Fast food chains Pizza Hut and Subway relocate outlets

Fast food chains Pizza Hut and Subway have closed some of their branches in Nairobi and relocated to areas with higher foot traffic.

Subway closed its College House branch while Pizza Hut shut its College House (CBD) and Fedha Plaza (Westlands) branches.

“Pizza Hut relocated its Fedha Plaza restaurant to Galleria and is in the process of relocating the College House restaurant to a new location closer to its customers as trade zones in Nairobi continue to evolve,” said a statement sent to the Business Daily.

Pizza Hut opened an outlet at Galleria Mall along Lang’ata road recently while Subway is also expected to open an outlet at the same location in several months. The US sandwich brand has actively been seeking alternative locations in the CBD, Upper Hill, Lavington and Mombasa Road as part of its growth strategy in the capital.

Pizza Hut, on the other hand, has five branches since its entry into Kenya in 2015 and has indicated further expansion.

More franchises are opting for locations outside malls that are not dependent on supermarkets as anchor tenants for more stable foot traffic.

“In Nairobi, the bankruptcies of Nakumatt and Uchumi had a huge impact on footfalls and traffic in many trade areas over the last few years,” said CJ Bak, co-founder of Liberty Eagle African Holdings, the franchise holder of Pizza Hut and Subway in Kenya.

“For the big restaurant groups, it's normal and natural for 10pc to 15pc of restaurants to relocate each year. This is because retail is a local business, and local conditions in a trade area change over the lifespan of a restaurant,” said Mr Bak.