17/07/2023 (Australia) - A United States fast-food franchise giant, soon to be behind Pizza Hut in Australia, is poised to challenge Domino's as market leaders. Flynn Restaurant Group, which already owns Pizza Hut in the US along with Taco Bell and Wendy's chains, is finalizing the purchase of Pizza Hut Australia from private equity firm Allegro Funds.
Flynn's co-COO, Ron Bellamy, believes Pizza Hut Australia has performed well under CEO Phil Reed but sees room for further growth with their investment and expertise from the US. Their focus remains on supporting Pizza Hut and its remarkable journey in the Australian market.
Since taking over in April 2018, Reed has successfully increased Pizza Hut Australia's fast-food market share from seven percent to around ten percent. The chain has opened 17 new stores in 2022 and an additional six this year, boasting a total of 251 stores across the country as of May 10.
While Domino's maintains its dominance with 755 outlets, making it the largest franchisee for the US parent company, Reed aims to boost Flynn's revenue from approximately $300 million to over $1 billion in the coming years. He sees tremendous opportunities for growth, whether by expanding the brand or opening new stores to reach the 55 percent of Australians who have yet to experience Pizza Hut's delivery service.
When asked about the expanding Pizza Hut empire, a Domino's spokesperson welcomed the competition while emphasizing their focus on their own growth plans and strategy. They are confident in their ability to offer customers the best value for money with freshly prepared meals delivered quickly and at an affordable price.
Flynn Restaurant Group, operating 2,350 restaurants worldwide, including 926 Pizza Huts, 282 Taco Bells, and 192 Wendy's, brings their extensive industry experience and global presence as they enter the Australian market.