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Pizza Hut CEO gives explanation of sales-tax mistake

December 9th, 2011 by Rachel Pritchett

By Amy Phan, reporter

Terry Hopkins, CEO of Emerald City Pizza LLC, which runs the Pizza Hut location in East Bremerton that overcharged customers sales tax last week, submitted a letter yesterday explaining the situation.

The issue stemmed from an incorrect sales tax being downloaded into the store’s computers, wrote Hopkins.

The problem occurred from Nov. 15 to Nov. 21 and roughly 200 customers were affected, according to Hopkins.

“As a locally owned Pizza Hut Franchisee, we are part of communities all over Washington State …We operate 105 Pizza Hut locations across the state and have dozens of different tax rates. We simply missed on this one and for that we apologize,” he said.

The problem has since been fixed and the franchise is working to send each customer who visited the store during that time a $5 certificate.

For customers who ordered carryout from the store and do not have an address in the company computer, they can receive a certificate by asking the store’s manager. Or contact Emerald City Pizza LLC directly as 425-493-8077 ext. 100.

Hopkins expects all customers with addresses in the store’s directory to receive a certificate by Dec. 22.
Hopkins’ full letter is below.

____________

Dear East Bremerton Pizza Customer,

Unfortunately, when we moved to our new location at 5060 SR 303 NE Suite 130, an incorrect sales tax amount was downloaded to our computers. This mistake resulted in an overcharge in sales tax of approximately 16 cents on a $10.00 purchase. The problem has since been corrected but some of our valued customers who visited us during our opening week of
November 15 may have been overcharged on the sales tax. We sincerely apologize for this mistake. As a locally owned Pizza Hut Franchisee, we are part of communities all over Washington state. We provide jobs for more than 2,500 people living in these communities.

We operate 105 Pizza Hut locations across the state and have dozens of different tax rates. We simply missed on this one and for that we apologize.

We are in the process of collecting addresses on all of the customers who visited us between November 15 and November 21, 2011 and will be sending each address a $5 certificate that may be redeemed at any of our 61 restaurants in the Greater Seattle Area. Any delivered pizza during that time will have an address associated with it. If you visited us for carryout and do not receive a certificate please ask our Restaurant Manager. You may also contact our office in
Mukilteo directly at 425-493-8077 ext 100. We take the confidence of our customers very seriously and we realize that it is earned with each and every interaction we have.

Sincerely,
Terry Hopkins
CEO
Emerald City Pizza LLC, Columbia Basin Pizza Hut,
Spokane Valley Pizza, Las Vegas Pizza LLC

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One Response to “Pizza Hut CEO gives explanation of sales-tax mistake”

  1. HWSlach Says:

    The extra funds were collected as taxes, were they submitted to the state or pocketed? It would be an accounting nightmare if their books show taxes collected do not equal taxes remitted.

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