Pizza Hut has announced plans to close hundreds of locations across the United States, a move that underscores the challenges the longtime pizza chain is facing in an increasingly competitive market.
The company said sales at many of its restaurants have been declining, with year-over-year drops in comparable sales and weaker-than-expected customer traffic. Yum! Brands, Pizza Hut’s parent company and the owner of Taco Bell and KFC, said the closures are part of a broader strategic review known internally as “Hut Forward,” aimed at modernizing the brand and improving its competitiveness.
Under the plan, Pizza Hut will shutter primarily underperforming locations while focusing investment on stronger stores and testing new ways to attract customers. Industry competition has also intensified, with rivals such as Domino’s, Papa John’s, and Little Caesars continuing to post sales growth, further eroding Pizza Hut’s market share.
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Shifting consumer habits have added pressure as well. The growing preference for digital ordering and delivery has made some of Pizza Hut’s more traditional dine-in locations less viable.
So far, the company has confirmed that roughly 250 locations will close, though it has not disclosed where those restaurants are located. Yum! Brands said decisions are being made based on individual store performance, targeting locations that have struggled to remain profitable.
Other Closures Across California
The Pizza Hut announcement comes amid a broader wave of store closures across California. The state ended 2025 with a series of shutdowns and bankruptcies affecting both national chains and local businesses, driven by high operating costs, inflation, and changing consumer behavior.
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That trend has continued into 2026. Amazon Fresh has announced plans to scale back its physical footprint in several California cities, while Peet’s Coffee has closed multiple locations in Los Angeles and the San Francisco Bay Area. High-profile restaurant closures have also included Los Angeles landmark Original Pantry Cafe, which operated for more than a century, along with Michelin-starred restaurants Shibumi, Osito, and Lord Stanley.
Additional closures have included Cole’s Pacific Electric Buffet, Nusr-Et Beverly Hills, Father’s Office, Cassia in Santa Monica, and Joe’s Crab Shack in San Diego.
