Pizza Hut closing 29 UK restaurants putting 450 jobs at risk
PIZZA Hut has announced plans to shut 29 restaurants, putting around 450 jobs at risk.
The casual dining company is the latest restaurant chain to announce it's shutting branches following the coronavirus crisis.
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The move will impact around 12% of Pizza Hut's restaurants in the UK, and almost 10% of staff.
Pizza Hut has 244 restaurants in the UK, employing around 5,450 people.
The restaurant chain said it has faced "significant disruption" from the pandemic, and it warned that sales "are not expected to fully bounce back until well into 2021".
Pizza Hut will now negotiate a company voluntary arrangement (CVA) restructuring deal.
Restaurant and food chain job losses
A NUMBER of high-profile restaurant and food chains have announced job cuts following the coronavirus crisis.
- Zizzi owner Azzurri Group announced in July 2020 that it would permanently shut 75 branches, putting 1,200 jobs at risk
- Frankie & Benny's owner The Restaurant Group has proposed closing 125 branches, with 3,000 jobs on the line
- Byron Burger is shutting 31 restaurants, around half of its UK sites, with 600 jobs at risk
- Bella Italia and Cafe Rouge have announced the closure of 91 restaurants, with 1,900 jobs to go
- Pret a Manger is cutting 2,800 jobs with 30 stores to close
- Costa Coffee is axing 1,650 jobs - it hasn't announced any store closures at this stage
- Upper Crust plans to make 5,000 out of its 9,000-strong workforce redundant
- Carluccio’s is cutting 1,000 jobs with 40 restaurants to shut
- Pizza Express has confirmed it'll be closing 73 restaurants, putting 1,100 jobs at risk
A CVA doesn't mean a company has gone bust - instead, it allows businesses that are struggling to look for cost-cutting ways to keep going.
It comes just over one month after Pizza Hut said it would try not to cut jobs or close branches despite being hit by the coronavirus crisis.
The company wasn't able to confirm which branches would be shutting when asked by The Sun today, but it added that earmarked restaurants are likely to be announced tomorrow.
It also confirmed that Pizza Hut delivery operations will be unaffected.
Affected employees are being contacted by the business.
The news was announced just days after rival chain Pizza Express confirmed plans to close 73 restaurants, with 1,100 jobs on the line.
What are my redundancy rights?
BEFORE making you unemployed, your employer should still carry out a fair redundancy process.
You are entitled to be consulted on the redundancy lay-off first and to receive a statutory redundancy payment, as long as you've been working somewhere for at least two years.
How much you're entitled to depends on your age and length of service, although this is capped at 20 years. You'll get:
- Half a week’s pay for each full year you were under 22,
- One week’s pay for each full year you were 22 or older, but under 41,
- One and half week’s pay for each full year you were 41 or older.
Sadly, you won't be entitled to a payout if you've been working for your employer for fewer than two years.
There should be a period of collective consultation as well as time for individual ones if your employer wants to make 20 or more employees redundant within 90 days or each other.
You are also entitled to appeal the decision by claiming unfair dismissal within three months of being let go.
Other chains to confirm branch closures include Zizzi owner Azzurri Group, which announced in July 2020 that it would permanently shut 75 branches.
Frankie & Benny's owner The Restaurant Group has also unveiled plans to shut 125 branches, while Byron Burger is shutting 31 restaurants; around half of its UK sites.
Like other restaurant chains, Pizza Hut was forced to close all its branches temporarily on March 23 following the spread of Covid-19.
The vast majority of its UK restaurants have now reopened, while Pizza Hut took part in the Eat Out to Help Out scheme last month.
It's announced that it'll carry on offering discounts throughout September, including two for one on main meals on Mondays to Wednesdays for customers who are signed up to its email alerts.
Pizza Hut trades in the UK under franchise from its US-based owner, Yum Brands, which also owns KFC and Taco Bell.
A Pizza Hut spokeswoman said: "We are committed to doing the right thing, and in order to secure as many jobs as possible and continue serving our communities.
";We are working to reach an agreement with our creditors.
"We appreciate the support of our business partners and are doing everything we can to help our team members during this process, including speaking with those affected by the consultation."
Boots, John Lewis, M&S, and WH Smith have also confirmed mass redundancies.
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Gatwick has also announced plans to cut 600 jobs – almost a quarter of workers due to coronavirus.
While Ryanair has said it plans to axe 3,250 jobs, while British Airways has warned it needs to cut 12,000 jobs.