Pizza Hut challenges Domino’s in fight for fast-food pizza dominance

Pizza Hut is coming for the crown of market-leaders Domino’s, with plans to double their stores over the next five years.

The United States fast-food franchise giant which will soon be behind Pizza Hut in Australia is laying down the gauntlet to take on Domino’s as market leaders.

Flynn Restaurant Group, who already own Pizza Hut in the US, as well as Taco Bell and Wendy’s chains, will finalise the purchase of Pizza Hut Australia from private equity firm Allegro Funds by the end of July.

Pizza Hut Australia will change hands and be owned by US-based Flynn Restaurant Group after the deal is finalised by the end of July. Picture: NCA NewsWire / Naomi Jellicoe

Flynn’s co-COO Ron Bellamy has told The Australian he thinks Pizza Hut Australia and its CEO Phil Reed are doing a great job, but they’re capable of more.

“Hopefully, we can bring some investment and maybe some expertise from our experiences in the US,” Mr Bellamy said.

“If you ask me if we think there’s an opportunity to participate more broadly in Australia with the quick service food business, I think the opportunity exists.

“That’s something we will consider when the time is right.

“But, first and foremost, our focus is on Pizza Hut and supporting the remarkable journey that the team and the brand have been on in the Australian market.”

Pizza Hut Australia Phil Reed wants to take the company’s revenue to more than $1bn within a few years. Picture: Domino's Pizza via NCA NewsWire

Mr Reed took over the running of Pizza Hut Australia in April 2018, growing the company’s fast-food market share from seven per sent to around 10 per cent.

The chain opened 17 new stores in Australia in 2022, and six this year, with 251 stores across the country as of May 10.

However, it pales compared to Domino’s 755 Australian outlets, making Domino‘s Pizza Enterprises Ltd the largest franchisee for US parent company Domino’s Pizza in the world.

Mr Reed told The Australian he intends to bolster revenue under Flynn from around $300m to more than $1bn within the next few years.

“We have around 55 per cent of the Australian public who have yet to enjoy the opportunity of having Pizza Hut pizzas delivered to their home,” he said.

“There is a huge opportunity, whether it is growing the brand or opening new stores.”

Domino’s in Australia boasts 755 stores, and is the largest franchisee for US-based Domino’s Pizza in the world. Picture: NewsWire / Sarah Marshall

Asked about the threat of an expanding Pizza Hut empire down under, a Domino’s spokesperson said they welcome the competition.

“We don’t typically talk about our competitors’ businesses, as we are laser-focused on our own growth plans and strategy,” the spokesperson said.

“However, we can say we welcome competition in our market and are confident that we offer customers the best value for money when it comes to freshly prepared meals, delivered quickly, for a great price — and that won’t change.”

Flynn Restaurant Group operates 2350 restaurants worldwide, including 926 Pizza Huts, 282 Taco Bells, and 192 Wendy’s — at one time the world’s third-largest burger fast-food chain.