Under the agreement, the Yum! Brands subsidiary aims to double its footprint across Latin America, Spain, Portugal, Switzerland and the Caribbean as Telepizza aims to open at least 1,300 new Pizza Hut stores over the next decade, and 2,550 stores over the next 20 years.
Last year 6% of Pizza Hut’s total sales came from Latin America, according to Yum! Brands first quarter results.
“This groundbreaking 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.
“Geographically, this long-term, strategic alliance with Telepizza Group will make Pizza Hut accessible to more consumers over time, helping fulfil our mission of making it easier to get a better quality pizza.”
Through the franchise agreement, Pizza Hut hopes to strengthen its position as the world’s largest pizza company.
In return, Telepizza Group will become Pizza Hut’s largest master franchisee globally by unit count.
The Spanish firm will oversee nearly 1,00 Pizza Hut and will contribute nearly 1,500 of its stores to Pizza Hut’s global unit count.
Operating in 23 countries, Telepizza Group owns brands such as Telepizza and Jeno’s Pizza.
The firm reported sales of around EU€561mn (US$664.28 million) last year.
“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.
“The deal accelerates our global growth plan, nearly doubles the scale of our business and extends our international reach to 37 countries, which represent more than 500 million potential consumers.
"The aspirations and capabilities of Telepizza Group and Pizza Hut International are complementary, and we are confident this deal will drive significant value for customers, employees, franchisees and shareholders as it represents an ideal platform for future growth opportunities.”