Posted on 06/18/2024 8:55:00 PM PDT by SeekAndFind
A major Pizza Hut franchisee just closed 15 locations without warning, and nearly 130 might go dark for good in an ongoing battle with the struggling brand owner.
EYM Group owns and operates 144 Pizza Hut locations in Indiana, Illinois, Georgia, South Carolina, and Wisconsin but owes millions in franchise fees to Yum Brands. All the Indiana locations were boarded up on Friday of last week, and the Daily Mail reported today that the remaining 129 restaurants "across Illinois, Georgia, South Carolina and Wisconsin are on the brink of shutting as part of the dispute."
How EYM and Yum Brands got here is one of those stories they'll tell for years to business masters students as a lesson on What Not to Do.
Based in Texas, EYM ended up owing millions to Yum for a number of reasons, including inflation jacking up food costs faster than EYM could boost prices on increasingly cost-conscious diners. But Pizza Hut's problems run back much further than Bidenflation.
Yum was showing patience with EYM, giving them extra time to pay their overdue franchise fees. But EYM sued corporate last March for breach of contract — basically, for failing to deliver a competitive product for franchisees to sell. According to the suit, Pizza Hut has "not kept up with the heavy competition from its competitors, Dominos, Little Caesars."
Another complaint was that "In recent years, the best Pizza Hut managed to do is change the cheese in its stuffed crust from mozzarella to cheddar or trot out an occasional, ill-fated appetizer liked the Philly steak melt."
Yum countersued EYM earlier this month. And for its part, Pizza Hut said, "The company is working to transition these locations and expects many of them will reopen soon,"
(Excerpt) Read more at pjmedia.com ...
Anyone notice how sly all the pizza places are regarding size and shrinkage? Remember when large cheese pizza used to be 18” or larger? Now they call a 14” pizza large??? 14” was smaller then a medium pizza in the 70s and 80s. My experience is from growing up in NJ and I’m referencing NJ/NY style pizza.
“They deserve to die for what they did to Taco Bell.”
Please elaborate.
Jack’s baby, 4 for $10.00!
We have a guy who works for Purina on a car forum I’ve been on forever, he says that they compete with Taco Bell for meat purchases . . .
It was nothing like the garbage they sell today.
Yeah, they been sued about the composition of their “ground beef.”
Yep. I just wish they’d bring back the combo pizza. All I can get now is cheese, and pepperoni.
Yep, for sure. I was asst. Manager of a Taco Bell in the late 70’s. We had a grand total of 7 items on the menu....Taco, Tostada, Bean/Beef burrito, Encherito, Frijoles and Bell Burger.
I started out at 16 frying up Taco shells. Your right back then almost everything was top shelf ingredients made on site. Had huge pressure cookers to make the pinto beans.
You could eat a bean burrito with one hand, without it flopping over and spilling in your lap. Pintos and cheese was almost a meal in itself.
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