With the recent celebration of its 300threstaurant opening, Marco’s Pizza is continuing to eclipse the growth rate of industry heavy hitters and further anchoring itself as the fastest-growing pizza company in the United States.
The Toledo-based franchisor of Ah! thentic Italian pizza opened its 300th milestone restaurant in Wheeling, IL, also marking the company’s first Illinois restaurant. Opening an average of one new store per week, Marco’s Pizza now operates restaurants in 24 states and the Bahamas, and plans to open over 85 locations by the end of this year alone. Company plans also call for having a total 1,500 restaurants open and operating in the next seven years.
“We’ve accomplished considerable growth in the past few years and continue to strike multi-unit deals in new areas around the country to expand our footprint,” said Marco’s Pizza CEO Jack Butorac. “Our continued success, despite a weakened economy, is a true testament to the brand and all that we’ve done to position ourselves atop the multi-billion dollar pizza industry.”
Butorac noted that in addition to system growth, many Marco’s Pizza locations are continuing robust positive same store sales to date in 2012. In fact, Marco’s Pizza same store sales since the beginning of 2011 have been 7.04% system-wide and 10.85% in Company managed stores – impressive anytime but especially given the general US economy.
Company executives attribute several Marco’s Pizza’s initiatives for enabling the company to expedite its growth, including an innovative partnership with movie and game rentailer Family Video, creative financing options for would-be franchisees and the creation of a “hybrid” franchise model that has recruited top-level executives from other brand giants.
Family Video Partnership
In February 2012, Marco’s Pizza entered into a $100 million deal with privately held movie rental chain Family Video to open Marco’s outlets within as many as 350 of its movie stores.
To skirt loan financing challenges facing potential franchisees, Marco’s Pizza raised $20 million in private equity funding to assist operators with down payments. The company also established a leasing arm to help franchisees upgrade equipment or build entire stores, which typically cost $250,000. They also secured millions of dollars in additional capital to assist new and existing franchise owners.
Mass Brand Migration
Marco’s Pizza has created a “hybrid” model by recruiting top-notch talent from other brands – including Fuddruckers, Domino’s Pizza, Mercedes-Benz, Starbucks, Panera Bread, Boston Market and Ruby Tuesday. With this model, certain senior management positions create individual holding companies which become shareholders of Marco’s Pizza, giving them a vested interest in the company’s growth.
Headquartered in Toledo, Ohio, Marco’s Pizza (Marco’s Franchising, LLC) is the fastest-growing pizza company in the U.S. (based on the number of stores signed into development since 2007). Marco’s was founded in 1978 by Italian born, Pasquale (“Pat”) Giammarco and is committed to making Italian Pizza with fresh ingredients. The company has grown from its roots as a beloved Ohio brand to operate more than 300 stores in 24 states and the Bahamas. Marco’s Pizza recently ranked 11th place in the “2012 Pizza Industry Top 100 Movers & Shakers” article sent out by PizzaMarketPlace.com. To inquire about franchise opportunities with Marco’s Pizza visit www.marcos.com or e-mail firstname.lastname@example.org.