The deal would make the U.S.-based company the largest pizza chain in Latin America and the Caribbean.
Yum Brands, Inc.’s Pizza Hut announced that it signed a franchise agreement with Telepizza Group SA, who is set to oversee nearly 1,000 units of the global pizza brand.
As a part of the deal, the Madrid-based pizza company will contribute nearly 1,500 of its stores to Pizza Hut’s global unit count across all markets including Spain, Portugal and Switzerland.
“This ground-breaking deal is a major milestone in our journey to become the most loved, fastest growing pizza brand in the world, and Telepizza Group is the ideal partner with the capability, commitment and capital to accelerate Pizza Hut’s expansion into key high-growth regions like Latin America,” said Milind Pant, President, Pizza Hut International.
Telepizza is also expected to convert all its stores in Latin America (excluding Brazil) and the Caribbean into Pizza Hut stores while aiming to open at least 1,300 new stores over the next 10 years, and 2,550 stores total over 20 years – the vast majority of which will be new Pizza Hut stores. By store count, the landmark deal would Telepizza, Pizza Hut’s largest master franchisee globally.
“Our alliance with Pizza Hut delivers on Telepizza Group’s strategic plan to transform pizza delivery with a management model grounded in improving the customer experience through best-in-class operations,” said Pablo Juantegui, Executive Chairman and Chief Executive Officer, Telepizza Group.
In 2017, the Spanish chain, which operates in 23 countries and owns key brands such as Telepizza and Jeno’s Pizza, reported profits of about 561 million euros ($664.28 million).
(Photo credit: Pizza Hut UK)
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