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Pizza Franchise – Which Concept is Right for You?

By Tricia Hoy

Considering a franchise? Pizza is big business. First introduced in New York City in 1905, pizza has taken the US by storm. In 2015, according to Statista, the pizza industry saw over 38 billion dollars in sales in the United States. Pizza is so big, that if Americans could choose to eat only one food for the remainder of their lives, they say it would have to be pizza, as mentioned in the Pizza Industry Analysis 2016.

You might be thinking that you want to get in on this—and if you are, your first decision is whether to buy a franchise or start an independent restaurant. It’s a big decision, and one you don’t want to take lightly. As mentioned by Eddy Goldberg in the How-to Franchise Guide, your decision making process should begin with a self-assessment. Ask yourself a few questions: Do I need creative control over the business, or am I more comfortable in an environment where the business model is pre-determined? Will my budget account for the franchising fees?  Many people who have bought franchises have enjoyed the benefits of a franchise including: brand awareness, purchasing in economies of scale, marketing and peer support, internal training and franchisor support.

If you’ve decided on buying a franchise, you can find out what CNBC considers to beup-and-coming: 9 pizza franchises hoping to deliver millions. When venturing into the land of franchise, it is important look at the whole picture, including details regarding: financing, location, the franchise company and culture, and more. This is on top of technology choices such as the right POS system to monitor daily operations—but let’s start by taking a closer look at the restaurant concepts, and what each has to offer:

Dine-In – An enjoyable experience for many people, visiting a dine-in pizzeria can be a great night on the town. Customers can leave the cooking and the dishes behind, and enjoy a fresh, made to order pizza in the comfort of a local restaurant. From a customer perspective, this can be a treat for themselves, and possibly the whole family. Fun factor aside, influences such as costs of dining at a restaurant, family commitments, hectic schedules come into play.  As the owner of a location that offers dine-in only, you are able to oversee your daily operations closely and ensure your customers are receiving the best possible service. Costs associated with delivery will not apply; however, labor costs must be considered, as additional staff must be hired to service the dine-in customers.

Delivery – Customers may opt to call in, or just order online, but after a busy day at work plus the added commute, the convenience of having a pizza delivered to your door may be just what suburban customers need.  Although delivery requires drivers, serving staff will not be required with a delivery-only location. Furthermore, you might be able to keep your location smaller than location requirements for dine-in.

Carry Out – Speed and savings – a great option for many looking for a fresh slice of pizza. Carry out restaurants offer the customer hot pizza that they can walk in and pay for. This option is growing in popularity, not only due to the convenience factor, but the savings. Customers can select a cooked pizza, minus the delivery times and costs. These locations may have the ability to offer competitive pricing due to a lean staff and a smaller footprint, but they may not have ability to offer the choices and food customizations of a larger location.

Take N Bake – Growing in popularity, Take N’ Bake concepts, such as Papa Murphy’s Take ‘N’ Bake, allows the customer to pick up an unbaked pizza and take it home to bake in their oven.  A nice alternative to the frozen grocery store pizza, not only does this option allow customers to choose their ingredients on the spot, but it saves the customer the costs associated with delivery and tip.  A benefit to owning a Take N Bake location is the ability to offer reasonably priced pizzas to customers, since costs for ovens, dine-in, delivery and additional staff are not part of the equation.

Many stores combine multiple concepts, and which concepts to go with will be determined in part by demographics in your chosen trade area. But no matter which concept you choose, to be competitive, a POS system designed to manage daily operations in a pizzeria is critical. Customer records, employee management, pricing schemes, delivery mapping and dispatch, sales reporting, inventory tracking, and database marketing are all integral to running a successful pizza concept, and the right POS system can automate these functions to save time and generate higher profit.

Download this guide to find out what to look for when considering a POS system for your new pizza restaurant:

Pizza POS - right the first time.


Posted on Mon, Apr 11, 2016 @ 15:04 PM.
Updated on April 24, 2019 @ 7:46 PM PST.

Posted by Tricia Hoy

linkedin | Author's website


Tags: Restaurant Management

Get it right the first time.

There’s a reason pizza and delivery chains are driving the biggest changes in restaurant technology. Pizza and delivery concept restaurants are different from other restaurants, and they have complex needs at the point of sale. In this guide, gain the knowledge you need to choose the right technology fit for your restaurant.


 

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