Administrators reveal locations of 68 Pizza Hut restaurants set to close - including sites in Yorkshire
Administrators have revealed the locations of 68 Pizza Hut restaurants which will close after the company behind its UK venues fell into insolvency.
It will also shut 11 delivery sites as part of a restructuring which will put 1,210 workers at risk of redundancy.
DC London Pie, the firm running Pizza Hut’s UK dine-in restaurants under a franchise deal, appointed administrators from corporate finance firm FTI on Monday.
American hospitality giant Yum! Brands, which owns the global Pizza Hut business, said it has now bought the UK restaurant operation in a pre-pack administration deal, saving 64 sites.
The Pizza Hut restaurants set for closure include Bradford Vicar Lane, Huddersfield, Hull, Leeds Colton Mill, Leeds Kirkstall Road Leeds White Rose and Cortonwood in South Yorkshire.
Nicolas Burquier, managing director of Pizza Hut Europe and Canada, 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.”
DC London Pie was the company formed after Directional Capital, which operated franchises in Sweden and Denmark, snapped up 139 UK restaurants from the previous UK franchisee Heart with Smart Limited in January of this year. Commenting on Pizza Hut’s announcement, Frank Bouette, a partner at city law firm DMH Stallard and specialist in restructuring and insolvency, said: "Operating as a dine in and delivery model when there is fierce competition by delivery online models - with lower overheads - was always going to be a challenge. As the market shifted toward fast app-based delivery, delayed investment in tech and logistics has caught up with them.
"Add in varying product experience across locations; blurred market positioning; the cost of physical restaurants (which its delivery competitors didn’t have); the overhang and effect of the pandemic on dining trends; and inconsistent brand delivery resulting from varying franchises – it’s a wonder it survived this long."
AJ Bell head of financial analysis Danni Hewson said: “DC London Pie had rescued Pizza Hut’s UK operations from insolvency less than a year ago, but making a success of a big-name casual dining businesses is a tough job and one which would have been made harder by increased labour costs and ongoing consumer caution.
“Taking back the brand looks a smart move by Yum! Brands as it has decades of data about how pizza lovers like to consume and exactly what factors need to coalesce to make a location a success.”