So many important ingredients go into a recipe for success when it comes to restaurant franchising. Passion, dedication, and the right support are all important, but every successful business needs to keep expenses within budget and still turn a profit. Successful franchises can be found in restaurants that serve all different types of cuisine, including sandwich franchises and pizza franchises. To see which one might be the best fit for you, let’s compare.

Sandwich Financials

A sandwich franchise can come in a variety of forms, like a sub franchise, a pita pocket franchise, a deli franchise, and more. According to a December 2023 report from point-of-sale tech provider Square, the initial cost of a sit-down restaurant (including one that serves sandwiches) is usually between $100,000 to $2 million, while a quick-service deli franchise may run about $50,000. Factors that play into this cost include the following:

• Buying or leasing a location
• Purchasing equipment
• Stocking the initial inventory (i.e., ingredients, condiments, disposable utensils, take-out containers, etc.)
• Obtaining the necessary licenses
• Administrative expenses
• Marketing expenses

One of the benefits of sandwich shop franchises is they generally require less technical expertise to operate. Sandwiches don’t require chefs and cooks or complicated equipment. However, these franchises also tend to have a lower profit margin, usually around 3%-5%. The lower startup costs come at the expense of needing large sales volume and keeping costs to a minimum to make the most out of your franchise.

Pizza Financials

A pizza franchise, in comparison to a sandwich franchise, tends to be more expensive, but with a greater capacity for profit. Opening costs for a pizza franchise are on par with most sit-down restaurants. According to research from point-of-sale company Toast, in September 2021 most pizza franchises cost between $95,000 to $2 million to open, with factors like size, owning or leasing a location, equipment, and staff size factoring in. However, compared to a sandwich shop, a pizza franchise has a much greater profit potential. Online ordering system company UpMenu reports the average pizza franchise profit margin in February 2024 is between 7% to 20%.

The higher profit margins in pizza franchises can be attributed to several factors. First, pizza enjoys a broad customer base and is a popular choice for both dine-in and delivery services, which can lead to a steady stream of business. Second, the cost of goods sold (COGS) for pizza can be lower relative to sales prices, especially for businesses that efficiently manage their ingredient purchasing and waste. Additionally, pizza franchises benefit from the ability to upsell add-ons like toppings, sides, and beverages,  providing greater opportunity for profitability.

Best of Both Franchises

It can feel like a hard choice to make between either a sandwich or a pizza franchise, whether to go the less expensive route or pursue the opportunity for greater profit margins. But the advantage of choosing a franchise like Antioch Pizza Shop is that we offer more than franchises that focus on just one type of food. Antioch and franchises like it serve not just pizza, but other dishes, including sandwiches, pasta, wings and more, helping you appeal to a broader customer base.

Serve Up Goodness with Antioch

We’re excited to offer you the opportunity to franchise with us. We’re a growing franchise in the pizza industry, and our menu will help you bring in customers and pursue our goal of making everybody a regular. Submit a franchise form today to learn more about your franchising opportunity with Antioch Pizza Shop.