Pizza Hut, Wendy’s Restaurants File Bankruptcy!
With restaurants and retail stores forced to close due to the Coronavirus pandemic, many are left struggling to stay in business. When I saw the headlines: Pizza Hut files Chapter 11 Bankruptcy, I had to stop and read it again. It’s so hard to believe that all of these restaurants we’ve known forever are being hit so hard during the COVID-19 crisis.
Is Pizza Hut Going Out of Business?
NPC International operates Pizza Hut and Wendy’s restaurant franchises. The company, NPC, filed for Chapter 11 bankruptcy protection. They operate more than 1,200 Pizza Hut franchises and nearly 400 Wendy’s hamburger restaurant franchises. NPC International is the largest U.S. franchisee of Yum Brands’ Pizza Hut.
However, Yum! Brands actually owns Pizza Hut and Wendy’s. Yum! has over 43,500 units (including licensed units) in more than 135 countries and territories. In addition to Pizza Hut and Wendy’s, Yum! also owns the restaurant brands Taco Bell and KFC. Yum! Brands did not file bankruptcy.
NPC International vs Yum! Brands
Founded in 1962, NPC operates 1,227 Yum! Brands-owned Pizza Hut restaurants and 393 company-owned Wendy’s locations across the nation, according to court filings.
Is Pizza Hut Closing?
While NPC has suggested that under-performing stores may close or move, no mass exodus is planned at this time for either Pizza Hut or Wendy’s restaurants. And, no list of Pizza Huts closing has been released.
In 2019, there were a total of 7,496 Pizza Hut locations in the U.S., About 6,100 locations were traditional restaurants and 1,350 express units, according to Yum! Brands.
In 2019, Wendy’s accounted for a total of 5,852 stores in the U.S. Out of these, only 357 remained company-owned with establishments becoming increasingly operated by franchisees.
COVID Retail Apocalypse
This news comes on the heels ofretail giants such as J.C. Penney declared bankruptcy and plans to close 200 stores, And, Victoria’s Secret and Bath & Body Works announced they were closing 300 stores. Gordmans bankruptcy and store closings. Tuesday Morning stores declare bankruptcy. And, of course, Pier One Imports closing all of their stores. Shortly after Neiman Marcus, another department store giant, declared Chapter 11 bankruptcy amid the coronavirus pandemic. And, most recently The Children’s Place announced they would close 300 stores. and 24-Hour fitness closes doors to nearly half of its clubs.
In the restaurants business, Logan’s Roadhouse permanently closed all 261 locations, and pizza’s favorite Mouse, Chuck E. Cheese’s is permanently closing 45 locations. (See the full list of Chuck E. Cheese’s restaurants closing here).
See all the 2020 Stores Closing here.