In a significant move for the Flynn Group, CEO Greg Flynn announced the company's expansion into New Zealand and Australia, highlighting the cultural alignment and potential for growth in these markets. Flynn, whose company has thrived in the United States for over two decades, sees this international venture as a natural progression of their business strategy. In an interview with the New Zealand Herald, Flynn expressed his enthusiasm about integrating the Flynn Group's operational strengths into the local market, particularly through their acquisition of Wendy's New Zealand.

Weve been growing Flynn Group in the United States for more than two decades and weve enjoyed good success, Flynn explained, recalling the companys initial focus on Applebees, which dominated their first twelve years. In the past ten years, we diversified domestically as a franchise operator, and by the time we got to 2022, we had successfully completed that chapter one and chapter two of our quest for domestic diversification.

As the Flynn Group transitions to international expansion, Flynn emphasized the importance of a careful and calculated approach. The choice of Australia and New Zealand was strategic, based on shared languages and legal structures, as well as the familiarity that Kiwi consumers have with American brands. Flynn noted that this familiarity often translates into a smoother market entry.

A key element in the acquisition of Wendy's New Zealand was the application of what Flynn describes as a premier filter. This criterion focuses on well-established brands that have weathered multiple economic cycles, typically spanning 30 to 60 years. These brands have demonstrated their broad appeal across diverse demographics, Flynn noted, emphasizing that such stability reduces the inherent risks associated with the fast-food industry.

Flynn was particularly drawn to the Wendys operation in New Zealand, finding it a compelling opportunity compared to launching a new brand from scratch. Once we came to New Zealand and met the Lendich family, visited the restaurants and engaged with the team, we instantly recognized a great cultural fit between our businesses, he said. This connection was critical, and Flynn confirmed that Danielle Lendich would continue to play an integral role in the leadership team, bringing with her a wealth of local knowledge and experience.

Despite the acquisition, Flynn indicated that there will be no immediate sweeping changes to the existing operations. Instead, he envisions leveraging the strengths of the Flynn Group, including improvements in supply chain management, technology, marketing strategies, and data analytics, to enhance the Wendys brand in New Zealand. Additionally, he pointed out that Wendy's would benefit from the capital investment that a family-owned business might lack. The Flynn Group currently boasts an annual revenue of approximately US$5 billion, which positions them well to finance this expansion.

Flynn mentioned plans to explore new store locations in New Zealand, indicating a cautious approach to growth that avoids oversaturation. Were not looking to saturate the market with fast food, he clarified. However, we have received numerous requests from the Lendich family and others asking to 'bring a Wendys to me,' and we are open to expanding our reach to serve more New Zealanders.

On the Australian front, Flynn anticipates even greater growth potential. Having previously lived in Australia for a year, he understands the market dynamics there. Currently, Wendy's operates only one location in Australia, situated in Surfers Paradise, Brisbane. Flynn reiterated a commitment made publicly to grow the number of stores to 200 within the next decade. Our Surfers Paradise location is quite distinct from our New Zealand restaurants. Its smaller and located in a high-traffic area, he noted, while also acknowledging differences in branding and menu offerings.

The Australian menu features unique items, such as hand-breaded chicken tenders, which are not available in the U.S. or New Zealand, showcasing the company's willingness to experiment and adapt. Flynn has also indicated that there might be opportunities to introduce popular items from the U.S. menu to the Kiwi market, like his personal favorite, the Mushroom Melt burger.

In light of the rapidly evolving landscape of the fast-food industry, Flynn commented on the transformative role of technology. While the quick-service restaurant (QSR) category has already seen changes with the introduction of drive-thru timers, kiosks, and digital menu boards, Flynn believes artificial intelligence presents an exciting frontier. Currently, one of the most advanced applications involves voice interaction in drive-throughs. Its progressing well, though its not flawless yet, he stated. Wendys is conducting tests on voice AI, aiming to enhance customer interactions.

Flynn is optimistic about leveraging customer insights to refine product offerings and marketing strategies, although he acknowledges the challenges of keeping pace with technological advancements. Success for Flynn Group lies in our people and their ability to adapt to changing trends, he remarked, underscoring the importance of continuous reinvention to keep the brand relevant.

Looking ahead, Flynn hinted that while fans of the Flynn Group may be eager to see brands like Applebees, Arbys, or Panera branch out to New Zealand, those interested will have to wait and see how the company's expansion plans unfold. I wake up every day thinking about how to ensure my team is motivated and equipped to succeed, he concluded.

Tom Raynel, a multimedia business journalist for the Herald, contributed to this coverage, focusing on small business, retail, and tourism trends that influence the industry.