This is part of the Nation’s Restaurant News annual Second 100 report, a proprietary ranking of restaurant brands Nos. 101-200 by U.S. systemwide sales and other data. This special report is a companion to the Top 100 report.
July 26, 2016
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Pizza chains in the Second 100 did well in the Latest Year by focusing on doing what they already do best.
Total U.S. systemwide sales of the six Second 100 Pizza chains rose 3 percent, to nearly $1.2 billion in the Latest Year.
Hungry Howie’s maintained its top rank in terms of total U.S. systemwide sales, with $342.5 million in the Latest Year, a 4.7-percent increase. A new branding strategy that includes improving existing restaurant designs and a revamp of its online ordering system are among the factors the chain cited for Hungry Howie’s growth.
The brand was also the Pizza segment’s fastest-growing chain in terms of estimated sales per unit, or ESPU, which rose 6.1 percent in the Latest Year.
Pizza Ranch took the No. 1 spot in terms of sales growth, increasing U.S. systemwide sales to $228.6 million, a rise of 8.3 percent in the Latest Year, on top of climbing 10.5 percent the Preceding Year.
Justin Point, Pizza Ranch vice president of marketing, attributed the growth to going “back to the basics,” such as constantly evaluating food quality, using secret shoppers and conducting internal audits to ensure top-notch cleanliness in restaurants.
But relationships with the chain’s franchisees are also critical.
“The biggest thing we can credit [our success to] is we have absolutely fabulous franchisees,” Point said.
Among the many ways Point says the chain invests in franchisees is by spending a lot of time on training and creating marketing materials, as well as learning about franchisees’ challenges and how the company can help.
Next, Pizza Ranch says it plans to expand into several Missouri markets.
For Peter Piper Pizza, a focus on existing target customers is likely to have helped it earn its first appearance in the Second 100. The chain grew systemwide sales to $200.6 million, an increase of 5 percent in the Latest Year.
Charles Bruce, Peter Piper president and CEO, previously told Nation’s Restaurant News he saw an opportunity to serve the growing Hispanic population. The company’s 48 units in Mexico and locations in its core Southwest market make Peter Piper “an ideal Hispanic brand,” he said.
Overall, Second 100 Pizza chains posted average ESPU growth of 5.2 percent in the Latest Year. All of the chains increased ESPU by solid single digits in the Latest Year, mostly without adding units.
