In this exclusive Franchise Chatter FDD Talk post, you’ll learn the following:
Section I – Estimated initial investment (franchise costs) for a Pizza Hut franchise, based on Item 7 of the company’s 2023 FDD
Section II – Initial franchise fee, royalty fee, and marketing fee for a Pizza Hut franchise, based on Items 5 and 6 of the company’s 2023 FDD
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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. A franchise specialist will be in touch to present what's available.Section III – Number of franchised and company-owned Pizza Hut outlets at the start of the year and the end of the year for 2020, 2021, and 2022, based on Item 20 of the company’s 2023 FDD
Section IV – News updates on the Pizza Hut franchise opportunity
Section V – Presentation and analysis of Pizza Hut’s financial performance representations (average revenues and/or profits), based on Item 19 of the company’s 2023 FDD, including information on the:
- 2021 and 2022 average, median, highest, and lowest gross sales; average cost of sales; and average cost of labor for the company-owned Pizza Hut restaurants that were open and operating for at least one year as of the end of the applicable fiscal year and that were situated on leased real property
- 2021 and 2022 average, median, highest, and lowest gross sales for the franchised Pizza Hut restaurants of the Dine-In/Red Roof and RBD restaurant concept type that were open and operating for at least one year as of the end of the applicable fiscal year
- 2021 and 2022 average, median, highest, and lowest gross sales for the franchised Pizza Hut restaurants of the Delco Delivery/Carry-Out restaurant concept type that were open and operating for at least one year as of the end of the applicable fiscal year
- 2021 and 2022 average, median, highest, and lowest gross sales for the franchised Pizza Hut restaurants that were open and operating for at least one year as of the end of the applicable fiscal year
Section VI – Key ratios, comparables, computations, and analyses for the Pizza Hut franchise opportunity (exclusive content for Platinum subscribers)
Section I – Pizza Hut Franchise Costs
- Pizza Hut franchise costs (for RBD and DBR Dine-In/Delivery/Carryout System Restaurants), based on Item 7 of the company’s 2023 FDD:
- Initial Franchise Fee: $25,000
- Equipment: $150,000 to $300,000
- Opening Inventory: $4,000 to $8,000
- Smallwares: $15,000 to $50,000
- Building and Site Improvements: $550,000 to $1,575,000
- Land: Varies
- Delivery Vehicles: Varies
- Computer System: $20,000 to $40,000
- Computer System Training: $0 to $1,500
- Additional Funds (3 months): $5,000 to $21,500
- Miscellaneous: $10,000 to $22,000
- Advertising: $0 to $16,500
- Start-up/Other: $3,000 to $4,000
- Total Estimated Pizza Hut Franchise Costs: $787,000 to $2,063,500
Section II – Pizza Hut’s Initial Franchise Fee, Royalty Fee, and Marketing Fee
- Pizza Hut’s initial franchise fee, royalty fee, and marketing fee, based on Items 5 and 6 of the company’s 2023 FDD:
- Initial Franchise Fee: $25,000
- Monthly Service Fee: 6.0% of Gross Sales (6.5% of Gross Sales under certain circumstances)
- System Advertising Fund Contribution: 4.75% of Gross Sales
Section III – Number of Franchised and Company-Owned Pizza Hut Outlets
Franchised
2020
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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, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, saving you months of wasted research.🔴Free Webinar: 6 Under-the-Radar Franchise Concepts That Serious Buyers Should Know
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.- Outlets at the Start of the Year: 5,953
- Outlets at the End of the Year: 5,323
- Net Change: -630
2021
- Outlets at the Start of the Year: 5,323
- Outlets at the End of the Year: 5,295
- Net Change: -28
2022
- Outlets at the Start of the Year: 5,295
- Outlets at the End of the Year: 5,303
- Net Change: 8
Company-Owned
2020
- Outlets at the Start of the Year: 23
- Outlets at the End of the Year: 22
- Net Change: -1
2021
- Outlets at the Start of the Year: 22
- Outlets at the End of the Year: 22
- Net Change: 0
2022
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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, and a territory specialist will walk you through the franchises still available near you, drawing on information that isn't publicly accessible, 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. A franchise specialist will be in touch to present what's available.- Outlets at the Start of the Year: 22
- Outlets at the End of the Year: 21
- Net Change: -1
Section IV – News Updates on the Pizza Hut Franchise
Section V – Financial Performance Representations (Average Revenues and/or Profits) for the Pizza Hut Franchise (Item 19, 2023 FDD)
- Set forth below are historical data for certain domestic traditional Pizza Hut outlets owned and operated by Pizza Hut or its affiliates (“Company-Owned System Restaurants”) and certain domestic traditional Pizza Hut outlets owned and operated by franchisees (“Franchised System Restaurants”).
Part 1 – Mature Company-Owned Restaurants
- The financial performance representations below provide certain information regarding Company-Owned RBD and Delco System Restaurants that were open and operating for at least one year as of the end date of December 27, 2021 and December 26, 2022, respectively (each, a “Reporting Period”) that were situated on leased real property (“Mature Company-Owned System Restaurants”).
- RBD stands for Restaurant-Based Delivery System Restaurants from which Pizza Hut pizza and other products approved by PHLLC (“Approved Products”) are sold for dine-in and carry-out consumption, and may be delivered for off-premises consumption.
- Delco stands for Delivery/Carry-out System Restaurants from which Approved Products are sold for carry-out and are delivered, all for off-premises consumption.
- Specifically excluded from Mature Company-Owned System Restaurants are System Restaurants for which PHLLC or its affiliates owned the real property; carry-out only System Restaurants; seasonal System Restaurants; Express Restaurants (for which licenses are offered under a separate disclosure document); or any type of System Restaurant other than traditional RBD and Delco System Restaurants.
- As of December 27, 2021, there were 22 Mature-Company-Owned System restaurants, and as of December 26, 2022, there were 21 Mature-Company-Owned System restaurants, which are reflected in the subset information provided below.
A1. 2021 Average Performance (ended December 27, 2021) – Mature Company-Owned System Restaurants
- Number of Mature Company-Owned System Restaurants: 22
- Average Gross Sales: $981,650
- Median Gross Sales: $958,000
- Lowest Gross Sales: $554,791
- Highest Gross Sales: $1,586,726
- Average Cost of Sales: $261,946 (26.3%)
- Average Cost of Labor: $343,812 (34.9%)
A2. 2022 Average Performance (ended December 26, 2022) – Mature Company-Owned System Restaurants
- Number of Mature Company-Owned System Restaurants: 20
- Average Gross Sales: $969,345
- Median Gross Sales: $931,175
- Lowest Gross Sales: $531,956
- Highest Gross Sales: $1,551,727
- Average Cost of Sales: $266,699 (27.6%)
- Average Cost of Labor: $351,619 (36.5%)
- “Average Gross Sales” is the mathematical average of the total annual cash or other payments received for the sale or use of any products, goods, or services that were sold from the System Restaurants included within the group, less applicable discounts, allowances, and sales taxes.
- “Average Cost of Sales” is the mathematical average of the total annual delivered cost of food, beverages, paper, and promotional items to the System Restaurants included within the group, expressed as a percentage of Average Gross Sales.
- “Average Cost of Labor” is the mathematical average of the total annual hourly labor costs, the salaries and related costs of management, payroll taxes, health insurance, vacation pay, sick pay, bonuses, and workers’ compensation insurance for all employees at the System Restaurants included within the group, expressed as a percentage of Average Gross Sales.
Part 2 – Mature Franchised System Restaurants
- The financial performance representations below provide certain information regarding the Franchised System Restaurants – of the Dine-In/Red Roof, RBD, and Delco Delivery/Carry-out Restaurant Concept type – that were open and operating for at least one year as of the end date of the Reporting Periods dates listed in the chart below (“Mature Franchised System Restaurants”).
- “Red Roof” System Restaurants are restaurants from which Approved Products are sold for dine-in and carry-out consumption. PHLLC generally no longer offers franchises for Red Roof System Restaurants (though it does permit existing Red Roof System Restaurant franchisees to renew and transfer their franchises to the extent such renewal and/or transfers are permitted by the subject Pizza Hut Franchise Agreement governing such Restaurants).
- RBD stands for Restaurant-Based Delivery System Restaurants from which Pizza Hut pizza and other products approved by PHLLC (“Approved Products”) are sold for dine-in and carry-out consumption, and may be delivered for off-premises consumption.
- Delco stands for Delivery/Carry-out System Restaurants from which Approved Products are sold for carry-out and are delivered, all for off-premises consumption.
- Specifically excluded from the definition of Mature Franchised System Restaurants are those DBR/FCD System Restaurants; carry-out only System Restaurants; seasonal System Restaurants; Express Restaurants (for which franchises are offered under a separate disclosure document); or any type of System Restaurant other than traditional Dine-In/Red Roof, RBD, and Delco Delivery/Carry-out System Restaurants.
- As of December 27, 2021, although there was a total of 5,295 Franchised System Restaurants, there were 4,620 Mature Franchised System Restaurants, and as of December 26, 2022, although there were a total of 5,303 Franchised System Restaurants, there were 4,666 Mature Franchised System Restaurants.
- Any Mature Franchised System Restaurant that closed during the Reporting Period in the table below is excluded from Restaurants included in such period.
A1. 2021 Average Performance (ended December 27, 2021) – Mature Franchised System Restaurants of the Dine-In/Red Roof and RBD Restaurant Concept Type
- Number of Mature Franchised System Restaurants of the Dine-In/Red Roof and RBD Restaurant Concept Type: 2,057
- Average Gross Sales: $1,075,836
- Median Gross Sales: $1,019,310
- Lowest Gross Sales: $219,847
- Highest Gross Sales: $2,996,833
A2. 2022 Average Performance (ended December 26, 2022) – Mature Franchised System Restaurants of the Dine-In/Red Roof and RBD Restaurant Concept Type
- Number of Mature Franchised System Restaurants of the Dine-In/Red Roof and RBD Restaurant Concept Type: 2,014
- Average Gross Sales: $1,070,608
- Median Gross Sales: $1,009,157
- Lowest Gross Sales: $238,661
- Highest Gross Sales: $2,900,026
B1. 2021 Average Performance (ended December 27, 2021) – Mature Franchised System Restaurants of the Delco Delivery/Carry-out Restaurant Concept Type
- Number of Mature Franchised System Restaurants of the Delco Delivery/Carry-out Restaurant Concept Type: 2,563
- Average Gross Sales: $1,022,827
- Median Gross Sales: $971,229
- Lowest Gross Sales: $218,514
- Highest Gross Sales: $2,993,149
B2. 2022 Average Performance (ended December 26, 2022) – Mature Franchised System Restaurants of the Delco Delivery/Carry-out Restaurant Concept Type
- Number of Mature Franchised System Restaurants of the Delco Delivery/Carry-out Restaurant Concept Type: 2,652
- Average Gross Sales: $1,005,659
- Median Gross Sales: $964,133
- Lowest Gross Sales: $227,682
- Highest Gross Sales: $2,914,507
C1. 2021 Average Performance (ended December 27, 2021) – All Mature Franchised System Restaurants
- Number of Mature Franchised System Restaurants: 4,620
- Average Gross Sales: $1,046,429
- Median Gross Sales: $988,910
- Lowest Gross Sales: $218,514
- Highest Gross Sales: $2,996,833
C2. 2022 Average Performance (ended December 26, 2022) – All Mature Franchised System Restaurants
- Number of Mature Franchised System Restaurants: 4,666
- Average Gross Sales: $1,033,693
- Median Gross Sales: $982,717
- Lowest Gross Sales: $227,682
- Highest Gross Sales: $2,914,507
Section VI – Pizza Hut Franchise Ratios, Comparables, Computations, and Analyses (Exclusive Content for Platinum Subscribers) ⬇️
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