Published : Aug. 31, 2017 - 16:20
American food company Yum! Brands has sold its 100 percent stake in Pizza Hut Korea to a Korean investment firm, according to Pizza Hut Korea on Thursday.
The stake was sold to Orchard One Inc., a corporation set up by an investment firm called KHI for this deal. An official speaking for Pizza Hut Korea declined to comment on the sale price, citing a non-disclosure agreement.
The company said through a statement that the sale aimed to create a “more flexible organization and streamlined decision-making process to better respond to market changes discover new business opportunities.”
The sale will not affect any existing franchise contracts, and all employees will remain in their current positions.
Pizza Hut Korea first entered the Korean market in 1985, and is currently operating 330 stores here. Recently, it has been swept up in controversy and fined by the Fair Trade Commission regarding its business practices towards franchise owners. These practices included unilateral changes to the franchise manual and unfair “administration fees” that excessively burdened franchise operators.
By Won Ho-jung (hjwon@heraldcorp.com)