London: Pizza Hut UK is set to shut down 68 restaurants and 11 delivery sites, leading to the loss of 1,210 jobs, after its franchise operator, DC London Pie Limited, entered administration earlier this week.
The move comes amid a steep decline in sales following customer boycotts linked to the company’s reported ties with Israeli military installations.
FTI Consulting has been appointed as administrator to oversee the restructuring process. In a positive development, Yum! Brands, the global parent company of Pizza Hut, has stepped in to acquire 64 of the UK restaurants, preserving hundreds of jobs and ensuring continuity for customers.
A spokesperson for Pizza Hut UK said, “We are pleased to secure the continuation of 64 sites to safeguard our guest experience and protect the associated jobs.”
Echoing this sentiment, Nicolas Burquier, Managing Director for Pizza Hut Europe and Canada, stated, “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.”
The closures come as Pizza Hut UK faces growing financial and reputational challenges. The company reportedly faced mounting boycotts after revelations that it had provided food to soldiers on Israeli military installations during the ongoing war in Gaza.
Consumer backlash in the UK intensified, with many customers announcing boycotts on social media and shifting their spending to other food chains.
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Analysts suggest that this boycott movement sharply reduced sales, adding further pressure to the already struggling franchise network.
The restructuring marks one of the most significant shakeups for Pizza Hut in the UK in recent years. Industry observers say Yum! Brands’ acquisition of key sites demonstrates its intent to stabilize operations, rebuild consumer trust, and protect long-term brand equity in one of its largest international markets.
While the closures will impact communities across the UK, the parent company’s intervention offers a measure of relief to employees and customers ensuring that Pizza Hut continues to operate across most of its existing network despite the challenging environment.