Not as famous as the global giants like Domino’s, Papa Johns and Little Caesars, Hungry Howie’s is a very popular pizza chain among franchisees. Why? With 550 stores you benefit from a very solid brand name and, more importantly, it’s one of the most profitable franchise we found!
Indeed with a investment of $419,682 on average and a 37% profit margin, you would reimburse your investment within 3.5 years. This is impressive.
Want to know more? In this article we’re looking at Hungry Howie’s and its latest Franchise Disclosure Document.
We’ll answer questions like: how much profits can you make? How much does the franchise really cost? Finally, is this a good investment and why?
Hungry Howie’s Pizza franchises: key figures
|Median annual sales||$806,899|
|Investment to sales ratio||1.9x|
|Investment payback*||3.5 years (excellent)|
Hungry Howie’s Pizza: a brief introduction
Hungry Howie’s Pizza is an American pizza chain with over 550 stores in 20 states in the US.
The chain was founded by James Hearn in 1973 and opened its first store in Taylor, Michigan.
It serves pizza, chicken wings and tenders, calzone-style subs, bread, salads, desserts, and brownies.
Headquartered in Madison Heights, Michigan, Hungry Howie’s Pizza began its franchising journey in 1983, and today it is the 11th largest pizza chain in the US.
Hungry Howie’s pros and cons
- Incredible marketing strategies: Hungry Howie’s Pizza has an efficient turnkey strategic marketing planning and execution team. Franchisees can leverage the brand’s popularity and integrate “digital first” marketing ideas combined with national media, regional advertising, social media, and local store marketing campaigns that appeal to a wider audience.
- Solid training and support: To prepare franchisees for a successful and profitable pizza business, the brand offers them comprehensive training and mentorship. Franchisees get in-store training programs, operation consultation support, and online training modules to equip their employees for franchise growth and success.
- Real estate and construction: Hungry Howie’s Pizza provides franchisees with dedicated and qualified real estate experts to help them identify convenient locations and come up with the chain’s branded restaurants. It provides franchisees with expert advice on site selection, lease negotiation, restaurant design, and construction.
- Geographic opportunities: The brand offers franchisees flexible franchise formats. These are the multi-unit or brand operators and single-unit stores, which consist of 1–3 stores. Franchisees get the opportunity to be part of a proven business concept no matter their budgets and enjoy multiple revenue streams.
- Technology platform: Hungry Howie’s Pizza has cultivated an innovative online delivery and engagement system to drive up sales and profitability. Franchisees benefit from its efficient customer loyalty program and real-time access to store-level data through mobile business management toolkits.
- Exclusive territory protection: The franchisor offers franchisees exclusive territory protection. As a result, it does not grant any other franchises or operate competing Hungry Howie’s Pizza restaurants in the protected area.
- Growing menu: The brand is the home of an assortment of flavored pizza crusts and other related foods. It is constantly expanding its menu to keep up with market trends and customer tastes. This gives franchisees an added advantage and brings them a lot of traffic.
- No financing: The brand does not offer direct or indirect financing to franchisees. It also does not guarantee any lease, note, or obligation of any lender.
- Competition: The Hungry Howie’s Pizza franchise experiences competition from well-established brands such as Pizza Hut, Domino’s Pizza, Marco’s Pizza, Jet’s Pizza or even Papa John’s
- Not a passive investment: franchisees must be actively involved in the day-to-day operations of the restaurant. Also, the franchise is not a part-time business; it has to be open on a full-time basis.
How much does a Hungry Howie’s Pizza cost?
To open a Hungry Howie’s Pizza franchise you would need to invest $419,682 on average yourself. This can come either from your own funds, or a SBA loan and/or external investors.
The investment amount is an average that will fluctuate depending on the location and the size of your store. For example, rent and real estate prices will vary and have an influence on the lease deposits, leasehold improvements, building costs, etc. According to the latest Franchise Disclosure Document, you would need to invest anywhere between $319,100 to $520,264.
Why would you pay this amount, you may ask? Well, the investment amount you would pay to cover all types of startup costs needed to open a pizza shop. In addition to the initial franchise fee of $25,000, you would also pay for:
- Formation costs: leasehold improvements, security deposits, architectural drawings, digital displays, exterior signage, point of sale system, equipment and fixtures, travel and living expenses during training, etc.
- Marketing fees: franchise grand opening fee
- Operating costs: security deposits for utilities, insurance, opening inventory, additional funds for 3 months to bear the initial losses, etc.
|Type of cost||Low||High|
|Initial franchise fee||$12,500||$25,000|
How much turnover does a Hungry Howie’s franchise make?
On average, a Hungry Howie’s Pizza franchise makes $806,899 in sales per year.
This number is the annual median sales of 282 sample restaurants operating in 2021. This is a +7.38% revenue growth vs 2020.
|Year||Number of stores||Median sales|
Is a Hungry Howie’s Pizza franchise profitable?
On average, a Hungry Howie’s Pizza franchise makes $301,573 in profits per year. This represents a 37% adjusted EBITDA margin.
Yet, you should remember that this margin does not represent your business’s net income. In other words, you can’t keep 37% of the revenue in your pocket. You would need to deduct taxes, debt interest expenses, and other cost instead.
The 37% adjusted EBITDA margin is on the higher end compared to similar franchises as per our intelligence. Actually, it is really on the top of the list as the industry average is around 25-27%.
This is due to low labor (18.6% gross sales vs. 29% industry average) as well as rent (4.3% vs. 8%) despite higher COGS (27.3% vs. 25%).
|Profit-and-loss||Amount ($)||% of sales|
|Royalty + marketing fees||$(100,862)||12.5%|
Is a Hungry Howie’s Pizza franchise a good investment?
With such an impressive profit margin (37%) much higher than competitors, it’s no wonder that Hungry Howie’s Pizza is a good investment.
Indeed, as a franchisee you would reimburse your initial investment of $419,682 within 3.5 years on average only. This is an excellent payback period.
Note that we calculated this number using a net profit margin of 15% (which we consider very conservative given the EBITDA margin).
If you’re considering buying a Hungry Howie’s Pizza franchise, download our business plan below: we have included a pre-built 5-financial plan with all the reports investors and banks ask for in your application (breakeven, return on investment, etc.).
Download the Hungry Howie’s business plan and get your franchise funded
Including a 5-year financial plan built with the latest Franchise Disclosure Document numbers