In this FDD Talk post, you’ll learn the following:
- Section I – Background information on the Hungry Howie’s franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a Hungry Howie’s franchise, based on Item 7 of the company’s 2019 FDD
- Section III – Initial franchise fee, royalty fee, marketing fee, and other fees for a Hungry Howie’s franchise, based on Items 5 and 6 of the company’s 2019 FDD
- Section IV – Number of franchised and company-owned Hungry Howie’s outlets at the start of the year and the end of the year for 2016, 2017, and 2018, based on Item 20 of the company’s 2019 FDD
- Section V – Presentation and analysis of Hungry Howie’s financial performance representations, based on Item 19 of the company’s 2019 FDD, including information on the:
- 2018 average, median, highest, and lowest gross sales for the 282 franchised, 32 affiliated, and all 314 Hungry Howie’s restaurants (separately stated) that were open for the entire 52-week period from January 1, 2018 to December 30, 2018
- 2018 average, median, highest, and lowest gross sales, food costs, paper costs, and labor costs for the 246 franchised, 32 affiliated, and all 278 Hungry Howie’s restaurants (separately stated) that provided select cost information in income statements submitted to the franchisor for the entire 52-week period from January 1, 2018 to December 30, 2018
Section I – Background Information
14 Things You Need to Know About the Hungry Howie’s Franchise
Celebrates 35 Consecutive Quarters of Same-Store Sales Growth
1. At the beginning of January 2019, Hungry Howie’s celebrated the new year by announcing exceptional same-store sales growth for almost 9 consecutive years, with a 5.15% increase in sales in 2018 compared to 2017. The brand plans to continue national growth in 2019 with store openings across a multitude of markets including Arizona, Nevada, Texas, Tennessee, and more.
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Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does.2. Steve Jackson, CEO of Hungry Howie’s, said, “We are extremely pleased to see the momentum across our business continued for almost 9 consecutive years. Additionally, I am particularly proud of our team’s endless dedication to our customers. As we look forward, we will continue to provide consumers with a positive experience all while creating exceptional pizza to drive consistent performance across the brand.”
3. In 2018, Hungry Howie’s consistently worked towards increasing its national footprint by signing multi-unit development deals in Arkansas and Utah. Additionally, the brand continued to hold its top ranking in the pizza industry and added more items to its menu, including the introduction of its mouthwatering family-sized Howie Cookie, featuring decadent Ghirardelli chocolate chips.
Adds More Perks to Loyalty Program
4. In early November 2018, Hungry Howie’s offered its fans the opportunity to earn free pizzas with the launch of its updated loyalty program, Howie Rewards. Fans of Hungry Howie’s iconic flavored crusts will now receive 50 Howie Points when they download the app and join the Howie Rewards program through their online ordering account, putting them only one qualifying purchase away from a free pizza.
5. According to Steve Jackson, CEO of Hungry Howie’s, “We are always looking for new ways to improve our business when it comes to technology which is why we’ve taken this year to update our Howie Rewards program and website to be more user-friendly for our loyal fans. With our updated loyalty program, both online and through the app, we are putting our dedicated fans just one purchase away from receiving their favorite flavored crust pizza for free.”
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Every month we feature 6 standout franchises that could be the opportunity you've been looking for, each evaluated on disclosed financials and matched to the type of buyer most likely to succeed with it. Can't attend live on October 27 at 6PM EST? Register now and we'll send you the full recording the next day. Reserve your spot here.6. Hungry Howie’s modernized its digital platform with online ordering in 2015 and launched the first edition of Howie Rewards in 2017 hoping to encourage customers to order through its mobile app or online from participating locations. After a successful trial year, Hungry Howie’s has updated its mobile app and online ordering platforms to award fans 50 Howie Points when they download the app and join the Howie Rewards program.
7. In addition, Howie Rewards members will get 10 Howie Points for every qualifying online, in-store, phone, or mobile app purchase with a pre-tax total of $10 thereafter. Once users have earned 60 Howie Points, they earn a Reward, which may currently be redeemed for a free medium two-topping pizza from any Hungry Howie’s participating location, no purchase necessary.
Celebrates 45th Anniversary
8. In mid-September 2018, Hungry Howie’s celebrated its 45th anniversary. To mark the occasion, the brand offered its loyal customers a large 1-topping pizza for $0.45 with the purchase of a large pizza at regular menu price using the code “45YEARS” from September 10 to 16.
9. In a press release, Hungry Howie’s said that since the first franchise opened in 1983, the brand has grown to over 550 locations in over 20 states, with plans to continue growth by venturing into new territories; has seen 32 consecutive quarters of same-store sales growth; and continues to be ranked as one of the nation’s top pizza franchises.
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When I owned a UPS Store, I learned firsthand how much your ZIP code shapes your outcome. I sold my store at a premium because my territory was in a high-value area. The best areas go first, and once they're gone, they're gone. Enter your ZIP code to see which franchises are still available near you, saving you months of wasted research.📈Dreaming of Multi‑Unit Success? Lock In Prime Territories Before They're Gone.
Colin started as a team member at 21 and now owns 6 locations in Tampa Bay. Lisa came from marketing and built 21 in San Diego. The most successful multi-unit owners move early and secure markets with room to grow. Use our free tool to search multiple ZIP codes and find franchises where you can still stack locations, before someone else does.10. Steve Jackson, CEO of Hungry Howie’s, said, “Our team has been working extremely hard over the past 45 years to create the Hungry Howie’s brand we have today that I am so honored to be a part of. Having been a part of the team since the beginning, it’s incredible to see the growth of the company and the passion of our corporate team, franchisees and fans. Hungry Howie’s has always been a family business so I can’t wait to see our family grow over the next 45 years and continue to offer excellent products and superior customer service.”
Company History
11. Hungry Howie’s was founded in 1973 by James Hearn in Taylor, Michigan. Hearn converted a 1,000-square-foot hamburger shop into a carryout and delivery pizzeria. One of Hearn’s delivery drivers was a man named Steve Jackson (the company’s current CEO), who became Hearn’s business partner in 1982. Hearn and Jackson began franchising the Hungry Howie’s concept the following year.
12. That same year, Hearn and Jackson developed and tested the brand’s signature Flavored Crust pizza regionally. The brand rolled out the Flavored Crust in 1985 when the chain had grown to about 65 locations.
13. Hungry Howie’s continued to expand throughout the 1980s and by 1990, there were 160 stores in the United States. This growth has continued over the past few decades and there are now more than 500 Hungry Howie’s locations across 21 U.S. states.
Entrepreneur’s Franchise 500
14. Hungry Howie’s ranked No. 131 on Entrepreneur’s 2019 Franchise 500 list.
Section II – Estimated Costs
- Please click here for detailed estimates of Hungry Howie’s franchise costs, based on Item 7 of the company’s 2019 FDD.
Section III – Initial Franchise Fee, Royalty Fee, Marketing Fee, and Other Fees
- Please click here for detailed information on Hungry Howie’s initial franchise fee, royalty fee, marketing fee, and other fees, based on Items 5 and 6 of the company’s 2019 FDD.
Section IV – Number of Franchised and Company-Owned Outlets
Franchised
2016
- Outlets at the Start of the Year: 517
- Outlets at the End of the Year: 517
- Net Change: 0
2017
- Outlets at the Start of the Year: 517
- Outlets at the End of the Year: 523
- Net Change: +6
2018
- Outlets at the Start of the Year: 523
- Outlets at the End of the Year: 519
- Net Change: -4
Company-Owned
2016
- Outlets at the Start of the Year: 32
- Outlets at the End of the Year: 32
- Net Change: 0
2017
- Outlets at the Start of the Year: 32
- Outlets at the End of the Year: 32
- Net Change: 0
2018
- Outlets at the Start of the Year: 32
- Outlets at the End of the Year: 32
- Net Change: 0
Section V – Financial Performance Representations (Item 19, 2019 FDD) and Analysis
- The financial performance representations below are based on the historical performance of a subset of existing Hungry Howie’s Units.
Part 1 – Average and Median Annual Gross Sales of Certain Hungry Howie’s Units for the 52 Weeks Ended December 30, 2018
- The franchisor examined the Gross Sales of certain Hungry Howie’s Units that were open for the entire 52-week period from January 1, 2018 through December 30, 2018 (the “Measuring Period”). Such information was obtained from point-of-sale systems at each individual Unit.
- The data below was derived from Gross Sales information from Franchised Units, Affiliated Units, and All Units.
Gross Sales
Franchised Units
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