When most people think of food franchises, they immediately think of burgers or pizza. In recent years, pizza has been growing in popularity. However, there are both advantages and disadvantages of choosing a pizza franchise.
Advantages Of A Pizza Franchise
You are behind a trusted name. The pizza market is very competitive today, and building your own name is beyond challenging. Fortunately, a reputable and popular pizza chain name takes the hard work out of building your brand. While you still have to maintain it, the company gives you a tested and effective method for doing so.
Pizza is a versatile food. Pizza is great for individual enjoyment, family dinners, events and gatherings with friends. When football season and the holidays roll around, you have the opportunity to increase your volume of sales considerably. According to research from Franchise Chatter, the average American eats more than 45 slices of pizza each year.
Pizza businesses are resilient in a tough economy. Every franchise owner wonders if the economy will continue to improve or start to decline. The good news is that Americans still order plenty of pizza when the economy is in a slump.
You are providing a solution to a multi-faceted problem. When people are hungry, they want food quickly. In today’s busy society, few people have time to cook. They are tired from working or running their kids around to after-school activities. If you offer online ordering, fresh pizza and delivery, you are solving a three-part problem that only a handful of other franchises can solve.
Disadvantages Of A Pizza Franchise
The pizza business is competitive. There may already be other franchise locations in your city. Researching areas or towns and determining a need for the desired franchise is a tough process. Also, you have independent small businesses competing with you. They may offer some unique service features that your franchise model will not allow.
Menus may be limited. The wild topping craze and the demand for personalizing pizzas has put some heavy demands on the pizza franchise industry. Pizza Hut, Dominos and several others have stepped up their game with options such as artisan toppings, toasted cheese on the crust and flavor drizzles. Be sure to compare menus of local pizza restaurants with reviews to see which pizza franchise is optimal. Be sure to consider smaller franchises as well.
Insurance costs are high. Pizza franchises that do not have dining rooms can save some money on insurance. However, there are still liability risks with pizza ovens and burns. Also, claims from unhappy customers who had pizzas delivered can become complicated issues. In addition to this, delivery drivers may get in accidents, be injured on the job or get robbed when delivering pizzas in high-crime areas. These liabilities mean higher insurance costs.
Before purchasing a business, always research a pizza franchise’s rules and operation model to be ensure compatibility with your individual needs.