How to start a Pizza hut franchise & Investment details

Pizza franchises have become a popular investment opportunity for entrepreneurs looking to enter the food industry. The Pizza hut franchise is the right fit for you. This blog will help to start Pizza Hut, franchise investment details, required documentation, pros and cons, and market size in both India and the USA.

Franchise Brand Profile:

Brand Name: Pizza Hut

Founders: Frank Carney, Dan Carney (Brothers)

Founded year: 31 May 1958

Number of outlets: 18,703+ Restaurants over 100 countries

Parent Company: Yum! Brands

About Pizza hut:

Pizza Hut is a global pizza restaurant chain founded by brothers Dan and Frank Carney in 1958. The chain has maintained a strong presence in the United States and internationally, with over 18,703 restaurants in 100 countries. It went on to become one of the most successful pizza chains globally. Pizza Hut has been owned by various entities, including PepsiCo and Yum Brands, Inc. Pizza Hut is a subsidiary of Yum! Brands, a global fast-food corporation that also owns Taco Bell and KFC. Pizza Hut has a strong presence in India, with more than 500 outlets across the country.

Pizza hut franchise Investment details

The initial franchise fee for a Pizza Hut outlet in India is $25,000, which is equivalent to approximately ₹14 lakhs.

Ongoing sales of pizza hut

Advertising cost: 4.25% total sales, Royalty fee: 6% of total sales

Pizza hut franchise Investment Range

Traditional Restaurant Franchise: Rs 10-20 lakhs
Delivery or Carryout Restaurant: Rs 15 lakhs
Delivery-Based Restaurant: Rs 20 lakhs
Restaurant-Based Delivery System: Rs 25-30 lakhs

Pizza hut outlet space required

Pizza Hut franchise requires a space between 1000 and 1500 square feet.

Also read this: PVR Cinema Franchise investment | Total Investment & ROI

Locations franchise outlets:

The ideal locales requested by the brand include the following:
Residential neighborhoods
Entertainment venues like theaters and malls
Airports
Stadiums that host key sporting events throughout the year
Business centers
Commercial areas
Travel hubs
Academic institutions such as colleges and universities

How to start a Pizza hut franchise in your locations?

Step 1: Visit the Franchise Bhoomi Website
Go to the Franchise Bhoomi website.
Use the search function on the site to look for “Pizza Hut.”
Step 2: Understand Investment Details
Once you’ve found the Pizza Hut franchise page, it’s crucial to understand all the investment details involved.

Review the financial requirements:
– Initial investment
– Franchise fees
– Ongoing costs

Check the terms and conditions:
– Support provided by the franchisor
– Any other relevant details
Make sure to read everything carefully and note down any questions you might have.
Step 3: Submit Your Details
Fill out the required form with your personal and financial information.
Double-check all the information you have entered to ensure it is accurate and complete.
Submit the form.
Step 4: Wait for a Response
Once your details are submitted, all you need to do is wait for a response from the Pizza Hut franchise team. The Pizza hut franchise team will likely reach out to discuss further steps.

Pizza hut pros & cons:

Pros

Exclusive territory protection
Diversified income streams with dine-in, delivery, and carryout options
Pre-opening training program for franchisees
Strong marketing and advertising support to build brand recognition
Third-party financing options available for startup costs, equipment, inventory, and payroll
Growth opportunities as a leading global pizza brand

Cons

High initial investment ranging from $782,000 to $2,053,500, including a $25,000/ 20.6 lakhs initial franchise fee.
Not a passive investment; franchisees must take an active operational role.
Not a home-based business; requires a fixed retail space which increases costs.

Conclusion

Pizza Hut is a well-established and profitable franchise opportunity and offers various options to entrepreneurs looking to enter into the pizza industry. The market size for pizza in both India and the USA is significant, offering opportunities for growth and expansion.

Market Size for Pizza:

India

In India the market size is expected to reach ₹12,000 crores by 2025.

USA

The pizza market in the USA is highly competitive, with many established brands and local pizzerias. The market size is estimated to be around $13.4 billion annually.

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FAQ

What are the ongoing monthly expenses for a Pizza Hut outlets?

The monthly expenses are Property rent, worker salary/wages, electricity fees, Royalty fee 6% on your monthly gross sales, Additional advertising cost 4.25 % franchisees must contribute towards.

What is the pizza hut initial franchise cost?

The initial investment required for a Pizza Hut franchise in India from ₹20 lakhs to ₹40 lakhs, depending on the type of franchise model.

What is the royalty fee in Pizza hut?

The royalty fee in Pizza Hut is 6% of the prior month’s Gross Sales for each franchised Restaurant.

Who is the current owner of Pizza Hut?

The founder of pizza hut was Frank Carney, Dan Carney (Brothers). Now currently Pizza Hut is subsidiary of Yum Brands, Inc a global fast-food corporation that also owns Taco Bell and KFC.

What is the market size for pizza in India?

The market size is expected to reach ₹12,000 crores by 2025.

What is the market size for pizza in the USA?

The pizza market in the USA is highly competitive, with many established brands and local pizzerias. The market size is estimated to be around $13.4 billion annually.