Pizza Businesses

Pizza Businesses

Many business brokers don’t or won’t include the sale of pizza shops thinking they are not saleable (or that they are beneath what they want to sell). Have you noticed that you don’t see many (if any) closed pizza businesses? They do sell.

Below is a sneak peek at our pizza franchise rules of thumb from the 2013 Business Reference Guide.

Pizza Franchise Rules of Thumb—Quick Check

Blackjack’s Pizza 40% of annual sales

Domino’s Pizza 50% of annual sales

Gatti’s Pizza 30 — 35% of annual sales

Godfather’s Pizza 25% — 30% of annual sales

Hungry Howie’s Pizza 35% of annual sales

Little Caesar’s Pizza 50% of annual sales

Mountain Mike’s Pizza 30% of annual sales

Mr. Jim’s Pizza 35% of annual sales

Papa Murphy’s Take ‘N’ Bake 35% to 40% of annual sales

Pizza Factory 30% to 35% of annual sales

Pizza Inn 45% of annual sales

Sarpino’s Pizza 50% of annual sales

Note: Several of the businesses had a percentage multiple of, for example, 35% to 40%. The lower figure was the one used in tabulating an average. This produced an average rule of thumb of 38% of annual sales = the “ballpark” price. The above represent an average rule of thumb for franchised pizza restaurants. As you can see from the information in this section, independent pizza shops have an average rule of thumb of 35%. This slight difference may be due to more information being available for franchised units than independents.

Here are some franchised pizza operations and their approximate annual sales per unit for 2012:

Chuck E. Cheese’s Pizza $769,000

CiCi’s Pizza $884,000

Domino’s $700,000

Gatti’s Pizza $900,000

Godfather’s Pizza $384,000

Hungry Howie’s Pizza $484,000

Little Caesar’s $427,000

Marco’s Pizza $540,000

Mazzio’s Pizza $756,000

Mountain Mike’s Pizza $525,000

Papa Gino’s $830,000

Papa John’s Pizza $748,000

Papa Murphy’s Take ‘N’ Bake $550,000

Pizza Factory $375,000

Pizza Hut $675,000

Pizza Inn $425,000

Round Table Pizza $770,000

Sbarro Pizza $660,000

Shakey’s Pizza $1,000,000

Source: Franchise Times, Nation’s Restaurant, Pizza Marketing Quarterly, Top 400 Restaurant Chains for 2012 and various other publications.