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The news stories are rolling in daily about inflation and changes in customer spending as food and gas costs skyrocket. As consumers shift spending, entrepreneurs should carefully consider where they invest their time and money. If you’re looking for a recession-proof business, you may want to consider opening a pizza franchise.
Despite inflation and talks of an economic recession, people are still eating fast food and specifically pizza. And as spending may shift from fancy dine-in options to cost-friendly crowd pleasers, there is a lot of money to be made in the pizza industry.
1. Pizza is an Affordable Option for People of All Ages and Incomes.
Pizza is one of those foods that just about everyone loves. It’s affordable and filling, making it an excellent option for people looking to save money but still want a hearty meal. Pizza franchises do well in both good and bad economic conditions because they offer a product that people love at a price point that is comfortable for most budgets.
As a matter of fact, in the 2008 great recession, pizza franchises flourished. That’s because people were still looking for affordable ways to quickly and easily feed their families a comforting meal, and pizza always fits that bill.
All signs point to this continuing trend of the stay-power of pizza businesses through any future economic downturn.
2. The Pizza Market is Expected to Grow
The pizza industry is expected to grow in the coming years, so now is a great time to get involved. According to a report by PMQ Pizza Magazine, the pizza market is expected to reach $158 billion by 2023. This growth is driven by an increase in delivery and take-out options and growing demand for more gourmet pizza choices.
Expected growth means that now is an excellent time for a prospective business owner to get involved in the pizza industry. Becoming a pizza franchise owner is a great option if you’re looking for a recession-proof business.
While pizza is always popular, a pizza chain with name recognition and the best deals on food and supply purchasing make it a more predictable investment than starting from scratch.
Benefits for franchisees in an economic downturn
When you invest in a franchise, you’re more likely to buy into a proven successful business model. Franchise owners have a higher success rate than other small business owners and offer several other benefits as well. Some of those perks include the following:
Lower Initial Investment
Lower initial costs are another benefit of franchising. When you buy into a franchise, you’re working with a brand that’s often already established, so you won’t have to spend as much on advertising as customers are already brand-aware.
Another tally on the side of franchising is that you have the benefit of supplier relationships. Franchises have established relationships with suppliers, so you can be sure you’re getting the best possible prices on the ingredients you need to make your pizzas. This can be extremely important as we see food prices jumping quickly; your pizza chain could have the protection of lower food expenses.
3. From Delivery to Feeding a Crowd: Pizza Franchises Serve a Variety of Needs.
Pizza franchises can serve various needs, from feeding a large crowd to delivering individually sized pies for a single meal. This versatility is one of the reasons why pizza franchises continue to be popular, even in tough economic times.
Pizza shops have always been famous for delivering dinner to people’s homes. This convenience is even more critical as customer expectations have evolved since the Covid-19 pandemic. Even with the added competition that comes with food delivery services such as DoorDash, pizza being a convenient option, often without steep delivery fees, keeps it at the top of many family dinner menus.
These restaurants are also a popular choice for feeding large groups of people. Pizza has become the go-to option as a crowd-pleaser, whether it’s a birthday party, office lunch, or family gathering.
With rising food costs, a night in with pizza and a bottle of wine might replace a fancy dinner to celebrate a special occasion. Consumers across the United States are already “trading down” in their purchasing habits, but they’re not letting their budget constraints stop their plans.
Invest in a Recession-Proof Business Model
A pizza franchise is a great option if you’re looking for a recession-proof business. With its versatility and popularity, a pizza franchise can weather any economic storm.
Recessions can be tough on businesses, but pizza franchises have proven to be recession-resistant. For example, Simple Simon’s Pizza thrived during the last recession and is poised for success through whatever the future brings.
Now is the time to invest in a pizza franchise. With its proven track record, a pizza franchise is a smart choice for anyone looking for a recession-proof business.