Yum! Brands has sold off its full stake in Pizza Hut Korea to South Korean company Orchard One, but both parties have agreed not to disclose terms or price.
Following the deal, Pizza Hut Korea signed a master franchise deal with the new owner.
Yum! Brands’ Korean unit says Orchard One, specially set up for the acquisition, bought a 100 per cent stake in Pizza Hut Korea from the Kentucky-based franchise giant. Yum! Brands also owns other global fast-food brands KFC and Taco Bell.
Orchard One is affiliated with KH Investment, a firm engaged in consulting services including mergers and acquisitions.
Pizza Hut entered the Korean market in 1985 by opening a store in Itaewon, central Seoul. It has 330 franchised outlets across the country. In 2015, the US franchise mogul converted Pizza Hut Korea stores into franchises from self-run outlets and cut thousands of jobs.
Meanwhile, Orchard One plans to follow Pizza Hut Korea’s growth strategy and diversification of retail channels, as well as develop a new menu based on local tastes. The management board is being retained and there are no plans for job cuts.