A dispute between Pizza Hut and the local franchise owner has led to the closure of 16 Capital Region locations. Lundy Enterprises, which owns 44 Pizza Huts in the Baton Rouge and New Orleans markets, sent out a statement saying the restaurants would remain closed during the foreseeable future because of the ongoing dispute.
Pizza Hut says it will spend $10 million or more over the next 18 months to establish state-of-the-art restaurants in Baton Rouge and New Orleans. “Pizza Hut is totally committed to making our restaurants in New Orleans and Baton Rouge the best in the country,” says Scott Bergren, president of Pizza Hut. In the statement, Pizza Hut says Lundy was “unable to meet serious financial obligations to federal, state and local taxing authorities—as well as other corporate obligations left unpaid.”
As a result, Lundy-run Pizza Hut restaurants in the two markets have closed and will not reopen. “We thank all of our customers for their loyal patronage and apologize for Pizza Hut’s unfortunate decision to allow these stores to close for business,” Lundy said in a statement. “Lundy Enterprises will protect its rights to the fullest extent possible and is optimistic that the Pizza Hut stores will become operational again with the assistance of the justice system.”
Pizza Hut says it will work with the National Urban League to select a new franchisee. In the short term, displaced employees will receive job counseling, training, career placement and other forms of assistance.
For a list of the affected restaurants, click here.
