Are you thinking about getting involved in the pizza industry? Maybe you are wondering about the franchise business. The U.S. pizza restaurant franchise industry had a market size worth $39.4 billion in 2021. This proven business model was forecast to be worth $40.2 billion in 2022.
If you’ve ever considered diving into the pizza industry, franchising might be your ideal route. As of 2021, the U.S. pizza restaurant franchise industry boasted a market size of $39.4 billion, a figure that was projected to grow to $40.2 billion in 2022. This upward trend in a well-established business model makes investing in a pizza franchise a worthy consideration. So, let’s delve deeper and understand the appealing aspects of pizza franchises and their opportunities.
The Current Scenario in the Pizza Business
The pizza industry is more than just surviving; it’s thriving. According to The State of The Pizzeria Industry Report, the market for pizza restaurants is expected to swell by an impressive $42.2 million by 2025. Several trends contribute to this surge, including the rising popularity of plant-based toppings and an increasing consumer base viewing high-quality pizza as an easy and healthy meal option. These trends make the pizza franchise system a profitable business prospect that is worth exploring.
Profitability of Pizza Franchises
The profitability of top pizza franchises often surpasses independent non-chain stores. A typical pizza franchise can yield a profit margin of 15%, which is substantially higher when compared to a margin of 3% to 7% that independent stores usually see. This stark contrast in profit margins presents a strong case for the financial advantages of a pizza franchise.
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Is a Pizza Franchise Profitable
Expect to make a 15% profit margin with top pizza franchises. Compare that with nonchain stores with a 3% to 7% margin.
Selecting the Best Pizza Franchises: Our Methodology
For those eyeing the pizza franchise market, picking the right franchise is crucial for tapping into this popular and competitive food sector. Here are the key criteria we considered when compiling our list:
- Brand Popularity and Recognition (Importance Scale: 9/10)
- Assess the franchise’s brand strength and market presence.
- Popular brands can attract customers more easily due to established loyalty.
- Initial Investment and Ongoing Costs (Importance Scale: 10/10)
- Understand the total costs, including franchise fees, kitchen equipment, and restaurant fit-out.
- Factor in recurring expenses like royalties, advertising fees, and ingredient costs.
- Quality of Food and Menu Diversity (Importance Scale: 10/10)
- The quality of pizza and menu variety are critical for customer satisfaction.
- Evaluate the franchise’s commitment to high-quality ingredients and recipe consistency.
- Training and Operational Support (Importance Scale: 10/10)
- Comprehensive training in pizza making, customer service, and business management is vital.
- Ongoing operational support should include marketing, inventory management, and technology.
- Location and Demographics (Importance Scale: 9/10)
- The success of a pizza franchise heavily depends on location.
- Analyze local demographics, competition, and traffic patterns.
- Marketing and Branding Strategies (Importance Scale: 8/10)
- Effective marketing strategies are key to building a customer base.
- Review the franchisor’s support for local and digital marketing initiatives.
- Supply Chain and Ingredient Sourcing (Importance Scale: 9/10)
- A reliable supply chain is crucial for consistent food quality.
- Consider the franchise’s sourcing policies and ingredient quality.
- Franchise Agreement and Terms (Importance Scale: 8/10)
- Scrutinize the franchise agreement for clarity on terms, duration, and renewal conditions.
- Understand your rights and obligations as a franchisee.
- Profitability and ROI Potential (Importance Scale: 10/10)
- Assess the potential return on investment and profitability metrics.
- Compare with other franchises in the same sector.
The 30 Best Pizza Franchise Opportunities
Here’s a list of some of the best opportunities.
1. Dominos Franchise
This is one of the top franchises. The Dominos franchise fee is $84,750. Dominos Pizza has 9,285 operating units and they were founded in 1960. It is is one of the most popular pizza chains in the world, with over 17,000 locations in more than 90 countries. Domino’s is known for its quick and convenient delivery service, as well as its wide variety of pizzas, sides, and desserts.
2. Pizza Hut Franchise
This is another big name as far as pizza chains go, with over 18,000 locations in more than 100 countries. Pizza Hut is known for its signature pan pizzas, as well as its buffets and other dining options. There are 16,588 units in operation. The franchise fee is $25,000 and the royalty is 6%
3. Papa John’s Franchise
Papa John’s is number three in the pizza market in the United States, with over 5,000 locations in the United States other countries. Papa John’s is known for its fresh ingredients and its commitment to customer service. There are a number of company-owned stores across 45 different countries and territories. The royalty for a franchise is 5% and they offer financing. The total investment to start a business is between $198,130 and 743 $930.
4. MOD Pizza Franchise
There are different types of franchises available. MOD Pizza is a newer pizza franchise that is known for its fast, casual dining experience. MOD Pizza customers can build their own pizzas with fresh ingredients, and the pizzas are cooked in just a few minutes. To get involved with this restaurant business, you’ll need an initial investment of between $714,000 to $985,000 USD. The ongoing royalty fee is 5% and there is an ad royalty fee of 3%.
5. Little Caesars Franchise
This franchise started out as a family-owned company in 1959. It is a budget-friendly pizza chain that is known for its $5 Hot-N-Ready pizzas. Little Caesars also offers a variety of other pizzas, sides, and desserts. The initial fee is high ($181,000) but this is one of the most profitable franchises. They are a national fast-casual chain that started with Detroit-style pizza.
6. Marco’s Pizza Franchise
Marco’s Pizza is a fast-casual pizza chain that is known for its fresh ingredients and its signature “secret sauce.” Marco’s Pizza also offers a variety of pizzas, sides, and desserts. Start getting to know them by downloading the free ebook from their website. The average profit percentage is 15%, with the average revenue per owner at $455,523.
7. Papa Murphy’s Pizza Franchise
Papa Murphy’s Pizza is a take-and-bake pizza chain that is known for its fresh ingredients and its convenient home-cooking experience. Papa Murphy’s customers can choose from a variety of pizzas, sides, and desserts and then bake them at home in their own ovens. The initial franchise fee is $25,000. You’ll need a total investment of between $308,469 and $557,879.
8. Hungry Howie’s Pizza
Hungry Howie’s Pizza is a pizza chain that is known for its flavored crusts. Hungry Howie’s offers a variety of pizzas, sides, and desserts, and their crusts can be flavored with a variety of different seasonings, such as garlic, butter, and Cajun. The delicious pizzas served are part of the over 500 stores in over 21 states in this chain. Online sales went up 30% in 2020 alone. A good reason to invest in a Hungry Howie’s franchise. A famous national pizza chain.
9. Donatos Pizza Franchise
Donatos Pizza is a pizza chain that is known for its “Donatos Edge,” a crispy, garlicky crust. Donatos also offers a variety of pizzas, sides, and desserts, and their pizzas are made with fresh ingredients. View the available territories. This franchise is stiff competition for Little Caesars. Start with liquid capital of $150,000.
10. Chicago Pizza Company
Chicago Pizza Company is a pizza chain that is known for its Chicago-style pizzas. Chicago Pizza Company’s pizzas are made with thick, deep-dish crusts and topped with a variety of meats, cheeses, and vegetables. A low starting investment of $24, 114 is needed. Launched in New Delhi in 2008. They offer classic Italian dishes like Chicago thin-crust pizza. California locations too.
11. Blaze Pizza Franchise
Blaze Pizza is a fast-casual pizza chain that is known for its fast, made-to-order pizzas. Blaze Pizza customers can choose from a variety of toppings and sauces, and their pizzas are cooked in just a few minutes. You’ll be selling pizza made with fresh dough that’s house-made. Starting investments begin at $454,400.
12. Rosati’s Pizza Franchise
Rosati’s Pizza is a pizza chain that is known for its deep-dish pizzas. Rosati’s pizzas are made with a thick, buttery crust and topped with a variety of meats, cheeses, and vegetables. Another franchise offering Chicago deep-dish pizza. Franchisee fees for selling pizza through this brand are $25,000.
13. Redbrick Pizza
Redbrick Pizza is a pizza chain that is known for its gluten-free pizzas. Redbrick Pizza’s pizzas are made with a gluten-free crust and topped with a variety of meats, cheeses, and vegetables. A healthy choice in the pizza restaurant industry. They offer gluten-free deep dish dough. And they boast only the freshest ingredients. There’s a minimum net worth of$300,000.
14. Pizza Press
Pizza Press is a pizza chain that is known for its build-your-own pizzas. Pizza Press customers can choose from a variety of toppings and sauces, and their pizzas are cooked in just a few minutes. This company adds craft beers and a build-you-own pizza model to our franchise ideas list. Click the link to get a guidebook.
15. Ledo Pizza
Ledo Pizza is a pizza chain that is known for its thin-crust pizzas. Ledo Pizza’s pizzas are made with a crispy, thin crust and topped with a variety of meats, cheeses, and vegetables. A family chain popular with pizza lovers. Here’s a link to their restaurant franchise process.
16. Round Table Pizza
Round Table Pizza is a pizza chain that is known for its family-friendly atmosphere. Round Table Pizza offers a variety of pizzas, sides, and desserts, and they also have a full bar. These fast-food franchises are located in the Western U.S. The dine-in franchise fee is $25,000.
17. Pizza Factory
Pizza Factory is a pizza chain that is known for its affordable pizzas. Pizza Factory offers a variety of pizzas, sides, and desserts, and their pizzas are made with a focus on smaller towns. They aren’t competing with the world’s largest restaurant companies. Their starting net worth requirement is $250,000.
18. Your Pie
Your Pie is a fast-casual pizza franchise that offers fresh pizza dough made from scratch. Customers can choose from a variety of toppings and sauces to create their own pizzas. Your Pie also offers a variety of salads, wings, and other sides. This franchise offers fresh pizza dough made from scratch. Click on the map to see what’s available.
19. Paisano’s Pizza
Paisano’s Pizza is a family-owned and operated pizza franchise that offers pasta, subs, and pizza. The company was founded in 1974 in El Paso, Texas, and now has over 100 locations in the United States. Paisano’s Pizza is known for its fresh ingredients and its generous portions. They sell franchises and offer pasta, subs, and pizza.
20. Jets Pizza
Jets Pizza is a fast-casual pizza franchise that offers made-to-order pizzas, chicken wings, and other sides. The company was founded in 1978 in Sterling Heights, Michigan, and now has over 400 locations in the United States. Jets Pizza is known for its fast service and its wide variety of toppings. Royalty fees are between 8-10%. There are 351 units open. Jet’s Pizza offers chicken wings and other sides.
21. CICIS Pizza
CICIS Pizza is a buffet-style pizza franchise that offers a wide variety of pizzas, pastas, salads, and desserts. The company was founded in 1985 in Dallas, Texas, and now has over 200 locations in the United States. CICIS Pizza is known for its affordable prices and its all-you-can-eat buffet. You’ll need $250,000 in liquidity to get started. And an initial investment of up to $1,080,103 USD.
22. Mountain Mike’s Pizza
Mountain Mike’s Pizza is a California-based pizza franchise that offers a variety of pizzas, pastas, salads, and wings. The company was founded in 1978 in Roseville, California, and now has over 200 locations in the United States. Mountain Mike’s Pizza is known for its thick-crust pizzas and its California-style pizzas. Not exactly competition for the bigger players like Domino’s Pizza. But this franchise serves pizza choices that are great and foster strong community ties. Get the report and get started. Net worth required is $300,000.
23. Fox’s Pizza Den
Fox’s Pizza Den is a New York-based pizza franchise that offers a variety of pizzas, pastas, and salads. The company was founded in 1967 in Syracuse, New York, and now has over 100 locations in the United States. Fox’s Pizza Den is known for its low prices and its variety of pizzas. Low franchise fees. Plus there are no fees for the percentage of sales.
24. Pizza Ranch
Pizza Ranch is a Midwestern-based pizza franchise that offers a variety of pizzas, chicken, and other sides. The company was founded in 1981 in Hull, Iowa, and now has over 200 locations in the United States. Pizza Ranch is known for its buffet-style pizza and its chicken tenders. In-store dining is offered. They are ranked in the 2022 Entrepreneur Franchise 500 listings. The royalty fee is 4 percent.
25. Happy’s Pizza
Happy’s Pizza is an Illinois-based pizza franchise that offers a variety of pizzas, pastas, and salads. The company was founded in 1971 in Lake Forest, Illinois, and now has over 100 locations in the United States. Happy’s Pizza is known for its thin-crust pizzas and its garlic knots. There are no percentage-based royalties. Just a flat fee.
26. Pie Five Pizza Co.
Pie Five Pizza Co. is a fast-casual pizza franchise that offers made-to-order pizzas in just five minutes. The company was founded in 2011 in Denver, Colorado, and now has over 100 locations in the United States. Pie Five Pizza Co. is known for its customizable pizzas and its quick service. There are unlimited topping choices. Currently, they have 31 locations in America.
27. Toppers Pizza
Toppers Pizza is a Wisconsin-based pizza franchise that offers a variety of pizzas, wings, and other sides. The company was founded in 1981 in Appleton, Wisconsin, and now has over 200 locations in the United States. Toppers Pizza is known for its signature “Topperstix” and its generous portions. This national chain has excellent restaurant franchise opportunities. Toppers sells pizza and other food like buffalo wings. The franchise fee is $30,000. They serve great cheese pizza. There’s no grilled panini but new flatbreads.
28. Uno Pizzeria & Grill
Uno Pizzeria & Grill is a Chicago-based pizza franchise that offers deep-dish Chicago-style pizzas. The company was founded in 1943 in Chicago, Illinois, and now has over 100 locations in the United States. Uno Pizzeria & Grill is known for its signature “Uno” sauce and its deep-dish pizzas. They sell deep-dish Chicago style pizza. They’ve been offering restaurant franchise opportunities since the 1970s.
29. MidiCi Neapolitan Pizza
MidiCi Neapolitan Pizza is a California-based pizza franchise that offers authentic Neapolitan pizzas. The company was founded in 2009 in Washington, D.C., and now has over 20 locations in the United States. MidiCi Neapolitan Pizza is known for its fresh ingredients and its authentic Neapolitan pizzas. Devotes itself to traditional pizza sauce and other 300-year-old traditions.
PizzaRev is a California-based pizza franchise that offers fast-casual pizzas made to order in just five minutes. The company was founded in 2012 in Pasadena, California, and now has over 50 locations in the United States. PizzaRev is known for its customizable pizzas and its quick service.
PizzaRev’s pizzas are made with fresh ingredients, including hand-tossed dough, locally-sourced tomatoes, and fresh mozzarella cheese. Customers can choose from a variety of toppings, including traditional favorites like pepperoni and sausage, as well as more unique options like roasted vegetables and vegan cheese. Pizzas are cooked in a wood-fired oven, which gives them a crispy crust and a delicious flavor.
Locations in California. Average sales of $1,000,000.
|Franchise||Franchise Fee||Number of Units||Founded||Specialties & Notable Details|
|Domino's||$84,750||9,285||1960||Quick delivery, wide variety|
|Pizza Hut||$25,000||16,588||-||Signature pan pizzas, buffets|
|Papa John's||-||>5,000||-||Fresh ingredients, strong customer service|
|MOD Pizza||-||-||-||Fast, casual, build-your-own pizzas|
|Little Caesars||$181,000||-||1959||Budget-friendly, $5 Hot-N-Ready pizzas|
|Marco's Pizza||-||-||-||Fresh ingredients, secret sauce|
|Papa Murphy’s||$25,000||-||-||Take-and-bake, fresh ingredients|
|Hungry Howie's||-||>500||-||Flavored crusts, variety of seasonings|
|Donatos Pizza||-||-||-||Donatos Edge," fresh ingredients|
|Chicago Pizza Company||$24,114||-||2008||Chicago-style pizzas, Italian dishes|
|Blaze Pizza||-||-||-||Fast, made-to-order pizzas|
|Rosati's Pizza||$25,000||-||-||Deep-dish pizzas, buttery crust|
|Redbrick Pizza||-||-||-||Gluten-free options|
|Pizza Press||-||-||-||Build-your-own, craft beers|
|Ledo Pizza||-||-||-||Thin-crust pizzas|
|Round Table Pizza||$25,000||-||-||Family-friendly, full bar|
|Pizza Factory||-||-||-||Affordable, focus on smaller towns|
|Your Pie||-||-||-||Fresh dough made from scratch|
|Paisano’s Pizza||-||>100||1974||Pasta, subs, generous portions|
|Jets Pizza||-||351||1978||Fast service, variety of toppings|
|CICIS Pizza||-||>200||1985||Buffet-style, all-you-can-eat|
|Mountain Mike’s Pizza||-||>200||1978||Thick-crust, California-style pizzas|
|Fox's Pizza Den||-||>100||1967||Low prices, variety|
|Pizza Ranch||-||>200||1981||Buffet-style, chicken tenders|
|Happy's Pizza||-||>100||1971||Thin-crust, garlic knots|
|Pie Five Pizza Co.||-||31||2011||Customizable, quick service|
|Toppers Pizza||$30,000||>200||1981||Topperstix," generous portions|
|Uno Pizzeria & Grill||-||>100||1943||Chicago-style, deep-dish|
|MidiCi Pizza||-||>20||2009||Authentic Neapolitan pizzas|
|PizzaRev||-||>50||2012||Customizable, quick service, wood-fired oven|
Do Franchise Owners Need Experience?
Transferable skills and a good work ethic help. But you don’t always need experience. However, starting at the bottom with pizza delivery and working up gives you perspective. It’s also worth mentioning that while prior experience may not be mandatory, having a business background, especially in the food industry, can be a significant advantage. Understanding customer service, inventory management, and the day-to-day operations of running a business can provide a strong foundation for your franchise.
Are Pizza Chain Franchises Profitable?
The market sector was forecast to be worth $40.42 billion USD last year. That’s up from $38.21 billion in 2021. So, yes pizza chain franchises can be profitable, but it depends on a number of factors, including the location, the brand, and the management team. The average profit margin for a pizza franchise is around 15%, but some franchises can be much more profitable. The initial investment for a pizza franchise can be high, but the potential rewards can be significant. If you are considering opening a pizza franchise, it is important to do your research and choose a franchise that is well-established and has a good track record.
Here are the five sentences in the paragraph:
- Pizza chain franchises can be profitable.
- It depends on a number of factors, including the location, the brand, and the management team.
- The average profit margin for a pizza franchise is around 15%.
- Some franchises can be much more profitable.
- If you are considering opening a pizza franchise, it is important to do your research.
The Bottom Line
Getting started with a Domino’s Pizza or other chain is a process. Regardless of the franchise, there’s a checklist that includes legalities and financials. In conclusion, the journey of becoming a pizza franchise owner requires careful planning, due diligence, and a substantial commitment. The return on investment can be significant if managed correctly. Furthermore, becoming part of a larger brand can offer numerous benefits, including brand recognition, training programs, and ongoing support, all of which can increase your chances of success in this fast-paced, ever-evolving industry.
Pizza Franchises FAQs
What are the startup costs for a pizza franchise?
The startup costs for a pizza franchise vary depending on the franchise, but they can range from $100,000 to $1 million or more. These costs will cover the franchise fee, equipment, inventory, and marketing.
What is the franchise fee?
The franchise fee is a one-time payment that you make to the parent company in exchange for the right to operate a franchised business. The franchise fee typically covers the cost of training, marketing materials, and other startup costs.
What is the royalty fee?
The royalty fee is a percentage of your sales that you pay to the parent company on a monthly or quarterly basis. The royalty fee covers the cost of ongoing support and marketing from the parent company.
What is the average profit margin for a pizza franchise?
The average profit margin for a pizza franchise is around 15%. However, this can vary depending on the franchise, the location, and the overall sales performance.
What are the most important factors to consider when choosing a pizza franchise?
The most important factors to consider when choosing a pizza franchise include the brand reputation, the franchise fee, the royalty fee, the startup costs, the training and support offered by the parent company, and the overall growth potential of the franchise.
What are the challenges of owning a pizza franchise?
The challenges of owning a pizza franchise include the high startup costs, the competitive nature of the industry, and the need to manage a staff. However, there are also many rewards to owning a pizza franchise, such as the opportunity to be your own boss and the satisfaction of running a successful business.
How can I find more information about pizza franchises?
There are a number of resources available to help you learn more about pizza franchises. You can visit the websites of individual franchises, or you can consult franchise directories such as Entrepreneur’s Franchise 500. You can also attend franchise expos, where you can meet with franchise representatives from different companies.
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