American fast-food giant inks deal for 200 stores in major shake up
Wendy’s has taken a step closer to opening 200 stores in Australia.
The American fast food giant has signed a contract with Pizza Hut operator Flynn Restaurant Group for the construction of hundreds of stores in the next decade.
Wendy’s is a burger chain that is third in the world after McDonald’s, Burger King.
Wendy’s International President, Abigail Pringle, said the company was ready to finalize a contract after a successful pop-up in Sydney in 2020.
She stated that Wendy’s is ready to compete with long-standing burger chains in Australia.
She said, “Flynn Restaurant Group is a restaurant group with a wealth of experience. We are excited to expand our relationship.”
“They have an excellent leadership team with a great culture and vast industry expertise. They are also very successful in the U.S.
Wendy’s Australia is confident that Flynn Restaurant Group will be the best partner for growth.
Ms Pringle stated that the major expansion “will primarily start” after 2025 with the goal to open 200 stores in Australia by 2034.
This news comes just months after the US-based Flynn Restaurant Group purchased more than 250 Pizza Hut outlets in a major expansion.
Pizza Hut has 926 outlets in total, including a large number of international stores.
Flynn operates hundreds of American quick-service and fast-food stores, including Applebee’s, Arby’s, Taco Bell and Panera Bakery Cafe.
The company operates Wendy’s restaurants in five U.S. states, including Washington DC.
Flynn Restaurant Group’s CEO Ron Bellamy stated that the company was thrilled to extend its partnership with Wendy’s Australia.
He said, “It’s (Wendy’s), a fantastic brand with significant potential outside the U.S.”
We think that it’s a great fit for Australia, given the sophistication of Australian consumers.
We look forward to expanding our brand and redefining the expectations of Australians in relation to QSR.
Wendy’s was not the first burger shop to open in Australia. The first Wendy’s opened in Melbourne, Australia in 1982.
It was a chain of 11 stores across the country that collapsed three years later with an $8 million debt.
Recently, several American food chains, such as Five Guys and temporary pop-up In-and-Out stores, have opened in Australia.
In-and-Out, a Californian burger franchise, opened a pop-up shop in Melbourne this year.
This deal is a direct challenge to McDonald’s & Hungry Jack’s, which has had a stranglehold over the burger industry for years.
The AFR quoted Jack Cowin, the founder of Hungry Jack, as saying that Wendy’s Australian ambitions were questioned due to its failure in the past.
The deal is not clear as to how it will affect the 120 Wendy’s Milk Bars that are open in Australia and New Zealand.
When Wendy’s announced its plans early this year, a Wendy’s Milk Bar Franchisee told the Guardian that “there can’t be 2 Wendy’s”,
