Low-cost Pizza Franchise Market Research, 2032
The global low-cost pizza franchise market size was valued at $16.4 billion in 2022, and is projected to reach $26.3 billion by 2032, growing at a CAGR of 4.9% from 2023 to 2032.
The low-cost pizza franchise market is segmented into Revenue Component, Type and Franchise Location.
A low-cost pizza franchise is an opportunity where the investment required to start and operate a pizza store is relatively lower than traditional pizza franchises. The low-cost pizza franchises have increased the accessibility of the franchises to individuals with limited capital who want to enter the pizza business. The investment requirements for a low-cost pizza franchise vary and depend on brands, locations, and scale of operations.
The global low-cost pizza franchise market growth is expected to be significantly influenced by the growth in demand and consumption of pizza across developed and developing economies. The top ten pizza-consuming nations across the globe include Norway, the U.S., the UK, Germany, Italy, Russia, France, Australia, Japan, and China. Furthermore, a significant rise in the penetration of quick-service restaurants (QSRs) across the globe is expected to boost the consumption of pizza, which in return will favor the growth of the low-cost pizza franchise market during the forecast period. According to the International Franchise Association, the number of quick-service franchise restaurant establishments in the U.S. was 183,543 in 2020, which increased to 192,426 in 2022. The franchise business models have significantly contributed to economic growth and generating employment opportunities for the youth in the past. According to the International Franchise Association, franchising generated around 8.5 million jobs in 2022 in the U.S. Moreover, the overall franchising industry in the U.S. contributed around 3% of the U.S. GDP in 2022.
The growth in popularity of pizza and its rise in consumption is majorly influenced by a rise in the participation of women in the workforce. The busy and hectic schedules of urban couples have fueled their demand for fast food such as pizza. Moreover, the combo meals offered by the pizza franchise stores provide a perfect and affordable option for lunch and dinner to the consumers, as working couples do not get adequate time to perform regular household chores including cooking. According to the report of the U.S. Bureau of Labor Statistics, labor force participation of women was 57.4% in 2019, up from 57.1% in 2018. According to the report of the NITI (National Institution for Transforming India) Aayog, the share of female labor in the total labor force increased from 23.1 to 27.9% in two years from 2018 to 2020. Therefore, an increase in women employment in developed and developing nations is expected to boost the demand for pizzas, which is expected to create lucrative expansion opportunities for local and international pizza brands, thereby promoting the growth of the low-cost pizza franchise market in the forthcoming years.
Popular pizza brands look at the franchise business model as a tool for their business expansion. The franchise model facilitates business expansion, business growth, and creating and entering new markets. The franchisers provide business owners with a tried-and-trusted business model and support, and franchisees invest in a well-known brand with a higher chance of success, everyone wins with this method. According to data from Franchise Direct, about 50% of all franchise brands are international, which increases the attraction of franchising on a global scale. Therefore, the higher success rate of the franchise business models, especially low-cost pizza franchises has gained a rapid popularity among the people who seek to invest in a highly profitable business.
Global low-cost pizza franchise industry players have strongly emphasized digital infrastructure. The long-term success of low-cost pizza businesses is expected to be significantly influenced by their adoption of digital technologies. Digital technologies have become essential to compete in the highly competitive pizza market. Online or digital ordering of pizza is an important part of franchisees that are currently contributing a majority of the revenues, which is anticipated to promote the expansion of the global low-cost pizza franchise industry. For instance, about two-thirds of global retail sales of Domino's Pizza, Inc. in 2022 were generated through digital channels. In addition, Domino's has created a number of innovative ordering platforms for Google Home, Facebook Messenger, Twitter, Amazon Echo, and Apple Watch in the U.S. Furthermore, Domino's has added GPS to its tracker, enabling consumers to see the journey of their pizza meal in real-time from preparation to delivery. Therefore, it is anticipated that the adoption of digital technology is expected to significantly boost market growth and offer the brands the ability to compete effectively. The success of low-cost pizza franchises depends on efficient business operations and technological advancements.
The low-cost pizza franchise market is analyzed on the basis of revenue component, type, franchise location, and region. On the basis of revenue component, the market is classified into franchise fees, royalty fees, advertising and marketing fees, supply chain and purchasing fees, renewal fees, and others. On the basis of type, the market is categorized into delivery and takeout franchise, carryout franchise, fast casual franchise, mobile pizza franchise, and others. On the basis of franchise location, the market is bifurcated into domestic and international. On the basis of region, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, Saudi Arabia, South Africa, and rest of LAMEA).
As per the low-cost pizza franchise market forecast, on the basis of revenue component, the supply chain and purchasing fees segment dominated the market, garnering 54.8% of the low-cost pizza franchise market share in 2022. There are several benefits such as economies of scale, boost supplier relationship, and increased operational efficiency associated with the supply chain and purchasing fees that boosts the growth of this segment in the global low-cost pizza franchise market. Franchise needs the help of the franchisors to run their businesses and supply chain and purchasing fees paid efficiently and profitably to the franchisors by the franchisee is the essential factor that keeps the supply of most important equipment and other food supplies uninterrupted. Hence, it serves as the most important component of the revenue for the franchisors and important for operational efficiency of the franchisee stores.
On the basis of type, the fast casual franchise (including quick-service-restaurants) garnered a major revenue share in 2022. There has been a significant growth in the penetration of the FSRs and QSRs across the developed and developed nations across the globe in the past decade which signifies the importance and dominance of this segment in the global low-cost pizza market. Food away from home (FAFH) has gained significant traction among people in developed and developing economies. Increased women employment and the busy & hectic schedules of consumers have led to an increased demand for fast food. The major pizza brands such as Domino’s, Papa John’s, Marcos, and Pizza Hut have become a convenient and feasible option of lunch and dinner for consumers in the past decade. Therefore, an increased penetration of the pizza FSRs and QSRs across the globe has led to the dominance of this segment in the low-cost pizza franchise market and this trend is expected to continue during the forecast period.
On the basis of franchise location, the international is expected to be the fastest growing segment during the forecast period. The rapid penetration of international pizza brands in emerging markets, the presence of a huge youth population in developing nations, the growing interest of youth in entrepreneurship, and the limited risk-taking capabilities of entrepreneurs in developing nations are some of the major factors that drive the demand for the low-cost pizza franchise market. Moreover, the pizza franchise has become a guarantee of success for the franchisees, especially for brands like Domino’s and Papa John’s due to their past track record of franchise stores and its year-on-year growth rate across the globe.
On the basis of region, North America dominated the market in 2022. According to the U.S. Department of Agriculture, “In 2021, food spending by U.S. consumers, businesses, and government entities totaled $2.12 trillion, recovering from a sharp decline in 2020 in which the food market was disrupted by the Coronavirus (COVID-19) pandemic and the recession in which food spending totaled $1.81 trillion.” Moreover, the U.S. is the home to numerous popular pizza franchise brands such as Domino’s, Pizza Hut, Little Caesars, Boston Pizza, Papa John’s, and Marcos Pizza. The presence of a huge number of FSRs/QSRs across the country coupled with the huge popularity of eating out culture, high disposable income, and surge in penetration of online food delivery platforms are significantly contributing toward the growth of the North America low-cost pizza franchise market. The pizza brands have constantly sought to expand their operations at various local and international locations to compete and dominate the market owing to the high competition in the North American pizza industry, which has significantly fueled the growth of the North America low-cost pizza franchise market.
Asia-Pacific is estimated to be the fastest-growing market during the forecast period. In Asia-Pacific, the increase in demand for pizza coupled with a high growth rate of pizza franchise brands in the past in countries including China, India, and Australia has played a pivotal role in the growth of the low-cost pizza franchise market demand in the region. This is primarily due to the change in lifestyle in the region. Moreover, increase in investments by several small and midsized pizza companies in developing countries also support the growth of the market. The major drivers for the pizza market in the region are the high population, changing taste & preferences of consumers, and the growth in numbers of fast-food restaurants and food trucks. The rise in women employment, busy and hectic life schedules, increase in popularity of dining out, and growth in the adoption of online food delivery platforms are the major factors that are expected to boost the market growth in the upcoming years.
Papa John’s International, Inc., Jets America, Inc., Hungry Howies Pizza & Subs, Inc., Marcos Franchising, LLC., Red Brick Pizza LLC., Sbarro LLC., Domino’s Pizza, Inc., Mr. Gattis Pizza, LLC., Papa Murphys International LLC., and Little Caesar Enterprises, Inc. are the major companies profiled in the low-cost pizza franchise market report. These manufacturers are constantly engaged in various developmental strategies such as partnerships, mergers, acquisitions, and new product launches to gain a competitive edge and exploit the prevailing low-cost pizza franchise market opportunities.
Key Benefits For Stakeholders
- This report provides a quantitative analysis of the market segments, current trends, estimations, and dynamics of the low-cost pizza franchise market analysis from 2022 to 2032 to identify the prevailing low-cost pizza franchise market opportunities.
- The market research is offered along with information related to key drivers, restraints, and opportunities.
- Porter's five forces analysis highlights the potency of buyers and suppliers to enable stakeholders make profit-oriented business decisions and strengthen their supplier-buyer network.
- In-depth analysis of the low-cost pizza franchise market segmentation assists to determine the prevailing market opportunities.
- Major countries in each region are mapped according to their revenue contribution to the global market.
- Market player positioning facilitates benchmarking and provides a clear understanding of the present position of the market players.
- The report includes the analysis of the regional as well as global low-cost pizza franchise market trends, key players, market segments, application areas, and market growth strategies.
Low-cost Pizza Franchise Market Report Highlights
| Aspects | Details |
 Market Size By 2032 | USD 26.3 billion |
 Growth Rate | CAGR of 4.9% |
 Forecast period | 2022 - 2032 |
 Report Pages | 300 |
 By Revenue Component |
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 By Type |
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 By Franchise Location |
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 By Region |
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 Key Market Players | Hungry Howies Pizza & Subs, Inc., Sbarro LLC, Red Brick Pizza LLC, Mr. Gattis Pizza, LLC, Little Caesar Enterprises, Inc., Marcos Franchising, LLC, Jets America, Inc., Dominos Pizza, Inc., Papa John's International, Inc., Papa Murphys International LLC. |
Analyst Review
According to the top CXOs, Asia-Pacific is projected to witness the fastest growth in the forthcoming years owing to the growth in penetration of low-cost pizza franchises in the region. The major emerging markets include India, Indonesia, Thailand, and China. The increase in population summed up with a significant demand, rising disposable income, huge investment, and varieties of pizza franchises are the major factors that are expected to propel the growth of low-cost pizza franchise entities in emerging markets. Moreover, emerging markets are highly influenced by western culture, and hence there is an increase in pizza stores and other fast-food stores to provide convenience to customers and it is becoming part of the culture in growing markets. Furthermore, Asia-Pacific is the leading destination for food and lodging which is the highest revenue generator in the food and beverages industry. Therefore, the growth in penetration of pizza franchises is expected to fuel the growth of the market in emerging nations.
One of the primary drivers for the increase in demand for low-cost pizza franchises is the increased demand for delicious pizzas across the globe. Many new local players are expected to enter the low-cost pizza franchise market over the forecast period, attracted by profitable growth and high profit margins. Moreover, the rise in youth population coupled with a rise in disposable income is expected to fuel the demand for pizza in the Asia-Pacific region, which is expected to subsequently support the growth of the low-cost pizza franchise market.
The global low-cost pizza franchise market size was valued at $16,365.2 million in 2022 and is estimated to reach $26,250.6 million by 2032, growing at a CAGR of 4.9% from 2023 to 2032. The global low-cost pizza franchise market growth is expected to be significantly influenced by the growth in demand and consumption of pizza across developed and developing economies.
The low-cost pizza franchise market report is available on request on the website of Allied Market Research.
The forecast period considered in the global low-cost pizza franchise market report is from 2023 to 2032. The report analyzes the market sizes from 2022 to 2032 along with the upcoming market trends and opportunities. The report also covers the key strategies adopted by the key players operating in the market.
Papa John’s International, Inc., Jets America, Inc., Hungry Howies Pizza & Subs, Inc., Marcos Franchising, LLC., Red Brick Pizza LLC., Sbarro LLC., Domino’s Pizza, Inc., Mr. Gattis Pizza, LLC., Papa Murphys International LLC., and Little Caesar Enterprises, Inc. are the major companies profiled in the low-cost pizza franchise market report. These manufacturers are constantly engaged in various developmental strategies such as partnerships, mergers, acquisitions, and new product launches to gain a competitive edge and exploit the prevailing low-cost pizza franchise market opportunities.
The low-cost pizza franchise market is analyzed on the basis of revenue component, type, franchise location, and region. On the basis of revenue component, the market is classified into franchise fees, royalty fees, advertising and marketing fees, supply chain and purchasing fees, renewal fees, and others. On the basis of type, the market is categorized into delivery and takeout franchise, carryout franchise, fast casual franchise, mobile pizza franchise, and others. On the basis of franchise location, the market is bifurcated into domestic and international. On the basis of region, the market is analyzed across North America (the U.S., Canada, and Mexico), Europe (Germany, France, the UK, Italy, Spain, and the rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, and rest of Asia-Pacific), and LAMEA (Brazil, Argentina, Saudi Arabia, South Africa, and rest of LAMEA).
Asia-Pacific is estimated to be the fastest-growing market during the forecast period. In Asia-Pacific, the increase in demand for pizza coupled with a high growth rate of pizza franchise brands in the past in countries including China, India, and Australia has played a pivotal role in the growth of the low-cost pizza franchise market in the region. This is primarily due to the change in lifestyle in the region.
On the basis of region, North America dominated the market in 2022. The pizza brands have constantly sought to expand their operations at various local and international locations to compete and dominate the market owing to the high competition in the North American pizza industry, which has significantly fueled the growth of the North America low-cost pizza franchise market.
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