With over 180 outlets, three popular pizza chains in Vietnam posted double-digit growth last year with combined revenues of over $83 million.
American chain Pizza Hut was the revenue leader with VND749 billion ($32.2 million), up 22 percent year-on-year; followed by Thailand-headquartered The Pizza Company, which passed the VND600 billion revenue mark last year, up 24 percent; and Vietnam’s Pizza 4Ps with VND568 billion, up 38 percent.
As one of the earliest pizza chains established in Vietnam, Pizza Hut has had the advantage of being a market pioneer and has now operated for 14 years with over 90 outlets nationwide. But as new players entered the market, its growth fell to below 20 percent annually in the 2015-2018 period; even down to 6 percent in 2017-2018.
Second-placed The Pizza Company has been rapidly expanding in Vietnam since 2013, its number of stores second only to Pizza Hut at over 70 nationwide.
It also took the company just six years to pass the VND600 billion revenue mark, while it took Pizza Hut 12 years to record the same figure.
While it is in third place with just 20 stores, Pizza 4Ps’s revenue last year was only 8 percent behind that of The Pizza Company.
It was also the only of the three that posted profits of over VND50 billion in the last two years. Pizza Hut has reported losses in three of the last four years while The Pizza Company has done so for three years in a row.
Euromonitor International, a London-based strategic market analyst, estimated the value of Vietnam’s pizza market at $120 million in 2017.
Source: vnexpress
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.
