In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the Pie Five Pizza Co. franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Pie Five Pizza Co. franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of Pie Five Pizza Co.’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- 2015 average annual net sales, food cost, total payroll cost, operating expense, and EBITDAR for company-owned Pie Five Pizza Co. restaurants that operated during the entire fiscal year, grouped according to average weekly net sales: less than $15,000, from $15,000 to $20,000, and greater than $20,000
- 2015 average annual net sales for franchised Pie Five Pizza Co. restaurants that operated during the entire fiscal year, grouped according to average weekly net sales: less than $15,000, from $15,000 to $20,000, and greater than $20,000
Section I – Background Information
Fast-Casual Pizza Concept Pioneer
The first Pie Five Pizza Co. restaurant opened in 2011 in Fort Worth, Texas. It started out as a way to apply a fast-casual concept in the same vein as Chipotle to pizza. Pie Five Pizza Co. got its name from being able to have a pizza made in about 5 minutes.
Over the next few years, Pie Five Pizza Co. continued to grow in the Dallas-Fort Worth area. As of December 2016, the pizza franchise has 98 locations across 24 states. Pie Five Pizza Co. has a large expansion plan in the works, as the company aims to open at least 400 more units in the coming years.
Pie Five Pizza Co. is a subsidiary of RAVE Restaurant Group, Inc. (formerly Pizza Inn Holdings Inc.), which also owns Pizza Inn.
New Drive-Thru Units
To continue the company’s mission of making custom pizzas easily accessible to people, Pie Five Pizza Co. has plans to open drive-thru units. In November, the company opened two drive-thru units; one in a newly-constructed restaurant in Yukon, Oklahoma and the other in a conversion of an end-cap restaurant in Indianapolis, Indiana. Pie Five Pizza Co. is testing the concept on a small scale before launching a larger initiative.
Not only will the drive-thrus make it easier for customers to get their pizzas quickly, but it will also make pickup for online orders more convenient. Currently, customers can pick up their pizzas at company-owned Pie Five Pizza Co. locations after placing orders online. The company plans to roll out online ordering to its franchisees.
In addition to testing out drive-thru units, Pie Five Pizza Co. is also testing third-party deliveries in select locations.
Despite being in business for only a few years, Pie Five Pizza Co. has already won numerous awards. From the start of the business to this year, Pie Five Pizza Co. has won the following awards:
- In 2012, the company received the Hot Concepts Award from Nation’s Restaurant News.
- In 2014, the company ranked no. 13 on FastCasual.com’s Top 50 Restaurant Brands of the Year.
- In 2015, the company ranked no. 3 on Fast Casual’s Top 100 Movers & Shakers list.
- In 2015, the company was named Best Franchise Deal by QSR Magazine.
- In 2016, the company ranked as no. 1 Restaurant Business by Future 50.
Pie Five Pizza Co. has been recognized by various other magazines and websites.
Flat Price for Endless Customization Options
Part of Pie Five Pizza Co.’s selling point is giving customers the option to create their own pizzas at a flat price. While walking through a line similar to Chipotle’s, customers can choose from 4 crust types, 28 toppings, and 7 sauces.
After choosing one of the pizza chain’s crusts, Crispy Artisan Thin, Classic Pan, Traditional Italian, and Gluten-Free (at an additional cost), customers can mix and match as many sauces and toppings as they wish. Pie Five Pizza Co. offers a wide array of toppings including mozzarella cheese, ricotta, vegan cheese, pepperoni, Canadian bacon, chicken sausage, caramelized onions, marinated artichoke hearts, fresh basil, basil pesto drizzle, and many other toppings not usually found at quick-service pizza restaurants.
In addition to making a custom pizza, customers can pick from pre-determined pizza combinations like Chicken Carbonara, Maui Wowwi, and the High Five. Other offerings like salads, “breadstix,” brownies, and cookie pies are available.
Celebrated 5th Anniversary by Giving Back
Pie Five Pizza Co. celebrated its 5th anniversary in June 2016. To mark the occasion, Pie Five Pizza Co. launched five days of giving. The campaign, called Pie Five’s Five Days of Doughnations, aimed to raise money for Children’s Health, the leading pediatric health system in North Texas.
All Pie Five Pizza Co. locations in the Dallas-Fort Worth area donated $1 from every pizza sold from June 20 to June 24.
Not Yet Ranked on Entrepreneur’s Franchise 500
Although Pie Five Pizza Co. has won awards from other magazines and websites, the franchise has yet to land a spot on Entrepreneur Magazine’s annual Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Pie Five Pizza Co. franchise costs, based on Item 7 of the company’s 2016 FDD (updated).