Large U.S. franchisee faces bankruptcy

Months of speculation that NPC International was in untenable financial peril proved correct this morning, as the largest Pizza Hut franchisee in the world filed for bankruptcy protection in federal court.

One of the Kansas City region’s biggest private companies, Leawood-based NPC had been struggling early in recent years with revenues that had plateaued at roughly $1.6 billion. But the closing of nearly all its in-store dining operations during the COVID-19 pandemic kicked the legs out from under its revenues.

With 1,227 units in 27 states, NPC accounted for roughly 20 percent of the nation’s Pizza Huts, and with 393 restaurants in eight states, it is also the largest franchisee for the Wendy’s hamburger chain.

In the filing, the company said Pizza Hut was being pressured by the loss of in-store diners, cost of goods and competition that has eaten away at its market share.

“These factors have worked together to strain the financial performance of (NPC) and have restricted and limited its ability to operate profitably under its current balance sheet,” the filing said.

NPC employs more than 37,000 people at its operations.