Pizza Hut looks to close hundreds of underperforming stores across the United States as the company moves towards a more economical and streamlined operation. Closures are planned for around 400 restaurants across the country over the next two years, with an initiative that moves towards a takeout and delivery-based focus. However, not all dine-in locations will be replaced.
Chief operating officer for Pizza Hut parent company Yum Brands, David Gibbs, said, “We have a lot of stores that were built in the right spot when they opened 30 or 40 years ago. But they are not in the right spot today for a modern delivery asset. If we can get those stores closed and put in the right trade area for delivery, obviously there’s going to be upside to sales for those units and better economics for the franchisee, better system sales, and a better image to our customer.”
This move comes after an increase in customer tendency towards delivery and takeout has been developing—something Pizza Hut has witnessed despite a 2 percent increase in same-store sales. Pizza Hut hopes that this new move will set Pizza Hut up for a forward-thinking and futureproofed structure of business.
