Pizza Hut is a division of Yum! Restaurants International (Canada) Company who also offers franchises for the KFC and Taco Bell brands. The first Pizza Hut opened in Canada in 1968, with over 300 locations across Canada (all franchised) as of Jan 2012. Pizza Hut offers a range of great tasting products, including signature Pan Pizza, Stuffed Crust Pizza, Tuscani Pastas and WingStreet Wings, starters, salads and desserts.
Pizza Hut seeks businesses or individuals who have a belief in the brand combined with an entrepreneurial spirit, proven management track record, a high level of commitment to customer service, the financial investment required, commitment to be involved in the business and to the Yum! way of doing business, and a vision and enthusiasm for the long-term growth of their business.
Owners of other franchise operations can qualify for a Pizza Hut franchise, provided that they are not in a competing Yum! food business (for example, restaurants featuring quick service or similar menu items).
The goal of the Franchisee selection process is to create long-term franchise relationships that will benefit both the Franchisee and Yum! The selection process begins with the sharing of information. The applicant completes a detailed application form, and then takes part in a series of interviews, followed by background checks, including credit and security. An on-the-job experience gives the applicant a chance to evaluate our operational systems and gives Yum! a chance to evaluate the applicant’s aptitude for the restaurant environment. Final stage of the selection process is the development and approval of your business and operations plan. At any step of the selection process, either party may decide that the process should continue no further.
The investment required to open a Pizza Hut restaurant varies, depending on the cost of the site, the type of unit, and whether you are constructing a new unit or purchasing a franchise for an existing unit.
An initial fee of USF $23,450 and an application fee for new franchisee of USF $12,000 (US CPI indexed each year at April 1st) are payable on every unit of Pizza Hut Delto opened (fees will vary for other types of concepts). The Franchisee also pays a monthly royalty of 6% of gross sales and a monthly advertising contribution of 5% of gross sales. Above amounts do not include the initial investment required to construct and operate the restaurant, grand opening expenses, training expenses or opening inventory. Additional fees are required in the event of renewal or an approved transfer of the franchise to another Franchisee.
As a Pizza Hut Franchisee, you will enjoy the satisfaction and rewards of owning your own business. But you’ll also enjoy the ongoing benefits of an established global brand, a system for preparing, marketing, and selling food products, and Pizza Hut’s information, specifications, know-how, and other confidential and proprietary information.
The initial franchise is granted for a period of 10 years. Assuming the Franchisee meets renewal criteria and pays the current renewal fees, an additional 10 years will be available at the same contractual and financial terms.
Pizza Hut does not provide financing, but do have existing partnerships with banks/financing institutions that have expressed an interest in lending to Pizza Hut franchisees. Pizza Hut approval is required for all financing arrangements.
The profitability of an outlet is dependent on many factors, including the quality of the location, competition, sales volume, rent, management, and the type and amount of financing. Profitability is ultimately a matter within the control of each Franchisee. It’s your business!
Franchisees are responsible for procuring their own sites, and have the option to purchase or lease the real estate. Pizza Hut provides site selection criteria and advice to assist with the search. All sites must have Pizza Hut approval prior to securing Lease or Purchase terms.
As an independent business person, you are responsible for the construction of your restaurant. Once a site is selected and approved by Pizza Hut, the Pizza Hut Development Team will provide guidance to the Franchisee in the building and equipping of the restaurant to the Pizza Hut approved design.
Franchisee applicants (or an applicant’s key operations director) are required to complete an extensive training program. The trainee must demonstrate proficiency at various stages in the training program. Pizza Hut provides the training curriculum for the training of Managers and Team Members. The Franchisee pays all costs for training during start-up and the ongoing operation of the business.
A limited number of franchises may be available from current Franchisees. YRI cannot predict when and where those franchises will become available.
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