Growth Club
1851 Growth Club
Pizza Hut Temporarily Closing 500 Stores
The chain announced nationwide, delivery-focused remodeling efforts slated for the next two years.
It looks like your local Pizza Hut could be out of commission for a while. According to an article on RestaurantDive, the pizza concept will be temporarily closing up to 500 underperforming U.S. locations in order to remodel and reopen them with a delivery and carryout focus.
The pizza chain will work with franchisees to rebuild each store and better capitalize on delivery.
“Renegotiating franchisee partnerships and finding partners focused on growth will be important for Pizza Hut's success with these remodels,” the article stated. “The need to focus more on delivery channels has never been greater.”
Having delivery-focused locations will allow Pizza Hut to attract more on-the-go customers and compete with brands such as Domino’s.
“In some specific situations, the company may have to deploy capital in the short-term to flip the market,” Yum Brands president, CFO and COO David Gibbs told RestaurantDive. “In those cases, we will give it to a new franchisee and then get the capital back from the store.”
To read the full article, click here.
