The US Flynn Restaurant Group already has 926 Pizza Hut outlets in the US; now the giant franchisee business has acquired the Pizza Hut master franchisee licence for Australia.
Flynn is the largest restaurant franchise operator in the US, boasting a portfolio of more than 2,350 restaurants.
In addition to its Pizza Hut division, Flynn owns 441 Applebee’s, 379 Arby’s, 282 Taco Bells, 192 Wendy’s and 130 Panera Bakery Cafes.
US franchisee group makes first international acquisition
Now it adds an established Australian network of nearly 260 franchised stores to its line-up. Its strategic acquisition of Pizza Hut Australia is the group’s first foray into international franchising.
Flynn Restaurant Group co-chief operating officer Ron Bellamy said this is an ideal opportunity for overseas expansion.
“Simply put, the more we’ve learned about this business, the more excited we’ve become about it.”
Bellamy said Pizza Hut’s leadership team have done “a phenomenal job delivering 51 consecutive months of positive same store sales growth, while creating record revenues and value for its franchise partners”.
He said “Our immediate focus will be to work with the team to determine how we can best leverage our broader scale and capabilities to support the continued success trajectory of Pizza Hut in Australia. Over time, Flynn looks forward to expanding its global reach further with new concepts and markets.”
Pizza Hut Australia sells, leadership team continues
Sydney-based private investment firm Allegro Funds bought the Pizza Hut business in 2016 and has sold the QSR chain following a successful restructure led by CEO Phil Reed.
Reed will continue to lead the existing management team, delivering continuity for employees, franchisees, and suppliers.
He said the acquisition is a strong endorsement of Pizza Hut’s success in the market.
“Flynn is the premier franchise group in the restaurant industry, with reputation for excellence and empowering their franchise owners. We are excited to bolster our growth trajectory supported by Flynn’s investment backing and unmatched franchisee expertise so that we can continue to deliver world-class Pizza Hut experiences for our customers down under,” he said.
The acquisition has been welcomed by Aaron Powell, global CEO of Pizza Hut.
“With the opportunity to build on an already strong foundation, I am confident that the Flynn team will bring fresh ideas and capital that extend momentum and forge deeper connections with customers in this important Pizza Hut market. The move is an exciting step forward for Pizza Hut in Australia,” said Powell.
The acquisition has received Foreign Investment Review Board approval. The sale is subject to consent by Pizza Hut global brand owner, Yum! Brands, with completion expected by the end of June 2023.