Pizza Franchise Opportunities

The recent financial turmoil has sharpened the downturn among sit-down restaurants that started more than two years ago. So far, large fast-food chains have managed to withstand it, in part because they benefited from consumers trading down to cheaper meals. “Quick service restaurants, which have a lower average check, tend to be somewhat more optimistic than higher average check operations," said Hudson Riehle, NRA (National Restaurant Association) chief economist, in an article published by Reuters on October 15th. This is good news for the QSR segment in general and pizza in particular because it combines affordable eating with a hugely popular food choice in the US. Here are some of the reasons why pizza franchises remain a top investment:

• 93% of Americans eat at least one pizza per month.*
• Pizza represents almost $40 billion in sales per year.*
• Pizza is the #1 dinner choice.*
• Pizzerias represent 17% of all restaurants in the U.S.**

Franchised pizza chains also occupy more than 60 percent of the U.S. pizza market, with new and improved concepts emerging almost daily. Compared to its closest food service competitors, the pizza business is unique in several ways. Twenty-six thousand of the estimated 64,000 pizzerias in America are owned by independent operators — unlike most hamburger, chicken or fish brands. Research shows that about 4,000 U.S. pizzerias open and close annually, and a good share of those closed are independent operations. Investment in a pizza franchise therefore makes sense for many reasons, not least because you can focus on duplication rather than invention. You are basically buying the company's proven model for success. A good franchisor, and especially one experienced at growing a pizza concept, has an experienced team in place to provide you with training and advice on starting and running the business. Some franchisors have corporate training facilities at which a basic pizzeria education is taught, followed by time in an existing store and regular field visits by corporate support staff once you are up and running. There are different types of franchised pizza concepts, from take-out to take & bake and seated restaurants, or a combination of these. Minimum investment varies from around $100k to $250k.

*Pizza Today Magazine, March 2007; **Nation’s Restaurant News, January 2007