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Pizza Hut’s Franchisee Sees Flight to Lower Costs Pizzerias

Source: Dallas Morning News

Jim Schwartz, president and chief executive of NPC International Inc., said he was disappointed and “frankly frustrated” with the company’s 12.6 percent drop in same-store-sales from continuing operations for the quarter that ended June 30.

It was the third consecutive negative quarter for the Overland Park, Kan.-based company, due in part to difficult comparisons to last year’s sales tally. That’s when Addison-based Pizza Hut launched its line of Tuscani pastas. Schwartz noted that cash-strapped consumers have been looking for less expensive meals, even among the pizza players.

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  2. Getting a negative result for three consecutive quarters is quite unfortunate. This is the reason why it is best to evaluate a certain franchise opportunity before investing in it to determine if it really fits your goal, skills, your targer financial investment, and lifestyle. You cannot run a business well if it doesn’t fit your personality and skills. On the other hand, it is also important to conduct your due diligence to have a thorough knowledge on how a particular franchise opportunity is performing in the market. This points to the current franchisees as a very good information resource about the franchise you are aiming to invest into.

  3. Who were these lower-cost pizzerias? I live in Minnesota, which is a pretty ‘pizza-starved’ region of the country. We’ve got Pizza Hut, Dominos (yuck) and Papa John’s. That’s pretty much it. Also, are these other pizzerias restaurant-style, take and bake, delivery, or something else? Thanks.

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