The combination of its international collapse Pizza Hut but also of the accumulated losses of the management company in Greece led to the lockout of the mass catering chain Pizza Hut in Greece.
The presence of Pizza Hut in Greece (only 16 stores) was small, but it made sense, on the one hand, because it is the first “padlock” of international brand after the outbreak of the pandemic and on the other hand, because it concerns the first mass closure in the catering industry.
It is also an industry that has been hit hard by the lockdown and the pandemic, with 40% of businesses not to have reopened while the operating companies have lost 50% of their turnover.
Regarding the international presence of Pizza Hut, the decision of NPC International, the largest franchisee of Pizza Hut in the USA, to submit application for inclusion in Article 11 US bankruptcy law in early July set the tone for the pandemic developments and impact worldwide.
In Greece, the decision was considered final, as the management company and franchisee of the brand, Food Plus, according to information, could not use the brand beyond today (31-07-2020) as a consequence the expiration of the franchise agreement that you had with the licensor.
Apart from that, however, Food Plus, based on the available financial data for the year 2018, had already found itself in a dire financial position, with accumulated losses of the order of 35,176,550.93 euros and with negative equity of the order of 2,929,240.85 (where based on the note of the jurors, the conditions for the application of the provisions of article 165 of Codified Law 4548/12018 met already from 2018).
Food Plus is a company owned by the Tane family, the president for decades of the Athenian Brewery Mina Tane. The president of the company today is his son, George Tanes, who is also the founder and head of marketing, advertising and communication company Frank & Frame (which manages major international brands and public campaigns). The company Violetta, which appears in the last balance sheet of Food Plus as a company that paid 600 thousand euros in the share capital increase of Food Plus, is, according to information, a family interests company Daki Ioannou (which is related to the Tane family, as the descendants of the two families are married).
In addition to family relationships, in the results for the year 2018, the company, with 30 years of presence in Greece (which also manages the chain under the brand KFC), showed increase in turnover at 16,242,633.07 euros compared to 15,097,346.74 in the fiscal year 2017, recording an increase of 7.59%. In the specific year, it recorded losses amounting to the amount of 1,267,713.50 against losses amounting to 1,469,226.00 of the previous management period, of 2017.
According to the management of the Greek chain in APE, in recent years its operation has been loss-making and despite the injections of “liquidity”, it has not managed to obtain a sustainable future. The company stated that it will fully cover liabilities to creditors, suppliers and its 159 employees.
Nevertheless, as the manager of the KFC chain (also of American origin), with 10 stores today in Athens, the management of Food Plus assures that it will continue to develop this brand in the country, which, as it claims, is growing significantly. and profitable.
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