A Pizza Hut restaurant is set to open on July 2, 2020 in Plano, Texas, USA.
Dan Tian | Xinhua News Agency | Getty Images
Pizza Hut will close up to 300 locations as part of a deal between the Yum Brands chain and its largest American franchisee, NPC International.
NPC will also put up for sale its remaining 927 Pizza Hut locations. The franchisee, which also serves nearly 400 Wendy’s restaurants, filed for bankruptcy protection against Chapter 11 in early July after struggling with its $ 1 billion debt burden.
“In the event that NPC carries out a sale of its Pizza Hut business, the focus of Pizza Hut would be to ensure that new ownership of NPC’s Pizza Hut restaurants brings a strong capital structure, healthy balance, dedication to operational excellence. , and a growing mindset, “a Pizza Hut spokesman said in a statement to CNBC.
NPC’s 1,227 Pizza Hut locations account for one-fifth of the chain’s total U.S. footprint.
The closing Pizza Huts underperform the rest of the chain’s locations, and the majority are expected to enter locations. In recent years, the pizza chain has tarnished its reputation as a dining restaurant and sought to draw more attention to its delivery and takeout, a change that has been accelerated by the coronavirus pandemic. Pizza Hut reported its highest average sales week for delivery and execution in the past eight years in the month of May.
Employees at closed Pizza Hut restaurants operated by NPC will be relocated to better-performing locations, if possible, according to the Pizza Hut statement. NPC has not made any definitive decisions about which locations will close or the timing of the closures.
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