The marketing function performed by most franchisors can mean the difference between a flat year-over-year sales, and 13% year-over-year decrease in sales. For Pizza Hut’s largest franchisee, NPC, that difference in sales a massive amount of money. Hypothetically, if the average Pizza Hut does $1.5 million in sales, then we are talking about a $195,000 difference per store. With 1,150 stores, we’re talking about $22.4 million. That’s a large distribution check for the owners to miss out on!
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Ryan is an attorney and valuation specialist residing in Chicago. He chronicles his thoughts and research on FranchisePundit.com. You may reach him by email ryanknoll@gmail.com or mobile telephone 312-715-8115.
Pizza Hut is being hurt be the new pizza styles and increased quality in frozen pizza. Their only hope is to drop prices so people will pick up their pizza over frozen.