Franchise Direct recently carried out in-depth analysis of the state of the pizza industry and a snapshot of a food franchising sector that is well-positioned to thrive during the current economic downturn has emerged. After assessing FDD (UFOC) documents from 20 pizza franchise chains, as well as published industry sources, Franchise Direct believes that pizza franchises stand out as a the top food franchise.
Our pizza franchise study found that businesses experienced consistent sales growth up until last year, when the industry slowed. But 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 quality at an affordable price. It is believed that pizza franchises will succeed as other more expensive dining options fail.
Generally-speaking, the restaurant industry has shown 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.
Pizza franchises 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.