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Franchise Deep Dive: Pizza Hut’s Franchise Costs, Fees, Profit and Data

This pizza franchise serves over a million pizzas a day worldwide, but can it dish out a great business opportunity? Let’s take a closer look.

LAST UPDATED: May 22, 2023

FRANCHISE WEBSITEhttps://franchise.pizzahut.com/

NUMBER OF LOCATIONS: 17,358

REPORTED COST TO GET IN: $367,000 to 

REPORTED ROI (Item 19): $1,075,836 (average gross sales for mature franchised locations)

Pizza Hut is the largest pizza restaurant franchise in the world. For over 50 years, Pizza Hut has grown its brand and market dominance. Today, this household name offers pizza, garlic bread and plenty of other food products to its loyal customer base. Pizza Hut competes against brands like Domino’sPapa John’s and Little Caesars

How Many Pizza Hut Locations Are There?

In 1958, Pizza Hut opened its first store in Wichita, Kansas after brothers Dan and Frank Carney borrowed $600 from their mother to finance their pizza dreams. The Pizza Hut brand began franchising just one year later and grew aggressively around the United States. In 1969, Pizza Hut adopted its iconic red roof on its restaurants. In 1977, the company was acquired by PepsiCo. During this time, Pizza Hut also introduced many staples such as its Pan Pizza and Hand-Tossed Traditional Pizza.

In 1994, Pizza Hut changed the game as the first national pizza chain to offer online ordering and pizza delivery via PizzaNet. A few years later, in 1997, Pizza Hut (as well as sister brands Taco Bell and KFC) were combined by PepsiCo under one parent company umbrella called Tricon Global Restaurants, Inc., which later became Yum! Brands in 2002.

But it hasn’t been all smooth sailing for The Hut, especially in the last decade as the global economy has struggled. In 2019, Pizza Hut announced that it would close about 500 of its 7,496 dine-in restaurants in the U.S. Then in 2020, amid the COVID-19 pandemic, Pizza Hut said that it would close an additional 300 stores, following the bankruptcy of one of its largest franchisees

Despite the recent closures, Pizza Hut continues to be one of the world’s biggest pizza chains, hosting a mind-blowing 17,000-plus locations in over 100 countries.

What Is the Pizza Hut Business Model?

The Hut comes in many shapes and sizes. Franchisees can choose from a series of build-out options, including: 

  • Traditional Opportunities
    • Restaurant-Based Delivery (RBD): A legacy dine-in location with delivery abilities
    • Delco: Short for "Delivery + Carryout," Delcos are the brand’s fastest-growing models
    • Fast Casual Delco: A Delco location with counter-serve seating
    • Delivery-Based Restaurant: An open-kitchen Delco in a modern dine-in building
  • Non-Traditional Opportunities
    • Mini Kitchen: With its compact back-of-house equipment footprint, products are served from a hot hold on a branded cart
    • Kiosk: Self-contained units implemented in a wide variety of locations and efficient tools for capitalizing on high foot traffic
    • Retail Counter: Integrates successfully into quick-service dining environments
    • Full Kitchen and Seating: Provides an inviting QSR atmosphere for both to-go and dine-in customers alike.

How Much Can Pizza Hut Franchise Owners Make?

For the reporting period beginning December 31, 2019 and ending December 28, 2020, for the 20 mature company-owned system restaurants, average gross sales ranged from $490,757 to $1,374,461. A total of 10 (50%) restaurants in this category exceeded the stated average of $900,704.

For the reporting period beginning December 29, 2020 and ending December 27, 2021, for the 22 mature company-owned system restaurants, average gross sales ranged from $554,791 to $1,586,726. A total of nine (40.9%) restaurants in this category exceeded the stated average of $981,650.

For the reporting period beginning December 31, 2019 and ending December 28, 2020, for the 2,095 mature franchised system restaurants of the dine-in/red roof and RBD restaurant concept type, average gross sales ranged from $221,848 to $2,922,768. A total of 914 (43.6%) of restaurants in this category exceeded the stated average of $973,080.

For the reporting period beginning December 29, 2020 and ending December 27, 2021, for the 2,057 mature franchised system restaurants of the dine-in/red roof and RBD restaurant concept type, average gross sales ranged from $219,847 to $2,996,833. A total of 921 (44.8%) of restaurants in this category exceeded the stated average of $1,075,836.

For the reporting period beginning December 31, 2019 and ending December 28, 2020, for the 2,537 mature franchised system restaurants of the Delco delivery/carry-out restaurant concept type, average gross sales ranged from $262,711 to $3,058,878. A total of 1,107 (43.6%) of restaurants in this category exceeded the stated average of $950,058.

For the reporting period beginning December 29, 2020 and ending December 27, 2021, for the 2,563 mature franchised system restaurants of the Delco delivery/carry-out restaurant concept type, average gross sales ranged from $218,514 to $2,993,149. A total of 1,114 (43.5%) of restaurants in this category exceeded the stated average of $1,022,827. 

For the reporting period beginning December 31, 2019 and ending December 28, 2020, for the 4,632 mature franchise system restaurants, average gross sales ranged from $221,848 to $3,058,878. A total of 2,025 (43.7%) exceeded the stated average of $960,470. 

For the reporting period beginning December 29, 2020 and ending December 27, 2021, for the 4,620 mature franchise system restaurants, average gross sales ranged from $218,514 to $2,996,833. A total of 2,021 (43.7%) exceeded the stated average of $1,046,429.

How Much Does It Cost to Open a Pizza Hut?

The total investment necessary to begin operation of a new restaurant ranges from: 

  • $787,000 to $2,063,500 for an RBD restaurant or delivery-based restaurant
  • $534,000 to $1,488,500 for a fast casual Delco restaurant
  • $552,000 to $971,300 for a freestanding Delco delivery/carryout restaurant
  • $367,000 to $721,300 for an inline/end cap Delco delivery/carryout restaurant, in each case excluding real property 

What Is the Franchise Fee for Pizza Hut?

The initial franchise fee ranges from $47,500 to $69,000. The net worth requirement is $700,000 and liquid capital required is $350,000. Royalty fees total 6%, plus ad royalty fees of 4.75%.

Who’s On Pizza Hut’s Leadership Team?

What Helpful Articles Can I Read to Learn More About Pizza Hut?

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