In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the PizzaRev franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a PizzaRev franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of PizzaRev’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015 average, high, and low revenues for the 10 operational company-owned PizzaRev Restaurants that had been in operation for at least 18 months as of December 27, 2015
- 2015 average revenues, cost of goods sold, labor costs, total controllable expenses, total non-controllable expenses, operating income, and EBITDA for the 4 company-owned PizzaRev Restaurants in operation for over one year (but less than two years), the 3 company-owned PizzaRev Restaurants in operation for over two years (but less than three years), and the 3 company-owned PizzaRev Restaurants in operation for over three years, respectively, as well as the actual figures for each of the 10 stores included in the sample
Section I – Background Information
PizzaRev Expands Coast-to-Coast Footprint
PizzaRev is working on a bigger footprint by expanding its presence in the Eastern United States as well as its home state of California.
After four years in business, the fast-casual pizza restaurant chain has 40 locations, the majority in California. Its next 10 locations will include four stores in the Eastern states of Massachusetts, New York and Ohio, as well as a unit in Tennessee. The remaining five new locations will be in California.
The Los Angeles-based company continues to open corporate locations in the L.A. area while expanding the brand with current and planned franchised locations elsewhere in California as well as Colorado, Minnesota, Nevada, New York, Massachusetts, Ohio, South Dakota, Tennessee, Texas and Utah.
Company Started With Three Stores
PizzaRev started in 2012 in Los Angeles, founded by Rodney Eckerman and Irv Zuckerman and their sons Nicholas Eckerman and Jeff Zuckerman. The family members started with three stores, in residential, business and university locales.
Franchising began in 2013 as Buffalo Wild Wings Inc., a minority stakeholder in the company, became the first franchisee. Minneapolis-based Buffalo Wild Wings planned several PizzaRev locations in its home city.
Customers Can Craft Their Own
The company, whose name is short for “Pizza Revolution,” uses the slogan “Craft Your Own!” Customers can order specialty Our Way Pizzas but can also customize their artisanal pizzas as they go through the line to order. The pizzas, all priced at $8.25, regardless of numbers of toppings, are cooked in a 900-degree stone hearth pizza oven in less than three minutes.
The Our Way Pizzas include basics such as cheese and pepperoni, as well as more colorful choices like Fennel & Sausage. When customers create their own pizzas, they choose from three crusts, five sauces, and more than 35 toppings. Also on the menu are salads and desserts, along with a kids’ meal.
Dough is made fresh daily, and the company focuses on healthful ingredients, including gluten-free and vegan options.
PizzaRev Honored By Halo Awards
The 2016 Halo Awards, which honor restaurant companies that provide healthier food and promote active lifestyles, gave PizzaRev honorable mention honors within the Lifestyle Innovations category.
The chain was singled out for its 2015 PizzaRevolution campaign, which included an online nutrition calculator and used social media to help customers learn how to consciously craft their pizzas.
PizzaRev Doubles Down With New Double Dough
PizzaRev debuted its new thicker crust option in May 2016 as Double Dough became officially available at the chain’s 33 restaurants. The first 50 customers at each restaurant on May 1 each received a free Double Dough pizza.
Double Dough, which joins the chain’s Signature Thin and Gluten-Free crusts, had received overwhelmingly positive responses when PizzaRev tested the new dough in a select group of stores.
Nicholas Eckerman, company president and chief operating officer, said the introduction of the thicker crust fits with PizzaRev’s mission of providing innovation.
“It’s all about creating a fully customized experience for all pizza lovers,” he said.
Ovens Are Centerpieces
The polished contemporary-design, complemented by traditional touches, at PizzaRev locations is centered by the open-flame stone bed ovens, whose placement is designed to illustrate the fresh, handmade quality of the pizzas.
Chain Seeks Experienced, Community-Minded Restaurateurs
PizzaRev is seeking experienced restaurateurs who are involved in their communities and are experienced with restaurant openings.
Stores are generally 1,800 to 3,000 square feet, with an ideal footprint of about 2,200 square feet. The restaurants are preferably end caps or corner locations and are often anchored by big-box stores, placed in high-density, high-visibility shopping areas, or located within shopping malls, colleges and universities, movie theaters, and more.
Section II – Estimated Costs
- Please click here for detailed estimates of PizzaRev franchise costs, based on Item 7 of the company’s 2016 FDD (updated).