Pizza Hut has struck a landmark deal with European pizza giant Telepizza that makes the company its largest master franchisee globally by unit count.
The pair have signed an international agreement that is designed to accelerate growth across Latin America (excluding Brazil), the Caribbean, Spain, Portugal and Switzerland.
Across all the markets covered in the alliance, Telepizza will oversee nearly 1,000 Pizza Huts and contribute nearly 1,500 of its stores to Pizza Hut’s global unit count.
Telepizza will target opening at least 1,300 new stores over the next 10 years, and 2,550 stores total over 20 years. The vast majority of the new store openings will be Pizza Hut, including all stores in Latin America and the Caribbean.
Telepizza is the largest non-US pizza delivery company worldwide with more than 1,600 stores in over 20 countries, while Pizza Hut boasts nearly 17,000 restaurants in over 100 countries.
The landmark deal doubles Pizza Hut’s footprint in the regions covered by the alliance and places Pizza Hut in the number one position in the category across Latin America and the Caribbean in terms of store count.
“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 of 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.”
Pablo Juantegui, executive chairman and CEO of Telepizza Group, said the alliance delivers on its strategic plan to transform pizza delivery with a management model grounded in improving the customer experience through best-in-class operations.
“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,” he said. “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.”
Completion of the alliance will be subject to certain conditions, including regulatory approvals and approval by Telepizza Group shareholders.