Rocket Pizza is seeking independent pizzerias who are interested in joining what it calls a “franchise of the independent pizzeria.”
Rocket Pizza interviewed over two dozen mom-and-pop pizzerias to learn more about the independent pizzeria landscape. Out of those interviews grew a plan to create a network of pizzerias that could work in tandem with our business and potentially convert their locations to the Rocket Pizza brand.
Rocket Pizza likened it to the FTD Florist model, in which orders come in through a central service and are farmed out to local shops for delivery.
WEUNGRY will provide access to its online ordering systems, delivery systems, cloud POS, data, email marketing, direct sales programs, Rocket Pizza branding, recipes and a network to call upon for advice, in exchange for a percentage of the pizzeria’s sales.
The network provides two possible approaches. Through the first option – what Rocket Pizza calls “legging in” – businesses can test the concept before committing to it. Rocket Pizza would install a mini fridge full of its signature ingredients, train staff on how to make its pizzas and send online orders to the pizzeria. The products and orders complement the individual business without requiring any changes to its identity, signage or established products. In this scenario, Rocket Pizza takes five to 10 per cent of a pizzeria’s revenue eventually coming from Rocket Pizza products. In exchange, the local pizzeria pays the network eight per cent of sales from Rocket pizzas.
A second option is to fully convert a pizzeria to the Rocket Pizza brand, selling only the new brand’s pizzas and adding or changing the front signage to include Rocket Pizza & WEUNGRY. Pizzerias pay four per cent of current sales. As Rocket Pizza explains it, when a pizzeria chooses to fully convert, “if they had $4,000 in revenues prior to conversion they will pay four per cent on the first $4,000 and eight per cent on anything over.”
The model is different from traditional franchising in that Rocket Pizza does not require an up-front investment and takes a lower percentage of sales.
The network is designed to help independent pizzerias increase their revenues and profit margins, streamline processes and costs, get the technology that is needed to compete with big pizza, and expand their customer base to include corporations and catering. Another goal is to increase equity already invested in a pizzeria should its owner decide to sell the business.
Rocket Pizza has big plans for the network. He said they hope to have 15 to 20 pizzerias on board by the end of May, then grow to 50-plus and eventually 10,000 or more across United States and Canada.
