Pizza Hut’s UK restaurant operations have plunged into administration, placing hundreds of jobs and dozens of dine-in branches in jeopardy as the hospitality sector continues to struggle.
DC London Pie Limited, which operates Pizza Hut’s UK restaurants, appointed FTI Consulting as administrators on Monday in a dramatic development that has rocked the high street dining sector.
Within minutes of the appointment, Pizza Hut’s global owner Yum! Brands rushed in with a rescue deal to save 64 dine-in restaurants and protect 2,259 jobs through a pre-packaged administration sale.
However, 68 restaurants and 1,723 jobs remain at risk as they were not included in the emergency rescue package.
Takeaway and Delivery Branches Unaffected
Pizza Hut UK’s takeaway and delivery operations are not affected by the collapse of the restaurant chain, meaning customers can still order from these outlets.
A spokesperson for the pizza chain confirmed: “Today we announce 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 dine-in restaurants.”
The statement continued: “We are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs. Approximately 2,259 team members will transfer to the new Yum! equity business, including above-restaurant leaders and support teams.”
Second Administration in Less Than a Year
The collapse represents the second time Pizza Hut’s UK restaurant business has entered administration in less than 12 months.
Directional Capital took over Pizza Hut’s UK restaurants only in January 2025, using a pre-pack administration deal and creating DC London Pie Limited to manage the business.
The previous owner, Heart with Smart Limited, had collapsed leaving almost £40 million in debt to investor Pricoa Capital.
HMRC Winding-Up Petition Preceded Collapse
Last month, HMRC issued a winding-up petition against DC London Pie Limited, signalling the severe financial distress facing the business.
Winding-up petitions are issued when a company owes more than £750 in unpaid tax and ignores all attempts to settle the debt, meaning it could be forced to close and sell its assets to pay what it owes.
The tax authority’s intervention foreshadowed today’s administration announcement.
From Peak to Decline: Pizza Hut’s UK Journey
Pizza Hut first arrived in the UK in 1973 and quickly became a favourite destination for families and diners seeking casual Italian-American cuisine.
At its height, the chain operated over 260 restaurants nationwide, employing 10,000 staff and welcoming three million customers each month.
The brand introduced several iconic menu innovations to British diners, including the pan pizza in 1980, the legendary stuffed crust in 1995, and the re-launch of the pan pizza as the “grand pan” in 1998.
Pan pizzas are baked in a deep, oil-coated dish, giving the crust a deliciously crispy, golden edge and a lightly fried texture on the bottom that became synonymous with the Pizza Hut experience.
Pandemic Dealt Heavy Blow
Like many hospitality businesses, Pizza Hut faced severe challenges during the coronavirus pandemic that fundamentally altered its business model.
To manage mounting financial difficulties, the company entered into a Company Voluntary Arrangement (CVA), a formal deal with lenders designed to cut costs and keep the business afloat.
At the time of the CVA, Pizza Hut had over 240 locations across the UK but was forced to close 29 branches as part of the restructuring plan.
The closures represented an early warning sign of the structural challenges facing the business.
Hospitality Sector in Crisis
The hospitality sector has struggled to bounce back after the pandemic, facing a perfect storm of challenges including soaring energy bills, rampant inflation and persistent staff shortages.
The Pizza Hut collapse is merely the latest casualty in a sector that has seen numerous high-profile failures over the past two years.
In January 2023, Byron Burger fell into administration with owners saying it would result in the loss of over 200 jobs, though around 12 branches were saved in a rescue deal with Tristar Foods.
Wave of Restaurant Closures
The Restaurant Group (TRG), which owned Frankie & Benny’s, Chiquito and Wagamama, shut dozens of sites in 2023 as it struggled with the post-pandemic trading environment.
It subsequently sold its Frankie & Benny’s and Chiquito brands to Café Rouge owner The Big Table group in September 2023.
Italian restaurant chain Prezzo also closed dozens of sites during the same period as it battled to remain viable.
In April 2024, Tasty, the owners of Italian restaurant Wildwood and Dim T, a pan-Asian restaurant, announced plans to exit 20 loss-making restaurants.
In the same month, Whitbread revealed plans to slash its chain of branded restaurants across the UK.
TGI Fridays Recent Collapse
TGI Fridays was forced to close 35 locations immediately after falling into administration last October in one of the sector’s highest-profile failures.
However, 51 restaurants were rescued through a last-minute pre-pack deal with private equity firms Breal Capital and Calveton UK.
The pattern of administrations followed by partial rescues through pre-pack deals has become a recurring theme in the hospitality sector.
Uncertain Future for Thousands
The fate of the 68 Pizza Hut restaurants and 1,723 jobs not included in Yum! Brands’ rescue package remains uncertain.
Administrators FTI Consulting will now seek buyers for the remaining sites or face closing them permanently if no viable offers emerge.
For the thousands of workers whose jobs hang in the balance, the coming weeks will determine whether they transfer to new owners or face redundancy.
The collapse underscores the brutal economics facing casual dining chains in an era of changed consumer habits, cost-of-living pressures and fierce competition from delivery platforms.
As administrators work to salvage what they can from the wreckage, Pizza Hut’s struggles serve as yet another stark reminder of the fragility of Britain’s hospitality sector in the post-pandemic era.
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Image Credit:
Pizza Hut — photo by Richard Sutcliffe, at Bearsden, East Dunbartonshire, Scotland, licensed under CC BY-SA 2.0.
