Pizza Hut Buy-out?

[Crusher]

Hi Guys,
I just got a call from my landlord telling me that Pizza Hut has been in town working with the Village Administrator to find a place to lease. I’m in a town of about 8,000 with myself and one other indy. I guess they want to retail space next door to mine, but I have a non-compete clause in my lease. I talked to the landlord about it and said if they want to buy me out then they can go ahead and have that space next door. Do you know if they have ever done this? I’m getting burnt out and think that Pizza Hut would probably bury us if they do open in town. It makes me think that it would be easier for everyone if they did buy me out.

 

[BillB]

I have not had any experience with this, but I would not tell anyone else about your “burn out”. You are lowering your buyout potential. Just my two cents.

 

[BCPizza]

I would say if you want out of the business that is one thing but If your product is any good then there is no reason for pizza hut to scare you. I am in a town of 5000 with 2 other indys and a pizza hut and I do more business than any of them. Big Dave has an interesting article on the big boys coming to town…http://bigdaveostrander.com/articles/bigboys.htm

 

[Deacon_V]

Ditto BC’s comment on the Hut. Maybe in other markets with other employees and managers they are still a force, in my little burg of 3500 I didn’t even factor them into my business plan, that’s how UN they are. In fact, they are so slow right now they’re offering deliver to other little towns that are up to 22 miles away!! DON’T fear the Hut if you’re putting out a good product using real meats, cheeses, and decent sauces.

 

[bodegahwy]

Another, perhaps more likely, option is for your lanlord to buy you out in order to have a “national” tenant. This is more common than PH buying people out in my experience (I am a licensed broker and do commercial leasing). Give some careful thought to the number that would work for you so you can jump on it if the deal is right. Tell the landlord that you would leave for “X” dollars. Leave yourself the option to move or sell the equipment.