The Growth of Yum Franchisee Emerge Inc. Amidst Pizza Hut Purchase

Emerge Inc. is a Houston-based franchise under Pizza Hut that continues to seize opportunities to grow its portfolio. More so, as the Pizza Huts brand adds 36 more stores in San Antonio, Emerge Inc.’s unit count increases to 84. Kamal Singh, the Emerge Inc. CEO, makes sellers understand that the franchisee will pay if their deal fits Emerge Inc.’s long-term vision.

Pizza Hut’s expansion and Emerge Inc.’s growth

Late in August, KFC, Pizza Hut, Taco Bell, and Sonic Drive-In acquired another 35 Pizza Hut restaurants. This new addition brought the group’s unit count across all four brands to 169. 

Meanwhile, Singh and Mick Rosckowff, the Chief Operating Officer, started building Emerge Inc.’s portfolio in 2016. This was right after Singh added nine KFC/Taco Bells in Houston and Beaumont to the seven Louisiana units already on the ground.

They have eliminated private equity with their capital by working with lending partners. Singh says this action allows them to look beyond purchasing packages from stores and the PL. He explains that they are long-term buyers who know the business, even if second-generation owners have better record-keeping.

Singh’s Take Recent Pizza Huts Acquisition

Singh indicated that the most recent acquisition deal included 23 pieces of real estate in which Emerge paid a competitive multiple. He calls it an above-average unit volume market that leads them to believe the business has an upside. More so, mature franchised Pizza Hut restaurants open at least a year; they made a $1.03 million sales average, as revealed by the disclosure document.

“The Emerge Inc. business grew through established relationships,” says Singh Newton Associates, led by Clay Richmond, the recent acquisition's seller. Clay Richmond is a second-generation franchisee and the son of Jack Richmond, who had previously bought a Pizza Hut restaurant in 1968. Since Richmond Sr. was an early franchisee in the system, they desired to keep the legacy in the San Antonio market alive.

Singh noted that he checked in with the family every quarter since 2018 to know when they would be ready. He formed and established the relationship, meeting them at conferences, which is why the deal pulled through. He said the deal was not a heavily marketed opportunity but built through quality relationships.

Houston-Based Emerge’s Pizza Hut Unit Count

Emerge’s addition of a sizable collection of restaurants extends its presence in Texas, bringing its Pizza Hut unit count to 84. Meanwhile, the company had purchased 48 Pizza Huts throughout Arizona and in Houston in a bid to enter the system.

The company is very particular about geography, says Singh, which is why it also owns Taco Bells in San Antonio. The company’s footing in San Antonio is solidifying massively, and the group is trying to discover opportunities for new stores.

Meanwhile, when general managers acquired restaurants, Singh and Rosckowff visited them. These visitations allow them to introduce the restaurant teams to Emerge while helping the new owners better understand the business. Learning from managers has many benefits, including adjusting delivery grids to service new areas.

Conclusion

“While much growth is happening in San Antonio for Emerge Inc., some grids still need to be updated. The recent acquisition is Emerge Inc.’s second acquisition in 2023; it bolsters its portfolio,” says Attorney Jason W. Power of Franchise.Law. Yum Brand is the parent company of the group – that is, KFC, Taco Bell, and the Habit Burger Grill. Emerge became 23 in the brand when it bought nine Taco Bells in New Mexico in March.