Frequent Asked Questions (FAQs) About Pizza Franchises

These frequently asked questions summarize key points about pizza franchise opportunities.

Is pizza a good business?

Pizza is a very good business. Consider these 3 advantages to owning a pizza business:

  • Consumer demand. 13% of Americans over age 2 eat pizza on any given day. It’s popular all over. It is most popular in the Northeast and Midwest, according to PMQ Magazine. We eat 3 billion pies per year.
  • Profitability. Ingredient costs are relatively low compared to the price charged, ensuring profitability.
  • Growing industry. The pizza industry is $47 billion a year, and franchises constitute $36.4 billion of that, according to research firm IBISWorld.  It is forecast to continue growing over the next five years.

Pizza has become a food staple — whether deep dish, thin crust, unusual toppings or more. Among food franchises it is one of the most popular categories. You get the benefits of the franchise system and branding, together with sound business fundamentals and help choosing locations.

How much do pizza shop owners make?

The amount you make with franchise pizza depends on the type of pizza business you operate. For example, the average Dominoes owner might expect to make between $107,000 to $116,000 per year, according to Glassdoor. However, a Papa John’s franchise owner might make about $142,000 before taxes, says Franchise.com. First, of course, you need to subtract out costs related to food, labor, marketing, supplies, royalty fees and real estate associated with these franchises.

Is a pizza franchise profitable?

Yes, a pizza franchise can be profitable. For example, the top 75 percent of Marco’s Pizza restaurants made between $543,093 and $1,736,679 in net royalty sales in 2019. The average store spent about 31 percent on food and supplies and 25 percent on labor. The exact amount each store makes depends on the size, market, and expenses.

How much does it cost to open a pizza franchise?

Opening a pizza franchise can cost anywhere from $25,000 to over $1 million, depending on locations of your franchise business and other factors. Most fall somewhere between $200,000 and $600,000. Those that just offer a mobile component or pickup and delivery service tend to be cheaper. Large, dine-in restaurant locations with extensive menus fall on the more expensive end of the spectrum. 

Author: Sean T. Ngo is the CEO and Co-Founder of one of Asia’s leading franchise consultancy, VF Franchise Consulting. He is Vietnamese American and has been living in Vietnam for over 16 years. You can reach him at [email protected] or [email protected] 

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