Pizza Hut
Delivering Pizza Hut a bigger slice of the QSR market
Snapshot
Type of Investment
Turnaround
Industry
Food Products
Initial Investment
September 2016
Fund
Allegro Fund II
Investment Status
Exited
Website
Contact
Chester Moynihan
Jeremy Trouncer
In 2016, Allegro acquired the master franchisee license for Pizza Hut in Australia from Yum! Brands, along with the bankrupt Eagle Boys chain, which was subsequently converted into Pizza Hut stores. At the time, Pizza Hut was an underperforming business with a disengaged franchisee network and a weak brand presence, despite its iconic status. Allegro recognized the significant potential for transformation and set out to revitalise the brand.
Allegro partnered with a new CEO and management team to execute a successful turnaround. The strategy centered on operational excellence, customer satisfaction, and rebuilding the chain’s digital platform with a data-driven approach. This led to a remarkable transformation: Pizza Hut Australia became the country’s fastest-growing quick-service restaurant brand, with 51 consecutive months of same-store sales growth by May 2023, even amidst the COVID-19 pandemic. Under Allegro’s ownership, network sales grew from $180 million to $270 million, and average franchisee sales more than doubled.
In June 2023, Allegro sold its stake to the Flynn Restaurant Group, America’s largest restaurant franchise operator.