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Below is an in-depth analysis and side-by-side comparison of Subway vs Ronzio 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 | $139,550 - $342,400 | $134,000 - $183,000 |
Franchise Fee | $15,000 | $15,000 |
Royalty Fee | 8% | 4% |
Advertising Fee | 4.5% | - |
Year Founded | 1965 | 1986 |
Year Franchised | 1974 | 1992 |
Term Of Agreement | 20 years | 10 years |
Term Of Agreement | 20 years | 10 years |
Renewal Fee | none | - |
Business Experience Requirements |
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Experience | ||
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | Yes/Yes | No/No |
Start-up Costs | No/Yes | No/No |
Equipment | Yes/Yes | No/No |
Inventory | No/Yes | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | On-The-Job Training: 33 hours Classroom Training: 62 hours Additional Training: Training available in Australia, China, Germany, India, Montreal, Canada & Miami | - |
Support | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations Site Selection Proprietary Software Franchisee Intranet Platform | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op Advertising Ad Templates National Media Regional Advertising Social media SEO Website development Email marketing Loyalty program/app | Co-op advertising, Ad slicks, Regional advertising |
Operations |
65% of all franchisees own more than one unit Number of employees needed to run franchised unit: 8-12 Absentee ownership of franchise is allowed. (100% of current franchisees are owner/operators)
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20% of all franchisees own more than one unit Number of employees needed to run franchised unit: 12 - 15
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 1965, 17-year-old Fred DeLuca and family companion Peter Buck opened Pete's Super Submarines in Bridgeport, Connecticut. With a credit from Buck for just $1,000, DeLuca trusted the modest sandwich shop would procure enough to put him through school. In the wake of battling through the initial couple of years, the organizers changed the organization's name to Subway and started diversifying in 1974. Offering a new, solid contrasting option to fast-food eateries, Subway has establishments all through the United States and in a few nations, with areas in customary and nontraditional locales alike.
In contrast with different rivals in the fast food industry, where franchisees need to pay millions, - for example, McDonald's ($1-2 million) and KFC ($1.3-2.5 million), investors in Subway need to pay just a portion of that.
The total investment is an estimated $150,050 - $328,700 in the United States and $102,000 to $234,000 in Canada.
Pizza has widespread appeal and it is popular in all regions of the USA and in many foreign countries. It is a food without peer in its flexibility and its adaptability. Practically any taste can be satisfied with pizza from the traditional to the exotic can be accommodated with a simple variation. Pizza is an economical meal or snack and because it contains the four basic food groups, pizza is nutritious and good for you. Ron Paul, president of the Chicago based consulting firm Technomics sees the pizza category growing. The growth of local and regional companies is so significant that these newcomers may actually keep the big players from growing in some markets. The rapid growth of the home delivery food business has been accelerated by changes in sociological trends in America: the dramatic increase in the number of two income households and the continued increase in convenience being sought by consumers. According to restaurant industry analysts, the potentially lucrative at home market is where the greatest future potential lies. The growing popularity of home entertainment, coupled with the demand for convenience, spells opportunity for take-out and home delivered foods. Despite the intensification of competition from all quarters, most pizza operators express great optimism, and not without reason. Pizza continues to be enormously popular with a key demographic group: Baby Boomers and their kids. As a result of this trend, industry analysts cannot see this category slowing down much at all in the near future. Pizza offers good value, and delivers well, two key ingredients for success, given today's economics and lifestyle trends. All of the products sold in Ronzio Pizza Shops are prepared fresh in the shop each day. The pizza dough is made fresh in each shop several times each day and the pizzas are formed by hand. The products are prepared on the premises where the customers can see them being made and where possible the ingredients are displayed openly. The combination of the quality control advantages of on-site production in small batches and the use of the finest all natural ingredients produces a very high quality pizza. The sauce is made from a special recipe developed after comprehensive research and the cheese is a custom blend of 100% pure cheeses. The toppings are top quality and generously apportioned.