Pizza Hut’s massive plan to crush Domino’s

Pizza Hut’s massive plan to crush Domino’s

A quick meals battle is looming in Australia with Pizza Hut unveiling aggressive new growth plans because it goals to tackle Domino’s.

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After launching in Australia in 1970, Pizza Hut was an enormous chain within the Nineteen Eighties and Nineteen Nineties, with giant, restaurant-style eateries dotted throughout the suburban panorama.

Followers will bear in mind their famously low all-you-can-eat pricing and self-serve dessert bars.

An old-style dine-in Pizza Hut. Image: NCA NewsWire / Naomi Jellicoe.

However the chain struggled within the 2000s beneath the load of elevated competitors and a shift away from dine-in quick meals eating places.

It presently has about 10 per cent of the Australian pizza market, in comparison with Domino’s’ 50 per cent market share.

In June, US-based Flynn Restaurant Group purchased the grasp licence for Pizza Hut in Australia from non-public fairness agency Allegro Funds.

New-look Pizza Huts are actually takeaway solely.

There are presently 260 Pizza Hut shops in Australia, and Ron Bellamy, Flynn’s chief working officer who’s liable for the native enterprise, informed The Australian Monetary Overview they may open not less than 30 new Pizza Huts in 2024.

Pizza Hut Australia CEO Phil Reed added that the corporate had recognized 400 websites throughout Australian the place it might open a retailer.

“We haven’t received sufficient shops throughout Australia in the meanwhile,” Mr Bellamy stated.

“There’s an enormous quantity of white house,” Mr Reed added.

Against this, there are round 750 Domino’s throughout Australia.

Pizza Hut Australia CEO Phil Reed stated they’ve recognized websites for as much as 400 new shops. Image: Chris Pavlich for The Australian.

Mr Bellamy stated that the massive hole in market share between Domino’s and Pizza Hut was a part of the attraction of shopping for the enterprise.

He added that there weren’t many markets the place the hole between the 2 pizza chains was as giant.

Flynn may even enhance its promoting because it seems to steal market share.

“It’s a market share recreation. That share has received to come back from someplace,” Mr Bellamy stated.

Pizza Hut will report gross sales of $300 – $310 million for the 2023 calendar 12 months, Mr Reed stated.

Domino’s Australian and New Zealand gross sales totalled $1.4 billion within the 12 months to June 30, 2023.

Flynn Restaurant Group acquired the Australian Pizza Hut enterprise in June 2023.

Flynn is the biggest restaurant franchise operator on the earth, with greater than 2300 quick meals retailers within the US, together with 945 Pizza Huts, together with Taco Bell, Wendy’s, Applebee’s and Arby’s.

The Australian Pizza Hut deal was its first growth outdoors the US.

In August, it additionally signed a brand new grasp franchise settlement with Wendy’s to open 200 Wendy’s eating places in Australia between now and 2034.

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