Editor’s note: This story has been updated with additional details from Pizza Hut.

Dive Brief:

• About two-thirds of Pizza Hut’s U.S. locations are open until midnight on Fridays and Saturdays, and 36% are open until midnight seven days a week, Pizza Hut confirmed in an email to Restaurant Dive, after announcing a broad expansion of operating hours on Wednesday. 
• More than 130 stores are open until 2 a.m. on Fridays and Saturdays, Pizza Hut said. The brand has about 6,500 stores in the U.S. according it its most recent 10-Q. 
• The late-night daypart has become a traffic driver across the QSR segment in recent quarters. Pizza Hut said its recent emphasis on late-night offerings caters to the dining habits of its younger customers.

Dive Insight:

Pizza Hut said its partnerships with third-party delivery aggregators would help support its late-night offerings. 

“We saw a clear need from our guests to satisfy their cravings for Pizza Hut late at night,” said Chequan Lewis, chief operating officer of Pizza Hut U.S. “We're excited to provide our full menu for delivery or carryout well into the late hours.”

Pizza Hut said many of its stores began extending their hours earlier this year. But the chain began pursuing a concerted extension of late night hours through its system about a month ago. Pizza Hut plans to continue the addition of new late night hours across its system by the year’s end. Most restaurants, prior to this move, closed around 11 p.m. on Fridays and Saturdays and 10 p.m. on other nights.

At Taco Bell, also owned by Yum Brands, the late-night daypart — defined as 10 p.m. to 4 a.m. — accounted for 15.1% of sales in Q2 2023. The specific operational challenges of late-night dining have prompted Taco Bell to test new unit designs. At Jack in the Box, improved staffing during late-night hours helped boost same-store sales. 

Given the propensity of late-night consumers to order delivery, Pizza Hut aims to “optimize the delivery-specific operations... using the cutting-edge Dragontail technology,” according to the press release. Yum acquired Dragontail, a company that designs artificial intelligence for kitchen management and delivery orders, in 2021. The brand didn’t immediately respond to a request for comment about other operational changes that may result from offering its products later at night.

Pizza Hut’s growth strategy over the last year has focused on menu innovation, with its new Melts category driving significant sales. 

Chipotle is also pushing to increase its late-night sales, ostensibly in response to the demands of younger consumers, with a Halloween burrito promotion in select college towns. Major QSRs, including Burger King and McDonald’s, have seen late-night traffic grow in recent quarters, according to data from Placer.ai.