Pizza businesses have performed well through the pandemic and any economic climate.
I've done some digging on smaller pizza franchises to see which ones show impressive unit economics.
These 6 brands may not be Dominos, but they offer similar returns to the business owners 👇
First - let's set a bench mark by looking at Dominos #'s:
The initial investment is $152k - $668k, with average weekly unit sales of 5,000+ franchised locations coming in at $22,648.
This means the average annual revenue is $1,177,696 per location.
Westside Pizza
This business, which started in Boise, Idaho has 36 locations nationwide, and a lower investment range of $129k -$398k.
In 2020 their locations had an average gross revenue of $795,120
Blaze Pizza
Their initial investment comes in on the higher end at $565k - $1.1M.
227 reporting stores in 2020 had an average gross revenue of $1,026,893.
@KingJames is also an investor in Blaze Pizza, which is considering going public.
Mountain Mikes
This brand out of Palo Alto, California has 242 locations nationwide, and is known for their crispy & curly pepperoni.
You can expect a location to cost $226K - $596K, and on average return $946,727 in revenue per year.
Donato's
Known for their "Ohio Style" pizza i.e. thin crust pie cut into square slices & filled with toppings - the brand was once owned by McDonald's in a failed attempt to get into the pizza biz.
A location runs $387K - $699K, with an impressive median gross rev of $1,191,944
Topper's Pizza
This brand has 67 locations nationwide and targets the late night crowd, with most of their stores staying open until 3am.
The average gross revenue per location in 2020 was $995,259, while the investment range is $292K - $531K.
Sarpino's Pizzeria
Founded in 2000, the Illinois brand known for it's specialty pies has 67 locations.
With an investment range of $306K - $499K,
the average gross revenue from 2020 was $919,346.
I'm pretty hungry after writing that so I'm gonna grab a second dinner, but if you enjoy breakdowns like that on franchises, give me a follow @franchisewolf
• Toppers: AGR of $995,259
• Sarpino's: AGR of $919,346
• Dominos: AGR of $1,177,696
• Blaze Pizza: AGR of $1,026,893
• Westside Pizza: AGR of $795,120
• Mountain Mikes: AGR of $946,727
• Donato's: Median gross rev of $1,191,944
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Crumbl Cookies opened their first location in Logan, Utah in October 2017.
Today they have 260 stores operating in 36 states, and an average unit volume of $1.27M.
5 high level thoughts on what this franchise does really well (and what other brands should be doing too) 👇
1. Product
The founders A/B tested their way to the perfect chocolate chip cookie by using different ingredients, & asking people at local gas stations "which do you like better?"
After spending thousands of $$$ on recipes, they landed on a cookie they feel is truly special.
2. Branding
Crumbl uses iconic pink packaging for every take-out + delivery order.
The boxes are designed to fit each cookie side by side, whether in a 4-pack, 6-pack, or 12-pack box.
The unique shape + signature pink coloring make it recognizable and Instagrammable.
Service businesses are probably the only business today where you can have a REAL competitive advantage just by having a modern website and answering the phone.
Here's a breakdown on 10 of the fastest growing service franchises, from roofing companies to lawn care 👇
Investment ranges for service franchises assume many costs that you may not shell out for if you went on your own - but regardless they're a far different animal than a brick/mortar biz.
Bc answering the phone is a differentiator, think extra hard if a franchise is worth the $..
Re-listened to @patrick_oshag's pod with Shake Shack founder Danny Meyer
I’ve worked with franchises & multi-unit business owners who obsess over replicating the customer experience, but none have the focus Danny does on the most important ingredient: hospitality
5 takeaways 👇
1. It’s human nature for people to take precisely as much interest in you as you are taking in them
This is @dhmeyer's starting point for hospitality (and business).
By showing an interest in your customer, you can give them a sense of belonging.
Example:
If you own a coffee business and have repeat customers each morning, take stock of what their go-to order is.
The moment you look them in the eye and say “do you want the usual?”, you've made them feel like they belong.