New Zealand pizza chain Hell Pizza will open its third store in Seoul next month, with another seven outlets planned. 

Director Stu McMullin says the two stores currently trading, which opened in August and November last year, are turning over between $12,000 and $15,000 a week, but acknowledges achieving critical mass for the KOrean business will take up to two years.

The South Korean franchise is run by local entrepreneur Yong-Seok Kang.  

Hell Pizza has 65 stores in New Zealand, but the sheer size of the Korean market creates potential for as many as 100. Meanwhile, the chain continues to build its presence in Canada, the UK and India.  

Despite some success to date, offshore expansion is still a risky business, says McMullin. The Australian franchises has reduced its chain from 10 to two stores, with Hell’s New Zealand operation set to take it over, and it has failed to take off in Ireland.

“We work hard at our business but not everything is going to succeed every time,” he told the Stuff.co.nz website. “A pizza bar in India goes well enough with a vegetarian menu, but since its opening one year ago it faces unexpected costs such as $15,000 a month in rent – the same amount as shops other places have to pay in one year. The other problem there is bribes: our guy there pays thousands of dollar a month to the cops, council, local officials… you name it.”.

Hell was established in 1996. Ten years later, it passed on to the Burger King owner Tasman Pacific Foods. It was bought back three years later by its present directors Stu McMullin, Callum Davies and Warren Powell.

GB