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 not just surviving; it is flourishing. According to The State of The Pizzeria Industry Report, the market for pizza restaurants is projected to grow by an impressive $42.2 million by 2025. This growth is driven by several trends, such as the rising demand for plant-based toppings and a growing consumer segment that views high-quality pizza as a convenient and healthy meal choice. These trends position the pizza franchises as a lucrative business opportunity worth considering.
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.
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 is 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.
- Compared with other franchises in the same sector.
The 30 Best Pizza Franchise Opportunities
Here’s a list of some of the best opportunities.
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.
Pizza Hut Franchise
This is another big name in the pizza franchise market, boasting over 18,000 locations across more than 100 countries. Pizza Hut is famous for its signature pan pizzas, along with its buffets and various dining options. Currently, there are 16,588 units operating. The franchise fee is set at $25,000, and the royalty rate is 6%.
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.
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%.
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.
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.
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.
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.
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.
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.
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.
Rosati’s Pizza Franchise
Rosati’s Pizza is a well-known pizza chain famous for its deep-dish pizzas. These pizzas feature a thick, buttery crust and are generously topped with a selection of meats, cheeses, and vegetables. Additionally, it is another franchise that specializes in Chicago deep-dish pizza. The franchisee fees for selling pizza through this brand are set at $25,000.
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.
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.
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.
Round Table Pizza
Round Table Pizza is a well-known pizza chain that prides itself on a family-friendly atmosphere. They provide a diverse menu featuring a selection of pizzas, sides, and desserts, along with a full bar. These fast-food franchises are located throughout the Western United States. The franchise fee for dine-in locations is $25,000.
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.
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.
Paisano’s Pizza
Paisano’s Pizza is a family-owned and operated pizza franchise that serves a variety of dishes, including pasta, subs, and, of course, pizza. Established in 1974 in El Paso, Texas, the company has since expanded to over 100 locations across the United States. Paisano’s Pizza is renowned for using fresh ingredients and providing generous portions. In addition to selling franchises, they also offer pasta, subs, and pizza.
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.
CICIS Pizza
CICIS Pizza is a buffet-style pizza franchise that provides an extensive selection of pizzas, pasta, salads, and desserts. Established in 1985 in Dallas, Texas, the company has grown to over 200 locations across the United States. CICIS Pizza is recognized for its budget-friendly pricing and all-you-can-eat buffet offering. To begin your journey with this franchise, you’ll need $250,000 in liquidity, along with an initial investment that can reach up to $1,080,103 USD.
Mountain Mike’s Pizza
Mountain Mike’s Pizza is a California-based pizza franchise that offers a variety of pizzas, pasta, 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. It’s 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.
Fox’s Pizza Den
Fox’s Pizza Den is a pizza franchise based in New York, offering a diverse menu that includes pizzas, pastas, and salads. Founded in 1967 in Syracuse, New York, the company has grown to over 100 locations across the United States. Fox’s Pizza Den is recognized for its affordable prices and wide selection of pizzas, along with low franchise fees. Additionally, there are no fees based on a percentage of sales.
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.
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 garlic knots. There are no percentage-based royalties—just a flat fee.
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.
Toppers Pizza
Toppers Pizza, a pizza franchise based in Wisconsin, offers a wide selection of pizzas, wings, and various sides. Founded in 1981 in Appleton, Wisconsin, the company has since expanded to over 200 locations across the United States. Toppers Pizza is particularly recognized for its signature “Topperstix” and generous portion sizes. This national chain provides excellent opportunities for restaurant franchises. In addition to pizza, Toppers serves other food options such as buffalo wings. The franchise fee is set at $30,000. They are known for their delicious cheese pizza, and while they do not offer grilled paninis, they have introduced new flatbreads.
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.
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
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 projected to reach a value of $40.42 billion USD last year, an increase from $38.21 billion in 2021. This indicates that pizza franchises can indeed be profitable; however, profitability depends on various factors such as location, brand reputation, and the management team. On average, a pizza franchise has a profit margin of about 15%, although some franchises can achieve much higher profitability. While the initial investment in a pizza franchise may be substantial, the potential rewards can be significant. If you are thinking about opening a pizza franchise, it is essential to conduct thorough research and select a franchise that is well-established and has a proven 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 initial costs for a pizza franchise can differ significantly based on the specific franchise, typically ranging from $100,000 to over $1 million. These expenses generally include 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.
Image: Envato Elements
This article, "The Top Pizza Franchises You Could Start" was first published on Small Business Trends
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