Large-scale delivery: First Pizza Hut takes a tour of the campus
The original Pizza Hut building was moved from one end of Wichita State University to the Innovation Campus where it will become a museum. Pizza Hut founder Dan Carney was there with the family to watch.
The original Pizza Hut building was moved from one end of Wichita State University to the Innovation Campus, where it will become a museum. Pizza Hut founder Dan Carney was there with the family to watch.
Pizza Hut can close as many as 500 eateries and replace many of them with delivery and delivery locations.
Company officials did not identify specific markets or locations when discussing the restaurant's closures in a revenue interview last week. .
"As far as the numbers and how the math works, it is difficult to estimate how soon, the time when a store will close and then when a replaced unit will open," said David W. Gibbs, president of Yum! Brands, who owns Pizza Hut. "There will be holes in some of these, absolutely."
Pizza Hut officials did not respond Wednesday to questions about closures in Kansas and Missouri. But in the revenue call, Gibbs said the closures will target non-performing restaurants.
"The stores we close will be lower volume units, so it will have less impact on system sales," he said. "If you think about it, we have a lot of stores that were built in the right place 30 or 40 years ago in the commercial area, but it's not the right place today to have a modern means of delivery. And if we can get the stores closed and then place the right place in the retail area for delivery, there will obviously be … better economy for franchisees, better system sales and a better image for the consumer. " Pizza Hut was founded in Wichita, and a museum for the original restaurant is located in Wichita State University campus, now owned by Yum! Brands, which also owns KFC and Taco Bell.
There are around 6,100 traditional Pizza Hut restaurants in the United States and around 1,350 express stores, Gibbs said, the closures could reduce the number of stores by as many like 500 restaurants, down to around 7,000 locations, over the next two years.
The number of stores is expected to return to current levels and above, Gibbs said, as a new implementation and delivery location is opened.
"We know that the economics of building a modern delivery fortune work quite well for us, and that for the most part any trading area where a store closes should be the opportunity to rebuild the store in that area or location nearby , "he said.
He predicted a minimal short-term financial impact on the company because the closures would affect low-volume stores. In the long term, profitability is expected to improve as stores with higher volumes replace the closed restaurants.
“We are leaning towards accelerating the transition to our American Pizza activity base for real delivery. This will ultimately strengthen the Pizza Hut business in the United States and facilitate faster long-term growth. "