Pizza Hut and Burger King, two well-known fast food chains, are now managed by a new company in Pakistan thanks to Maaks International’s acquisition of MCR and MCR Pakistan.
Burger King and Pizza Hut are run by the firms MCR and MCR Pakistan, respectively. According to reports, the transaction will cost between $10 million and $15 million. Burger King and Pizza Hut will go on with the same brand identification.
An independent business with headquarters in Rawalpindi/Islamabad is called Maaks International. The company is active in the rice, oil, hospitality, pharmaceutical, and FMCG industries.
Burger King and Pizza Hut are now out of business, but their new owner has promised that they will reopen this month.
There are now nine Burger King locations and 84 Pizza Hut locations nationwide. Maaks International will open 25 additional locations for the two eateries every year.
We intend to fully reorganize operations, said Azhar Jafri, Executive Director of the recently acquired MCR and MCR Pakistan, in an interview with Business Recorder. By 2027, we want to have 200 Pizza Hut locations and 50 Burger King locations.
He continued by saying that Pizza Hut’s poor performance in Pakistan was mostly due to MCR’s failure to maintain the chain at its worldwide quality.
All Pizza Hut locations have closed as a result of supply-chain issues. The supply chain and atmosphere of Pizza Hut were not concerns of the former management. Pizza Hut subsequently lost ground, and its rivals profited from the circumstance.
US-based Pizza Hut is owned by Yum Brands. Taco Bell, KFC, and The Habit Burger Grill are also owned by it. In 155 nations, the firm oversees more than 53,000 franchisees.
The parent business of Burger King is Restaurant Brands International (RBI), which also owns Tim Hortons, Popeyes, and Firehouse Subs. In more than 100 countries, RBI operates approximately 28,000 stores.
Why Did Things Go South?
The former administration of Pizza Hut did not follow Yum! Brands’ rules. KFC Pakistan already suffered the same fate. If you deviate from those rules, you’ll struggle, added Jafri.
Jafri disclosed that prestigious businesses were considering buying the long-listed MCR portfolio. Many well-known companies put in bids to purchase MCR, but foreign companies like Yum! follow particular rules, Jafri continued.
He revealed that the deal was almost finished and that the banks were still reconciling their accounts. Instead of using a sub-franchising arrangement, Pizza Hut and Burge King will be managed directly.
Will the cost drop?
Jafri claimed that Pizza Hut will compete with top-tier pizzerias, therefore the costs would stay high. Despite the current inflation, Pakistan still has a large amount of potential in the high-end food industry.
In Karachi, he said, Pizza Hut faces competition. However, there isn’t much competition in certain places. For this reason, Pizza Hut is considering setting up shops in Nawabshah and Larkana.
Jafri promised that Pizza Hut, which is undergoing a change stage, will be revolutionized with the most recent technologies. MCR has dispatched a technical team to Dubai to copy the Yum! software that is used across the world.
What Happens to Unpaid Workers?
Many employees at Pizza Hut have not received their paychecks, according to employees who spoke to Business Recorder. Jafri said that the new administration is looking into the situation when asked about it.
However, underpaid employees have not yet received their delayed paychecks as a result of the audit, reconciliation, and changeover. Pizza Hut has outstanding debts that vendors and landlords are also waiting to pay. Once the transaction is formally concluded, all stakeholders will be paid in full.
Jafri noted that Pizza Hut employs close to 1,200 people. To choose which staff will be kept, the corporation has begun the screening process.