The Pizza Hut restaurant chain, operated in Romania by the Sphera Franchise Group, underwent an extensive restructuring process in 2023 and 2024, a process that involved the closure of almost a third of the units, with the aim of bringing the business to break even and eventually to profit.

"In 2023, we closed seven Pizza Hut units, and at the beginning of this year, five more. There will be no more closures. The efficiency plan was discussed and approved with all interested parties and provides for a maximum of 13 units [to be closed down]," said Costică Misaca, general manager of Pizza Hut, quoted by Ziarul Financiar.

The chain has not been in net profit since 2016.

Record inflation last year has led to a change in consumer behavior, with people being more careful about how they spend their money.

Sphera Franchise Group (BVB: SFG), the company that operates the KFC, Pizza Hut, Pizza Hut Delivery, and Taco Bell chains in Romania, increased its normalized pre-tax EBITDA profit in 2023 by 44% y/y to RON 148 million (EUR 30 million). It achieved restaurant revenues of RON 1.47 billion (EUR 300 million), up 11.4% y/y. 

Sphera achieved a normalized period profit of RON 79.8 million (EUR 16 million), up 80% y/y.

Read more about Pizza Hut's restructuring in this interview: Costica Misaca, GM Pizza Hut: We expect to turn around the business by the end of 2024

iulian@romania-insider.com

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