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Below is an in-depth analysis and side-by-side comparison of Snappy Tomato Pizza vs Erik's DeliCafe including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $115,500 - $256,000 | $303,500 - $521,600 |
Franchise Fee | $14,000 | $35,000 |
Royalty Fee | 5% | 5% |
Advertising Fee | 2.5% | - |
Year Founded | 1978 | 1973 |
Year Franchised | 1981 | 1986 |
Term Of Agreement | 15 years | 10 years |
Term Of Agreement | 15 years | 10 years |
Renewal Fee | $2.5K | - |
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 | No/No |
Start-up Costs | No/No | No/No |
Equipment | No/No | No/No |
Inventory | No/No | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | Additional training available as needed | - |
Support | Newsletter, Meetings, Grand opening, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations |
Marketing | Co-op advertising, Ad slicks, Regional advertising | Co-op advertising, Ad slicks |
Operations |
International franchisees required to buy multiple units/master licenses Number of employees needed to run franchised unit: 20 Absentee ownership of franchise is allowed. (80% of current franchisees are owner/operators) |
78% of all franchisees own more than one unit Number of employees needed to run franchised unit: 16 Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | Yes | Yes |
Canada Expansion | No | No |
International Expansion | Yes | No |
In 1978, Bob Rotunda went to the races and put all his money on a horse named Snappy Tomato. The horse won. Rotunda took his winnings and opened the first Snappy Tomato Pizza that year. The company began franchising three years later.
Today Snappy Tomato Pizza has locations across the United States, Canada and Great Britain serving pizza, hoagies, salads and appetizers.
After receiving his bachelor's degree in business and marketing, Erik Johnson tried his hand at accounting, security, food service and real estate before purchasing a 600-square-foot store in Scotts Valley, California, back in 1973. With help from his family, Johnson founded Erik's Deli Cafe, a quick-service and catering restaurant that served sandwiches, salads, soups and baked goods.
Johnson expanded his chain throughout Northern California before selling the first franchise in 1986.