The pizza business has all the time been a safe-haven for franchise traders and operators. The pizza enterprise, valued at $58.3 billion in 2022, is an business that’s nonetheless in development mode in any case these years. Pizza is in demand throughout booms and an excellent worth play throughout recessionary occasions. One of many fascinating chains on this sector is Mountain Mike’s Pizza with 265 complete items and loads of room to develop.
How a lot does it price to open Mountain Mike’s? You’ll want a liquid capital of $100,000 and a web value of $300,000 to qualify from a monetary perspective. The common funding vary is $417,850 – $798,500 and the franchise price is $15,000 – $30,000. Contemplating greater than half of the Mountain Mike’s Pizza items generate $1 million or extra in gross income per 12 months, it’s a franchise funding many operators discover interesting.
Need to see my evaluation of the Mountain Mike’s Pizza and their legendary crispy and curly pepperonis? Take a look at my overview beneath or take this 7-minute franchise quiz to be customized matched with a pizza chain.
Monetary Necessities and Charges
| Charges / Bills | Monetary Quantity |
| Liquid Capital | $100,000 |
| Web Price | $300,000 |
| Whole Funding | $417,850 to $798,500 |
| Franchise Payment | $15,000 to $30,000 |
Right here’s a breakdown of the entire funding:
| Particulars | Quantity | When Due |
| Preliminary Franchise Payment | $15,000 to $30,000 | On signing Franchise Settlement |
| Leasehold Enhancements | $130,000 – $366,000 | As Incurred |
| Architectural and Engineering Charges | $12,500 – $16,500 | As Incurred |
| Furnishings, Fixtures, and Tools | $160,000 – $213,000 | As Incurred |
| Signage | $8,500 – $17,000 | As Incurred |
| POS/Digital Info System | $10,800 – $15,500 | As Incurred |
| Three Months’ Lease/td> | $6,750 – $33,000 | As laid out in lease or sublease |
| Safety Deposit | $5,000 – $10,000 | On signing lease or sublease |
| Opening Stock and Provides | $20,000 – $29,000 | As Incurred |
| Advertising and marketing Payment | $4,000 | On signing Franchise Settlement |
| Décor Package deal | $9,000 – $12,000 | As Incurred |
| Coaching Bills (for all attendees) | $1,300 – $4,000 | As Incurred |
| Skilled Charges | $0 – $5,500 | As Incurred |
| Miscellaneous Opening Prices | $20,000 – $29,000 | As Incurred |
| Further Funds – 3 months | $20,000 – $24,000 | As Incurred |
| TOTAL ESTIMATED INITIAL INVESTMENT (excluding actual property buy prices) |
$417,850 – $798,500 |
Along with this, Mountain Mike’s costs a 5% royalty price and three% advert royalty price. Veterans can avail of a reduction of fifty% off franchise price. The time period of settlement is 15 years and may be renewable.
Mountain Mike’s Franchise Details
| Whole Models | 265 |
| Included Title | Mountain Mikes |
| Franchising Since | 1981 |
| Business | Pizza |
| Subsector | Fast Service |
Mountain Mike’s Pizza began in 1978 in Palo Alto, California. The house owners had been associates Chris Britt and Ed St. Geme who met in Stanford College. What began as only one location is now over 260 eating places within the span of greater than 40 years.
The menu at Mountain Mike’s consists of pizza, wings, and sandwiches. Their pizza particularly is the primary merchandise they usually’re recognized for his or her pepperoni pizza that’s topped with a great deal of crispy and curved pepperoni. In addition they serve quite a lot of sides, salads, and desserts. In addition they supply a pizza and salad bar buffet throughout lunch hours.
To franchise Mountain Mike’s Pizza, full the franchise type right here. You’ll be scheduled for an interview as soon as they’ve obtained and checked your particulars. Afterwards, you’ll get to learn their Franchise Disclosure Doc so you will get the total image. As soon as signed, you’ll additionally need to pay the franchise price.
Mountain Mike’s Pizza delivers income.
Web site choice follows subsequent. That is the step whereby you’ll have the ability to select the place to place up your franchised Mountain Mike’s. Afterwards, you’ll undergo their coaching course of so you’ll be able to finally be prepared to your grand opening.
Chris Britt and Ed St. Geme stay as Co-CEOs and administrators of the enterprise. Their headquarters is situated at Newport Seaside, California.
How A lot Does Mountain Mike’s Generate in Income and Revenue?
Based on their franchising web site, their unit quantity reaches $1,608,631 for the highest 16% of their eating places. You may view this extra unit gross sales knowledge beneath at the Mountain Mike’s Pizza franchise web site:
| Higher than $1,500,000 | 39 | 16% |
| $1,250,000 to $1,500,000 | 25 | 10% |
| $1,000,000 to $1,250,000 | 65 | 27% |
| $750,000 to $1,000,000 | 76 | 31% |
| $500,000 to $750,000 | 33 | 14% |
| Beneath $500,000 | 4 | 2% |
After all gross sales doesn’t equal revenue at a pizza store. There’s overhead like taxes, labor, lease, components, insurance coverage, and different bills. Should you used a typical net-profit margin of 15% listed here are some again of the serviette revenue estimates based mostly on annual gross sales.
Annual Web Revenue Projections:
- $241,294 web revenue projection for $1,608,631 of gross income.
- $187,500 web revenue projection for $1,250,000 of gross income.
- $150,000 web revenue projection for $1,000,000 of gross income.
- $112,500 new revenue projection for $750,000 of gross income.
- $75,000 new revenue projections for $500,000 of gross income.
Be certain to overview and full your due diligence by reviewing the most recent FDD doc to get the most recent monetary knowledge for the chain.
Benefits of a Mountain Mike’s Franchise
Mountain Mike’s Pizza provides plenty of distinct benefits within the pizza business. Listed here are a number of I discovered significantly helpful:
Runway for Development
The pizza business is value billions so there may be loads of area for various profitable specialty gamers within the business. Mountain Mike’s gross sales have grown yearly and pizza is a straightforward menu merchandise that everybody all the time loves.
However one distinct benefit of Mountain Mike’s is that with solely 265 complete items the idea isn’t saturated in most markets like you could possibly see with a franchise like Domino’s that’s approaching 20,000 world areas. Based mostly on the variety of items from rivals, it wouldn’t be extraordinary for the idea to double or triple within the variety of complete items over the subsequent 5 – 10 years.
Regional Title Recognition
Mountain Mike’s is a giant title in California they usually’re persevering with to develop in Central and Southern California, Nevada, Oregon, Arizona, Colorado, Washington, Utah and Idaho.
The corporate has efficiently partnered with sports activities groups and is acknowledged because the official pizza of the San Francisco 49ers that helps the pizza chain get launched to new clients.
Distinctive Technique
One other distinction with Mountain Mike’s is that they have zigged whereas rivals have zagged. Over the previous few years, massive pizza chains have centered on supply and in-store pickup service. Mountain Mike’s has taken a distinct approaching by emphasizing on-site eating.
Methods that Mountain Mike’s makes use of to lure clients into their shops embrace a pizza and lunch buffet, online game arcade, and native draft beer and different alcohol and completely happy hour offers. If you wish to make extra of a face-to-face reference to patrons this could possibly be an excellent possibility.
Mountain Mike’s boasts of utilizing top quality and contemporary components similar to 100% entire milk mozzarella cheese. They’re additionally well-known for his or her curly, crispy pepperoni. They’ve merchandise which can be fairly standard which makes them distinctive from different chains.
Challenges of a Mountain Mike’s Franchise
Even franchising a enterprise like Mountain Mike’s can have a set of challenges in retailer for you. Listed here are some to count on:
No International Presence
Mountain Mike’s has no world presence as of the second. They’re solely situated in the US and their areas are additionally restricted to California, Oregon, Nevada, Utah, Arizona and Idaho at current. Should you plan to open a brand new retailer in a state the place shoppers don’t have consciousness of your model, it may imply you’ll have to work a lot tougher to get the title on the market locally from a advertising and marketing perspective.
Competitors
The pizza business is an enormous alternative valued at greater than $58 billion. With alternative comes lot of competitors similar to these like Domino’s, Pizza Hut, and Papa Johns to call a number of. Most of these names are additionally situated worldwide and have large nationwide promoting campaigns to get their message out. Theses bigger chains can even profit from some great benefits of scale and the flexibility to put money into know-how and additional streamline effectivity. As a smaller franchise, the fact is that Mountain Mike’s has fewer assets in these areas.
Labor Shortages and Rise Wage Prices: It is a problem for many pizza retailers, however value noting right here as effectively. Hiring expert lower-wage employees and retaining them generally is a problem, particularly within the face of labor shortages and rising wages in sure areas.
Is the Mountain Mike’s Franchise Proper For You?
Mountain Mike’s is a straightforward pizza franchise that has stayed true to its roots for 45 years. So if you would like an excellent outdated traditional American pizza enterprise then Mountain Mike’s is an possibility value evaluating additional.
Mountain Mike’s Pizza choices.
What’s another Mountain Mike’s franchise?
One other pizza chain that’s value wanting into is Pizza Hut. They’ve over 17,000 areas worldwide and their title is well-known all around the globe for his or her pan pizzas with quite a lot of flavors and toppings.
To franchise Pizza Hut, count on the funding to be $297,000 – $2,109,000. Learn our full information on franchising Pizza Hut right here.
Mountain Mike’s proceed to be a pizza model that’s rising yearly so if you happen to suppose you’ve what it takes to franchise with them then I hope this information was ready that will help you perceive extra about this chance.
