Home Business Pakistani Pizza Hut and Burger King owners sell off business
Pakistani Pizza Hut and Burger King owners sell off business
Pakistani Pizza Hut and Burger King owners sell off businessPakistani Pizza Hut and Burger King owners sell off business
The famous fast food restaurants Pizza Hut and Burger King have been put under the management of Maaks International in Pakistan after they acquired MCR and MCR Pakistan from MCR International.
A Pizza Hut and a Burger King are the two companies owned by MCR and MCR Pakistan, respectively, which operate the two brands. In this case, it has been reported that the deal is worth between $10 million and $15 million. The Pizza Hut brand identity will continue to be the same across both Burger King and Pizza Hut.
Founded in Rawalpindi/Islamabad in 2005, Maks International is a privately held company that operates across the globe. Among the sectors where the firm has operations are rice, petroleum, hospitality, pharmaceuticals, and fast moving consumer goods.
In the midst of the current economic crisis, Pizza Hut and Burger King have both gone out of business, but the new owner has vowed to restore the businesses to their former glory this month.
The current number of Pizza Hut stores in the country stands at 84, while Burger King has nine outlets across the country. The two restaurants will be added to the Maaks International franchise network every year with the addition of 25 new branches.
Azhar Jafri, Executive Director of the newly-acquired MCR and MCR Pakistan, said in an interview with Business Recorder that, "We intend to completely revamp their operations as a result of the acquisition.". It is our plan to increase Pizza Hut franchises to 200 by 2027 and Burger King franchises to around 50 by that time."
In addition, he added that MCR failed to maintain Pizza Hut to its international standard, and that was probably the main reason behind Pizza Hut's poor performance in Pakistan as compared to its international counterpart.
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Due to difficulties in its supply chain, Pizza Hut has ceased operations at all of its branches. During the previous management of Pizza Hut, neither concern was given to the supply chain nor the overall atmosphere of the restaurant. It was as a result that Pizza Hut lost ground and it was exploited by its competitors as a result.
Yum! Brands, which is based in the United States, owns Pizza Hut. Additionally, it owns Taco Bell, KFC, and The Habit Burger Grill, which are all part of the company. In 155 countries, the company manages more than 53,000 franchises under its brand.
A company named Restaurant Brands International (RBI) owns Burger King, Tim Hortons, Popeyes, and Firehouse Subs, as well as its parent company, Restaurant Brands International. With over 28,000 outlets in over 100 countries, RBI has a global reach of over 28 million people.
What went wrong? What went wrong with things?
Former Pizza Hut management did not adhere to the Yum! Brands guidelines when it came to operating Pizza Hut. This has also been the fate of KFC Pakistan in the past. It will be difficult to succeed if you decide to deviate from those guidelines," said Jafri.
As Jafri revealed, there were top companies interested in acquiring the MCR portfolio that was put up for sale some time ago and that had been for sale for quite some time. There are many renowned businesses that have bidded for MCR, but international companies such as Yum! have to adhere to certain guidelines when they bid for MCR, explained Jafri.
The acquisition is nearing completion, according to him, and the banks' reconciliation is underway at the moment. As there will be no sub-franchise model for Pizza Hut and Burge King, they will be run directly by the company.
Will Prices Reduce?
Jafri said that Pizza Hut would be taking on top-tier pizza businesses, which means that the prices would remain high for pizza. Despite the high inflation levels that Pakistan is experiencing, the high-end food business still has a lot of potential even with the current inflation rates.
There is competition between Pizza Hut and Burger King in Karachi, he added. On the other hand, there is no competition in some areas due to the lack of competition. In order to expand its presence in Nawabshah and Larkana, Pizza Hut is considering opening outlets in these cities.
According to Jafri, Pizza Hut, which is currently undergoing a transformation period, will make use of the latest technology in order to revolutionize itself. In order to replicate Yum!'s software used around the globe, MCR has sent a team of its technology experts to Dubai.
What About Unpaid Employees?
Employees at Pizza Hut told Business Recorder that many of the employees have not yet received their salaries from the company. The new management of the company is currently looking into the matter, Jafri told the Times at the time when he was asked about it.
Despite that, due to the audit, reconciliation, and transition process, unpaid employees have not yet received their pending salaries. It is also awaited that Pizza Hut clears any pending dues that are owed to vendors and landlords. When the acquisition is officially completed, all stakeholders will receive their due payments as soon as possible.
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