Pizza Hut, a subsidiary of Yum! Brands, Inc. (NYSE: YUM), today announced that its U.S. business has entered into a definitive agreement to acquire QuikOrder, a leading online ordering software and service provider for the restaurant industry. Terms of the deal were not disclosed, but it marks one of Pizza Hut's largest acquisitions to date.
By acquiring QuikOrder's online ordering capabilities, Pizza Hut U.S. will improve its ability to deliver an easy and personalized online ordering experience and accelerate digital innovation across its base of more than 6,000 restaurants in the U.S. In 2018, approximately half of Pizza Hut U.S. sales were processed through QuikOrder's platform. Founded in 1997, QuikOrder specializes in developing and maintaining internet-ordering systems used across the QSR industry. It has served Pizza Hut U.S. for nearly two decades. Over that time, it has built an expert team that fully understands and meets Pizza Hut's specific needs. The acquisition will include: Pizza Hut's current digital ordering platforms, systems and services and QuikOrder's in-restaurant technology and ancillary services, as well as its future generation products and programming.
"We're doubling down on our commitment to digital and this deal positions Pizza Hut perfectly for the future," said Artie Starrs, President of Pizza Hut U.S. "We're also gaining access to an immensely talented group of developers and digital innovators. Together we can more quickly provide breakthrough products and convenient services to our customers that will allow for better franchise economics over the long term."
The proposed acquisition supports Pizza Hut's strategic commitment to further expand its digital capabilities, by taking full advantage of the stable, highly customized platform that QuikOrder developed for Pizza Hut in a way that provides greater flexibility and efficiency. This builds on the strides Pizza Hut has made over the past year, since entering into its Transformation Agreement with its franchisees, focused on improving operations and accelerating technology enhancements and e-commerce capabilities. In this time, Pizza Hut has introduced a range of innovative online ordering tools and services, such as a delivery tracker with text alerts, easy order options through voice-enabled digital assistants and social, and Hut Rewards, the only national pizza loyalty program that rewards members for every dollar spent on food online.
Greg Creed, Yum! Brands Chief Executive Officer, stated, "Yum! is always looking for ways to make our brands more distinctive, relevant and easy for customers who want delicious food at an irresistible value. The acquisition strengthens the brand's digital roadmap and innovation and aligns with the strategy we put in place to drive Pizza Hut's growth. We're excited by the opportunity this acquisition presents, and the future potential to scale QuikOrder's technology across the Yum! family."
"We've enjoyed a long and successful partnership with Pizza Hut and I couldn't be more pleased by this next phase of our relationship," said Jim Kargman, QuikOrder CEO. "Technology and innovation are the backbone of this business and I'm excited by what the future holds."
Pizza Hut's acquisition of QuikOrder is expected to close this month, subject to standard closing conditions.
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