As the ongoing coronavirus outbreak has halted much of the global economy, food chains worldwide have been going through difficult ride during such crucial times. Lockdowns and social distancing measures have led to the closure of food outlets, which has consequently affected the revenue figures of these companies.
Having found itself trapped in similar circumstances of not generating enough sales, Yum! Brands Inc., the American food chain corporation, has reportedly filed for bankruptcy, which would lead to as many as 300 Pizza Hut, the fast-food chain restaurants, to shut their doors permanently. Pizza Hut is the largest franchisee of Yum! Brands.
According to sources familiar with the knowledge of the matter, NPC International Inc, which possesses over 1,200 Pizza Hut locations and around 400 Wendy’s locations, and Yum! Brands has decided to permanently shut down 300 underperforming businesses. On July 1, NPC filed for Chapter 11 bankruptcy protection.
Pizza Hut said in the statement that the food chain would continue to work with NPC to optimize the fast-food chain footprint across the globe and to strengthen their portfolio for the future.
The statement also counted the decision of closing 300 restaurants as a significant step towards a healthier business. The company is also planning to shift working staff from these outlets to more locations where the business is thriving.
In line with Pizza Hut’s earlier mentioned transition to more modern food delivery, curbside, and carryout focused asset base, the majority of the outlets to be shut are dine-in locations, the statement read. The particular locations of closing haven’t yet been made public.
Yum! Brands’ second-quarter earnings reported Pizza Hut’s off-premise same-store sales growth without closed express units at 21 percent and 16 percent growth with closed Express units. Worldwide system sales declined 10% for Pizza Hut, excluding foreign currency translation.