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Below is an in-depth analysis and side-by-side comparison of Chicago's Pizza vs Buscemi's Pizza including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $87,300 - $173,100 | $36,000 - $55,000 |
Franchise Fee | $12,000 | $10,000 |
Royalty Fee | 4% | $700/ month |
Advertising Fee | - | - |
Year Founded | 1979 | 1955 |
Year Franchised | 1981 | 0 |
Term Of Agreement | 5 years | - |
Term Of Agreement | 5 years | - |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | - | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/- |
Start-up Costs | No/No | -/- |
Equipment | No/No | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | - |
Support | Grand opening, Field operations/evaluations, Purchasing cooperatives | - |
Marketing | Co-op advertising, Ad slicks | - |
Operations |
20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 15 Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) | - |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | - |
International Expansion | No | - |
Robert McDonald enjoyed working in the pizza business. When he was suddenly terminated from his job with an Indiana pizza restaurant, he decided to start his own pizza chain. When Ron Epple, who had worked with McDonald as director of franchise training, heard what his old co-worker was up to, he asked to be part of it.
In 1979, the two founded Chicago's Pizza. At lunchtime, restaurants serve pizzas by the slice or in seven-inch rounds from counters and drive-thru windows. In the evening, customers can use the drive-thru window to pick up phone orders. Most of the locations also have dining rooms where customers can enjoy Chicago's 29-inch pizza.
The company has franchises in Indiana and Ohio. There is also a Chicago's Pizza location in Seville, Spain.
Buscemi’s present competition comes from single unit operators of party stores. Consequently, as the only party store chain of any real size in Michigan, Buscemi’s has for years enjoyed a good measure of leadership in the Southeastern Michigan marketplace.
Management believes the superior food products and services offered in the Buscemi’s Party Shoppes, if coupled with greater marketing and advertising, could place the Company in a truly dominant position in Michigan. If rapid growth can be attained in the Michigan market area, Buscemi’s may eventually consider expansion into the national market for party and convenience stores.
Growth in Michigan will be through the conversion of existing party and liquor stores in southeastern Michigan, which hold state liquor, beer and wine licenses, and lottery licenses. New licenses are becoming increasingly difficult to obtain, so the purchase of an existing license is a much surer method. These stores will then be converted by remodeling with a new Buscemi’s decor package, signage and menu. The Submarine sandwiches. Such stores can be converted to the Buscemi’s concept and reopened in as little as 60-90 days.
The initial focus for selling new franchises will be accomplished through store conversions and offering reduced franchise fees and royalty payments to persons who convert their stores to Buscemi’s Party Shoppes.