Large Pizza Hut Franchisee Files for Bankruptcy

One of Pizza Hut’s largest franchisees, with dozens of restaurants in Ohio, West Virginia and Kentucky, filed for Chapter 11 bankruptcy protection last Wednesday, its second Chapter 11 filing in eight years.

Midland Food Services of Independence, Ohio blamed higher minimum wages, increased cost of ingredients and disadvantageous lease terms as some of the reasons for its deficit operations. Midland states it won’t be able to meet the terms of its franchise agreement.

Pizza Hut is one of the franchise chains of Louisville, Kentucky-based Yum! Brands. A&W, Kentucky Fried Chicken (KFC), Long John Silvers and Taco Bell are also part of the family of brands.

More in the Louisville Courier-Journal