A View From The Top

A pizza CEO's thoughts on franchising during a pandemic

Pizza brands have fared better than most restaurant concepts during the pandemic thanks to the segment's overall readiness to serve off-site customers. That fact and many other pizza sector performance strengths can help pizza concepts capture the attention and business of potential franchisees.

The pandemic may present some franchising opportunities for pizza brands. (Photo: iStock)

November 25, 2020 by Shahpour Nejad — PRESIDENT/CEO, PIZZA GUYS

The COVID-19 pandemic has changed the restaurant industry forever, with tens of thousands of restaurants closing their doors. When large economic events like this occur, people are laid off or furloughed and are forced to begin searching for what to do next with their lives. At these junctures, many people — particularly those who've spent years in the corporate world — begin looking at opportunities that allow them to be their own bosses, like foodservice franchises.

The franchising industry, however — especially pizza restaurant franchising — tends to be counter-cyclical, which presents opportunities for franchise owners. That's why in this article I'm sharing some of the key factors that we, at Pizza Guys, have found work to incentivize prospective franchisees to look more closely at a pizza concept that has fared relatively well through the challenges of the pandemic.

Proof of resiliency

Prospective franchisees are always looking to learn more about how brands perform during times of economic downturn, and it is the responsibility of the franchisor to showcase how their model has responded in such cases. Pizza Guys has been able to point to the industry and showcase that overall, the pizza delivery and takeout category has seen a lot of success during this time.

At the start of the Covid-19 pandemic, many restaurants struggled when the stay-at-home mandates were made, but because takeout and delivery concepts already had the necessary infrastructure in place, pizza concepts were able to continue serving their communities and providing food to customers. This has been a key factor for our company when speaking with prospective franchisees throughout the pandemic.

More opportunities for cost reductions

Prospective franchisees are now able to lease real estate that fits their needs much more easily and at less cost due to the decreased need for additional buildouts. This provides an opportunity to take over existing restaurant spaces without having to undergo the typical investment process to turn a former retail store into a restaurant-compatible space.

Additionally, with restaurants closing, brands have been able to purchase fairly priced, used restaurant equipment. Both of these factors have worked for pizza restaurant concepts that want to expand via franchising.

The security of a support system

During these unprecedented times, many prospective franchisees have expressed nervousness about starting a business. However, with franchising, prospective franchisees can rely on the franchisor as a resource to help them.

For example, at the beginning of the pandemic, our corporate office was responsible for developing new COVID-19 protocols, providing each store owner with the necessary training and resources to implement any changes necessary. Not only did we provide insight around new procedures, but we also worked hand-in-hand with vendors to ensure that our supply chain was kept intact in case of any ingredient shortages. We also developed backup plans in the event of major supply chain issues.

As a franchisee, being able to rely on a franchisor to resolve these major issues is essential, because it allows you to continue to focus on running your business effectively and successfully. The franchise system also allows franchisees to be in constant contact with one another to discuss solutions to shared problems, as well as offering advice and insight that only a fellow-owner can provide.

Deeper labor pool

Due to COVID-19, millions have been laid off from their jobs across the country and are searching for work. Many of our franchisees have been able to hire new employees during this time because of the expanded employment pool. Franchisees are instrumental then in providing community jobs at this challenging economic time.

Proof of system adaptability

As mentioned above, being able to see how a concept reacted and navigated Covid-19 has been a major factor for a lot of potential franchisees when they've approached us. They want to see how the company adapts in the most pressing times, as well as how company leaders have flexed to adapt strategy and how the system responded to change.

My advice to other pizza chains and franchise concepts is to make sure you are showing prospective franchisees how your approach worked, how you were able to quickly make needed changes so quickly and how those changes helped your concept succeed.

Franchising has always been a good way to help grow a pizza concept due to its affordability, proven systems, adaptability and pivotal role in communities. It's vital for franchises to showcase their successes throughout the pandemic to show franchisees your brand not only survives, but thrives even during the toughest times.

Franchising