Pizza Hut is about to get a massive overhaul

IT’S pizza slices at 50 paces. It’s been the underdog of the pizza wars for way too long, but that’s about to change as Pizza Hut plans a comeback.

PIZZA Hut has been a fast food underdog for way too long.

But that’s about to change, with the chain Australians grew up on set to undergo a transformation at the hands of its new private equity masters.

Allegro Funds, which bought the master franchise for Pizza Hut from US-based Yum! Brands in a deal that takes effect today, has big plans for the underperforming business.

“Our view is that if we invest in the brand, we can operationally improve the business so that it’s much more customer centric,” Allegro managing partner Chester Moynihan told news.com.au.

“Pizza Hut has not had a product issue; the product’s actually very good, it’s high quality.”

But he said operational issues such as ease of online ordering, store reach and speed of delivery, along with brand positioning, showed room for improvement.

“In today’s marketplace, whether you’re buying takeaway pizza or insurance, consumers expect an ease of use experience online,” Mr Moynihan said.

“For us, that’s just a ticket to the game; it’s a hygiene factor. You have to be able to deliver on that. It’s about the quality of your product, it’s about getting it to the customer quickly. Speed is a key thing here.”

While declining to comment on a rumoured imminent deal to take over the failed Eagle Boys pizza chain, Mr Moynihan flagged a significant growth in stores.

“The penetration of Pizza Hut stores and the ability of customers to order Pizza Hut, that is an opportunity we see in terms of growth,” he said.

“There are a number of areas where Pizza Hut is not represented, and we think that there’s certainly opportunity for new franchisees to penetrate those areas.”

A merger of Pizza Hut and Eagle Boys would result in the second-largest pizza chain in Australia, with a total of about 400 stores to lay claim to 30 per cent of a market worth $3.7 billion.

Three former McDonald’s executives, who worked for the fast food giant during the rollout of its Create Your Taste menu, have come on board with an equity stake in the Pizza Hut franchise.

Mr Moynihan said that while the pizza business is different from McDonald’s, “ultimately there’s a lot of crossover in terms of high standards from an operational perspective — product quality, to being at the forefront from a digital platform, digital experience perspective.”

McDonald’s alumni Peter Rodwell, Lisa Ransom and Chris Leslie had “a track record of delivering in that sphere and also delivering in relation to brand, positioning and marketing”, he said.

Allegro and the new executives will buy existing Pizza Hut stores or open new ones to demonstrate their commitment to the project.

“We think it’s very important in any franchise business to have some skin in the game,” Mr Moynihan said.

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