Pizza Hut has revealed plans to appoint a master franchisee to take over the running of the UK restaurants belonging to the worldwide pizza empire. Pizza Hut has a total of 380 restaurants across the UK, 100 of which have reportedly been struggling with poor sales in recent times.
The new owner being sought by the Pizza Hut bosses would act as a master franchisee, overseeing the running of the 380 Pizza Hut restaurants. The buyer would have to pay a royalty fee to the US company Yum! which took ownership of the Pizza Hut brand in 2006.
Pizza Hut owners hope the master franchisee will focus on the refurbishment of its UK restaurants and help further the Pizza Hut brand through continued expansion plans in Britain. Pizza Hut is looking for a master franchisee to revamp its failing restaurants to help them compete with the likes of Pizza Express and Nandos.
While Pizza Hut has started to flag, with sales dipping by 2% in the last quarter, rival pizza operators such as the likes of Domino’s Pizza, have grown from strength to strength. One of the principle reasons for Domino’s rapid growth has been attributed to the company’s focus on mobile platforms with consumer apps launched which allow customers to order on the go.
While the 380 Pizza Hut restaurants are offered for sale, the pizza takeaway branches will not be included in the takeover deal and will remain under the control of Yum!