Pizza Restaurant Franchises in the US - Industry Market Research Report

Slice of pie: Industry operators have to contend with competition from fast-casual restaurants

Over the past five years, the Pizza Restaurant Franchises industry has experienced steady growth attributable to increasing consumer sentiment and consumer spending. Consumer spending has improved, resulting in increased expenditure on food away from home, including at pizza franchises. The industry has even grown faster than the broader Pizza Restaurants industry (report OD4320) as the number of establishments operated under a franchise agreement has grown substantially. Many pizza franchisors have sold their company-owned locations to franchisees, expanding the number of franchised locations. However, like the broader Pizza Restaurants industry, pizza franchises have experienced increased competition from other pizza restaurants and the broader food service sector. In 2020, industry revenue benefited from the work-from-home arrangements stemming from the COVID-19 pandemic. Nonetheless, pizza franchises were required to operate with delivery and take-out services only. As a result, industry revenue has increased an annualized 2.3% to $45.0 billion over the past five years, including 0.7% growth in 2023 alone. Nonetheless, profit has decreased over the past five years due to increased pricing competition and rising input costs.

This industry comprises franchise establishments that prepare and serve pizza and other related dishes. Reports in our Business Franchise collection focus solely on the operation of franchised outlets and exclude nonfranchise data. They show the total number of franchise outlets, total franchise revenue and the average profit margin earned by franchisees. Our reports also highlight the largest franchisors by market share.

This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry's key players and their market shares.