Parent Company of Leading Pizza Chain Acquires 64 Restaurants to Avert Closure
The parent company of Pizza Hut, Yum Brands, has made a significant move to enhance its operations in the U.K. by acquiring 64 Pizza Hut restaurants. This acquisition comes as a direct response to a franchisee’s decision to close various locations.
Details of the Acquisition
This deal is crucial, as it will secure employment for 1,276 staff members across the newly acquired restaurants. Yum Brands aims to maintain the quality of customer experience while protecting jobs during this transition.
Comments from Company Executives
Nicolas Burquier, the managing director for Pizza Hut in Europe and Canada, emphasized the necessity of this acquisition. He stated that the immediate focus is to ensure smooth operations at these locations and provide support to the crew members.
Franchisee Closures
Despite the positive news regarding the acquisition, franchisee DC London Pie Limited announced the closure of 68 restaurants and 11 delivery sites. This decision will impact 1,210 jobs, marking a challenging period for the workforce.
Background on Franchisee Actions
The closure of these locations follows shortly after DC London Pie Limited took over Pizza Hut UK’s restaurants from insolvency. This move combines both the challenges and opportunities the franchisee faces in the competitive restaurant industry.
Company Operations Beyond the U.K.
In addition to its operations in the U.K., DC London Pie Limited also manages Pizza Hut restaurants in Denmark and Sweden. The company’s strategies are crucial for maintaining its presence in the European market.
- Acquired Locations: 64 Pizza Hut restaurants in the U.K.
- Jobs Saved: 1,276 jobs
- Jobs Lost Due to Closures: 1,210 jobs
- Franchisee: DC London Pie Limited
- Regions of Operation: U.K., Denmark, Sweden
This acquisition represents a crucial step for Yum Brands to secure its foothold in the competitive U.K. pizza market while navigating recent challenges associated with franchise operations.
