Is Pizza Hut Shutting Down? Experts Share How Giants Go Bust And Startups Rise

There has been a buzz about the famous Pizza Hut closing in the UK lately… For clarity, Pizza Hut is not closing down, but what is true is that one of its franchisees has gone into administration. The confusion began after DC London Pie Limited, which ran Pizza Hut’s dine-in restaurants, went under due to difficult trading conditions and rising costs. FTI Consulting was appointed as administrator earlier this week.

Pizza Hut UK has since confirmed that it has taken over 64 of those dine-in sites from DC Pie through a pre-packaged administration deal. The company said the move will keep those restaurants running and protect about 1,277 jobs under UK employment law. This would include restaurant staff, area managers as well as support teams.

A spokesperson for Pizza Hut UK said that the brand continues to trade through both company-owned and franchise restaurants. There are 351 delivery Huts currently operating across the UK, Northern Ireland and Ireland.

Which Restaurants Are Affected?

DC London Pie’s troubles will see 68 UK restaurants close, according to administrators. The affected sites are branches in cities such as Brighton, Hull, Bristol, Leeds and Edinburgh. 11 Pizza Hut delivery outlets are also expected to close soon.

Not all restaurants are shutting their doors, though. Yum! Brands, the US-based owner of Pizza Hut, has stepped in to save 64 restaurants and protect 1,276 jobs. The 2 Aberdeen restaurants at Union Square and Aberdeen Beach are a couple of the few staying open.

Matt Callaghan, joint administrator at FTI Consulting, said that they are working with staff who have lost their jobs to help them through the process.

Nicolas Burquier, Managing Director International Operating Markets 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.”

Why And How Do Mega Companies Can End Up Going Bust, And Does It Make Room For Startups?

Although Pizza Hut isn’t entirely shutting down, it did spark a conversation about the general trend where mega companies do shut down, and why this could be. Experts share their thoughts:

Our Experts:

• Lacey Kaelani, CEO & Co-Founder, Metaintro
• Martin Lucas, Chief Innovation Officer, Gap in the Matrix
• Chris Spratling, Founder, Chalkhill Blue Limited
• Natalie Trice, Media Commentator and PR & Brand Expert, Natalie Trice Publicity
• Martin Newman, Consumer And Retail Expert, UK

Lacey Kaelani, CEO & Co-Founder, Metaintro

“Large corporations often fail when they prioritise efficiency over adaptability. Pizza Hut perfected a model for dine-in restaurants that just happened to have a side-delivery business for the last 20 years—the model was a perfect fit for the 1990s. As consumer behaviour evolved into prioritising delivery and ghost kitchens, they failed to pivot because their systems were designed to support the older model. What we see in our job posting data is that legacy brands hire for positions that will maintain what they are already doing. While startups hire for positions that will build new things or take on new assignments.

“Now is there room for startups? Absolutely. When a giant fails, it leaves behind market share, displaced talent, and consumers in search of products and services to replace their former preferred brands. Clever startups do not compete with Pizza Hut’s old model. They build the model Pizza Hut should have been building. The companies that replace mega brands build for what is next, not what worked yesterday.”

Martin Lucas, Chief Innovation Officer, Gap in the Matrix

“Its a great way to look at this, I feel the why of these things happening is often missed:

“Big brands don’t collapse because of one bad year. They collapse because the system that made them successful stops evolving while the market keeps moving.

“Pizza Hut is a perfect example. They built a model designed for convenience before digital convenience existed, but didn’t evolve fast enough when delivery became frictionless and consumer loyalty shifted from brand to platform. The infrastructure that once gave them scale turned into weight.

“At Gap in the Matrix, our Decision Science data shows this pattern repeatedly. When large companies become too optimised for efficiency, they lose adaptability. They start protecting process instead of sensing change. Across 3,000 brand projects, the data shows that brands with high adaptability scores were 2.4 times more likely to recover after market disruption than those focused purely on efficiency.

“When legacy systems crumble, space opens up for startups built on curiosity and speed. What looks like collapse from the outside is often redistribution from static models to adaptive ones. Big brands die when they stop listening; new ones rise because they start with listening as their first language.”

Chris Spratling, Founder, Chalkhill Blue Limited

“Having bought a number of businesses personally out of administration – and advised many clients on doing the same – I’ve seen first-hand why even mega-companies can go bust. It’s rarely a single event; it’s a slow erosion of agility, curiosity and leadership courage. As companies grow, they build layers of process, politics and cost that distance them from the market. They stop listening to customers and start defending the status quo. Eventually, that inertia becomes fatal.

“But while big-brand failures make headlines, they also create opportunity. When legacy players collapse, they leave behind infrastructure, talent and customers looking for a new solution. That’s where entrepreneurs thrive. Startups are naturally leaner, faster and more willing to test, fail and adapt – exactly what legacy corporates struggle to do.

“The lesson for founders and investors is simple: disruption doesn’t just happen in the tech sector. It happens every time an incumbent forgets the basics – deliver value, stay agile and keep your ego out of the data. Every corporate failure opens the door for a smarter, hungrier business to step through.”

Natalie Trice, Media Commentator and PR & Brand Expert, Natalie Trice Publicity

“When iconic brands like Pizza Hut close their doors, it sends a clear message, even iconic names with decades of history aren’t immune to shifting consumer behaviours and reputational fatigue. The plans are to axe 68 restaurants with over 1,000 jobs to go and yes, there are rising costs but we also need to look at how the company tried to adapt to the market, connect with ever changing customer values, and maintain relevance in a crowded space.

“From a PR standpoint, what we’re seeing is the cost of complacency. Legacy brands that fail to innovate or communicate clearly and consistently risk being overtaken by agile startups who are sharper on storytelling, more transparent about their values, and often quicker to build trust with today’s more conscious consumer.

“We can’t rely on the past for future success so as well as sending a clear message to established organisations, it’s also a lesson for future proofing startups. You need a strong brand purpose, people want connection so build communities, and remember that it’s never too early to get into the press and be the disruptive voice that gets noticed.”
 

Martin Newman, Consumer And Retail Expert, UK

 

 
“The decline of a brand like Pizza Hut is a reminder that no business, however big or familiar, is immune to changing consumer habits. Legacy success often breeds complacency. Many established chains stop innovating, lose their customer focus, and fail to adapt fast enough to shifts in behaviour, whether that’s healthier eating, convenience, delivery, or digital experience.

“Startups, on the other hand, tend to be born from consumer frustration. They’re agile, digital-first, and built around today’s customer needs. When big brands lose touch, it absolutely creates space for challengers to step in, just look at how brands like Franco Manca or Fireaway have redefined the pizza category with simplicity, authenticity, and speed.

“The lesson for all legacy businesses is simple: size doesn’t guarantee survival. Customer relevance does. Brands that continually listen, adapt, and reinvent themselves around customer needs will thrive; those that rest on past success won’t.”