Pizza Hut Australia sold to US franchise Flynn Group

Fast-food chain Pizza Hut Australia has sold to one of the largest restaurant franchisees in the world.

On Thursday, Allegro Funds announced that they had entered into an agreement to sell all 260 Pizza Hut stores to US-based Flynn Restaurant Group.

This is the Flynn Group’s first international venture.

The group currently operates approximately 2400 restaurants across brands such as Taco Bell, Applebee’s, and Wendy’s.

Co-Chief Operating Officer, Ron Bellamy, said Pizza Hut Australia was the ideal opportunity for the group to expand.

He said in a statement, “I’m incredibly proud of the work that’s brought us to this point and look forward to seeing Pizza Hut’s continued growth in Australia for years to come. As huge believers in the brand and its leadership team, we see this as the ideal opportunity to expand into the international arena.”

“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.”

Phil Reed, Pizza Hut Australia’s CEO, will remain with the business under the new owners.

Reed has been committed to reshaping Pizza Hut Australia into a profitable and growing business with a focus on customer satisfaction.

He said, “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.”

This deal is expected to finalise by the end of June 2023.

This comes at a time when main competitor Domino’s Pizza Australia has been struggling to manage rising costs, resulting in a decline in profits.

The share price has continued to fall the past week, down more than 3 per cent over the last seven days.