Flynn Group announced today the acquisition of Wendy’s New Zealand, its third international deal since last June.
Flynn Group announced its third international expansion since its first endeavor in Australia last June.
The franchisee group acquired Wendy’s New Zealand, Flynn announced today. Wendco Limited, which operated Wendy’s in New Zealand since 1988, sold the 20-plus-unit portfolio to Flynn Group.
This purchase, which took about six months, makes Flynn the sole franchisee for Wendy’s in New Zealand and Australia.
“It also gives us a running start,” CEO Greg Flynn said. “We’re not starting from scratch. A lot of the issues around, for instance, supply chain, have already been worked out for New Zealand.”
Flynn Group CEO Greg Flynn
Flynn bought 260 Pizza Hut stores, its first international investment since its inception 25 years ago. Flynn owns Pizza Hut, Planet Fitness, Wendy’s, Applebee’s, Arby’s, Taco Bell and Panera franchises across the United States, Australia and, now, New Zealand. Total annual sales last year hit $4.7 billion.
“One of the things that gave us confidence that Wendy’s could succeed in Australia is the fact that Wendy’s has succeeded in New Zealand for more than 30 years,” Flynn said.
This acquisition brings Flynn’s portfolio to more than 2,700 units.
“We’re always looking to grow,” he said. “As we’ve gotten bigger, it becomes even easier to keep the growth engine running.”
Related: Flynn Restaurant Group Expands Overseas With Acquisition of Pizza Hut Australia
With Flynn’s acquisition of a 37-unit Planet Fitness franchisee, Alder Partners, last year, he said the group has three major growth channels: U.S. restaurants, international restaurants and consumer-facing businesses. The acquisition led Flynn Group to drop “restaurant” from its name.
The group named Phil Reed president of Flynn’s Australia and New Zealand operations. Flynn is keeping the existing operations teams on board.
The nearly 300 Pizza Hut units are “performing right on plan,” Flynn said. “We expect our first Wendy’s will open this fall.”
Last year, various media outlets reported Flynn was exploring a sale, which he put to rest at the International Franchise Association Convention in February.
Related: Greg Flynn: ‘I’m Not Selling and We’re Not Going Anywhere’
Even with New Zealand’s smaller population (5.1 million compared to Australia’s 26 million), Flynn said there is plenty of opportunity in the country to open more Wendy’s stores. “If you look at some of the direct competition, McDonald’s and Burger King, they have so many” units, Flynn said. “We think we can help close that gap, very similar to how we think we need to close the gap in Australia.”