hi all. my husband and i are looking into purchasing a pizza franchise. we are considering Nick 'n Willy’s among a few others. we are compiling as much info as possible, but its a little overwhelming :shock: . how do we get info on what to expect as far as income generating capacity, average/typical. is there any one franchise in partic that is really doing execptionally well that anyone can recommend? thx for any tips/suggestions you can offer.
This will provide some oversight on what the top 25 “chains/bi boys” do on a per year/per store average.
A well Planned and located chain can do huge money because of national brand recognition. Just as easy a badly located store can flop like all others.
my 1st impression is that you folks have little if any experience in the pie biz…many of us would strongly suggest one or both of you getting a little experience under your belt b4 you make a serious financial plunge
A percentage of people that invest in a pizza franchise(or any other franchise) lose their initial investment and damage their credit beyond repair. There can be a lot of reasons for this.
- Unrealistic expectations People think that purchasing a business gives them the right to sit back and collect a check. In reality, it gives you the right to work 80+ hours/week and gives you the possibility to eventually create a nice income.
- Lack of experience in the specific business. I would never purchase a hair cutting franchise because my only experience with hair cuts is sitting in the chair. Yet, so many people open pizza franchises without the slightest clue how to run a pizza business. Oh sure, the franchisor will give you training. Tell that to all of the failed Quiznos franchisees.
- Average or less than average product/and or service. Too many franchisors are busy selling franchises but not busy enough developing competitive advantages. It is difficult to sell a mediocre pizza and gain the marketshare necessary to succeed in todays world.
The Nick N willys stores in Florida have not fared too well. The take and bake business seems to do well in some markets but not so well in others.
I don’t think there is a typical/average that you could expect to earnwith a pizza franchise. The average single store pizza franchisee probably earns far less than you would expect. Maybe 10% on average. Average sales perhaps $500,000-$600,000. There are some that do far better. There are many that do far worse. With luck and hard work, you can surely make some dough in this business.
Yes, I agree with the others, I worked in the franchise system with Dominos Pizza, and Papa Johns for about 18 years, I have taken what I have learned from them and applied in my own strategy.
A franchise is good, in that it provides a well planned map on how to operate, menus, prices, product distribution, image, uniforms, etc. its just a cookie cutter approach. the best thing about franchises is the low failure rate. Domino’s Pizza has a failure rate of about 0.03%, meaning that 99.97% succeed. So its almost a for sure bet. You would have to be a complete idiot to fail at a franchise like Domino’s or Papa John’s. I mean I have several friends who are complete idiots who own single, and multiple units with both of those companies. And I mean Idiots, Drinking, Drugging, DUI’s, Divorces, Infidelity, you name it these boys are idiots, and there stores work better when they are not in them, than when they are, and yet year in and year out they make 10 to 12% profit.
If you know the business, and you know how to mass produce dough, and raw prep your ingredients, and you have a menu, and understand marketing, and pricing strategies, and you have no problem working 80 hours a week for the first 2 or 3 year then I would suggest you forego the franchise route and create your own little chain, you will save about 4 to 7% royalties, and another 4% on advertising Co-op, and another 4% on the Cost of Goods, and you will probably profit somewhere between 20 and 28% depending on volume.
Most of my stores average about $6,000 a week, which is I believe about half the U.S. average. But they profit around 23 to 25%
Of course, they are located in impoverished communities, with low rents, non-existent water, sewer, and garbage expense, and the 2nd cheapest electricity rates in the U.S.
But, I gotta believe that most of the independent stores in New York City which is the most expensive place I think to operate a restaurant, are profiting at least 15%…