Pizza Hut announces they will be closing nearly 300 restaurants
Nearly 300 Pizza Hut restaurants are slated to permanently close following the bankruptcy of NPC International, one of the chain’s largest franchisees. NPC’s Pizza Hut locations account for 18 percent of the chain’s nearly 7,000 or so locations.
The company filed for Chapter 11 in July and announced its agreement with Pizza Hut’s owner Yum! Brands to sell a quarter of its restaurants and sell the remaining locations, a “substantial majority” of which have dining rooms.
The ongoing pandemic forced many Pizza Hut storefronts to shut down, causing NPC International to rack up a massive debt of nearly $1 billion. Rising labor and food costs also contributed to NPC’s bankruptcy.
Pizza Hut released a statement saying that the 300 United States locations scheduled to shut down “significantly underperform” compared with the rest of NPC’s Pizza Hut locations. Like many other restaurants, the pizza chain has been moving away from opening and operating restaurants with dining rooms.
Due to coronavirus-related shutdowns, Pizza Hut has been encouraging customers to order pick-up through its website or third-party apps.
“We have continued to work with NPC and its lenders to optimize NPC’s Pizza Hut restaurant footprint and strengthen the portfolio for the future, and today’s joint agreement to close up to 300 NPC Pizza Hut restaurants is an important step toward a healthier business,” Pizza Hut said.
Pizza Hut was founded in 1958 in Wichita, Kansas by, two university students, Dan and Frank Carney. Known for its Italian American cuisine, Pizza Hut boomed and 20 years later, became part of a new company (along with Taco Bell and Kentucky Fried Chicken) named Tricon Global Restaurants, Inc. The company changed its name to Yum! Brands in 2002.
Pizza Hut has expanded its international presence and is located in places like Canada, Thailand, Germany, and South Africa.
By: Maytinee Kramer
-
Ford is looking to cut costs and redirect funds. Earlier this year, automotive manufacturer Ford announced its intent to...
-
Twitter won’t let Musk walk away without honoring their deal. Last week, Tesla and SpaceX CEO Elon Musk announced...
-
The filing comes as the summer travel season begins in Europe. On Monday, during ongoing talks between Scandinavian airline...
-
The umbrellas have been recalled due to risks of fire and burns. This morning, the United States Consumer Product...
-
Sony Honda Mobility Inc. wants to get an EV out by 2025. Today, electronics company Sony and automotive manufacturer...
-
The small conglomerate is looking to pay around $8 billion for Kohl’s. The Franchise Group is a relatively small...
-
Leaked emails show Musk demanding in-person work. Since the beginning of remote work movements brought on by the COVID-19...
-
Starbucks is the latest multinational chain to cut ties with Russia. As Russia continues its invasion of Ukraine, the...
-
After their merger was rejected, JetBlue is going for a hostile takeover. Earlier this month, airline carrier JetBlue attempted...
-
The drop in subscribers isn’t sitting well with investors. Earlier this week, a lawsuit was filed in a federal...
-
Various factors have the US economy off to a less-than-stellar start. Following an above-average performance at the end of...
-
The process is underway to wipe over a million in loans. This week, the United States Department of Education...