The Pizza Hut location at 804 Happy Valley Road in Glasgow reopened in March after being rebuilt. The store continues operations following the closure of the South Gate location and reports increased delivery activity.
STAFF REPORT
Glasgow News 1
The Pizza Hut chain has a new owner in a multibillion-dollar deal, but Glasgow residents have already seen changes with Pizza Hut locally.
The Pizza Hut location at South Gate in Glasgow recently closed, while the Happy Valley Road restaurant was rebuilt and reopened in March. Manager Casey Rhinehart said the remaining Glasgow location has continued to stay busy following the South Gate closure.
Rhinehart said deliveries “have for sure picked up” since the nearby store closed, adding, “I don’t think we’ve been negatively affected at all.”
The local changes come as Pizza Hut prepares to move forward with a new owner. Yum Brands announced Tuesday it has agreed to sell Pizza Hut as part of a combined $2.7 billion deal. LongRange Capital, a private equity firm based in Stamford, Connecticut, will acquire Pizza Hut restaurants in the United States and other markets outside mainland China for $1.5 billion. Yum China will purchase Pizza Hut’s mainland China operations for $1.2 billion.
The sale follows a period of challenges for Pizza Hut as the brand has adjusted to changing customer habits. The chain, once known for its red-roofed dine-in restaurants, has increasingly shifted toward delivery, carryout and smaller-format locations. Many communities, including Glasgow, have seen fewer traditional Pizza Hut restaurants as the company’s model has evolved.
Pizza Hut became a household name after PepsiCo purchased the company in 1977. The brand grew rapidly through the 1980s and 1990s before becoming part of what is now Yum Brands, which also owns Taco Bell and KFC.
Yum officials said the sale will allow the company to focus on its other brands, while LongRange Capital leaders say they see opportunity in continuing Pizza Hut’s future growth.
“Pizza Hut is a beloved global brand with a rich heritage and a loyal customer base that few brands can match,” LongRange founder and managing partner Bob Berlin said in a statement.
For Glasgow customers, the immediate impact appears limited, with the Happy Valley Road restaurant continuing operations following its recent rebuild.
KEY FACTS
– Glasgow’s South Gate Pizza Hut has closed, while the Happy Valley Road store was rebuilt and reopened in March
– The Happy Valley Road manager says deliveries have picked up and the store has not been negatively affected by the nearby closure
– Yum Brands is selling Pizza Hut in a combined $2.7 billion deal
– LongRange Capital will acquire restaurants outside mainland China for $1.5 billion
– Yum China will take over Pizza Hut locations in mainland China for $1.2 billion
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