Dive Brief:
- Flynn Group acquired 45 Pizza Hut restaurants in Alabama, Georgia and Tennessee, the company said in a press release emailed to Restaurant Dive.
- With its total domestic restaurant unit count now at 1,027 Pizza Huts, Flynn Group operates nearly 20% of Pizza Hut’s U.S. system. The franchisee also operates roughly 300 units in Australia under Flynn ANZ.
- The acquisition will allow Flynn Group to build out an existing market, where it has several other quick service and fast casual brands.
Dive Insight:
Flynn Group has been expanding its Pizza Hut footprint since entering the system in 2021 with the acquisition of 937 Pizza Huts from NPC International. In 2023, the operator purchased a master franchise license for Australia, its first international investment.
With its acquisitions in the Southeast, “Flynn Group will capitalize on already established best practices and operational efficiencies to ensure continued success for the newly acquired restaurants and enabling the highest possible customer experience,” the company said.
Flynn Group’s expanded portfolio and operational experience could help Pizza Hut as the franchisor looks to improve its value proposition, menu innovation and digital experience. The chain itself has struggled with same-store sales declines while other competitors, like Domino’s, continue to boost traffic and sales with competitive promotions.
The large franchisee has been using acquisitions to build up its portfolio of brands in the past few years. Last year, Flynn Group bought 26 Applebee’s units and 32 Wendy’s restaurants — brands where it already had a significant operating stake. It became the country’s largest franchisee in 2018 after it added 368 Arby’s restaurants to its portfolio through the acquisition of US Beef Corp. which grew its portfolio to over 1,500 units. It now has over 2,900 consumer-facing businesses with Applebee’s, Arby’s, Taco Bell, Panera, Pizza Hut, Wendy’s and Planet Fitness.
Other large franchisees have also been active in acquiring businesses, and sometimes whole brands, in the past year. In 2024, multi-brand franchisee Sun Holdings bought both Uncle Julio’s and Freebirds World Burritos. KBP Brands became a major franchisee in Sonic Drive-In’s system last year after it bought 85 units from Boom Inc. Delight Restaurant Group expanded its Wendy’s portfolio with a 65-unit acquisition, bringing its restaurant count to nearly 300.
