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September 10, 2020

Pizza Hut to close 29 restaurants in UK, 450 jobs at risk

American pizza chain Pizza Hut has confirmed plans to close 29 out of its 244 restaurants in the UK to overcome the business disruption caused by the Covid-19 pandemic.

American pizza chain Pizza Hut has confirmed plans to close 29 out of its 244 restaurants in the UK to overcome the business disruption caused by the Covid-19 pandemic.

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by GD50 Custom
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A part of the chain’s restructuring efforts, the move is estimated to put at least 450 jobs at risk.

Pizza Hut said it is negotiating company voluntary arrangement (CVA) with lenders. CVA is an insolvency formality used to avoid putting a company into full administration and to re-negotiate debt repayments.

Even after the restaurants reopen, the company does not expect the sales to ‘fully bounce back’ until next year due to the disruption caused by the pandemic.

Pizza Hut is expected to reveal the details of affected branches later this week. The company said that the move would not affect jobs at Pizza Hut Delivery and other related franchises.

It also added that measures could help save approximately 5,000 jobs at the rest of its UK restaurants.

A spokeswoman for the company said that the company is trying to ‘secure as many jobs as possible’ and is in talks with its creditors to reach an agreement.

In July, the company decided to permanently close down all 16 stores in Greece with immediate effect.

In April, Pizza Hut introduced a contactless kerbside pickup option at participating restaurants in the US in an effort to sustain the sales during the pandemic.

Recently, UK-based restaurant group Pizza Express announced plans to close 73 restaurants and cut 1,100 jobs.

Free Whitepaper
img

What is the impact of historically high inflation on the UK consumer landscape?

The average UK consumer is experiencing a severe cost-of living crisis as inflation surges to a forty-year high and the price of goods continues to rise. This shock is the result of the sharply increasing costs of commodities, energy, and the ongoing conflict in Ukraine, and is threatening FMCG manufacturers, retailers, and foodservice operators’ ability to survive and grow. Inflation will have a profound effect on many consumer-facing industries in 2022 and beyond. Consult GlobalData’s new whitepaper, Inflation in the UK: The Impact of Historically High Inflation on the UK Consumer Landscape, to better understand shifts in consumer behavior and their impact on spending patterns, as well as the implications for UK businesses. This whitepaper covers:  
  • Why has global inflation returned with a vengeance?
  • What is the current inflation situation in the UK?
  • What impact is inflation having on UK retail sales?
  • What tactics are businesses relying on to tackle the effects of high inflation?
  • How are consumers changing their behaviors to cope with the higher cost of living?
  • Which industry sectors are most vulnerable to reduced consumer demand?
  • How is the government responding to high inflation?
  • How long will high inflation last in the UK?
  • How can your company survive and thrive in a high inflation environment?
Enter your details here to receive your free whitepaper and ready your business for these increasingly uncertain times.
by GD50 Custom
Enter your details here to receive your free Whitepaper.

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