Dive Brief:
- DC London Pie Limited, an operator that runs a large number of Pizza Hut U.K. restaurants, will close 68 restaurants and 11 delivery sites after entering administration to manage outstanding debts. The move comes just 10 months after DC London Pie Limited bought Pizza Hut’s U.K. locations from insolvency, BBC reports.
- Parent company Yum Brands has acquired 64 of DC London Pie Limited’s dine-in restaurants, a spokesperson for Pizza Hut U.K. confirmed.
- In Q2, Pizza Hut’s international business outperformed its domestic base — with 1% year-over-year growth in same-store sales compared to a 5% decline stateside.
Dive Insight:
The U.K.’s pizza sector seems to be experiencing the same consumer pullback that American chains are navigating. British economic growth is notably slow, with a slack labor market and a 3.8% inflation rate, according to the Bank of England — macroeconomic conditions that bear superficial resemblance to those in the U.S.
Domino’s reported profit declines in the U.K. in August, citing growing labor costs and waning diner confidence. Pizza Hut’s U.K. business has also been struggling as younger competitors enter the market, and previously went into administration less than a year ago, BBC reports.
Many American fast food chains are in the process of entering or expanding in the U.K. — Raising Cane’s will open its first restaurant across the pond in 2026 to compete with Chick-fil-A and Dave’s Hot Chicken, for example. But chicken chains aren’t as closely tied, at least conceptually, to takeaway as pizza is, which may explain why Pizza Hut and its rivals are feeling pinched.
Along with the 64 restaurants Yum saved from the chopping block, 1,276 jobs were preserved, the Pizza Hut U.K. spokesperson said.
“This targeted acquisition aims to safeguard our guest experience and protect jobs where possible,” said Nicolas Burquier, Yum Brands’ managing director of international operating markets. “Our immediate priority is operational continuity at the acquired locations and supporting colleagues through the transition.”
