Tony Rivera and Michael Franzese opened the first Slices Pizza outlet in 2019. Today, this brand has seven restaurants in the U.S., so it is expected that their franchise units number will start to grow very soon. The starting cost and all other information about this brand franchised restaurants will be of interest to all entrepreneurs who are looking for new investment opportunities.
The fun fact is that one of the founders of this company is Michael Franzese, a former mobster who is the leading spokesman and ambassador of this franchising opportunity. The primary goal of this Slices Pizza review is to present this franchise cost, fees, and profit to interested investors. Still, we will also share and other interesting information about this brand.
How Much Does The Slices Pizza Franchise Cost
To total estimated Slices Pizza franchise cost is in the range between $202,700 to $435,500; in this financial prediction is included Initial Fee which is $30,000. The franchisee applicants must have a Net Worth of a minimum of $100,000, and that is a main financial requirement that every interested investor must meet.
The highest starting cost will be related to rented restaurant building improvement. The actual leasehold improvement expense will depend primarily on the facility size, but usually, it goes from $75,000 to $200,000. $50,000 to $100,000 will be the price of furniture and working equipment, and inventory cost will be between $5,000 to $10,000
From signing the Slices Pizza franchise agreement to opening day usually takes 6 to 9 months, so it would be wise that investors find a landlord willing to give free rent time until the leasehold building is ready to start to make a profit. The renting price for this type of outlet is between $2,000 and $6,000 per month, depending on the space size.
The Slices Pizza franchise, for now, doesn’t offer in-house financing for starting costs, so all franchisees will need to search for service from third-party funding sources.
Slices Pizza franchise cost list:
- Initial Licensing Fee: $30,000
- Leasehold Improvements: $75,000 – $200,000
- Furniture, and Working Equipment: $50,000 – $100,000
- Inventory: $5,000 – $10,000
- Signage: $4,000 – $8,000
- Market Introduction Program: $2,000 – $6,000
- Rent: $2,000 and $6,000
- Computer Systems: $1,000 – $3,000
- Insurance: $1,000 – $3,500
- All other costs: $10,000 – $30,000
- Estimated Total Investment: $202,700 – $435,500
Slices Pizza Fee
The owner of the Slices Pizza franchise will need to pay a one-time Initial Fee of $30,000 and ongoing fees that are 10% (4% Royalty Fee + 1% Marketing Fund Fee + 4% Local Marketing Fee) of the Gross Sales.
To attract new customers and create brand awareness, the Slices Pizza franchisee must reinvest 4% of the franchise unit Gross Revenue on local advertising; this is a business strategy that will pay off because the profit will be many times higher than the cost itself.
Entrepreneurs who have more significant investment funds can opt for a Multi-Unit Development Agreement; the advantage of such an agreement is that the Initial Fee for each franchise opened after the first is reduced to $ 20,000. Multi-Unit developers must open at least four franchise locations, so this type of deal will be perfect for entrepreneurs who want to own multiple franchises.
One of the advantages of starting the Slices Pizza franchise is that there are no fees associated with initial training. We must also mention the ongoing cost regarding computer systems and software; the Software Fee is $150 to $250 per month.
Slices Pizza franchise fee list:
- Initial Fee: $30,000 – one-time cost
- Royalty Fee: 5% of the monthly gross sales – an ongoing cost
- Marketing Fee: 1% of the monthly gross sales – an ongoing cost
- Local Marketing Fee: 4% of the monthly gross sales
- Software Fee: $150 – $250 per month – an ongoing cost
- Additional Training Fee: $350 per day of training
Slices Pizza Franchise Profit
Slices Pizza franchise can deliver a good profit to its owner because the selling price of one slice of pizza in this outlet is from $4 to $5, and the cost of ingredients is low. Selling pizza by piece is much more profitable than selling whole pizzas, so the future owner of this franchise can anticipate a profit margin on the high end of this industry.
This is a new brand, and there is not much information available regarding Slices Pizza’s franchise profit. So we must evaluate this pizzerias profitability by comparing the cost of ingredients and selling price. For all potential investors who want to have information from firsthand, it is best to contact people who are already franchisees.
According to Best4Businesses, pizzerias deliver an average of 15% Profit Margin, so it to expected that Slices Pizza can provide a better percentage of this. The Profit Margin that these franchises can deliver, by our estimates, will be 20+%. Also, these pizzerias don’t require a lot of workers, so labor costs will be minimal, which is essential because usually, this expense can take 20% – 30% of the Gross Sales.
The ongoing franchisor fees sometimes can be a burden for the overall profitability of the franchise. But, this is not the case with this franchisor; the Slices Pizza franchise Royalty Fee is only 4% of the Gross Sales, which is one of the lowest fees in the Pizza Industry.
In the end, the Slices Pizza franchise profit will depend mainly on the outlet’s location because we all know more customers = more profit. This pizza joint on the menu has delicious food, and when we combine tasty food with the excellent site location, we get a winning blend.
Slices Pizza History & Future
Slices Pizza was founded by Tony Rivera and Michael Franzese in 2018, and in 2019 they opened their first pizzeria in California. Today they have seven franchise units, so this brand grows slowly but steadily.
The Pizza Industry is in the U.S, the most competitive branch of the business, so it will take time before this brand becomes more recognizable among customers and investors!
Michael Franzese as a former mobster from New York, has an interesting life story that he is willing to share with other people, and because of that, he is today very popular on Youtube. His channel has more than 700 thousand subscribers, so he uses that reach to build Slices Pizza brand awareness among potential customers. So Franzese with Rivera, who has a few decades of experience in the Restaurant Industry, can be a winning combination.
Many ingredients for this pizza joint come directly from Italy, so their pizzas have a unique taste, which is very important for success in an oversaturated market like this one is. So, in the future is expected that these franchises will get a large base of loyal customers and more and more investors who will want to own this franchise.
Michael Franzese and Tony Rivera have a goal of opening 500 new Slices Pizza franchise units in the next few years, so entrepreneurs who wish to start a business venture that can deliver a high profit must explore this brand franchising opportunity.
This will be a perfect franchising opportunity for entrepreneurs who want to start a franchise entirely different from restaurants of well-known brands in the pizza industry. Slices Pizza belongs to the group of medium-cost franchises, so the investor will have to invest a considerable amount of money. Still, the profit margin is very good when pizza is selling by slices, and therefore franchisees can expect a quick Return of Investment.
In the U.S, pizza is the most popular food, and because of that, there are never too many pizzerias. Who knows, maybe Slices Pizza is the next big thing in the Pizza Industry, so for entrepreneurs who want to grow this brand on the next level together with this franchisor, now is the right time to start this franchise.