JAKARTA – Pizza Hut will permanently close up to 300 outlets. This was marked after the largest franchise holder of Pizza Hut restaurants in the United States (US), namely NPC International, announced its agreement with Yum Brands to close a quarter of Pizza Hut outlets and sell the remaining restaurants in the United States.
The NPC will also sell the remaining 927 Pizza Hut locations for sale. This NPC actually filed for bankruptcy protection 11 in early July after struggling with a debt burden of around USD1 billion or IDR14.8 trillion (referring to the exchange rate of IDR14,800 per USD)
Also read: Pizza Hut in the US went bankrupt, different from Indonesia
Currently, 1,227 Pizza Hut NPC locations account for 18% of the 6,700 store locations in the US. Currently, NPC International’s remaining portfolio includes 6,500 Wendy’s restaurants in the US.
Employees at closed Pizza Hut restaurants operated by NPCs will be transferred to better performing locations. However, NPCs have not made a final decision on which locations to close or closing times.
Also read: Pizza Hut, the Largest Franchise in the US Is Threatened Bankruptcy
“If NPC sells its Pizza Hut business, Pizza Hut’s focus is to ensure that new ownership leads to the Pizza Hut restaurant NPC a strong capital structure, healthy balance sheet, commitment to operational excellence, and a growth mindset,” said a Pizza Hut spokesperson, quoting CNBC, Tuesday (18/8/2020).
The closed Pizza Huts have a poor performance. Therefore, in recent years, Pizza Huts is now trying to change its image from a restaurant for dinner to a delivery restaurant coupled with the corona virus pandemic.
Pizza Hut itself now reports the highest average sales for delivery and delivery in the last eight years during the month of May.
(WHO)
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