This ad will close in

On The Block

Your neighborhood Pizza Hut may be for sale.

Louisville, Kentucky-based Tricon Global Restaurants Inc. is closing or refranchising more than 1,400 of its marginally performing Pizza Hut stores to dramatically refocus its business, the company recently announced.

Tricon has begun the process of closing 741 and reselling 667 of its domestic and international units. The refranchised stores are generally being sold in packages of five to 30 restaurants. "We're going to look to our existing franchisees if we're going to refranchise the stores," says Pizza Hut Inc.'s Jay Allison.

Tricon's chairman and CEO, Andrall Pearson, says these moves address Tricon's two biggest strategic issues: strengthening Pizza Hut's domestic asset base and building international markets.

With more than 7,200 restaurants and delivery units in the United States and 3,000 international locations, Dallas-based Pizza Hut generates almost half of Tricon's earnings but has seen a decline in recent years. But company officials anticipate the plan will have a positive effect on Tricon.

Restaurants are being geographically packaged and sold to restaurateurs with multiunit-operation experience and a minimum net worth of $1 million.

Like this article? Get this issue right now on iPad, Nook or Kindle Fire.

This article was originally published in the June 1998 print edition of Entrepreneur with the headline: On The Block.

Loading the player ...

3 Things Video Games Can Teach You About Being a Better Business Leader

Ads by Google

0 Comments. Post Yours.

Most Shared Stories

1
14 Books Every Entrepreneur Should Read in '14
2
The 3 Attributes to Look for in Top Talent
3
Steve Jobs' 13 Most Inspiring Quotes
4
8 Writing Strategies for People Who Say They Can't Write
5
The Easy Way You Can Stop Procrastinating and Stick to Good Habits -- Now

Trending Now