Four Star Pizza, the wholly Irish owned franchise based pizza company, will create 200 jobs over the next eleven months, with the opening of ten new franchise locations. The expansion will bring the number of Four Star outlets to 46 across the Republic and Northern Ireland. The new stores are being opened in locations stretching from Co Wexford to Co Antrim and include Letterkenny, Cavan, Dundalk, Blanchardstown, Ballymun, Leixlip, Newry, Armagh, Omagh, and Wexford.
According to Jason Sheehy, CEO of the Bray, County Wicklow based master franchiser, franchisees report a strong pick-up in sales since the recession began to bite, with many families staying at home and ordering delivered pizzas instead of going out to restaurant.
Last week, McDonald's in the US announced plans to open 200 new fast-food stores in response to rising demand, during the recession.
Today McDonald's said its 2008 net profit surged 80% from a year ago, boosted by growing demand from consumers seeking to cut costs in perilous times.
Net profit for the full year totalled $4.3 billion, compared with $2.3 billion in 2007, the Illinois-based company announced. Excluding exceptional items, earnings per share were $3.76, widely exceeding consensus market forecasts of $3.63.
Sheehy said today, Over the last twelve months we have installed a very sophisticated IT system that monitors and tracks sales. We can analyse the sales figures according to time and quantity and it is clear that come evening time we are getting a big surge in calls, higher than average, for our bigger pizzas, where we have a big value promotion currently. It seems sensible to suggest that these are being bought by families with ‘staying in being the new going out’.
“Our growth is not alone good for the local economies where our new franchises are opening but it’s also good news for Bandon Vale, the company that supplies our cheeses, Dawn Meats that give us our meat toppings, O’Neill’s flour millers in Northern Ireland that supply the flour for the dough we make fresh in-store (others import frozen dough) and of course the local fruit and vegetable suppliers who supply many of our toppings. Being an Irish company we make sure to source all our food from the island of Ireland.
I am regularly asked about funding for a franchise in a credit crunch. As we are announcing a significant expansion today it’s clear that there’s still money available for franchisees that are part of a proven network. Potential franchisees do need between € 75000 and €100,000 in cash. This matches another €100,000 in borrowings. Only €20,000 of this amount goes on the franchise fee with the balance going on fitting out leased premises and equipment, including that highly sophisticated computer system that can tell owners how to maximise returns from their operation. Even given these costs we have also seen a reasonable uptake in the numbers of enquiries for franchises, many from people who have been made redundant from the financial sector and want to do something productive with their redundancy packages. In essence a person who wants to be there own boss and is hungry for dough can join a successful network for a reasonable level of investment and benefit for a 10 year franchise term.
“One of the big differences between Four Star Pizza and other franchise companies is that we will only give a franchise to people who will run the businesses themselves. This doesn’t limit a franchisee to just one property, but he or she must be willing to actively manage all the outlets they choose to take on. The reason we insist on this is that we get a much better run franchise, the quality of the product is better and the customers are happier. Each Four Star Pizza store prepares fresh dough and sauces in store daily, and in a way the franchisee takes real ownership of the product that leaves his or her store.
Lots of different types of people have taken on Four Star Pizza franchises, and many of them had no direct experience in the food or catering business. What they do have is a desire to run their own business and to make it a success. According to Sheehy, “What you are seeing is the growth of a premium Irish brand. We are looking very actively for people who can work with us to bring that brand further across the country. Our ambitions after that is be to bring Four Star Pizza to the UK and beyond, we are currently in discussions with potential partners on this, but over the next year or so we have to find the right premises, in the right location and the right people to run it, both in the Republic and in Northern Ireland”
