Radu Savopol, president of the Hotel and Restaurant Employers’ Organization of Romania (HORA), considers that Sphera Franchise Group’s decision to close seven Pizza Hut restaurants is a natural business optimization measure after three decades of activity, rather than a signal of collapse in the HoReCa industry. The entrepreneur’s reaction comes in the context of the franchise operator announcing a network reduction, citing economic pressures such as increased VAT rates, energy price liberalization, and declining consumer spending.
The decision to close the units was undertaken by Sphera management alongside its subsidiary, American Restaurant System. Responding to public debates generated by this announcement, the founder of the 5 to go chain emphasized that, relative to a 30-year presence on the local market and a network of over 40 active locations in the country (out of more than 20,000 globally), this move does not justify panic. Savopol explained that Sphera Group’s transparency is mandatory given its status as a listed company, unlike other private companies that operate similar closures without having to communicate them publicly.
The HORA president pointed out that the dynamics of commercial areas (“commercial flow”) have changed significantly in recent decades, with the emergence of new shopping centers and changes in street traffic requiring relocations or closures to avoid non-performing areas. He cited the example of Starbucks, which closed approximately 400 locations globally, including the unit at Hanul lui Manuc after 15 years of operation, but subsequently recorded a stock market recovery. Furthermore, Savopol mentioned the case of his own network, 5 to go, which gave up a space on Calea Victoriei for cost reasons, illustrating the difference between a monthly rent of 3,500 EUR and one of 800 EUR. The entrepreneur’s conclusion is that such “cleanup” measures are necessary for the financial health of companies, even if the period is a difficult one for the business environment.
Frequently Asked Questions
Why did Pizza Hut close seven locations in Romania?
The closures are part of a strategic optimization process after 30 years on the market, triggered by economic pressures like VAT increases and rising energy costs.
Is this a sign of a systemic crisis in the Romanian HoReCa sector?
According to HORA president Radu Savopol, these are normal commercial adjustments to changing foot traffic and are not indicative of an industry-wide collapse.
Why was this business decision made public?
Sphera Franchise Group is a company listed on the Bucharest Stock Exchange, which makes transparency regarding operational changes and network restructuring mandatory.