Pizza Hut Just Abruptly Closed 19 Locations
Pizza Hut has been bringing its signature stuffed crust and pan-style pies to more parts of the country in 2024 as it debuts new stores in New York, Pennsylvania, Colorado, and other markets. However, the chain's footprint also recently took a blow after it abruptly closed 19 locations across two states.
Four of the newly shuttered Pizza Hut restaurants were in Central Ohio, while the other 15 were in Northwest Indiana. While the company has not provided a reason for the Ohio closures, the Indiana closures are linked to an ongoing legal battle between Pizza Hut and one of its franchisees.
All of the 15 shuttered Indiana locations are owned by EYM Group, which franchises 142 total Pizza Hut stores across Illinois, Indiana, Georgia, South Carolina, and Wisconsin. EYM Group has been accused of defaulting on its payments to Pizza Hut and failing to pay millions of dollars in owed funds. The franchisee has been looking to sell its Pizza Hut locations and says the business has struggled due to rising costs, a lack of innovation at the chain, and other factors, The Times of Northwest Indiana reported.
The franchisor and franchisee entered into a forbearance agreement in 2023, which temporarily allowed EYM Group to keep its franchise agreement with Pizza Hut in place as it worked to resolve its outstanding debts and obligations. However, Pizza Hut continued to send out default notices and ended up canceling the forbearance agreement in February this year.
EYM Group sued Pizza Hut for alleged breach of contract in March, then Pizza Hut followed up with its own breach of contract lawsuit against the franchisee in June. First reported by The Times of Northwest Indiana, the news of the EYM Group closures came out in mid-June after several local Pizza Hut employees posted on social media that the restaurants had abruptly closed their doors and let all workers go.
In a statement shared with Eat This, Not That!, a Pizza Hut spokesperson indicated that the shuttered EYM Group locations won't stay closed for good.
"While a few EYM franchise-operated restaurants in Indiana have temporarily closed, Pizza Hut remains committed to providing outstanding service and products to our valued customers. The company is working to transition these locations and expects many of them will reopen soon. Other restaurants operated by the franchisee outside the Indiana market remain open. To find a Pizza Hut location nearest you, please visit https://locations.pizzahut.com," the statement read.
The closed Indiana Pizza Huts were located in Portage, Chesterton, Valparaiso, Hobart, Winfield, Crown Point, Schererville, Griffith, Hammond, Merrillville, LaPorte, Michigan City, Lowell, Cedar Lake, and Munster. Even after the closures, Pizza Hut still operates hundreds of locations across Indiana and Ohio.
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