The crisis at Encantos Restaurants, the Puerto Rico operator of several franchises, deepened with the temporary closure of 56 Pizza Hut locations in Puerto Rico. The shutdown puts roughly 700 additional jobs at risk, on top of nearly 2,000 layoffs that followed the closure of the Taco Bell and KFC operations. EL VOCERO, a sister publication of W Journal, confirmed the closures after multiple reports from laid-off employees; the restaurants remain closed, with notices posted indicating a temporary shutdown.
Layoffs also reached the company’s corporate headquarters. Employees interviewed voiced concern over the lack of prior notice and uncertainty about their jobs, and some had worked for the company for more than a decade and relied on the income to support their families. The situation follows economic difficulties at Encantos Restaurants, which have led to payment delays with suppliers, shortages of goods and trouble maintaining operating standards.
IHOP restaurants remain open, though staff reported a significant drop in customers because of a public perception that those locations had also closed. Industry sources said that after talks collapsed with Grupo Serrano, the KFC franchisee in Ecuador, other local operators have expressed interest in acquiring the chains, but no official agreement has been reached, so it is impossible to predict when operations might resume.
About 177 commercial establishments are now closed across Puerto Rico, affecting both employment and the commercial real estate sector.