In 1958, brothers Dan and Frank Carney of Wichita, Kan., borrowed $600 from their mother and used it to open their very first pizza parlor. The sign for their new business venture only had room for eight letters, and the enterprising siblings settled on a simple yet distinctive name that would enshrine them in the dusty archives of history forever: Pizza Hut. Within six months, the brothers opened their second location, and in a year, they had expanded to six pizza parlors scattered across Kansas. It was a pizza firestorm, and after dominating the market for nearly 19 years, the chain was acquired by PepsiCo.
For years, Pizza Hut set the standard, capturing generations of diners by modernizing the pizza experience, notably becoming the first chain to offer online ordering in 1994. In addition to making it easier to get your coveted ‘za, they also innovated the humble pie in ways the world had never seen before, like stuffing gooey cheese right into the crust. The iconic chain, adorned with an apropos red roof, was at the very top of its game.
Pizza Hut to Close 250 Underperforming Locations
But despite how ubiquitous and popular Pizza Hut was, competitors like Domino’s, Papa John’s, and Little Caesars all gave the humble pizza chain a run for its money—literally. Today, Domino’s has become the indisputable pizza champion in terms of revenue, and it appears that Pizza Hut is finally feeling the heat. Pizza Hut’s parent company, Yum! Brands announced during a Feb. 4 earnings call that the iconic pizza chain would be closing 250 underperforming locations in the first half of the year.
According to chief financial officer Ranjith Roy, the decision to close stores is part of a new strategy to revitalize the brand, “Hut Forward.” In addition to rightsizing its business, the new plan will include a renewed focus on updated marketing, technological advancements, and securing new franchise agreements. The news comes shortly after the chain reported a three percent dip in sales last quarter and a seven percent decline in sales ending out 2025. Comparatively, Taco Bell, also owned by Yum! Brands saw an increase of seven percent during the same quarter.
A Watershed Moment for Restaurants
Despite the closures, Pizza Hut remains a behemoth chain with nearly 20,000 locations worldwide. It’s also worth noting that the brand isn’t alone in reassessing operations; several other companies have announced their own rounds of closures. Just this week, Bahama Breeze announced it would close all of its locations, Sprinkles Cupcakes abruptly shuttered its doors in December of last year, and even Wendy’s announced that it would be shrinking its footprint…