The Italian food franchise industry includes restaurants that provide mainly Italian-style food to their customers. These restaurant franchises may provide their food services in combination with selling alcoholic and other kinds beverages. Per the more official definitions, the industry excludes restaurants that sell a small portion of Italian food as part of a wider cuisine offering.
Popular Italian-American foods include:
- Pastas such as baked ziti, lasagna, spaghetti, and penne with accompanying sauces like alfredo, marinara or Bolognese
- Cheeses such as ricotta, mascarpone, gorgonzola, mozzarella, and parmesan
- Vegetable dishes like eggplant parmesan
- Meat-based fare such as frittatas, sausage and peppers, chicken parmesan, veal parmesan, chicken marsala, Fra diavolo and more
- Soups and stews like pasta e fagioli and wedding soup
- Desserts like tiramisu, cannoli, biscotti, pizzelle, and more
- Other goods such as calzones, stromboli, sub sandwiches, meatball sandwiches, etc.
A survey done by the National Restaurant Association within the last decade showed that Italian food is the most popular “ethnic” food in the United States.
In the survey, 61% of the 1,000 people polled said they ate Italian food at least once a month. By comparison, 50% respondents said that they ate Mexican food at least once a month and 36% percent said they ate Chinese food at least once a month.
Future Trends
As we go into the future, expect Italian food franchises to remain very popular to with customers. Also, expect more variations in business models such as a “healthier” take on the typically carb-heavy cuisine.
Take, for example, Pesto Italian Craft Kitchen. Founded in 2015, this franchised business claims to offer “traditional Italian fare, made hearty and healthy, [that] satisfies cravings for comfort foods while nourishing the body and soul.”
The U.S. Pizza Franchise Industry
Omitted from the list above is the most popular Italian food. Pizza obviously isn’t the only segment of Italian food franchises, but it’s certainly the largest.
The history of pizza in the United States began in the 1900s, when it arrived to the inner cities of New York and Chicago, most notably, thanks to the large populations of Italian immigrants that settled in those areas. The popularity of pizza in the United States grew further when GIs returned to the country after being stationed in Italy during World War II. With them, they brought home a demand for the pizza they had enjoyed in Italy and thus began the mainstreaming of pizza into American society.
From that point in time forward, particularly between 1945 and 1960, pizzerias began opening all over the country in earnest. At that time, pizza restaurants were predominately individually-owned stores. There are still numerous independent pizza parlors, but the proliferation of franchise pizza chains has forever changed the landscape of the industry.
In the United States – and worldwide for that matter, the pizza franchise industry is dominated by a big four:
- Pizza Hut: Started in Kansas in 1958, now has over 17,000 locations in the world, over 5,000 in the United States alone;
- Little Caesars: Began in 1959 in Michigan and now has over 5,000 locations, of which over 78% or approximately 4,200 units are in the U.S.;
- Domino's: Started in 1960 in Michigan, now has over 19,500 locations worldwide, with over 6,000 in the U.S.; and
- Papa John's: Opened in 1985 in Indiana, now has nearly 5,800 locations, over 3,000 of which are in the United States.
Combined, all of the pizza franchises in the United States bring in over $40 billion each year, per IBISWorld.
Initial Investment and Opening Costs for Italian Food Franchises
The amount necessary to open a franchise varies depending on the unique business system and execution requirements.
The opening costs for a food franchisee can depend on many factors, including but not limited to the franchise fee, land and building costs, training expenses (such as travel and living expenses, not the actual training courses), grand opening advertising and marketing costs, and more.
One of the most important variables in how much it costs to open an Italian food franchise is the type of franchise being opened and how big it is. The two types of food franchise most commonly offered are traditional and non-traditional. Traditional franchises are usually the biggest option. They are typically standalone buildings where the service of the franchise is the only business offering. Non-traditional franchises are smaller, and typically located within another building like malls, airports, or gas stations.
In addition, food franchises are increasingly being run from a small or shared kitchen facility, referred to a “ghost kitchen,” and is only used for pickup or delivery. Food truck franchise opportunities are also on the rise.
Our franchise profiles will present you with a basic range for the initial investment required to open an Italian food franchise. But when it comes to finding out the details of an initial investment, the franchise disclosure document (FDD) is the best place to look. Franchisors offer itemized estimates in their FDD based upon their experience establishing, and in some cases operating, units.
Franchisors offer estimates in their FDD based upon their experience establishing, and in some cases operating, units. However, prospective franchisees should keep in mind these estimates are just that—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
Ongoing Costs for Italian Food Franchises
Throughout the length of the agreement there are costs for being a part of the franchisor’s business system. These costs include items such as royalty fees, charges for technical support, and continued advertising/marketing costs.
The most common is the royalty fee. Royalty fees are assessed for the continued use of the franchisor’s trademarks and patented processes, along with certain types of operational support. In addition to regularly assessed fees, other fees are charged on an “as needed” basis such as audit fees, or costs for additional, non-mandatory, training.
In addition, it’s important to note that while many initial and ongoing costs are detailed in the FDD, there are some costs inherent to business ownership, like employee wages or utility costs, that aren’t.