Are you looking into opening a pizza hut franchise in your city? then this article is definitely for you.
In this article, we will discuss how to start a pizza hut franchise, which includes its franchise cost, benefits, profit margin, and much more to put your right foot forward towards the franchise business.
History of the Brand – Pizza Hut
It all began in 1958 when two brothers borrowed a small amount of $600 from their mother to open a pizza outlet in Kansas. They named their Pizza place as ‘Pizza Hut’ as this name fit perfectly on to the signboard available to them at that point in time.
The Pizza Hut Restaurant became popular in no time, owing to the awesome pizza served and home-like vibe that customers seemed to enjoy.
Pizza Hut continued delivering the tastiest pizzas to its customers year after year, and in June of 1996, their company marked its presence in India. The first international Pizza Hut restaurant was opened in Bangalore, making it an International restaurant chain pioneer.
Pizza Hut USP
Before stepping into the franchise world and taking up Pizza hut franchise opportunities, you must know what makes it one of the world-renowned restaurant chains.
The Pizza Hut restaurant offers an extensive menu, including signature pizzas, pasta, desserts, appetizers, and beverages. Their menu has something for each one of its customers, be it Pizza hut pasta or Pizza Hut pizza and much more.
Online Orders
The company has availed its customers a ‘Pizza hut order online option,’ which enables them to order online from anywhere.
Mobile Application
Pizza hut has employed technology to provide the best services to its customers. Their mobile application enables customers to check pizza hut offers and deals after placing orders to enjoy fresh, tasty pizzas.
Great Dining in Experience
The ambiance of Pizza hut restaurant is unique; hence, whoever enters it, feels relaxed while enjoying the tastiest pizzas served.
Established Quality
The highest quality of the ingredients used and craftsmanship with which the tastiest pizzas are made has remained constant throughout these many years.
Well Reputed
The dining experience offered by Pizza hut restaurant and the pizzas served has been recognized as ‘Most Trusted Food Service Brand’ for eleven years that too in a row.
Why Should You Start a Franchise of Pizza Hut?
Pizza hut is offering franchise opportunities to all franchise business aspirants. Mentioned below are some of the reasons why you should start a Pizza Hut Franchise.
Well Known Brand
Pizza hut is the largest pizza company in the world. In addition to that, Pizza hut is a part of Yumi Brands. We are sure you would not like to miss an opportunity to associate with such a reputed brand!
Becomes a Part of the Community
Pizza Hut is the longest chain of a pizza restaurant globally, with a community of more than 1500 franchise owners worldwide, who will always support you throughout your journey in the Pizza Hut franchise business.
Quick Returns
Although the Pizza hut franchise price may seem a lot initially, since Pizza Hut is such a well-known brand, one can expect a quick return on investments made.
Effective Training Programs
Pizza Hut offers extensive onsite training to its employees, unlike other brands that provide a combination of classroom and onsite training. This comprehensive training given to the employees makes them capable of offering the best services to the customers who visit your franchise.
Multiple Business Model
The Pizza Hut, LLC, works under the umbrella YUM! Brands, Inc. The company’s franchise business runs a Pizza Hut restaurant, majorly offering pizza, pasta, and other Italian dishes. Pizza Hut, LLC is currently giving out three types of franchises,
Restaurant-Based Delivery (RBD) System Restaurants
In this franchise model, Pizza Hut products pizza and other products of PHLLC are sold for both dine-in and carryout consumption.
Delivery – Carryout System Restaurants
From this Pizza Hut franchise, all products are sold for carryout and delivered for off-premises consumption.
Delivery Based Restaurant
In this franchise model, Pizza Hut products are sold for dine-in and carryout consumption and are also delivered for off-premises consumption.
Requirements for Starting a Pizza Hut Franchise in Your City?
Now let us look into the Pizza hut franchise information in detail, including its franchise cost, profit margin, franchise agreement, and much more, which a franchisee of Pizza Hut owners must know before getting started.
Space Requirement
Although there no specific requirement mentioned by the franchisor, around 1000 sq. ft. to 1500 sq. ft. of space is required at the minimum to offer that ambient dining experience for which Pizza Hut is famous.
However, the proposed space must be located in the area of local development. This can be determined by considering household count, per capita income, population growth, and the traffic patterns of the competitor’s franchise in the area.
Training
Pizza Hut takes sole responsibility for providing well-trained staff to its franchise. The staff members are given 8 to 12 weeks of on-the-job training, unlike some other brands, emphasizing classroom training. The pizza hut franchise owners are responsible for managing the accommodation of the training executives of the company.
The initial training programs that every staff member has to go through are as follows,
Restaurant Training
It consists of a Restaurant general manager program, Assistant manager program, Leader program, and Area Coach Program.
Franchise Onboarding
It consists of individual meetings with designated leaders.
Pizza Preparation 1
During this training program, staff members are trained about brand standards, relationship-building skills, and other departments’ know-how.
Pizza Preparation 2
During this training program, staff members are trained about brand culture, customer behavior, brand building, and, most importantly, required culinary skills.
Investment – How Much Does a Pizza Hut Franchise Cost in India?
It’s time to get to know the total franchise cost that Pizza Hut franchise owner has to incur.
Franchise Fee is approx. 14 lakhs INR
Royalty Fee – 6.5% of Gross sales made monthly
National advertising and promoting fees – 4.25% Gross sales
However, it should be noted that this does not include the space acquisition, staff onboarding, staff payments, space furnishing, Inaugural and initial inventory cost.
Considering all the costs mentioned above, the initial Pizza Hut investment sums up more than a crore. It may seem to be a massive investment initially, but since the brand is well established and popular amongst customers, you can expect a higher profit per year and thus quick return on investment.
Employees
The franchisor provides well-trained employees to its franchise outlets. However, according to the franchisor’s recommendations, the franchise owners should actively participate in the day-to-day operation of their Pizza Hut restaurant.
Franchise Agreement
The length of the franchise agreement of Pizza Hut is typically ten years. But franchisees can also opt for two consecutive franchise agreement renewal of five years each.
Territory Area
The best part about Pizza Hut is that it offers its franchise owners a territory area of 450 meters radius to deliver their products for offsite consumption. Moreover, the franchisor ensures that it does not provide another franchise in the same place.
How to Apply for Pizza Hut Franchise?
If you want to take up the Pizza Hut franchise opportunity and have the required commitment to make it a successful franchise business, you must take your first step towards it.
Submit the required information by filling in the Request form on the official website of Pizza Hut India.
Final Words
We hope that this article proves to be very helpful to you while you begin your Pizza Hut Franchise business. In case you have any further queries regarding the same, please feel free to leave a comment down below, and we will be glad to help you out.