Don't Believe This Myth About Subway And Pizza Hut

Despite reports to the contrary, Pizza Hut is not closing down for good and neither is Subway, according to SnopesHowever, the outlet reported that these chains have closed swathes of locations. So it labeled the rumor a mixed mark, rather than deeming it an outright fabrication.

These closures should not surprise us, however, when we consider the condition of the industry in 2020 because of the pandemic. An emblematic instance was reported by CBS earlier this month, when Burger King urged people in Britain and France to order from other restaurants. They also made a similar plea the month prior, asking fans to order from McDonald's. "We never thought we'd be asking you to do this, but restaurants employing thousands of staff really need your support at the moment," the food chain explained.

Although, as Market Watch reported, these large chains are able to shoulder the expenses more readily than independent restaurants. However, that doesn't mean every major chain is doing well. Pizza Hut did in fact declare bankruptcy in August of this year, forcing it to close 300 locations, per Snopes. Even McDonald's has had to close 200 American locations due to COVID, according to Taste of Home. No brand has managed to escape 2020 without some difficulty.

Subway and Pizza Hut were struggling before the pandemic

Of course, while it's worth noting the difficulties weathered by the industry as a whole, it would be remiss not to note that Pizza Hut and Subway were already in a vulnerable position. In 2019, The New York Times published an expose on how Subway, after expanding to more than 24,000 restaurants in America alone, realized that too many Subways crowded each other. This was hurting sales and led to 1,000 Subways being closed, per CNN.

Pizza Hut has suffered similar setbacks in recent years. In 2019, the National Restaurant News reported that executives expected to see Pizza Hut outlets reduced by nearly 500 locations over the next two years. "Our U.S. store count could drop to as low as 7,000 locations over the next 24 months primarily driven by closures of underperforming dine-in restaurants before rebounding to current levels and above in the future," said Pizza Hut President and Chief Operating Officer, David W. Gibbs.

With the end of the year in sight, hopefully some of these beloved fast food chains can rebound in 2021.