Do you want to start a Pizza shop business by buying Pizza Patron franchise? If YES, here is how much it cost to open a Pizza Patron franchise.
Pizza Patron was established in 1986 by Antonio Swad. Since starting franchising in March 2003, the company has grown from four locations in Dallas to over 90. Pizza Patron features fun and festive pizza stores that are based in Spanish-speaking or predominately Hispanic neighborhoods.
How Much It Cost to Open a Pizza Patron Franchise
- Initial Investment: $273,550 – $419,500
- Net-worth Requirement: $300,000
- Liquid Cash Requirement : $150,000
- Initial Franchise Fee: $30,000 – $30,000
- Ongoing Royalty Fee: 5%
- Ad Royalty Fee: 3%
- Veteran Incentives: $10,000 off franchise fee
Steps on How to Open a Pizza Patron Franchise
Pizza Patron stores offer pizza in two sizes, with a variety of toppings. They also sell soft drinks and other non-alcoholic beverages. Although Stores offer traditional pizza products, they cater primarily to Hispanic customers. All Store service personnel speak Spanish, and Store menus are printed in both Spanish and English.
These stores sell their products for customer carry-out and offer catering service for neighborhood celebrations (with prior written approval). They do not offer delivery service. Stores operate under the Pizza Patron® trade name and use a distinctive logo, which appears in the middle of this Offering Circular’s cover page.
Acquiring a Pizza Patron franchise entitles you to operate one Store at an approved location. The company’s Development Agreement governs a Store’s development phase. The Development Agreement gives you the right to obtain a franchise for your Store after you complete the site location. If you’re interested in acquiring this franchise, visit the official Pizza Patron website to fill the franchise form.
Once you qualify, you will be mandated to sign a lease for a location according to the company’s approved designation. As soon as you sign the lease, you must also sign a Franchise Agreement for the Store. Your Development Agreement also states the terms on which you may develop more than one Store, and if you will be allowed to become a multi-Store operator.
Pizza Patron have developed a proprietary blend of spices for its pizza sauce, which you must purchase from a supplier they designate. You must buy your carry-out pizza boxes from the same supplier. You must purchase cheese from the supplier designated by the company, and you must use flour and other pizza ingredients that meet the company’s grade and quality specifications.
Unless you are an individual who will operate your own Store, you must hire a General Manager who either has roots in the neighborhood where your Store is located or is willing to move into the neighborhood and establish community relations there.
Stores are designed to be located in shopping centers in neighborhoods populated predominantly by Hispanic residents. They typically occupy from 900 to 1,400 square feet of leased retail space. Stores include a small waiting area for carry-out customers.
The waiting area features Latino background music and the Store exteriors display distinctive bilingual signage. Every Pizza Patron store market their products predominantly to Hispanic customers in middle class neighborhoods.
Restaurants typically encounter lower sales after major consumer spending seasons (Christmas and the start of the school year) and during the winter, especially in colder regions of the nation. Pizza Patron stores compete generally with all kinds of quick service food establishments, including the major pizza chains.
The company have not adopted formal procedures for issuing and modifying supplier approval standards, but are expected to approve suppliers on the basis of their ability to meet specifications and quality control requirements, and their ability to supply products to franchisees at competitive prices.
The Franchise Agreement requires that you purchase various kinds of liability and workers’ compensation insurance. The company do not specify the companies from which you may purchase your insurance. They only require that your insurance carrier have an A.M. Best’s rating of AA/III or better.
Pizza Patron have no purchasing or distribution cooperatives serving the franchise system. Except for the arrangements with Roma, Superior Products and Leprino Foods, they have not negotiated purchase arrangements with suppliers for the benefit of the company’s franchisees as a group.
What You Must Know About Pizza Patron Franchise
Pizza Patron had grown into a company known for its innovating marketing tactics. The company’s unique style has given it a unique reputation that has differentiated its offerings from other more conventional pizza chains.
In June 2012, the company created a one-day promotion that offered free pizza to anyone who made their order in Spanish. The promotion was a huge success and created significant publicity. Right from 2007, the company started accepting Mexican Pesos as currency, further endearing it to the Latino market.
In recent years, the company has introduced some innovative items to their menu, including the QuesoSticks, Patron Dips, and Fiesta Wings. The company also has miniature “Rapidito” branches for malls and airports, “Tiendita” branches for portable stores, and “Lista” drive-thru branches. Today, there are 92 Pizza Patron locations across the Southwest and one in Chicago, 10 of which are company-owned.
Coupled with the cross-cultural appeal of the Pizza Patron concept, the company’s success in franchising is due to the relatively simple nature of the concept and its commitment to using the freshest ingredients. With these advantages in place and the company’s ability to continually adapt to the changing demographics of its customer base, Pizza Patron is posed to witness big things in its future.
Pizza Patron’s Mexican heritage can be found in its menu, which features not only classic pizza toppings but also jalapenos and chorizo. Pizza Patron is committed to using only the best and freshest ingredients, and every Pizza Patron location makes its pizza dough from scratch in the store every day. The high quality and good value Pizza Patron offers have further made it popular with customers, but those aren’t the only reasons why the brand has been popular with franchisees.
Pizza Patron also offers a lucrative opportunity to franchisees that is much more manageable than many other quick-service restaurant concepts. Acquiring and operating a Pizza Patron franchise is much simpler than other concepts, with only around 40 SKUs for franchisees to manage and no specialized equipment to purchase or maintain.
The company’s relationship with a national distributor also means franchisees don’t have to worry about managing multiple vendors. All of this adds up to a franchise that is about as simple to operate as it gets. Also, the technology behind Pizza Patron as another major differentiator that makes life easier for its franchisees.
The company has made some significant strides in recent years to up its game on the technology side, investing in a new cloud-based POS system that uses tablets and provides real-time reporting and inventory management to the home office. The company in recent times have also has partnered with PiinPoint for its location intelligence platform to help it better identify the best real estate options.
Although Pizza Patron faces the same challenges in terms of healthcare regulations and minimum wage requirements as the rest of the quick-service restaurant industry, the company is poised for greater success in the near future. Pizza Patron is better-equipped for franchising today than it was in 2003, and the company is taking what it has learned and applying it to help it grow its footprint within the markets.
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