In a significant development for the Flynn Group, CEO Greg Flynn announced the companys decision to broaden its horizons by expanding operations into New Zealand and Australia. Flynn highlighted that this move aligns perfectly with the companys ongoing growth strategy, which has been primarily focused on the United States for over two decades. The announcement was made with optimism, indicating that New Zealand, in particular, represents a promising cultural fit for the Flynn Group, making it an ideal location for international expansion.

According to Flynn, the companys journey began with a singular focus on Applebees for the first twelve years, followed by a diversification strategy within the U.S. market that spanned another decade. Weve been growing Flynn Group in the United States for more than two decades, and weve enjoyed good success, Flynn stated. By 2022, he noted, the company had completed what he described as chapter one and chapter two of their domestic growth, making international expansion a logical next step.

Flynn explained that the expansion was approached conservatively, with Australia and New Zealand being chosen due to their shared language, legal frameworks, and the established relationships that consumers in these countries have with American brands. An important factor in purchasing the business was applying a premier filter, Flynn added, emphasizing that they seek brands that have not only been successful for many years but also have demonstrated widespread appeal across diverse demographics. These brands, he argues, possess the scale and marketing power necessary to mitigate risks inherent in the industry.

The decision to acquire Wendys operations in New Zealand was particularly appealing for Flynn, as it allows the company to leverage an existing brand rather than starting anew. He shared that after meeting with the Lendich family, who are integral to the local Wendys operations, it was clear that there was a great cultural synergy. Once we came to New Zealand and met the Lendich family, visited the restaurants and met the people, we knew instantly that there was a great cultural fit between our businesses, Flynn expressed.

Despite the acquisition, Flynn assured that there would be no major upheaval to the existing operations. Instead, he believes that Flynn Groups expertise in supply chain management, technology, marketing strategies, and data analytics could enhance the current business. He also mentioned that Wendys New Zealand would benefit from the kind of capital investment that may not be feasible for a family-owned business. Flynn Group operates with an annual revenue of approximately $5 billion.

This investment is expected to include the establishment of new Wendys locations, although specifics regarding the number and locations are still to be finalized. Flynn acknowledged that there has been consistent demand from local patrons asking for more Wendy's outlets. Were not out to fill the country with too many fast food restaurants, but we have heard from the Lendich family and others that there is a constant request for bring a Wendys to me and were open to bringing it to more New Zealanders, he stated.

Turning to Australia, Flynn sees significant potential for growth. His familiarity with the country, having lived there for a year, adds to his confidence in the expansion. Presently, the Flynn Group has only one Wendy's restaurant in Brisbanes Surfers Paradise, but Flynn reiterated the ambitious goal of opening 200 stores within the first decade. The Surfers Paradise location is smaller than most New Zealand stores and is in a high-traffic area, he noted, suggesting that the Australian market has unique characteristics that will be reflected in its menu and branding.

Interestingly, the Australian Wendys features some experimental menu items, such as hand-breaded chicken tenders, which are not available in the U.S. or New Zealand. Flynn expressed optimism about the possibility of introducing popular items from the New Zealand menu to Australian customers, including his personal favorite, the Mushroom Melt.

The quick-service restaurant (QSR) industry is evolving rapidly, and Flynn is keenly aware of the impact that emerging technologies will have on this sector. Innovations in drive-thru operations, kiosks, apps, and digital menu boards are already transforming customer interactions. Flynn is particularly excited about the potential of artificial intelligence (AI) in enhancing customer service, especially in voice recognition technology at drive-thrus. Wendys broadly has a test going on for voice AI, and its well advanced but its not rolled out through the whole system, he explained. As these technologies become more integrated, he anticipates that they will allow managers and staff to focus more on customer satisfaction rather than merely processing orders.

Flynn believes that leveraging customer insights will be crucial in determining menu offerings and marketing strategies, despite the challenges of keeping pace with rapid technological changes. He emphasized that the core of Flynn Groups success lies in its people and their ability to respond to evolving consumer trends. I wake up every day and think, okay, what I need to spend my time on is making sure Ive got the right team, he said, highlighting the importance of empowering employees to adapt and grow.

As for whether Kiwi consumers can expect to see other Flynn Group brands, such as Applebees, Arbys, or Panera, making their way to New Zealand, Flynn suggested that fans would need to be patient. The future holds exciting possibilities as Flynn Group charts its course through this new chapter of international expansion.

Tom Raynel, a multimedia business journalist for the Herald, reported on this story, focusing on small business, retail, and tourism trends.