Pizza Hut United Kingdom (UK) is to close 68 restaurants and 11 delivery locations, resulting in 1,210 job losses after its British parent company went into administration.
FTI Consulting was yesterday announced as the administrator for DC London Pie Ltd, the company that operates Pizza Hut restaurants in the UK.
However, Pizza Hut owner Yum! Brands has agreed to save 64 restaurants in the UK, thus retaining 1,276 jobs.
Managing Director of Brands International Market Operations Yum! Brands, Nicolas Burquier, said the acquisition was aimed at protecting the customer experience and jobs in the acquired locations.
The closures come as the UK hospitality industry faces rising costs, including employee wages and social security contributions, while consumers are more cautious about spending and reducing their visits to restaurants.
The restaurant closures will also affect Pizza Hut gift card holders, as the cards are only valid at restaurants that are still open.
Experts recommend that cardholders use up their balances immediately.
Some of the employees affected by the restaurant closures are expected to be transferred to Pizza Hut operations that are still operating under the ownership of Yum! Brands.
