Pizza Hut to Close 68 UK Restaurants After Falling Into Administration, Cutting Over 1,200 Jobs
Pizza Hut, one of the UK’s most recognizable dining chains, is facing another major setback after its UK restaurant operator, DC London Pie Limited, entered administration. The move will result in the closure of 68 restaurants and 11 delivery sites, leading to 1,210 job losses across the country.
The company’s collapse marks the second time in less than a year that Pizza Hut’s UK operations have been pushed into insolvency. Despite the setback, there is some hope for the brand’s future: Pizza Hut’s global owner, Yum! Brands, has stepped in with a plan to rescue part of the business.
Yum! Brands confirmed that it will acquire 64 Pizza Hut locations across the UK, a move expected to preserve 1,276 jobs and maintain the brand’s presence in key markets.
A Longtime Family Favorite Facing Financial Pressure
Known for its red-roof restaurants, all-you-can-eat salad bars, and signature pan pizzas, Pizza Hut has been a staple of British family dining for decades. However, the chain has struggled in recent years to compete in an increasingly crowded casual dining market.
Changing customer habits, rising food and energy costs, and intense competition from takeaway-focused rivals such as Domino’s and Papa John’s have placed significant pressure on the brand’s traditional dine-in business model.
According to industry experts, the post-pandemic recovery for dine-in chains has been slower than expected. With consumers facing the highest cost of living in a generation, discretionary spending on eating out has dropped sharply in 2025.
“People are eating out less frequently, and when they do, they’re often opting for cheaper or more convenient options,” said James Taylor, a hospitality analyst at CGA Insight. “Brands like Pizza Hut, which rely heavily on family dining experiences, are being squeezed on both sides — by fast food chains on one end and premium independents on the other.”
DC London Pie’s Administration and Job Losses
DC London Pie Limited, which purchased Pizza Hut UK’s restaurant division from insolvency in January 2025, announced it had appointed FTI Consulting as administrators on Monday.
In a statement, the administrators confirmed that 68 of Pizza Hut’s restaurant sites and 11 delivery units would close immediately, citing unsustainable trading conditions and mounting operational costs.
An estimated 1,210 employees across the affected locations are expected to lose their jobs. The company said it would work closely with administrators to ensure staff received appropriate support, including redundancy packages and career transition assistance.
A spokesperson for Pizza Hut UK said:
“We are deeply saddened by the impact this will have on our team members and guests. However, we are pleased to have secured the continuation of 64 sites to safeguard our guest experience and protect the associated jobs.”
The closures will affect branches across the UK, including several long-standing restaurants in London, Manchester, Birmingham, Glasgow, and Cardiff, as well as regional towns where Pizza Hut has served as a community dining hub for decades.
Yum! Brands Steps In to Save Half of UK Outlets
While the news of closures is a blow to the brand’s legacy in Britain, Pizza Hut’s global parent company, Yum! Brands, has pledged to stabilize the business by taking over 64 of the UK’s remaining restaurants.
Nicolas Burquier, Managing Director for Pizza Hut Europe and Canada, confirmed the acquisition, emphasizing the company’s focus on continuity and employee support.
“This targeted acquisition aims to safeguard our guest experience and protect jobs where possible,” Burquier said. “Our immediate priority is to ensure operational stability at the acquired locations and to support our colleagues through this transition.”
Yum! Brands — which also owns global fast-food giants KFC and Taco Bell — is expected to retain Pizza Hut’s signature dine-in model at key sites while exploring a more hybrid strategy that blends restaurant and delivery operations.
Insiders suggest the company could focus future investment on high-traffic urban areas and shopping centers, where dine-in demand remains strong, while scaling back in lower-margin suburban or rural locations.
Repeated Struggles in the UK Market
This latest financial collapse marks Pizza Hut UK’s second major administration in less than a year. The company had first entered insolvency in late 2024, burdened by debts and a changing dining landscape.
DC London Pie Limited, which already owned Pizza Hut franchises in Sweden and Denmark, had acquired the UK business in an effort to revive its fortunes. However, despite significant restructuring efforts, the company was unable to overcome rising operational costs, high commercial rents, and reduced consumer demand.
Hospitality industry analysts say the repeated collapse underscores the structural challenges facing mid-tier restaurant chains.
“Pizza Hut’s struggles are part of a broader trend,” explained Sarah Benton, a restaurant consultant with Deloitte UK. “Casual dining chains that expanded rapidly in the 2000s are now facing a radically different market. Consumers want affordability, speed, and digital convenience — and traditional restaurant models have been slow to adapt.”
Impact on the Wider UK Hospitality Industry
The closure of more than 70 Pizza Hut locations adds to a growing list of casualties in Britain’s struggling restaurant sector. In 2025 alone, several well-known chains — including Frankie & Benny’s, Prezzo, and Ask Italian — have also shuttered dozens of outlets amid mounting inflation and labor costs.
According to UKHospitality, the trade association representing the industry, more than 3,000 hospitality venues have closed across the UK in the past 18 months, with employment levels dropping by nearly 10%.
Kate Nicholls, Chief Executive of UKHospitality, said that while Pizza Hut’s partial rescue was welcome, the industry’s underlying challenges remain severe.
“Rising energy bills, staff shortages, and business rates continue to weigh heavily on operators,” she said. “Without targeted government support, we risk losing more high-street names that have been part of our communities for generations.”
What Happens Next for Pizza Hut UK
Under Yum! Brands’ new management, Pizza Hut’s surviving restaurants will continue operating as normal during the transition. Customers can still dine in or order takeaway and delivery through the Pizza Hut app and website.
The company has assured that gift cards, loyalty programs, and promotional offers remain valid across all active UK locations. However, some customers have expressed disappointment on social media after discovering their local branches among the closures.
Industry watchers believe Yum! Brands will likely restructure the UK business model to focus on long-term sustainability. This could include:
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Investing in digital ordering systems and delivery logistics
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Reducing physical dining space to cut costs
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Partnering with third-party apps like Deliveroo and Uber Eats
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Introducing more value-based menu options to attract cost-conscious consumers
Despite the challenges, Yum! Brands maintains confidence in the Pizza Hut brand’s future. In a press release, the company emphasized that its “commitment to serving customers across the UK remains strong.”
A Difficult Chapter in Pizza Hut’s UK Story
For decades, Pizza Hut has held a special place in British dining culture — from children’s birthday parties to weekend family outings. Its closure of dozens of restaurants marks a significant moment of change not just for the brand but for the wider casual dining industry in the UK.
While the rescue of 64 restaurants offers a glimmer of hope, the path ahead will require bold restructuring and adaptation to new consumer realities. As the hospitality sector continues to evolve, Pizza Hut’s challenge will be finding a way to remain relevant — without losing the nostalgic appeal that made it a household name.