🍟 11/24/2021 – Dominos vs Pizza Hut + A Dog Training Franchise
This article written by The Hustle in 2019 is such an interesting case study in what can happen to leading companies when they aren’t thinking a few steps ahead.
Pizza Hut’s biggest focus for decades was inventing new products like stuffed crust or the triple decker pizza. Meanwhile, Dominos started testing online ordering as early as 1994
I think we all know by now how important that internet thing turned out to be…
If you’re subscribed to this newsletter and happen to work in media, you’re especially going to love this episode, but if not, there’s tons of great takeaways for any entrepreneur. My top 3 takeaways:
- Building brand affinity takes time (you can’t force it with venture capital $).
- You regret the employees you hired too quickly, not the ones you took your time with.
- Be scrappy and do things that don’t scale – Morning Brew founders hustled around their college campus and got as many students as possible to subscribe to their newsletter. How can you “do things that don’t scale” to find more customers?
One Franchise Breakdown:
Dog Training Elite
- Founded in 1995, franchising since 2015
- Based in Sandy, Utah; 59 units open as of 2021
- Franchisees provide in-home dog training as well as socialized group training for dog owners
Fees + Investment
- Franchise Fee: $49,000
- Royalty: 8% of gross sales
- Brand Fund: 1% of gross sales
- Initial Investment: $82,800 – $104,750
The below numbers are taken directly from the franchise website, and reflect performance of franchisees in 2020:
- Average Net Profit: $337,856
- Average Gross Revenue: $786,059
- Top Performer’s Net Profit: $801,110
The Wolf’s Take 🍟
There’s no denying it folks – with the investment at the high end being $105k, these are some super impressive unit economics, and the first franchise I’ve seen with an investment to profit ratio of 1:3.
Given that the dog training is done inside pet owners homes, you are not required to own or lease any real estate for your business, substantially bringing down the investment and operating costs.
With pet ownership nationwide hitting new ATH’s as much as Bitcoin is, it’s a great time to be in the pet business .
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