Pizza Franchises

Once upon a time, pizza restaurants were like any other. That is to say that they were primarily full-service, sit-down establishments. One of today?s Big 4 pizza brands started out that way, in fact. The major evolution in the postwar years was the move to delivery. As a meal in a box, pizza had the simplicity to be an excellent candidate for delivery. By the 1980s, major pizza brands did not expect customers to eat in the restaurant, and the design of the stores reflected that. The last major innovation, developed to assist busy consumers who might have many stops to make before arriving home in the evening, is the take and bake model. Here, the customer picks up the pizza and performs the final preparation step, cooking, at home.

Delivery Complications

The current movement in the pizza franchise segment is actually away from delivery. This may seem counterintuitive, given how many consumers don?t want to have to leave home for restaurant food. However, delivery creates a significant potential liability that is expensive to insure, and major pizza brands are trying to move away from organic delivery services. The alternative that answers consumer desires is third-party delivery, which shifts the risk and liability to a service provider. This has actually created a new dimension of competition for pizza restaurant franchises. In the past, only a handful of restaurants offered delivery, so this was a built-in advantage for pizza. Today customers can get delivery from just about any restaurant thanks to third-party services, so this particular competitive edge is eroding.

A Successful & Crowded Field

Because pizza is so widely enjoyed and has so much variety, it has a strong competitive position regardless of delivery options. A quick survey of the long list of pizza franchises will demonstrate this popularity. As with any franchise segment that has lots of choices, be sure to look carefully at a brand?s history and strength in order to go with a proven performer. The main difference from other crowded segments is that pizza is not faddish. There are lots of brands simply because it?s a successful niche. Lots of choices also means a wide range of startup costs. Choosing a sit-and-eat concept will mean a larger and more expensive store that also probably requires higher priced real estate. For these types of opportunities, startup costs can hover around $2 million on the high end, with a few reaching as much as $5.6 million. Delivery, carryout, and take-and-bake concepts are much less expensive. Some even have low-end startup costs that are well under $100,000, though these are uncommon. Still, there are plenty of choices with startup costs ranging from $200,000 to $600,000. With so many options, you need the right kind of help to make an informed decision. Let Franchise Clique be your guide to top pizza franchise opportunities!