The timeless pizza franchise has been a franchising staple for almost as long as franchises have been a mainstream business model. Pizza restaurants are a lucrative franchise opportunity if handled correctly – even if you don’t partner with one of the bigger players like Pizza Hut, or plan to open your own Domino’s Pizza franchise.
Names like 800 Pizza, Blaze Pizza, and Donatos Pizza have been flourishing the world over for decades, and the pizza industry is always being guided by new brands wanting to take a slice of success.
As part of this comprehensive guide on opening your own pizza chain, we’ll take a look at what makes a popular pizza restaurant, how new franchisees can discern which pizza franchises are best suited to them, and what it takes to run a successful pizza franchise business. As it turns out, the formula of ‘buy pizza franchise equals success’ doesn’t quite align with the truth.
Why you should invest in a pizza franchise
There are many reasons as to why you should invest in a pizza franchise; chief among them is the enduring popularity of this style of restaurant in many of the world’s leading franchise markets. The simple fact is that the pizza business is big business, and whether a brand offers intuitive pizza delivery or just brick-and-mortar, dine-in options, there are many ways to make money and a lifestyle with your own pizza restaurant.
While not every international market is as big on pizza as the U.S., and doing prior research before putting down that initial investment is always crucial, pizza brands are still hugely popular in many leading franchising regions.
The U.S. has big names like Pizza Hut, MOD Pizza, and Figaro’s Pizza, which each offer dine-in, take-away, drive-thru, and a whole host of other options so that customers can get their pizza when they want, and exactly how they want.
Convenience is king for any pizza company, and you’ll want to keep an eye out for pizza franchise opportunities that combine quality ingredients with a wide range of ordering methods – not necessarily the largest pizza franchise that you can find.
Beyond North America’s shores, the pizza franchise is just as beloved. ‘Pizza franchise UK’ is an incredibly popular search term, and brands like Dena Pizza, Naked Pizza (also known as NDK Pizza UK), and Pizza Gatti have been cornering the European market with their dedicated approach to serving beloved Italian dishes. The pizza restaurant may commonly be associated with one of five or so major players, but there’s always room for an ambitious up-and-comer.
How to open a pizza franchise
Whether you’re looking to become the proud franchise owner of a Hungry Howie’s or a Mountain Mike’s, there are several steps that need to be taken before fully embarking on this new business opportunity.
First, do your due diligence on which brand would work best for your market. It’s true that pizza restaurants are hugely popular throughout the West, but that doesn’t mean that all are born equal. Review the franchise disclosure document closely, and check whether the franchisor will provide things like financing assistance, or location support. You don’t want to sign up for four or five pizza restaurants at once, only to discover that you’ll be out on your own for the duration of the deal.
Also, review how each of your prospective pizza offerings have helped previous franchisees to grow and develop in the past. If you’re looking to open a Domino’s Pizza franchise, for example, the franchisor showcases success stories and case studies on their franchise site. This is the exact kind of information you should be looking for, because it shows tangible examples of the business model in action. Don’t throw your initial investment away on a brand that doesn’t have your best interests in mind.
How much does it cost to open a pizza franchise?
Opening any kind of food or restaurant business isn’t cheap. This is partly due to the need to have a fixed brick-and-mortar site in which you can prepare food and serve customers – although this is slowly changing, thanks to the popularization of ghost kitchens and other digital-first offerings.
That being said, the initial investment will still be a substantial figure and franchisors will also take into account your net worth, liquid capital, and other assets.
Opening a Pizza GoGo franchise in the U.K., for example, can cost an approximate £100,000 right off the bat, which includes new equipment (around £35,000), shop fittings (£15,000 to £20,000), and a franchise fee of £5,000.
Opening a Pizza Ranch in the U.S., meanwhile, could set you back considerably more. The total investment for a location ranges from $1m to $3.6m, as well as a $30,000 franchise fee, four per cent ongoing royalty fee, $1m net-worth requirement, and $400,000 in liquid assets.
These figures are comparable to those of opening a Pizza Hut franchise, with the brand looking for operators with $360,000 in liquid capital, and the ability to make a total investment of at least $500,000.
Something of an outlier, Happy’s Pizza in the U.S. requires no percentage-based royalties, and instead charges a flat $1,500 fee per month. Just like when you’re reviewing the success of a pizza franchise’s previous business owners, and the quality of the food on offer, you need to decide what kind of initial investment and long-term financial commitments work best for you.
Opening a pizza restaurant is a very personal process, and the alliteration of something like Peter Pan Pizza or Peter Piper Pizza shouldn’t sway your considered decision-making process.
Which pizza franchise is best?
As mentioned, many pizza brands will look similar on paper. They’ll offer fresh ingredients, brick ovens, a varied menu, and – hopefully – delicious pizza.
As the prospective franchisee, it’s your job to discern which kind of model will work best for you. The initial investment will play a large part in this decision, but financing assistance from the franchisor can help to alleviate this.
Ultimately, a franchise investment needs to be backed by passion as much as return-on-investment, so try numerous brands first-hand. Grab a slice from Lone Star Pizza, and see how it compares with LaRosa’s Pizzeria. Take the family along to a Fireaway Pizza franchise location, and speak with the owners about their experience. Doing your own due diligence is an absolute must when it comes to this kind of business opportunity, and your future self will thank you.
