Profit Margin of Franchise of various Pizza houses

Discussion in 'Growing and Managing a Business' started by zerzis, Jul 15, 2009.

  1. zerzis

    zerzis
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    Hello friends,

    I am carrying out an analysis of the pizza market. And I would like you to help me a bit. There are various Pizza houses like Pizza-Hut, Dominos, PapaJones, Smoking Jones etc. They have franschise business model. I am seeking answers to the following questions:

    1. Pizza's sold per day, per outlet of first 5 Pizza houses(you can consider the pizza houses mentioned above)?

    2. Profit margin of the franchises ( pizza outlets ) behind per pizza.

    3. Total no. of pizza orders per day for a single pizza outlet.

    4. Total no. of online pizza orders per day for a single pizza outlet.

    5. Total no. of pizza orders by phone call per day for a single pizza outlet.


    We need to consider different scenarios for different countries and the numbers may differ significantly for different countries.
     
  2. Fergal

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    Zerzis, have you considered contacting the pizza companies directly and asking them for information? They may be willing to share it, the worst they can do is say no.

    Before contacting them look through their websites and annual reports. You should also read the information that they provide to potential franchisees, this should include at least some of that info. It might help if you request a franchise pack from them.

    Please keep us posted on your progress.
     
  3. scifi

    scifi
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    I think it might be a confidential information of the company & they will be willing to share with you only if you talk with them by showing your in depth interest in their franchisee....
    Moreover they will not give you on any condition their profit margin in different countries as it tends to vary substantially according to the market conditions as happen in other businesses too....
     
  4. Fergal

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    They may be reluctant to provide some of that information Scifi, however some of it will be available in their annual reports because they are legally obliged to report on and publish their financials.
     
  5. zerzis

    zerzis
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    @Fergal:
    - The worst they can say is 'No'. I liked that! :)

    Well, I am going to visit some of the pizza outlets in my vicinity and then hopefully we can have some data.

    Regards,
    Zerzis
     
  6. Fergal

    Fergal
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    I love pizza, sounds like an interesting piece of research :) Worth a try. It might help to ask them for contact details of the franchisor's head office.

    Please post back to let us know how you get on and how they react to your questions.
     
  7. scifi

    scifi
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    Yeah, absolutely the information might be available in their annual reports for sure!!!!
    Annual report can be downloaded from their site, however it is also a good idea to ask the information from the owner of the franchisee of pizza outlets giving them assurance that it will remain confidential & will be used for non- commercial purpose only!! :)
     
  8. zaffar

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    hello,
    i run a dominos pizza in scotland, you need some advice? just ask
     
  9. Fergal

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    Hi zaffar, welcome to Business Advice Forum and thanks for offering to share your experience and help our members.
     
  10. xenon

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    Having read the thread, anybody out there in the pizza (i.e. Dominos or Papa John's) or fast food business? I am looking to get in and would love to get some general feedback on the path you took. THANKS
     
  11. Fergal

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  12. xenon

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    Thanks Fergal....I am in the US...and am familiar with those sites. Was hoping to chat with someone that's in the biz to get some feedback and perspective on the challenges they faced getting started along with the challenges and issues they face as a result of the present economy. I appreciate the info you provided.
     
  13. Fergal

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    You are right to get feedback and advice from existing pizza businesses xenon. Most business owners remember that it was not easy to get set up and running and many of them are happy to share their tips and experience. You could try contacting some pizza businesses outside of your target geographic area and ask if they would meet you for a quick chat. Hopefully they will be willing to meet you, once they are confident that you will not be competing with them.

    If you are talking to a franchisor they will often provide you with contact details of existing franchisees to speak to. The franchisor will always try to put their best foot forward and put you in touch with their happiest franchisees. Hence you should also try to speak to other franchisees, that are not on the list. Again they will be generally happy to speak to you and give you the benefit of their experience.

    Good luck with it.
     
  14. bradpizzaguy

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    That data would be start but there is quite a lot of analysis you should do! I wrote a blog post ages ago about taking pizza opportunities it might be of some use if you are still investigating the possibilities of a pizza franchise!
     
  15. flintheart

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    I love pizza too. I think this is the food famous all over the world and almost everyone love it.
     
  16. jnlevesque

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    I am trying to open a pizza business in Canada.
     
  17. Rhease00

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    Pizza Franchise

    i agree..I grew up in the pizza franchise business
     
  18. Fergal

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    Welcome to Business Advice Forum Rhease00, thanks for joining. Are you still in the pizza business?
     
  19. rennyblair

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    I love pizza too. You can check this one to have a piece of a worth investing for franchise! =)


    Pizza Franchises
     
  20. James Greg

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    I think it applies to the taste and standards and also the price. As far as i know currently Pizza Hut is doing the most business although their prices are high but still people love it for their taste.
     

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