3 Reasons Why Pizza Franchises are a Good Investment

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Marco’s Pizza ® Franchise is attracting entrepreneurs seeking a low-risk food franchise

Fresh ingredients at Marco's PizzaFranchise ownership has become an enviable career path for a wide variety of people: corporate refugees seeking more control of their lives, college graduates seeking alternatives to a declining job market and experienced franchisees seeking a business model with better earnings and more proven systems.

There are great reasons these people seek out franchise ownership: FranNet, a national franchise buyer consultancy firm, has published a detailed study showing that franchises succeed at a 42% higher rate than independently owned businesses. The reasons are many: Franchises are more systemized and have more robust support than startup businesses. Better systems and higher levels of support often translate into higher revenue levels and profit margins, even with royalty payments.

Here are three reasons we believe owning a pizza franchise is a good investment:

Universal appeal: According to Gallup, 91% of Americans eat pizza at least once a month. Marco’s Pizza’s ® founder Pasquale “Pat” Giammarco, a native Italian, says, “When you think of popular foods in the US, people like tacos, chicken, hamburgers, hot dogs and pizza. Those are the foods we like to eat the most.” When he decided to open the first Marco’s almost 30 years ago, he knew there was a built-in market for pizza since it had so much universal appeal.

Opening a business that delivers a product that is high in demand ensures that there is a market for what you have to sell. Demand alone doesn’t ensure success, but the market has to exist to make the business viable. That’s the reason why there are so many pizza chains — even with a variety of options, there is always room for someone to make a better or more convenient pizza.

Americans love convenience: Pizza was once a restaurant food — it was a meal families visited sit-down restaurants for. You sat at a table or booth, and a waiter took your order. Shortly thereafter, your pizza arrived on a stand in the middle of your table and everyone dug in. Domino’s Pizza changed Americans’ pizza buying habits and created the niche for delivery pizza. Pizza became the most purchased delivery food. When you think of what types of food people order in, pizza is at the top of the list. Among the five major brands that offer delivery pizza franchises, only Marco’s is growing rapidly, and its growth is often into markets where a better tasting and faster delivered pizza helps it gain market share from existing shops. America is a convenience-oriented society, and delivery pizza is a well-established niche.

storefront-daytime-marcos-pizzaEasy to scale: Delivery pizza franchises are highly systemized. Food sourcing, staffing, equipment, marketing, point of sale systems and just about every component of a successful business exists in a delivery pizza franchise. Delivery pizza is built on efficiency — how consistent can you make a pizza taste, and how quickly can you cook it and deliver it? Pizza franchises have had decades of experimentation in developing and testing systems. In franchising, pizza franchises are often the most advanced operationally. Open a Marco’s Pizza ® today and you won’t spend any time developing systems — you’ll be able to hit the ground running.

Excellent systems often translate into businesses that are easy to scale. If you survey pizza franchise owners, you’ll see that over 50% own multiple locations. Once you learn the business, you’ll be able to open a second or third location and share some economies of scale. Multiple locations can not only increase revenue, it can increase profit margin by sharing some resources across multiple units. Franchise systems often prefer to award locations to proven owners — a practice that works in your favor.

Marco’s Pizza ® currently has the most availability of any of the five major delivery pizza franchises. If expansion in the future is a priority in your business plan, make sure to select a brand that offers growth options and isn’t sold out in your market.

We believe a pizza franchise is one of the best food franchise investments you can make. If you are curious about what is involved in ownership, fill out the franchise report form on the right or call us at 1-800-262-7267.

It might just be the career path you’ve been looking for.

 

Comments(1)

  • 07/22/2013, 4:50 pm  

    I have been looking into buying my own franchise for some time now, I just haven’t been able to decide on what kind of franchise it will be. Pizza franchises are on the very top of my list. I figure you can’t go wrong with pizza! Thanks for posting this article!

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