Fast-food large Pizza Hut has been offered to one of many largest franchise operators on this planet.
US-based Flynn Group revealed on Thursday it had bought the Pizza Hut Australia licence from Sydney-based Allegro Funds.
Pizza Hut Australia operates almost 260 shops by way of Australia and employs about 4000 folks.
Chief govt Phil Reed stated the sale was an endorsements of the pizza model’s success in Australia, greater than 50 years after the primary retailer opened.
“Flynn is the premier franchise group in the industry, with reputation for excellence and empowering their franchise owners,” he stated.
“We are excited to bolster our growth trajectory supported by Flynn’s investment backing and unmatched franchisee expertise.
“That way we can continue to deliver world-class Pizza Hut experiences for our customers Down Under.”
Flynn is among the largest operators of Pizza Hut eating places, with the sale representing the corporate’s first abroad enterprise.
Its portfolio spans greater than 2350 shops, together with 926 Pizza Huts, 441 Applebee’s, 379 Arby’s, 282 Taco Bells and 192 Wendy’s shops.
Flynn co-chief working officer Ron Bellamy stated Pizza Hut Australia represented the perfect alternative for Flynn to increase internationally.
“Simply put, the more we’ve learned about this business, the more excited we’ve become about it,” Mr Bellamy stated.
“Phil and the management 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.
“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’s current administration group led by Mr Reed will proceed to run the business.
The acquisition acquired Foreign Investment Review Board approval and is topic to consent by Pizza Hut international model proprietor Yum! Brands.
It is anticipated that the sale might be full by the top of June 2023.
The news marks a significant shift within the pizza franchise’s five-decade historical past in Australia.
The first Pizza Hut retailer in Australia opened in Belfield in 1970 however was demolished in 2018.
Allegro took management of Pizza Hut Australia in 2016 and performed a prolonged restructure earlier than providing the business on the market.
The sale additionally comes after primary competitor Dominos Australia introduced one other shock transfer.
The pizza chain revealed on Tuesday that it was backflipping on a controversial 7 per cent charge for supply orders.
In July final yr, news.com.au reported the service charge added an additional $1.80 to a median $30 pizza supply buy.
At the time, Domino’s blamed passing the value improve onto prospects on the “rising cost of fuel, food, and utilities”.
Source: www.perthnow.com.au
