PIZZA HUT staff could find their jobs at risk as the restaurant chain becomes the latest firm to struggle with the impact of coronavirus.
The chain is in talks with restructuring firm Alvarez & Marsal over how to steer the business going forward with measures on the table including a so-called company voluntary agreement (CVA).
Pizza Hut says its goal is to not to have to close any branches or make job cuts but a CVA typically sees firms continuing to trade but closing some stores and axing staff to cut overheads and pay off debts.
As it runs a franchise model, the chain also stresses that these talks only involve its largest franchise owner, known as Pizza Hut Restaurants.
Other franchise-owned branches are unaffected, while Pizza Hut’s 380 UK delivery and takeaway-only outlets are also not impacted.
In a statement, a spokesman told Sky News: “Despite government support, and entering lockdown from a place of strength, the cost of lockdown combined with reduced trading levels has had a substantial impact on the whole restaurant sector.
“Along with many other businesses, we are looking at ways to minimise that financial impact, while continuing to trade as usual.
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<h3 class="article-boxout__headline">Job losses since June 2020</h3>
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MANY firms have announced job cuts since June as a result of the coronavirus lockdown. These include: </p>
<div>- Shoe chain Aldo collapsed into administration with five stores permanently closed
- Victoria’s Secret plunged into administration, putting 800 jobs at risk
- Fashion chain Quiz put its shop business into administration in , putting 82 stores at risk
- British Gas owners cuts 5,000 jobs, over half of which will be in management
- Airbus announces 1,700 job losses. It expects cuts to be made by summer 2021
- TM Lewin says it will close all 66 of its UK shops, putting 600 jobs at risk
- Harveys Furniture goes into administration resulting in 240 immdiate job losses and puts another 1,000 at risk
- Upper Crust plans to make 5,000 out of its 9,000-strong workforce redundant
- EasyJet says it plans to close hubs at Stansted, Southend and Newcastle, putting 4,500 jobs at risk
- John Lewis is reported to be planning to cut jobs and permanently close department stores
- Harrods has said it is consulting on cutting 680 jobs
- Virgin Money, which owns Clydesdale and Yorkshire Bank, will cut 300 jobs
- Topshop owner Arcadia has announced plans to cut 500 office staff
- Royal Mail is expected to cut 2,000 jobs as a result of coronavirus
“Whether this will require financial restructuring in the form of a CVA or otherwise is as yet undecided.”
It’s been a tough time for the hospitality industry of late with businesses having to close for four months during lockdown and only being allowed to run a takeaway service.
Restaurants have only been allowed to reopen for diners this month, and in his mini-Budget chancellor Rishi Sunak unveiled a number of measures to encourage people to start eating out again.
This included cutting VAT on meals and non-alcoholic drinks to 5 per cent and the launch of a new Eat Out to Help Out discount scheme coming inyo force next month.
Pizza Hut itself has only just begun to reopen branches, although it has a reduced capacity and a limited menu to help both staff and customers to social distance.
The chain has 260 UK branches and employs and employs 5,700 people, according to Sky News.
Earlier this month, fellow Italian food chain Pizza Express warned that it “plans to close 75 of its 470 restaurants”.
While earlier in July, Burger King and Pret a Manager became the latest casualties of the crisis warning of site closures and job cuts with 2,600 possible roles between them being lost.
In addition, more than 1,900 jobs are set to be cut at Belgo, Bella Italia, Cafe Rouge and Las Iguanas.
The restaurants’ owner, the Casual Dining Group, said this month that it would shutter 91 of its 250 sites after calling in administrators in May.
Carluccio’s also fell into administration in March, after being on the edge of collapse when it was forced to close branches due to the coronavirus crisis.
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<!--googleon: all-->It ended up selling 31 restaurants to Boparan Restaurant Group (BRG), which also owns Ed’s Easy Diner, in a move that saved more than 800 jobs.
But around 40 restaurants closed for good, which left 1,019 staff without jobs.
Upper Crust and Caffe Ritazza owner, SSP Group also revealed this month that up to 5,000 jobs are at risk as it expects only 20 per cent of its outlets to have reopened by this autumn.
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