Greg Flynn is doubling down on Down Under.
Flynn Restaurant Group (FRG) on Wednesday said it has reached a master franchise agreement with Wendy’s to develop 200 restaurants in Australia, the second major deal for the San Francisco-based operator in two months, following its acquisition of 260 Pizza Hut restaurants there.
The deal also continues to expand the franchisee’s reach. FRG is a massive organization, with more than 2,600 restaurants in the Wendy’s, Pizza Hut, Applebee’s, Taco Bell, Panera and Arby’s brands. Those restaurants generate $4.5 billion in annual sales and employ more than 75,000 people. “We are thrilled to expand our relationship with them in this key market,” Wendy’s CEO Todd Penegor told analysts on the company’s second-quarter earnings call Wednesday.
The deal is key for Wendy’s, which is eager to expand internationally. The chain is the second largest QSR burger chain in the U.S., but its international footprint is dwarfed by rivals McDonald’s and Burger King. The company has been working to change that and grow its brand outside the U.S.
In 2021, Wendy’s held a one-day pop-up event in Sydney, which gave the company confidence that Australia would become a key market. “Australia is a strategic market for long-term growth for Wendy’s,” Abigail Pringle, Wendy’s president of international and chief development officer, said in a statement.
FRG will bring Wendy’s to the country through a master license agreement model, which enables the operator to sublicense the market. Wendy’s believes Australia could greatly expand its international footprint.
The deal also enables FRG to leverage the team it has in Australia following the June acquisition. “We look forward to bringing one of America’s most iconic brands to the people of Oz,” Greg Flynn, the founder and CEO of FRG, said in a statement.
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