Thursday, March 26, 2009

Are the locally owned pizza parlors better than the chain pizza restaurants?

Are the locally owned pizza parlors better than the chain pizza restaurants?



Franchise store pay a fee to be part of the chain. The fee is like a membership fee that pays for advertising and promotions. It can be as high as $25000 a year.


Owned stores have to pay for their own advertising and promotions and rarely spend more than $3000 a year ( menus, letterbox drops, newpaper adverts etc).


Chain stores are owned by the same company so there is no fee.





The difference is turnover and profit.


Chain stores will turnover higher volumes but the margin will be lower but the profit is still higher. Franchise stores will turnover high volumes but the profit is degraded by the fees.Self-owned stoes will have a lower turnover but the margin is higher.





Turnover and profit will also be affected by the location. A locally owned store can be better as they will provide better service and 95% of their customers will also be locals. You can also determine your own hours of service whereas the others are determined by policy.




if you like pizza hut then they will taste the same where ever you go.


if you want different then eat the local pizza.


usually the best food comes from a hole in the wall




Wouldn%26#039;t you have to judge them individually?




95% percent of the time.




most are, yes




yes some are.


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