Pizza Hut Ethiopia was created by Addis Ababa-based company Belayab Foods and Franchise and US-based fast food company Yum! Brands, Inc. after the two companies partnered based on franchise agreement.
(Semonegna.com)–Pizza Hut, the American restaurant chain and international franchise headquartered in Plano, in the State of Texas, has opened its first restaurant in Ethiopia on April 10, 2018. The opening of Pizza Hut, the division of Yum! Brands, in Ethiopia reflects the Company’s expansion plan in such emerging markets as Africa. The Company opened its first restaurant in Africa in September 2014 in Johannesburg, South Africa.
At the opening ceremony in Addis Ababa, Mr. Michael Raynor, Ambassador of the United States to Ethiopia said,
“The growing presence of Pizza Hut and other brand-name companies in Ethiopia signals to other U.S. and international investors that Ethiopia offers compelling business opportunities.
“We hope that increasing U.S. and international interest in Ethiopia will serve as a catalyst for further progress in strengthening Ethiopia’s business and investment climates, including protection of trademarks like those of the world-renowned company we’re welcoming to Ethiopia today.”
The franchisee of Pizza Hut Ethiopia which will be running the local outlets is Belayab Foods and Franchise. US-based Yum! Restaurants International Inc. and Addis Ababa-based Belayab Foods and Franchises entered into a franchise agreement in April 2017 to open Pizza Hut Ethiopia restaurants in Addis Ababa, making Pizza Hut the third internationally franchised restaurant in the country, according to Addis Fortune.
According to the deal between the two parties, Belayab Foods and Franchise will pay an annual royalty, training and inspections fees for the brand from the total revenue it earns. In addition to that, the company will source the ingredients from Yum! Brands. Belayab Foods and Franchise, with its sister companies in known to enter such partnerships with international companies. In May 2017, one of its sister companies, Belayab Motors entered into partnership with Kia Motors Corporation, South Korea’s second-largest automobile manufacturer, for the assembly and sale of Kia automobiles in Ethiopia.