Sphera Franchise Group announced on Friday, February 20, that it will close seven Pizza Hut restaurants in Romania operated through its subsidiary American Restaurant System, citing their negative contribution to financial results. The decision is part of a broader network optimisation process, as the company said it’s been facing a more challenging economic environment.

“The decision is based on the evolution of the economic and consumer environment, impacted, starting July 2025, by the liberalization and increase of energy market prices, the adoption of new fiscal measures, the increase in the VAT rate, as well as a slowdown in private consumption driven by more cautious consumer behavior under the new economic conditions,” reads a report filed with the Bucharest Stock Exchange.

“Although the financial results for the first six months of 2025 followed a favorable trajectory, the new economic context has generated additional pressure on costs and operating margins,” the same source said.

Sphera Franchise Group expects the move to support operational profitability by eliminating recurring losses and optimising costs, adding that demand will be absorbed by other units in the network without significantly affecting customer access to Pizza Hut products and services. 

The company said it aims to minimise the impact on employees by offering relocation options within the group.

The group, which operates KFC, Pizza Hut, and Taco Bell franchises, reported total sales of RON 1.15 billion in the first nine months of last year, up 0.7% year on year, while net profit fell 40% to RON 42.8 million, according to Ziarul Financiar. The decline was driven by higher operating expenses, particularly labour costs, stagnant sales in Romania, and more cautious consumer behaviour amid intensified competition in the fast-food segment.

irina.marica@romania-insider.com

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