Hell pizzas growing in Britain

The two boyhood mates from Karori, Wellington, who created Hell Pizza are expanding their foothold in the northern hemisphere and starting to extend their turf in Australia.

After selling the New Zealand rights to Hell in 2006, co-founders Callum Davies and Stuart McMullin are about to launch their brand in Canada and Ireland.

Mr McMullin said that after just over a year, Hell Pizza's pilot restaurant in the London suburb of Fulham had passed the taste test with local people and Australian and Kiwi expatriates, and Hell expected to open another two stores this year.

The company is to finalise a master franchise agreement for Ireland this week, with the first outlet expected to open in Dublin this year.

A master franchise agreement for Canada is also about to be signed, with the first restaurant to open soon.

The master franchisee in Australia will open the third Hell Pizza outlet in Brisbane next month. The agreement requires 30 outlets to be established in three years.

Once the Queensland market is developed, Hell will move into New South Wales and Victoria, followed by the other states.

Hell receives a payment for the master franchise, a one-off payment for each new store opened and royalties of 1 per cent.

Though there is no shortage of those seeking franchises, the biggest hurdle for expansion in London is the scarcity of good sites and 10- to 15-year leases.

Mr McMullin said London had the potential for up to 150 Hell restaurants and Britain could absorb up to 600.

"The quality of pizza over there is pretty poor, and service is also pretty patchy. Our food is quality and service is a high standard, but it's still done with a bit of Hell attitude."

Hell's New Zealand rights were sold to TPF, New Zealand franchise holders of Burger King, for about $15 million. At the time, the chain had expanded from four outlets in 2002 to 66, with sales of $55 million.