U.S. restaurant chain operator Yum! Brands Inc. said May 16 that its Pizza Hut division agreed to a master franchise alliance with Spain's Telepizza Group SA to accelerate its growth in the Caribbean and Latin America, except Brazil.
The alliance will also cover Telepizza properties in Spain, Portugal and Switzerland. The Spanish pizza chain is expected to become Pizza Hut's largest, by unit count, master franchisee and double its store portfolio to over 2,500 stores.
In Spain and Portugal, the Spanish pizza chain will continue operating under its own brand and will oversee Pizza Hut stores and franchisees. In Latin America and the Caribbean, Telepizza will oversee Pizza Hut chains and will progressively convert its existing stores in the region to the U.S. brand.
Telepizza plans to open 1,300 new stores over the next 10 years and 2,550 stores over 20 years in the regions covered under the alliance. A majority of the stores will be under the Pizza Hut brand, all stores opened in Latin America and the Caribbean will be under the Pizza Hut brand.
The Spanish chain will also manage Pizza Hut's supply chain in the regions covered under the alliance and will be the authorized supplier of the establishments.
