On the height of the coronavirus pandemic, many of the industries are opting to close or sell their businesses, including one of your favorite pizza place, Pizza Hut.
Earlier in July, Pizza Hut’s largest U.S partner in the franchise has filed for Chapter 11 bankruptcy protection. This allows NPC International to operate while finding solutions to recover from its struggling market.
NPC runs 1,200 pizza franchise in the U.S along with nearly 400 Wendy’s chain. Based on the deal between Yum Brands Pizza Hut and NPC, around 300 of the pizza chain will stop its operation, and the 927 remainings will be put on sale.
“In the event, NPC executes a sale of its Pizza Hut business, Pizza Hut’s focus would be to ensure that new ownership brings to NPC’s Pizza Hut restaurants a strong capital structure, healthy balance sheet, commitment to operational excellence and growth mindset,” Pizza Hut Spokesperson stated to CNBC.
Most of the Pizza Hut locations that are subjected to closure are dine-in locations. It was noticeable in the past few years that deliveries and takeout from the pizza chain are becoming more popular than its dine-ins.
Deliveries and to-go orders escalated during the pandemic when people are opting to stay at home for health and safety. The pizza chain’s delivery weekly sales have reached its peak during the month of May for the past eight years.
According to reports, NPC has not made its final decision yet as to which Pizza hut locations will be closed or sold. However, it was stated that the employees that will be affected by the decision are transferring to other Pizza Hut branch, if possible.
It was in 1962 when NPC operated its first Pizza Hut franchise, and it was only in 1984 when NPC went public. However, in 2001, it went private again before it went to Eldridge Investment Holdings and Delaware Holdings in 2018.