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Below is an in-depth analysis and side-by-side comparison of Ronzio 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 | $134,000 - $183,000 | $36,000 - $55,000 |
Franchise Fee | $15,000 | $10,000 |
Royalty Fee | 4% | $700/ month |
Advertising Fee | - | - |
Year Founded | 1986 | 1955 |
Year Franchised | 1992 | 0 |
Term Of Agreement | 10 years | - |
Term Of Agreement | 10 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 | Newsletter, Meetings, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | - |
Marketing | Co-op advertising, Ad slicks, Regional advertising | - |
Operations |
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 | - |
Canada Expansion | No | - |
International Expansion | No | - |
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.
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.