Pizza Hut could close as many as 500 dine-in restaurants and replace lots of them with carryout and delivery places.
Company officials didn’t identify specific markets or areas when discussing the restaurant closures in earnings call last week.
“So far as the numbers and the way the math works, it’s laborious to estimate how soon, the timing of when a replaced unit will open and when a store will close,” stated David W. Gibbs, president of Yum! Brands, which owns Pizza Hut. “There might be gaps at a few of those, certainly.”
Pizza Hut officials didn’t reply Wednesday evening to questions on closures in Kansas and Missouri. However, within the earnings call, Gibbs mentioned the closures would target underperforming eating places.
“The shops that we’d be closing could be lower volume items, so could have less of an impact on system sales,” he mentioned. “If you think about it, we have now a lot of shops that have been built in the right spot 40 years in the past within the trade area. However, that’s not the correct spot today to have a modern supply asset. And if we will get those stores closed after which put in the right spot within the trade area for supply, obviously there’s going to be, better economics for the franchisee, better system sales and a greater image to our consumer.”
Pizza Hut was based in Wichita, and a museum of the unique restaurant sits on the Wichita State University campus. It’s now owned by Yum! Brands, which additionally owns KFC and Taco Bell.
There are about 6,100 conventional Pizza Hut restaurants within the U.S. and about 1,350 express shops, Gibbs stated. The closures could drop the store count by up to 500 restaurants, down to about 7,000 areas, over the next two years.