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Below is an in-depth analysis and side-by-side comparison of Chicago's Pizza vs Russo's New York Pizzeria 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 | $400,000 - $1,500,000 |
Franchise Fee | $12,000 | $49,500 |
Royalty Fee | 4% | 7% |
Advertising Fee | - | 2% |
Year Founded | 1979 | 1978 |
Year Franchised | 1981 | 1998 |
Term Of Agreement | 5 years | 10 years +5 |
Term Of Agreement | 5 years | 10 years +5 |
Renewal Fee | - | - |
Business Experience Requirements |
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Experience | No Restaurant experience necessary but helpful Minimum financials are $175K to $400K in investment capital and a $600K to $1.0MM net worth. | |
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 | - | Corporate Store, Houston, TX . 8 Week GM & Key Supervisor Training and Certification. |
Support | Grand opening, Field operations/evaluations, Purchasing cooperatives | Central Data Processing: At Additional Cost
Field Operation Evaluation: At Additional Cost Field Training: At Additional Cost Initial Store Opening Inventory Control Regional or National Meetings 800 Telephone Hotline |
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) | Average Number of Employees: 10 Full-time, 6 Part-time Passive Ownership: Allowed, But Discouraged |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | - |
International Expansion | No | Yes |
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.
Russo's Restaurants is a national and international franchisor of the fast casual and casual dining brands Russo's New York Pizzeria and Russo's Coal-Fired Italian Kitchen. Based in Houston, Russo's Restaurants are composed of a mix of corporate and franchised locations across Texas, Oklahoma, Arkansas, Tennessee, Florida and Hawaii. Russo's has entered international markets as well, with locations in Dubai, Abu Dhabi and Sharjah in the United Arab Emirates. There are an additional 20-plus units in development both in the United States and internationally. Chef Anthony Russo has created his concepts from years of applying his unique, family recipes featuring New York-style pizza along with a broad variety of handcrafted pasta creations, calzones, salads, sandwiches, soups and desserts, reflecting his commitment to his New York roots where food and family come first.