Hundreds of pizza restaurant owners across the Midwest and throughout the United States – ok, thousands of pizza restaurant owners – no doubt got their start in the pizza business by first asking, “how much does a pizza franchise owner make per year?”
Net Profits in the Pizza Franchise Biz: What to Expect
There are many factors that determine a pizza franchise owner’s income, however the simple formula for ultimately determining what you as a pizza franchise owner can make, will be your gross sales, less your operating expenses.
As a pizza franchise owner you will incur many expenses, such as rent, labor and wages, costs of goods, insurance, local marketing, royalty fees, marketing fees, water/utilities and various other operating expenses.
These operating expenses must be deducted from the gross sales figures to obtain your net income or profit.
While the industry net profit margin for a pizza business is widely reported to be 15%, the opportunity certainly exists for higher margins.
What will affect my income the most as the owner of my own pizza restaurant?
The answer to that question might not be what you’re expecting or looking for, and it won’t need any graphs, charts, or pizza franchise checklists to communicate.
The one factor that will have the biggest effect on you as the owner of a pizza restaurant, whether it’s one you start from scratch, a tiny pizza joint down on main street that you purchase from a longtime proprietor, or an established pizza restaurant franchise – that one factor – is you!
You’re saying how much money I can make as the owner of a pizza franchise is up to me?
Not 100%, but yes, your success in the pizza franchise business is mostly up to you!
The good news is that in a pizza franchise model, there’s a team of experienced professionals trained to help you maximize revenue, margins, and profit.
But, back to our main topic. You.
As generations of parents and grandparents have said to their kids and grandkids, “If you’re willing to work hard and learn to work smart, you should be just fine.” Thank goodness for wise parents and grandparents, huh!
Ok, I’m willing to work hard. What things besides me factor into the money I can make as the owner of a pizza franchise?
Alright, you’ve been patient, and it seems like someone taught you well!
As has been the case with the Gambino’s Pizza Franchise as it has grown throughout the Midwest, the growth and profitability of a pizza franchise, and ultimately what determines how much the owner can make is a result of both internal and external factors.
First, the external factors. Things you can’t control.
As in any industry, there are things beyond a franchise business owner’s control that affect the performance of the business. Some of those include:
- The state of the economy, specifically, the local economy
- Food trends and consumer preferences
- Available locations within a given franchise territory
The state of the local economy
The state of the local economy at any given time will obviously have an effect on the money a person can make as the owner of a pizza franchise.
And, while no business is “recession-proof” immune to short-term downturns, pizza restaurants have traditionally been a business less affected by a dip in the economy than other types of restaurants.
Throughout its history, Gambino’s Pizza locations have proved they can weather the storm when the economy isn’t as strong.
Food trends and consumer preferences
Pizza restaurants in America sold over $46 billion in pizza in 2022. Clearly, there’s an appetite for pizza in the United States. It may fluctuate at times and warmer weather always helps the pizza market, but suffice it to say the market for pizza is strong and steady.
While Gambino’s Pizza menu is built around delicious pizza, with fabulous ingredients, Gambino’s also offers a variety of other items including salads, sandwiches, pasta, wings and other items that provide a variety of choices for Gambino’s loyal fans.
Available real estate for a franchise location
Often a sign of the economy’s strength, the availability of quality retail space in the right location is most definitely a factor that can’t always be controlled by a pizza franchise owner and one that can have a direct correlation to the money one can make as the owner of a pizza franchise.
Location, location, location is no misnomer when it comes to the pizza franchise business.
A clear advantage of the decision to buy into a successful pizza franchise like Gambino’s Pizza is the experience the franchise team has in assisting a new franchise owner to select the right spot for their market.
Internal business factors that help determine how much a pizza franchise owner can make.
It’s more fun to think about the things you can control as you consider how much you can make as a pizza franchise owner. Some of these include:
- Your ability as a franchise owner to drive revenue and control costs
- The number of profitable pizza franchises you own
- Your commitment to culture, customer service, and community involvement
Driving revenue and controlling costs
One clear advantage of being a franchise owner is that you will be trained and supported by an experienced and successful franchise support team.
Our team at Gambino’s Pizza, with nearly 50 franchises in our system, is adept at helping new franchise owners drive traffic to their stores through local store marketing, proven price and product promotions, a strategic menu plan, and the use of our app-based online ordering system.
Our franchise operations team will train your local staff on the best practices and processes to control your costs.
The average pizza restaurant in the United States makes a 15% profit margin. However, it is possible and very realistic to be able to achieve a profit margin in the range of 20% to 25%.
It is always the goal of the Gambino’s Pizza team to maximize the revenue, profit margin, and profit of our franchise owners.
Should you be a multi-unit franchise owner?
In asking how much you can make as a pizza franchise owner, it is no secret in the franchise business that multi-unit franchise owners have the opportunity to earn a substantial amount of income.
While Gambino’s Pizza is looking for single-unit franchise owners as well, it is our goal to find qualified, multi-unit franchise owners as we grow our brand.
Towards that goal, we offer a traditional restaurant model as well as a delivery/pickup restaurant model for qualifying franchise owners.
A commitment to culture and community
The Gambino’s Pizza commitment to culture starts at our home office, extends to our stores and eventually into our community.
Our pizza franchise owners are proud of the brand and take pride in their work. This comes through in all that we do, from food prep and the cleanliness of our stores to the way we treat each other and our customers.
We value our communities and understand the importance of supporting our communities.
And, we know that how much an owner can make as the owner and leader of a Gambino’s Pizza franchise is directly tied to the relationships that the owner is willing to build with the people that he or she serves.
At Gambino’s Pizza, our core values are based on a commitment to stewardship, authenticity, integrity, adaptability, community, and innovation. It’s the very cornerstone of our brand. These are the characteristics that shine in the relationships we create throughout our business – with our teams, our communities, and our franchise owners.
How much you can make as an owner of a Gambino’s Pizza franchise is clearly a team effort. As the franchisor, we promise to do our part. If you’d like to learn more about what your part can look like as a Gambino’s Pizza franchise owner, please contact us today. We look forward to speaking with you.
