United News of Bangladesh

Yum Brands has agreed to sell Pizza Hut for a combined $2.7 billion, ending its ownership of the iconic pizza chain as the company seeks to focus on higher-performing brands amid declining sales at Pizza Hut. The parent company of KFC, Taco Bell and Pizza Hut announced Tuesday that private equity firm LongRange Capital will acquire Pizza Hut’s operations outside mainland China for approximately $1.5 billion. Pizza Hut’s mainland China business will be purchased by Yum China Holdings for about $1.2 billion. China is the chain’s second-largest market after the United States, accounting for nearly one-fifth of global sales. Yum Brands began reviewing strategic options for Pizza Hut last November after the chain continued to lag behind the company’s other restaurant brands. While Yum’s global sales increased 5 percent last year, Pizza Hut recorded a 2 percent decline. Earlier this year, Yum announced plans to shut down 250 Pizza Hut outlets in the United States. At the end of last year, the brand operated nearly 20,000 restaurants worldwide. Industry analysts said Pizza Hut has struggled for years to regain momentum amid intense competition and changing consumer preferences. Neil Saunders, managing director of GlobalData, described Pizza Hut as the weakest performer within Yum’s portfolio, saying efforts to revive the chain and close underperforming stores had failed to return the business to sustained growth. Founded in 1958 in Wichita, Kansas, by two brothers using a $600 loan from their mother, Pizza Hut grew into the world’s largest pizza chain by sales in the early 1970s. The company became part of PepsiCo in 1977 before being spun off into what later became Yum Brands in 1997. The chain’s business model came under pressure in the 1980s as rivals such as Domino’s expanded rapidly through home delivery services. Pizza Hut’s large dine-in restaurants became less suited to evolving consumer habits. In recent years, the growth of food delivery platforms such as DoorDash and Uber Eats has further intensified competition by giving consumers access to a wider range of food options beyond pizza. Yum Brands Chief Executive Officer Chris Turner said the sale would allow Pizza Hut to pursue growth under owners with extensive restaurant industry experience. He added that LongRange Capital and Yum China are well positioned to support the brand’s future development in their respective markets. The Louisville, Kentucky-based company expects both transactions to be completed during the third quarter of the year. Yum Brands’ shares rose about 3 percent following the announcement.

Pizza Hut, Bangladesh's most popular and trusted pizza brand, has opened its first all-women powered outlet at Jamuna Future Park in the capital, furthering its commitment to induct and empower more females in the workforce and ensure an equal slice for everyone. Amit Thapa, CEO of Transcom Foods Limited, the company owning the pizza chain, said, "The last two years have been a challenging year for Pizza Hut due to the pandemic. This year, with the opening of our 20th store at Gulshan 2, we are on a steady growth trajectory and plan to enter several new areas by the end of 2022." "Today, we are proud to step in a new chapter and create history by opening our first all-women store in Bangladesh that puts women at the front and centre of action. The store will have all women staff, where they will handle all aspects of the restaurant, right from customer service, managing the store, day-to-day administration to food preparation. Also read: Diverse voices needed so that all people can benefit from women exercising leadership roles: O’Neill "We are truly humbled and grateful for the unwavering love and trust of our customers and thank them for this momentous achievement. Pizza Hut is a continuously growing brand, and as we plan to open numerous stores in the coming days, we look forward to continuing this initiative of having a greater number of stores be all-women operated. My best wishes to the team and kudos for the example they are setting by breaking boundaries and inspiring other women." he said. Transcom Foods Limited continues the global Pizza Hut initiatives in Bangladesh to champion greater gender equality, diversity, and inclusion. With 20 outlets across the country servicing for Dine-In, Take-Away, and Delivery, Pizza Hut has the largest footprint amongst all pizza chains in Bangladesh.