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    1 Reply Latest reply on Feb 9, 2009 8:07 AM by LUCKIEST

    Pizza Industry Latest Facts and Figures

    antomathew Newbie
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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.