Donatos Pizza plans for significant restaurant growth over the next five years
The fast casual pizza segment has gone from nowhere to seemingly everywhere with head-spinning speed. And while a band of start-ups have debuted over the past decade, Donatos Pizza has remained steadfast within the category for 55 years. And they’re showing no signs of stopping now.
With more than 160 restaurants open and operating in nine states and its products proudly served in more than 15 entertainment and sports venues, Donatos is aggressively looking to grab a bigger share of the franchise pie and further expand its footprint throughout the United States.
Having already opened seven locations in the past 18 months, the brand has additional locations currently under construction that will continue to increase its footprint over the next several years.
“The components that define the fast-casual pizza category – fresh, super-premium toppings, inventive and unique flavor combinations, and the ability to customize to your heart’s content – have defined the way that we have operated for more than five decades,” said Jeff Baldwin, Vice President of Development & Franchising for Donatos.
“As the segment’s pioneer, coupled with the increasing number of consumers seeking out this type of meal, we expect to see a lot of opportunity for growth in the coming years.”
Premium pizza since 1963
The Donatos story began in 1963 when 19-year-old Jim Grote, an Ohio State University sophomore at the time, borrowed $1,300 from his father and future father-in-law to buy a small pizza shop on the south side of Columbus, Ohio. Between 1963 and 1999, the entire Grote family was involved in the strategy to grow Donatos into an exciting and successful family business.
By 1999, they had grown to 145 stores – 80 percent of which were company owned – and agreed that franchising was the best opportunity for continued growth.
As Donatos pressed forward with its expansion, the company was being watched. In 1999, the Grote received a call from the McDonald’s Corporation which, at the time was looking to diversify its portfolio.
After studying and validating more than 60 brands, McDonald’s concluded that Donatos had “best-in-class” pizza and corporate culture. After much soul searching, the Grote family decided to sell to McDonalds.
However, in 2003, McDonald’s stock hit a historic low and rumor hit the streets that they were going to spin off, sell or close all of their other brands and re-focus on hamburgers.
As soon as the rumor hit, the Grote family immediately laid out a plan for buying the company back from McDonald’s. McDonald’s sold the chain back to Grote and his daughter, Jane Abell, in 2003.
Deliciously different
Today, Donatos’ famous golden crispy thin crust pizzas – made with smoked provolone (not mozzarella) and Edge to Edge® toppings – have made the family-owned company a favorite in Ohio and beyond.
Pizzas come in four sizes – 7”, 12”, 12” and 14”—and a variety of combinations. You can order the pizza that put Donatos on the map – a large pepperoni pizza with 100 pieces of pepperoni on it – or one of more than 10 signature pizzas on the menu that include the Founder’s Favorite® (pepperoni, family-recipe sausage, ham and banana peppers) and the Chicken Spinach Mozzarella™ (sliced chicken breast, fresh baby spinach, fresh Mozzarella cheese, Roma tomatoes, roasted garlic, olive oil and Romano Parmesan blend).
Donatos also offers 26 toppings for customizable pizzas.
“We really make our product the star of the show on top of this delicious golden crust that is incredibly crave-able,” Baldwin said.
Other menu items include gluten-free pizzas, as well as oven-baked subs, garden fresh salads, boneless and traditional wings, and desserts.
Wherever Donatos serves pizza, Donatos serves people
Part of Donatos mission and promise is to be a good neighbor. In fact, Donatos comes from the Latin word for “to give a good thing.” That means giving back to the communities they serve.
In 2017, Donatos supported numerous charities and non-profits in the Central Ohio area to the tune of over $246,000 in monetary and in-kind donations. Major annual fundraising promotions are executed for charities including Nationwide Children’s Hospital, the Reeb Avenue Center, the American Red Cross, the American Heart Association, Pelotonia, Mid-Ohio Foodbank, Southwood Elementary school and more.
Donatos also has its own fundraising programs that regularly help schools, churches, sports teams or social organizations raise the money they need. The two most popular programs are: 1) DOUGH NIGHTS, which donates a percentage of the sales from any group that dines at a Donatos restaurant as a result of group’s fundraising efforts, and 2) DOUGH BOOKS, a coupon booklet with over $30 worth of coupons and free items that groups can sell for $3 to $5 each and keep all the profits.
“At Donatos, we’re passionate about doing good in the community and making everyone’s day a little better,” said Baldwin.
Are you ready to become a Donatos franchise partner?
To augment the company’s growth, Donatos is actively seeking franchise partners and investors looking to capitalize on the brand’s history, experience and security with a minimum of three restaurants over a three-year period.
There is no maximum. With a franchise fee of $30,000, the initial investment to own and operate a Donatos restaurant ranges from $375,500 to $699,900.
Multi-unit developers receive a development area (geography) inside of which they would develop an agreed upon number of locations during an agreed upon number of years. Each candidate is judged upon their qualifications of experience and ability to invest.
They must live within a serviceable distance of all the development area and must be in involved in the daily operations of their units.
Donatos seeks individuals with:
1. Management and/or operations experience,
2. Marketing or sales experience,
3. Established presence in the community and/or
4. Staff management and leadership experience.
The average store is 2,000-2,500 square feet and employs roughly 30 primarily part-time people.
The average volume nationwide, per store, exceeds $1 million.
AT A GLANCE
Name of franchise: Donatos Pizza
Established: 1963
Number of franchised outlets: 55 corporate, 105 franchised
Location of units: Ohio, Kentucky, Tennessee, North Carolina, Indiana, Pennsylvania, Virginia, Alabama, South Carolina
Investment range: $375,500-$699,900
Minimum required capital: Cash: $200,000, Net Worth: 1 million
URL: www.donatos.com
Contact: jbaldwin@donatos.com
