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5 Reasons Why I Think Pita Pit Could Be the Next Big Franchise Opportunity

by Franchise Chatter on April 15, 2011

in Franchise Reviews

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Any prospective franchise owner who is interested in opening a Subway or Quiznos franchise should at least consider learning about other options which may not be as established or well-known but offer certain unique advantages.  A case in point is the Pita Pit franchise opportunity.

A Brief Background: The Pita Pit chain was born in Ontario, Canada near Queen’s University way back  in 1995 and just 2 years later, they began their Canadian franchising program.  They started their US franchise operations in 1999 and in 2005, the entire US business was sold to an American group of investors.  The US corporate headquarters is now located in  Coeur d’Alene, Idaho.

Why do I like the Pita Pita franchise opportunity?  Here are 5 reasons:

1.  Healthier Alternative to Fast Food, Lower Carb Alternative to Subs – The Pita Pit serves Lebanese-style pita (white or wheat) stuffed with grilled meats, vegetables, toppings and sauces.  Think Subway without the bread.  This menu appeals to those who prefer a lower carb alternative to the typical sub sandwich.  It’s a perfectly healthy lunch or dinner, and just like Subway, they offer breakfast options as well.

2.  Low Initial Investment – The initial franchise fee for one unit is only $25,000 and the typical initial investment required ranges from $167,500 to $287,779,  plus sufficient working capital for the first 3 months (from $25,050 to $30,900).  The total investment required for a Pita Pit franchise is on the lower end when compared to other fast food franchise opportunities.

3.  Low Overhead, Easy to Operate – What I find most appealing is that you don’t need a lot of space to operate one of these Pita Pit franchises.  A typical location can be run efficiently in a 1,000 to 1,500 sq. ft. space.  This makes the monthly rent expense much more affordable. In addition, they charge only a 6% royalty fee (versus 8% for Subway).

4.   Established Concept with Lots of Room to Grow – The fact that they’ve been franchising for over a decade indicates that the business model works.  According to Entrepreneur Magazine, as of 2010, they had 170 units in the US and 118 in Canada.  But considering that Subway had 24, 211 locations in the US and 2,586 in Canada that same year, it’s obvious that Pita Pit still has a lot of room to grow, and future franchisee can still open branches in very good locations.

5.   Multiple Unit Ownership Potential – According to Entrepreneur Magazine, 40% of all Pita Pit franchisees own more than 1 unit.  This is a very good sign that current franchisees are confident in the growth potential of the brand.  Although the percentage of Pita Pit owners who own multiple units is less than Subway’s 65%,  it’s still a significant percentage of all the owners.

Pita Pit has been rising steadily in the annual ranking of  Top 500 Franchises by Entrepreneur Magazine, landing its highest overall ranking so far in 2010 (#124) and being named one of the Top 10 Sandwich Franchises (#5) that same year.

Are you a current franchisee of Pita Pit?  What are the pros and cons of investing in a Pita Pit franchise?  Are you happy with your investment?

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