With this transaction, approximately 120 Jeno’s and Telepizza restaurants will be removed from Pizza Hut’s global unit count with a ‘negligible effect’ on royalties
Pizza Hut announced last week it transferred its Jeno’s and Telepizza trademarks in Colombia and Chile to Food Delivery Brands, S.A. With this transaction, approximately 120 Jeno’s and Telepizza restaurants will be removed from Pizza Hut’s global unit count, which is about 19,750 restaurants, and 100% of Pizza Hut restaurants in Latin America and the Caribbean region will now operate under the Pizza Hut brand.
In a release, parent company Yum Brands said the removal of Jeno’s and Telepizza will have a “negligible effect” on the company’s royalty income.
“This strategic move will enable the Pizza Hut team to focus exclusively on the Pizza Hut brand across the Latin America and Caribbean region, which will better enable our teams and franchisees to accelerate growth,” Pizza Hut Latin America and Caribbean general manager Kurt Smith said in a statement.
Food Delivery Brands sub-franchises or operates more than 1,500 Telepizza, Jeno’s, and Pizza Hut branded restaurants. Most of those locations operate in Spain and Portugal, where Pizza Hut’s partnership with Telepizza continues. Food Delivery Brands is Pizza Hut’s largest master franchisee outside of China, according to a company spokesperson. Last year, Food Delivery Brands completed a debt restructuring deal after recording a loss of 29.6 million euros (about $32.1 million) in the first nine months of 2022, according to Tapas. With this restructuring deal, Oak Hill, Fortress, Blantyre, and HIG became full owners of the company.
“Food Delivery Brands has a long and rich history of operating Jeno’s and Telepizza brands, and we believe this transaction in Latin America is in the best interest of customers and stakeholders of both brands,” Food Delivery Brands’ chief financial officer Jose Luis Renedo said in a statement.
The strategic deal between Pizza Hut and Telepizza was first announced in May 2018. During that time, the companies noted the “long-term, master franchise alliance” would accelerate growth, with a target of Telepizza opening 1,300 new stores over the next 10 years across several markets, including Latin America and the Caribbean.
The companies also announced in 2018 that the alliance shifted management of Pizza Hut’s supply chain in Latin America to Telepizza Group. Pizza Hut’s spokesperson said last week’s transaction would not have a material impact on the company’s current supply chain structure in Latin America.
Yum franchises more than 1,300 Pizza Hut restaurants across Latin America and the Caribbean.
Contact Alicia Kelso at [email protected]
