PIZZA HUT JOINS KFC AND TACO BELL IN PUERTO RICO SHUTDOWN; 56 LOCATIONS REPORTEDLY AFFECTED

Approximately 700 workers impacted as Encanto Restaurants faces mounting operational and financial difficulties

SAN JUAN, Puerto Rico — November 3, 2026 — The restaurant industry in Puerto Rico is facing another major setback as Pizza Hut locations across the island reportedly suspend operations, adding to the growing crisis surrounding local franchise operator Encanto Restaurants.

The latest development follows the closure of KFC and Taco Bell restaurants throughout Puerto Rico after Yum! Brands terminated its franchise relationship with Encanto Restaurants, citing the operator's inability to continue meeting the company's standards.

According to a report published Tuesday by Puerto Rican news outlet Presencia, Encanto Restaurants has temporarily suspended operations at all 56 of its Pizza Hut locations across the island. The reported shutdown affects approximately 700 employees.

The report adds another troubling chapter to the unfolding situation, which has already affected thousands of restaurant workers and customers throughout Puerto Rico.

El Nuevo Día confirms multiple Pizza Hut locations closed

The closures were also reported by El Nuevo Día, which conducted visits to several locations in the metropolitan area and confirmed that multiple Pizza Hut establishments were no longer operating.

One of the locations identified in the report was the restaurant in Venus Gardens, Río Piedras, where a closure notice was reportedly posted.

El Nuevo Día noted that Encanto Restaurants had not publicly addressed the situation involving its Pizza Hut and IHOP franchises at the time of its reporting.

Financial difficulties raise concerns

Presencia reports that the latest suspensions bring the number of Encanto-operated establishments that are reportedly out of operation to approximately 177.

The publication attributes the company's difficulties to financial liquidity problems, delayed supplier payments and shortages of supplies.

The reported Pizza Hut shutdown could have significant consequences for employees and their families, particularly following the earlier closures of KFC and Taco Bell, which reportedly affected approximately 2,000 workers.

Presencia also reports that potential commercial operators have expressed interest in acquiring affected franchise operations, although no finalized agreements for reopening have been announced.

Pizza Hut has a new global owner

The situation is particularly noteworthy because Pizza Hut is no longer owned by Yum! Brands.

Yum! Brands completed the sale of its Pizza Hut business outside mainland China to LongRange Capital on September 1, 2026, in a transaction valued at approximately $1.5 billion.

However, Encanto Restaurants continued operating the Pizza Hut franchise in Puerto Rico. The change in global ownership did not automatically resolve the local operator's reported business difficulties.

What happens next?

For now, the future of the affected Pizza Hut restaurants remains uncertain. Questions remain about whether another franchise operator will take over the locations, how quickly restaurants could reopen and what arrangements will be made for affected employees.

As of Tuesday, November 3, Encanto Restaurants had not publicly provided a detailed explanation addressing the reported Pizza Hut suspensions.

The developments also raise questions about whether the situation could have implications for Pizza Hut operations in other U.S. territories, including the U.S. Virgin Islands. No verified announcement has established that the Virgin Islands locations are affected.

Freedom City Times will continue following this developing story as more information becomes available.