30 Oct 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.
