John Willoughby
reporter2@greenepublishing.com
The rumors are true – another Madison business has closed and this time, Madison's Pizza Hut is the latest franchise in town to lock their doors, and it appears to be permanent.
Greene Publishing, Inc. received word of Pizza Hut's closure from a credible source on Tuesday, Sept. 8, but no other information was provided. NPC International responded promptly to Greene Publishing's request for comment.
“As part of our restructuring process, we made the very difficult decision to close this restaurant,” said a NPC spokesperson. “We did not take this decision lightly, and we are committed to providing support to impacted employees. Ultimately, these actions will best position our remaining restaurant business for success. NPC continues to operate many other Pizza Hut restaurants across the country which remain open for business, supported by our 23,000 dedicated employees who are ready to serve our customers.”
Pizza Hut, located at 855 W Base St., in Madison, is one of many restaurants to have closed in recent years. Following the 2018 closure of Ken's BBQ, the Tin Mule Eatery operated in the same Winn-Dixie Plaza building for a number of months before locking their doors and vacating their spot in the city in 2019. Madison has lost other major fast food restaurants such as KFC and Sonic Drive-In. Madison City Manager Jerome Wyche commented, saying that while Madison continues to grow, the city remains reluctant to see business close.
Pizza Hut's closure leaves only three Madison business left to cater the Italian pies to hungry residents including Cucinella's Brick Oven Pizzeria, La Piazza Bella Italian Restaurant and Hungry Howie's Pizza.
On Wednesday, July 1, 2020, NPC International and a number of its affiliates filed petitions in the United States Bankruptcy Court for the Southern District of Texas seeking relief under Chapter 11 of the United States Bankruptcy Code. A press release issued on the day of the declaration stated that NPC International intends to use the filing to achieve a plan of reorganization "that will best position the company for long-term success in the current restaurant industry environment."
"As our industry has been in the midst of dynamic changes due to shifting consumer preferences and dining behavior, we also have been facing increased labor and commodities costs and a higher level of financial leverage that presents obstacles to achieving our long-term business objectives," said Jon Weber, CEO & President of NPC International's Pizza Hut division. NPC International is the fifth largest restaurant operator. Based in Leawood, Ks., NPC International employs over 7,500 full-time and around 28,500 part-time Pizza Hut and Wendy's employees.
Weber continued: "These challenges have been magnified recently by the impact and uncertainty of COVID-19, and we believe it is necessary to take proactive steps to strengthen our capital structure, so we have the financial flexibility to continue to adapt to current industry trends. We also intend to use this process to continue to evaluate and optimize our restaurant portfolio so that we are best positioned to meet the needs of consumers across the country."
For more information on NPC International's financial restructure, visit www.npcinternational.com/npc-restructuring/.