Sphera: Pizza Hut Restructuring and 2026 Expansion
Sphera Franchise Group, the operator of KFC, Pizza Hut, and Taco Bell networks in Romania, Italy, and the Republic of Moldova, reported consolidated sales of EUR 307.97 million for 2025, a 1.5% increase compared to the previous year. The Romanian market remains the group’s central pillar, generating approximately 86% of the total turnover. In an effort to optimize profitability, the company decided to close seven underperforming Pizza Hut units, while simultaneously planning a strategic expansion for 2026 and the launch of the Hard Rock Cafe brand in several regional urban centers.
The decision to restructure the Pizza Hut network, operated through the subsidiary American Restaurant System S.A., was driven by the deteriorating economic context starting in July 2025, amid energy price liberalization, the adoption of new fiscal measures, VAT increases, and tempered private consumption. The targeted restaurants recorded a significant negative contribution at the EBITDA level, and their closure aims to eliminate recurring losses and streamline the cost structure. Affected personnel will have the option to be relocated within the group’s network, which currently counts 179 restaurants, 110 of which are active on the local market.
In regarding future development, Valentin Budeş, CFO of Sphera Franchise Group, announced the opening of 20 restaurants for 2026. The operational plan for the current year includes the inauguration of eight KFC units and two Taco Bell units in Romania, one restaurant from both brands in the Republic of Moldova, and expansion in Italy with KFC and Cioccolatitaliani units. At the same time, the group is launching the expansion of the Hard Rock Cafe brand, aiming to open five locations in Brașov, Timișoara, Iași, Cluj, and Chișinău over the next five years. The first unit in this series is estimated to be completed by the end of this year or, at the latest, in the first quarter of 2026.
Frequently Asked Questions
Why is Sphera Franchise Group closing Pizza Hut locations?
The company is closing seven underperforming units to eliminate recurring EBITDA losses caused by rising energy costs, new fiscal measures, and decreased private consumption.
What are Sphera’s expansion plans for 2026?
Sphera plans to open 20 new restaurants in 2026, following a 2025 strategy that includes new KFC and Taco Bell units across Romania, Moldova, and Italy.
Where will the new Hard Rock Cafe locations be opened?
Over the next five years, the group aims to open Hard Rock Cafe units in Brașov, Timișoara, Iași, Cluj, and Chișinău, with the first opening expected by early 2026.