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Major U.S. Franchisee of Pizza Hut and Wendy’s Files for Bankruptcy

NPC International operates over 1,200 Pizza Hut and almost 400 Wendy’s restaurants in the U.S.

  • NPC International has joined the growing list of United States companies that have filed for bankruptcy amid the global pandemic.
  • The franchisee operates more than 1,200 Pizza Hut and nearly 400 Wendy’s restaurants in the country.

One of the major franchisees of Pizza Hut and Wendy’s in the United States has officially declared bankruptcy. According to reports, NPC International finally made the tough decision after facing financial struggles as a result of the pandemic.

According to reports, the franchisee operates over 1,200 Pizza Hut restaurants and almost 400 Wendy’s branches in the country. They have 40,000 workers across 27 states. Now they have filed a Chapter 11 as they have dealt with increasing labor and food costs amid dropping sales figures. They also have an almost $1 billion debt.

NPC is Pizza Hut’s biggest U.S. franchisee.

Pizza Hut has told CNN that the company’s bankruptcy filing was “expected.” A spokesperson from the popular pizza chain said:

“As NPC works through this process, we support an outcome resulting in an organization with a lower, more sustainable level of debt, ownership focus on operational excellence and a greater level of restaurant investment.”

NPC also added that they hope the decision will “strengthen the overall health and performance of the entire system for the long term.”

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Meanwhile, Wendy’s shared that NPC restaurants have been “performing very well” before the filing.

“We expect that NPC will continue to be a productive member of the Wendy’s family, and we will continue to stay closely coordinated and support them moving forward,”a representative remarked.

In a recent NJ Advance Media interview, an NPC spokesperson clarified:

“As part of its Chapter 11 process, NPC is exploring all options for strengthening the company both operationally and financially, including evaluating the best way to optimize our portfolio of restaurants.”

The company has not made any official decisions about “potential restaurant closures,” as of this writing.

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