Pizza Hut is among the most popular pizza chains worldwide. Since 1958, it has become an American staple and a saving grace for busy parents who can’t cook.
Americans have made pizza their own by using the signature characteristics of the original dish and stylizing it with favorite ingredients and flavors. Pizza is so popular it could almost be considered a national dish due to its convenience, great taste, and affordable price.
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However, even those at the top of their game struggle occasionally. Pizza Hut has been facing tumultuous times over the last few years due to ongoing financial troubles, multiple closures, and legal battles that have cast a shadow over its business.
Related: Struggling pizza chain franchisee files for Chapter 11 bankruptcy
Many Pizza Hut locations are operated by franchisees, and EYM Group is one of the pizza chain’s largest ones. The relationship began in 2016 and has only grown since then, as the company has purchased several locations from the chain.
Nonetheless, business is business, and this relationship didn’t remain amicable for long. The chain’s performance began deteriorating only a few years later, leading both companies to engage in ongoing legal battles.
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Pizza Hut locations obtain new ownership after bankruptcy.
Shannon O’Hara/Getty Images
Pizza Hut and EYM Group enter multiple legal battles
EYM Group first filed a lawsuit against Pizza Hut (YUM) in March of last year to prevent the pizza chain from terminating its franchise agreements, as it operated around 140 locations at the time.
The case was dismissed a month later. However, Pizza Hut took steps to maintain its well-being. In June, the chain sued EYM Group, claiming it had breached multiple clauses in its agreement, including missing payments during a forbearance period and allegedly leading restaurants to underperform.
Related: Popular pizza chain might soon be taken over amid troubles
That same month, EYM Group abruptly shut down 15 locations in Northwest Indiana, claiming they were underperforming restaurants that had become too much of a financial burden to be sustained.
Pizza Hut’s claims were substantiated when it reported a 7% increase in comparable sales from 2019 to 2023, while EYM Group reported a 10% decline in its locations.
Pizza Hut locations find a new owner after the bankruptcy filing
After months of ongoing legal battles and multiple store closures, EYM Group filed for Chapter 11 bankruptcy protection in July 2024.
The Pizza Hut franchisee held an auction in late January to sell its remaining 127 locations in five states to the highest bidder as part of its restructuring plan.
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Although Pizza Hut has experienced some tough times, things are starting to turn around. The pizza chain seemingly found a new life after its franchisee’s bankruptcy filing, signaling optimism about the future.
Months after the bankruptcy, 77 Pizza Hut locations are now under new ownership after National Franchise Sales closed a nearly $12 million deal to acquire them. This new ownership will allow Pizza Hut to continue growing.
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