Hand in hand with a recovery in consumption, franchises experienced growth during the first part of the year. There are, In this scenario, different items that stood out: one of them was Pizza shopwith strings that have been expanded and can be reversed.
The exit of the pandemic and the inflationary acceleration combined to create during the first half of 2022 what economists call a “leakage to consumption“. So, the demand for different goods and services grew considerably.
For example, as remarked from Ecolatina, in the City of Buenos Aires, in July (latest data available), the consumption in restaurants was a 20% greater than July 2019, peak of the pre-pandemic. It was also a 45% higher than the average between 2015 and 2019.
In that contextpizzeria franchises also grew. It even happened with some brands that innovate beyond the traditional. “You see many innovations about products classicswith concepts focused on sourdough the different styles (Neapolitan, mold, stone). So, in addition to increase of chains such as Pizza Alla Pala, Almacén de Pizzas, Kentucky or Sbarro, are also observed new concepts and more flexible formats, some that can be adapted to any neighborhood, such as the Cordoba Pizzería Popular”, explained santiago salcedodirector de Centrofranchising.
Within this wide range of possibilitiesit’s possible to invest to undertake and be able to count on a deal own gastronomy The amount to allocate for the project will logically depend on the brand chosen, as well as the size of the premises, among other factors.
There are different options of pizzeria franchises in which to invest
Investing in a Sbarro franchise costs from US$200,000
Sbarro is defined as “the leading New York-style pizza chain and one of the largest pizza chains in the world.” Some of the features that stand out is a good value “price-quality and their fast service.
- And “small format” of this pizzeria demand a investment total of u$s200.000, with an entry fee of around US$30,000. “Active involvement” in the business is required. The minimum dimensions of the premises are 200m2.
- And “medium format”meanwhile, requires a total investment of u$s260.000, of which about $35,000 correspond to the entrance fee. In this case, the minimum dimensions of the premises are 300m2.
Investing in a Kentucky franchise costs from US$65,000
Some of the advantages that stand out for investing in the pizza chain Kentucky is that it is a “very rentable y simple to operate”. The franchise offers, among other things, an own processing center with own logistics, a standardized product. In addition, they clarify, “it requires less investment than other similar formats”.
“we centralize all communication and actions of marketing freeing the franchisee from this task. We centralize agreement with providers“, they remark from the firm. They also clarify that the franchisee must have a “trade profileHe, preferably with experience in other operations; Financial Support; involved in the operation and management of the business; restaurant operator looking to expand”.
To invest in a pizzeria franchise you need from $65,000
- To invest in a “small format” of Kentucky, a total investment of in $s65,000, with an income fee of $2,200,000. The minimum dimensions of the premises are 70m2 and the recovery of the investment is estimated in 24 months.
- In a “medium format“, the total investment is u$s100.000, with an income fee of $2,900,000. The minimum dimensions of the premises are 100m2 and recovery of the investment is estimated in 22 months.
- For a “large format“, the total investment is u$s125.000, with an income fee of $3,600,000. The minimum dimensions are 160m2 and a Estimated return on investment in 22 months.
Investing in a Pizza Warehouse franchise costs about $120,000
According to the file published in the Argentine Franchise Guide, some of the key points to bet on Pizza Warehouse are the “55 years of experience in the field, strategic agreements with suppliers and delivery platforms; business with more than 15 years of experience, which operates in five countries; production simplification of the kitchen and brand equipment available to the franchisee”. There are currently 14 operating franchises in the country and 10 abroad.
The investment Total to put this franchise into operation is u$s120.000, amount that varies according to the format. The average number of employees is between 10 and 22, and it also depends on the format and size of the premises. The estimated return on investment is between 24 and 36 months.
Franchises, a growing format
The number of open franchises increased in the first part of the year
According to a survey conducted by the Argentine Association of Brands and Franchises (AAMF)among 44 franchising brands of all areas with 14,400 active points of sale (POS) and just over 38,000 direct jobs generated in the country, during the first semester 2022 continued the strong recovery that began after the end of the sanitary restrictions imposed by the pandemic.
According to this survey, 77% of surveyed brands increased their POS network during the first six months of 2022 for a total of 1,269 PDV: that is, a 9,7% from increase compared to the end of 2021. “Projected to the total universe of franchises in Argentina, this would be equivalent to a growth of almost 3,900 net PDV during the first semester. In the same vein, the 95% of the brands surveyed plan to open another 1,304 POS (an additional 9.1% growth) during the second half of 2022; which, if materialized, would close 2022 with a 19.6% growth in amount of PDV, which is a record absolute in more than 10 years”, pointed out from the AAMF
“If these plans materialize, by the end of 2022, the total active POS of franchises in Argentina would exceed 48.000meaning almost twice the growth that was anticipated earlier this year,” the study added.
With respect to activity level“64% claim to have exceeded the level that they had pre-pandemic, which is very encouraging since at the end of 2021 this proportion was only 1 in 3″. “Analyzing within the different sectors, the gastronomic sector (the largest among franchises), the 75% claims to have passed pre-pandemic level while only 13% say they have not yet recovered it, which contrasts with the 50% who said they were in this situation at the end of 2021,” the study concluded.