The pizza business, when operated by qualified and competent franchisees, are generally profitable as it is a fast-food product that is widely accepted globally. Pizza consumption is high in many parts of the world since it can be made with different kinds of proteins that are popular with local consumers, and the pizzas can be topped with beef, chicken, lamb, seafood, or any other protein that is a local favorite.
Pizzas can also cater to those that are vegetarians and vegans, and these types of pizzas are widely popular in Buddhist and Confucius cultures. Pizzas are also a shareable food which is popular in many Asian cultures. And lastly, pizzas are an affordable meal and is a perfect dine-in, delivery, and take-away food and beverage business. Everyone loves pizzas and they eat it quite often!
While COVID-19’s impact on the restaurant industry has mostly been negative, this was not often the case with the fast food industry and especially for pizza chains. Thanks to a business model that is already focused on delivery and take-away, many pizza franchises like Domino’s and Little Caesars Pizza continued to do relatively well due to their smaller store formats and value propositions to their consumers.
Many pizza franchises are poised to continue their strong returns in 2021 and the best franchises will likely exceed pre-pandemic sales and growth rates by 2022. A lot of this growth will be driven by the rapid growth in food delivery, and according to The Business Research Company, this sector is projected to grow at a compound annual growth rate (CAGR) of 4.96 percent from an estimated $96 billion in 2020. Online consumer purchasing behavior has not only been changed by COVID-19 but will continue to grow well after the pandemic is over.
Here are some of the best pizza franchises to invest in today:
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 sean@vffranchiseconsulting.com or info@vffranchiseconsulting.com
Frequently Asked Questions (FAQS) About Pizza Franchises
Pizza is a very good business. Consider these 3 advantages to owning a pizza business:
1. 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. 3 We eat 3 billion pies per year.
2. Profitability: Ingredient costs are relatively low compared to the price charged, ensuring profitability.
3. 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.
Accordion Sample DesThe 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.cription
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.
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.
