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Franchise Direct has analyzed the
latest facts and figures from the pizza
industry. What emerges is a snapshot of a food franchising sector that is
well-positioned to thrive during the current economic downturn.
This
research comes from assessing FDD (UFOC) documents of a sample size of 20 pizza
franchise chains, as well as published industry sources.
Generally-speaking,
the restaurant industry has shown initial resilience in coping with the downturn.
Americans continue to rely on restaurants, primarily take-away establishments,
for their daily eating. National restaurants surveys show an industry bracing
for hardship, but confident that consumers will remain loyal.
Franchise
Direct's research shows that pizza
franchises make up a majority of America's restaurants. Our findings
state that pizza franchises experienced consistent sales growth up until last
year, when the industry slowed. There are a number of reasons why pizza
franchises are projected to remain strong. Commodity prices will fall in the
coming years, creating savings for the purchase of ingredients. Pizza
franchises will also seamlessly fit into new consumer trends, such as the
switch towards healthier and organic food options and the integration of new technology
in ordering food. Our research suggests that pizza franchises present a deft
balance for consumers searching for a quality at an affordable price. It is
believed that pizza franchises will succeed as other more expensive dining
options fail.
Pizza
franchises also boast a number of advantages as far as purchasing a restaurant
is concerned. New entrepreneurs can avail of a franchisor's assistance in
getting their business up and running. Our research reveals the typical
franchise fee for a pizza restaurant. That figure tends to drops significantly
for carry-out restaurants and double for larger, full-service pizza franchises.
The total
investment sum for a pizza franchise can also vary greatly depending on
location, unit size and whether the restaurant is take-out or dine-in. Our
research tracks the range in investment in owning different types of pizza
restaurant, factoring in fixtures, signs, inventory, training expenses, payroll
and more. There are also a number of ongoing fees that the franchisee must be
accountable for and our analysis details every payment that one can expect to
make.
Most pizza
franchises come with an exclusive territory, although some franchisors maintain
a right to open new outlets within a given territory in certain circumstances.
In all, it
remains hard to forecast the total earning potential of owning a pizza
franchise. Every franchised industry is
facing challenges at the moment, with the economy flailing and the sales
expected to drop across the board in 2009. Cost control, management efficiency
and slumping commodity prices will help to offset the sales decline brought on
by the slump in the economy. According to research by Franchise Direct, pizza franchisees
who can enhance their service and offer true quality to consumers will be the
ones that will enjoy positive outcomes in 2009.
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Franchise Direct has analyzed the
latest facts and figures from the pizza
industry. What emerges is a snapshot of a food franchising sector that is
well-positioned to thrive during the current economic downturn.
This
research comes from assessing FDD (UFOC) documents of a sample size of 20 pizza
franchise chains, as well as published industry sources.
Generally-speaking,
the restaurant industry has shown initial resilience in coping with the downturn.
Americans continue to rely on restaurants, primarily take-away establishments,
for their daily eating. National restaurants surveys show an industry bracing
for hardship, but confident that consumers will remain loyal.
Franchise
Direct's research shows that pizza
franchises make up a majority of America's restaurants. Our findings
state that pizza franchises experienced consistent sales growth up until last
year, when the industry slowed. There are a number of reasons why pizza
franchises are projected to remain strong. Commodity prices will fall in the
coming years, creating savings for the purchase of ingredients. Pizza
franchises will also seamlessly fit into new consumer trends, such as the
switch towards healthier and organic food options and the integration of new technology
in ordering food. Our research suggests that pizza franchises present a deft
balance for consumers searching for a quality at an affordable price. It is
believed that pizza franchises will succeed as other more expensive dining
options fail.
Pizza
franchises also boast a number of advantages as far as purchasing a restaurant
is concerned. New entrepreneurs can avail of a franchisor's assistance in
getting their business up and running. Our research reveals the typical
franchise fee for a pizza restaurant. That figure tends to drops significantly
for carry-out restaurants and double for larger, full-service pizza franchises.
The total
investment sum for a pizza franchise can also vary greatly depending on
location, unit size and whether the restaurant is take-out or dine-in. Our
research tracks the range in investment in owning different types of pizza
restaurant, factoring in fixtures, signs, inventory, training expenses, payroll
and more. There are also a number of ongoing fees that the franchisee must be
accountable for and our analysis details every payment that one can expect to
make.
Most pizza
franchises come with an exclusive territory, although some franchisors maintain
a right to open new outlets within a given territory in certain circumstances.
In all, it
remains hard to forecast the total earning potential of owning a pizza
franchise. Every franchised industry is
facing challenges at the moment, with the economy flailing and the sales
expected to drop across the board in 2009. Cost control, management efficiency
and slumping commodity prices will help to offset the sales decline brought on
by the slump in the economy. According to research by Franchise Direct, pizza franchisees
who can enhance their service and offer true quality to consumers will be the
ones that will enjoy positive outcomes in 2009.
