Franchise Deep Dive: Donatos' Franchise Costs, Fees, Profit and Data

Famous for its Edge to Edge pizza, this franchise boasts an impressive ROI.

By Victoria CampisiStaff Writer

8:08AM • 05/09/23

LAST UPDATED: 2/2024

FRANCHISE WEBSITE: https://www.donatospizzafranchise.com/

NUMBER OF LOCATIONS: 460

REPORTED COST TO GET IN: $457,244 to $989,654

REPORTED ROI (Item 19): $1.23 million (AUV)

In 1963, Donatos Pizza was founded in Columbus, Ohio when Jim Grote purchased the pizza shop he had been working for since he was a teenager. Grote decided to keep the original name, which comes from the Latin phrase “to give a good thing.” He began to slowly grow the brand over the next few decades. In 1991, Donatos began franchising. The first franchised location opened in Zanesville, Ohio.

In 1999, Donatos was purchased by McDonald’s in an attempt from the fast food giant to enter the pizza market. However, this endeavor was not successful, and a majority interest in the pizza brand was repurchased by Grote and his daughter Jane in 2003.

Since then, Donatos has mostly remained a regional chain. In 2019, it partnered with Red Robin to sell pizzas in their restaurants and became a national brand.

How Many Locations Are There?

Donatos has 460 locations in 29 states. The franchise and its partners operate more than 170 traditional restaurants in Ohio, Indiana, Kentucky, Virginia, West Virginia, South Carolina, Alabama, Tennessee, Georgia, Pennsylvania, Florida and Oklahoma more than 280 non-traditional locations.

What Is the Business Model?

Donatos focuses on delivering a premium experience to customers, featuring pizzas loaded with abundant toppings on their signature golden, crispy thin crust. They also prioritize prominent restaurant locations with appealing designs to enhance the overall customer experience.

Key elements of their business model include:

Consistency: Donatos ensures consistency in their product offerings across all locations with their motto "Same Pizza, Anytime, Anywhere." This commitment is supported by systems and processes that take the guesswork out of running a franchise.
Efficiency and Profitability: Donatos invests in efficient kitchens and predictive intelligence systems to meet peak demand and catering needs effectively. They also provide flexible restaurant designs, including drive-up windows, to enhance profitability.
Menu Innovation: Donatos constantly tests new menu options to stay on-trend and keep customers coming back for more. They provide a variety of crust options, premium toppings, and fresh ingredients to differentiate their offerings in the market.
Support and Training: Donatos offers comprehensive training and support to franchisees, including hands-on assistance from industry experts in areas such as marketing, operations, and ongoing training for staff. Franchisees benefit from the expertise developed through the operation of over 50 company-owned restaurants.

How Much Can Donatos Owners Make?

Donatos' average unit volume is $1.23 million.

How Much Does It Cost to Open a Donatos Franchise?

The total estimated cost to open a Donatos is $457,244 to $989,654. Below is a breakdown of costs:

Initial Franchise Fee: $30,000
Security Deposit Under Lease: $2,000 - $11,000
One Months' Lease Rent and Real Estate Expenses: $2,000 - $11,000
Leasehold Improvements and Construction: $35,500 - $454,000
Furniture, Fixtures, Equipment: $297,244 - $346,154
Computer System: $18,000 - $23,000
TRIO Software License Fee: $4,500
Liquor License: $0 - $10,000
Opening Inventory and Supplies: $15,000 - $20,000
Grand Opening Marketing Program and Initial Marketing Expenses: $25,000 - $30,000
Training Expenses: $1,000 - $15,000
Miscellaneous Opening Costs: $2,000 - $5,000
Additional Funds (3 Months): $25,000 - $30,000
Total: $457,244 - $989,654

Qualified investors should also have the following:

$200,000 in liquid capital
$1 million net worth

What Is the Franchise Fee for Donatos?

The franchise fee for Donatos is $30,000.

Who Are the Leaders of Donatos?

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