, operating under the Directional Capital umbrella, acquired 139 UK Pizza Hut locations in a pre-pack administration deal that preserved approximately 3,000 positions.

Directional Capital’s Pizza Hut franchise operations in Sweden and Denmark remain unaffected by the current UK situation.

The chain’s previous operator, Heart with Smart Limited, collapsed with substantial outstanding debts to investment firm Pricoa Capital, which had previously supported a management buyout of the business.

The administration marks another challenging chapter for Britain’s casual dining sector, which continues to face headwinds from rising operational costs and changing consumer habits.