Top 10 Pizza Franchises To Watch in 2020

For franchise buyers, one fact remains: Prospects continue to buy pizza brands. Why? People love pizza.

“No matter what the economy, the fact remains that customers love pizza. It is affordable and family-centric. Those traits work all of the time,” said Ardag Tachian, Director of Franchise Development at 1851’s No. 6 brand, Hungry Howie’s Pizza. 

According to a recent study in Consumer Reports, around half of every food dollar spent in the U.S. is spent at restaurants, equaling roughly $2,222 per person, per year—meaning, customers are ordering at home. 

However, in a DoorDash-dominated ordering economy, those dollars are now being spread much farther than the old-school pizza and Chinese brands.

For franchise buyers, the challenge is in inventory. Among the largest brands, the room for growth has become very limited—with many multi-unit franchisees buying into franchises and then buying more at record pace. Multi-unit franchisees look at product, vision, territory availability, cost to get in, potential of earnings and validation. When those align, the number of restaurants in their portfolio quickly expands.

For those looking to buy into this continuously growing category, franchise candidates should look at the emerging brands (of which several made our list).

1. Domino’s

Locations: 9,285 in the U.S.; 16,000 in the U.S and across over 85 countries

Investment range: $119,950 to $461,700

Franchise opportunity website: https://biz.dominos.com/web/public/franchise

Domino’s has been on a meteoric run, not only from a franchise standpoint (which had already established itself at the top long before its evolution into the forefront of franchise brand), but also from a stock standpoint over the last five years. Domino’s price-per-share have climbed from the low $90s to the high $200s recently. 

However, the brand has taken some poking from Wall Street, at least in terms of same-store sales in the United States. Same-store sales measure how well restaurants open at least one year are doing, and when it comes to Domino’s, U.S. stores grew just 2.4% in the third quarter, whereas sales were up 6.3% in the same period a year ago.

What you can learn from this brand: Getting into the brand will be challenging for first-timers or portfolio expanders, as the Domino’s pretty well sold out. Your best opportunity will be to work with a restaurant broker to learn of existing locations that are up for resale. 

Despite the limited inventory, all restaurant brands and operators should continue to watch Domino’s, as the legacy brand challenges the norm within the industry (including buying an innovation hub). Following on the coattails of other restaurant chains, the pizza leader is trying to figure out its plant-based strategy.

2. Pizza Hut

Locations: 7,496 in the U.S.; 16,000 in the U.S and internationally

Investment range: $297,000 to $563,000

Franchise opportunity website: https://franchise.pizzahut.com/

While Pizza Hut remains in the second slot in terms of size, the once restaurant franchise industry dominator has battled to remain relevant within the very crowded pizza category. Last year, the brand tried investing millions of dollars into an attempt at another turnaround, including partnering with the NFL. This is a legacy brand that may, eventually, need to take a serious look at the Domino’s playbook to figure out how to completely turn around the brand’s investment outlook.

What you can learn from this brand: When the leadership is dissatisfied with the growth of a brand, it typically means more investment, learnings and innovation into what’s next. Similar to Domino’s, Pizza Hut also has limited franchise inventory (more likely in the form of resales or international). However, the brand has known it’s been time to innovate for a long time and continues to struggle to find its path.

3. Papa John’s

Locations: 4,450-plus, in U.S. and internationally

Investment range: $130,120 to $844,420

Franchise opportunity website: https://www.papajohns.com/franchise/

Papa John’s has taken a beating over the last 24 months, with floods of negative news. But now, the brand is seemingly stabilizing and gearing up for the next steps in its journey. New CEO Rob Lynch is positioning the brand and its leadership for the next stage, including shuffling the deck with its chief marketing officer, chief operating officer and chief financial officer (all leaders under founder John Schnatter) being removed.

What you can learn from this brand: Once you hit the bottom, you can only go up. For the first time in two years, the once untouchable pizza brands is growing. After seven straight quarters of sales declines, U.S. sales went up 1% in the third quarter. 

4. Little Caesars

Locations: 4,350

Investment range: $221,000 to $654,000

Franchise opportunity website: www.franchise.littlecaesars.com

Little Caesars has long been a brand sustainable in an any-economy environment. Built on value (both to the consumer in price and to the franchise buyer in the category of real estate), the brand has continued to quietly grow—including spikes in international development. When the economy dips lower and other delivery brands are forced to play the price war, Little Caesars will be happily positioned.

What you can learn from this brand: Similar to the other bigger brands, there is not a ton of inventory within the United States for new franchisee growth, as between 2008–2015, the franchise was the fastest growing in the pizza category. Operators have long ago swallowed up as much territory as possible, as they well-understand  the costs, labor, predictability and profitability of the brand. 

5. Marco’s Pizza

Locations: 953

Investment range: $293,515 to $619,710

Franchise opportunity website: https://marcosfranchising.com/

In the last economic downturn, Marco’s Pizza took off, investing in its franchise growth as other brands scaled back their spend. The spend and energy used to propel the brand forward is still producing good fortune. Over the last three years, Marco’s opened an additional 271 restaurants.

What you can learn from this brand: According to QSR Magazine, the top four pizza franchises better watch out. According to the article, in 2019, Marco’s Pizza expected to open a new restaurant every three or four days. At that pace, the brand believes that it will hit 1,500 location toward the end of 2020. That’s a pretty sizable piece of the U.S. pizza market pie.

6. Hungry Howie’s

Locations: 550

Investment range: $290,600 to $538,400

Franchise opportunity website: https://franchising.hungryhowies.com/

Hungry Howie’s, a 45-year-old pizza brand, is proving it can adapt with the rest of them, constantly delivering news of innovation and improvements in technology, including moving all stores to the same point-of-sale (POS) system. The brand continues to invest in its franchise development arm, expanding into new states.

What you can learn from this brand: Earlier this year, QSR Magazine reported that Hungry Howie’s put together its 35th consecutive quarter of same-store sales growth. Comps rose 5.15% in 2018 over 2017.

7. Cicis Pizza

Locations: 423

Investment range: $446,000 to $715,000

Franchise opportunity website: https://franchise.cicis.com/

Finding a point of differentiation within the crowded segment is Cicis Pizza, which features an unlimited buffet line offering a variety of pizza and adjacent items (pasta, salads) all at a serious value. Owning the value-based/volume category has been beneficial for establishing a groundwork for the brand’s growth; the brand announced plans to have almost 500 locations by 2021.

What you can learn from this brand: Many franchise brands create incentives when launching growth initiatives, and Cicis is no different. According to a Restaurant Dive article from early 2019, Cicis created a program that offers franchisees $77,500 toward upfront costs for new store development.

8. Blaze Pizza

Locations: 300-plus, in 42 states and five countries

Investment range: $500,000 in liquidity with a $30,000 franchise fee (only data available)

Franchise opportunity website: https://blazepizza.info/

Over the last few years, there have been significant increases in fast casual pizza brands breaking into the coveted  “fastest growing within the category” lane. Blaze Pizza came out strong, owning the lunch-time rush with its down-the-line concept including premium toppings like roasted garlic and fresh pesto. The brand had 10 locations open in 2013 and now has over 300, opening 180 over the last three years. 

What you can learn from this brand: Despite limited points of differentiation within the fast casual category, the brand’s commitment to growth, the right real estate and the right franchisees have helped super-power its growth—even while Blaze clocks in as tens of years younger than many other franchises on this list. Part of its strength comes from the depth of its leadership team—a core quality franchise buyers look for.

9. Mellow Mushroom

Locations: 200-plus in 20 states

Investment range: $1,609,000 to $4,473,000

Franchise opportunity website: https://mellowmushroom.com/franchising/

One of the coolest things about Mellow Mushroom (besides the obvious chillness of its logo and brand) is the flexibility in concept—meaning, operators can fit the brand into unique spaces, versus fighting to find the ideal space. The brand offers three types of investments to help the right operator fit the growing brand into the right space.

What you can learn from this brand: The brand continues to evolve its digital footprint (alongside many brands within the pizza franchise category), including a recent push for online orders. In May 2019, the brand announced its “Mellow In, Mellow Out” campaign, designed to increase online ordering and incremental gift card sales in order to keep it competitive in the rush to drive pizza into the home. 

10. Jet’s Pizza

Locations: 181

Investment range: $365,000 to $425,000

Franchise opportunity website: https://www.jetspizza.com/franchise/joinus

Some pizza franchise buyers eye celebration in awards. Jet’s Pizza has racked those up, regularly receiving “Best of the Best” and “Reader’s Choice” awards. Pizza Today magazine named Jet’s Pizza® as the 18th largest pizza chain in the nation in its “Top 100 Company” report (Pizza Today, 2010). Entrepreneur Magazine has consistently ranked Jet’s Pizza® as a “Top 500 Franchise,” opportunity (Entrepreneur, 2010).

What you can learn from this brand: While the brand has created fast craveability with younger folks, it’s worth noting that Jet’s has has been around for 41 years. In 1978, brothers Eugene and John Jetts opened their first store together in Sterling Heights, Michigan as Jetts Party Shoppe and Pizzeria. The Detroit-style pizza brand’s ongoing success proves that yet another legacy brand can figure out a way to grow, again, in a crowded pizza franchise marketplace.