Tweet

Pizza Industry Latest Facts and Figures

Written by: Anto Mathew

Article Overview: Franchise Direct has analyzed the latest facts and figures from the pizza industry. What emerges is a snapshot of a food franchising sector that is well-positioned to thrive during the current economic downturn.

Pizza Industry Latest Facts and Figures

This research comes from assessing FDD (UFOC) documents of a sample size of 20 pizza franchise chains, as well as published industry sources.

Generally-speaking, the restaurant industry has shown initial resilience in coping with the downturn. Americans continue to rely on restaurants, primarily take-away establishments, for their daily eating. National restaurants surveys show an industry bracing for hardship, but confident that consumers will remain loyal.

Franchise Direct's research shows that pizza franchises make up a majority of America's restaurants. Our findings state that pizza franchises experienced consistent sales growth up until last year, when the industry slowed. There are a number of reasons why pizza franchises are projected to remain strong. Commodity prices will fall in the coming years, creating savings for the purchase of ingredients. Pizza franchises will also seamlessly fit into new consumer trends, such as the switch towards healthier and organic food options and the integration of new technology in ordering food. Our research suggests that pizza franchises present a deft balance for consumers searching for a quality at an affordable price. It is believed that pizza franchises will succeed as other more expensive dining options fail.

Pizza franchises also boast a number of advantages as far as purchasing a restaurant is concerned. New entrepreneurs can avail of a franchisor's assistance in getting their business up and running. Our research reveals the typical franchise fee for a pizza restaurant. That figure tends to drops significantly for carry-out restaurants and double for larger, full-service pizza franchises.

The total investment sum for a pizza franchise can also vary greatly depending on location, unit size and whether the restaurant is take-out or dine-in. Our research tracks the range in investment in owning different types of pizza restaurant, factoring in fixtures, signs, inventory, training expenses, payroll and more. There are also a number of ongoing fees that the franchisee must be accountable for and our analysis details every payment that one can expect to make.

Most pizza franchises come with an exclusive territory, although some franchisors maintain a right to open new outlets within a given territory in certain circumstances.

In all, it remains hard to forecast the total earning potential of owning a pizza franchise. Every franchised industry is facing challenges at the moment, with the economy flailing and the sales expected to drop across the board in 2009. Cost control, management efficiency and slumping commodity prices will help to offset the sales decline brought on by the slump in the economy. According to research by Franchise Direct, pizza franchisees who can enhance their service and offer true quality to consumers will be the ones that will enjoy positive outcomes in 2009.

Related Articles
  Papa Murphy's is the Papa of All Pizza Chains
  Australian Pizza Chain, Pizza Capers Franchise plans to go global, foray into India and Singapore
  Franchises...If it Ain't Broke...
  Find marketing partners
  Are "Ground Floor" Franchises Right for Me?

Article Tags: Franchise Business, Franchise Directory, Franchise Information, Franchises For Sale, Franchising, Pizza Franchise, Pizza Franchises



Related Forum Posts
Re: Any franchising horror story? - [quote="Boola":3v4xydbm]Myself, and a dozen other Pizza Pizza franchisees lost their shops this year and can not afford a lawyer. In my case, after 1 year I requested to have the shop sold because what they sold us on paper clearly wasn't what was reality. After the 2 year mark was over (the out limit according to Ontario Law), I started receiving demand letters 2 termination notices. 6 months ago they took the shop and I'm still in limbo.. out almost 200K, my time, my wife's time and am receiving social assistance. Technically, I still own the business and the equipment but they will not "buy it back" from me nor will they budge until they find a new owner. They will also not allow me to refinance the collateral at a better interest rate and free up the equity so that we can get on with our lives. Totally disappointed, depressed and we're at risk of loosing our home because we can't make the payments anymore. A company full of broken promises.[/quote:3v4xydbm] Hi Boola, I'm very sorry to hear about your misfortune but can I ask how you lost your Pizza Pizza shop?
Re: Any franchising horror story? - Myself, and a dozen other Pizza Pizza franchisees lost their shops this year and can not afford a lawyer. In my case, after 1 year I requested to have the shop sold because what they sold us on paper clearly wasn't what was reality. After the 2 year mark was over (the out limit according to Ontario Law), I started receiving demand letters 2 termination notices. 6 months ago they took the shop and I'm still in limbo.. out almost 200K, my time, my wife's time and am receiving social assistance. Technically, I still own the business and the equipment but they will not "buy it back" from me nor will they budge until they find a new owner. They will also not allow me to refinance the collateral at a better interest rate and free up the equity so that we can get on with our lives. Totally disappointed, depressed and we're at risk of loosing our home because we can't make the payments anymore. A company full of broken promises.
Dragon's Den Ryerson Prof. - I think they blew a great opportunity. The La Senza and Boston Pizza guys were ready to sign up as clients and use it and they had 5 seasoned entrepreneurs as advisors. why go with a professor who has never made it as an entrepreneur??
Re: How can we provide a better forum moderator experience? - Ahh... I was hoping someone could help me out here... LOL. Perhaps maybe a small banner ad right below "Evan's Latest Video?" I don't think this would detract from the links on the sidebar, and it would be the only advertising on the entire sidebar. I think a 250 X 250 banner would fit. Just a thought...
Re: Twitter releasing real time analytics - Hi Evan, Thanks you for the heads up on that, it will be interesting to see how the analytics works out but Twitter has had to evolve pretty quickly to keep pace with the requirements of the Industry so I suppose it was a natural development. regards, Mal.


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Environment and productivity at the office

You Have A Website What Now

Adjusting Your World

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.