It has been confirmed that a number of bidders are fighting it out to take control of struggling restaurant chain Pizza Hut UK. Among the interested parties is private equity firm Risk Capital Partners but the firm faces competition from at least two rivals as the bidding process moves towards the advanced stage.
Risk Capital Partners was co-founded by entrepreneur Luke Johnson, the former chairman of PizzaExpress, who rapidly expanded the number of casual dining commercial property outlets held by the company before standing down in 1999.
Pizza Hut UK is currently owned by restaurant giant Yum Brands, which also owns KFC and Taco Bell, but the company is seeking to offload the business to focus on the fast growing Asian, African and Latin American markets.
Despite recently reporting an encouraging rise in sales, Pizza Hut UK has struggled for a number of years and has suffered substantial losses. Now the chain’s 340 restaurant commercial properties are up for sale although the 320 outlets serving the pizza delivery side of the business are not included in the deal.
It is believed that Yum will retain the rights to the Pizza Hut brand and the buyer will operate as a franchisee. A Pizza Hut spokesman confirmed that a deal is within reach, saying;
“We have received significant interest in the Pizza Hut dine in business from several leading companies. Yum has narrowed this list down and we have been in advanced talks with a small number of prospective investors.”
Pizza Hut was founded in 1958 in Wichita, Kansas and had acquired over 1000 US commercial properties before going global in 1973. The company’s first UK restaurant opened in Islington, London in the same year. In 2007 Pizza Hut sold a record 35.4 million pizzas in the UK.
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