US company buys Pizza Hut

One of Western Australia's best-known franchises has come under new ownership after US-based Flynn Restaurant Group bought Pizza Hut Australia.

Flynn has entered into an agreement to acquire the Pizza Hut master franchise licence for Australia, which has been held by Sydney-based private equity investor Allegro Funds.

The acquisition will add nearly 260 Pizza Hut restaurants to its business and is expected to add $300 million in sales.

The Pizza Hut network includes 22 outlets in WA, where Domino’s is the market leader in takeaway pizza with 76 WA franchises.

Flynn is the largest franchise operator in the world, with nearly 2,400 fast-food restaurants across the US generating $US4.2 billion in sales.

The acquisition marks the first international investment for Flynn, which already had 945 Pizza Hut outlets in the US.

“This is an incredibly exciting moment for Flynn Restaurant Group,” founder and CEO Greg Flynn said in a statement.

“We spent our first 12 years growing in Applebee’s, and then the next 12 years diversifying as a domestic franchise operator.

“In this next chapter, we’re layering on international expansion, and the growth potential is essentially unlimited.”

The acquisition is subject to consent by Pizza Hut global brand owner, Yum! Brands, which sold the Australian franchise to Allegro seven years ago.

Flynn co-chief operating officer Ron Bellamy led the acquisition.

“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,” Mr Bellamy said.

“Over time, Flynn looks forward to expanding its global reach further with new concepts and markets.”

As well as having 926 Pizza Hut franchises, Flynn has 441 Applebee’s, 379 Arby’s, 282 Taco Bells, 192 Wendy’s and 130 Panera Bakery Cafes.