Peter Piper Pizza has long been a draw for families across the Southwest. The chain's open seating areas and kid-friendly arcades have provided hosting duties for Phoenix families since 1973, and the chain has subsequently spread to New Mexico and Texas. Recent reports confirm that the franchise is once again up for sale, but the company's efforts toward growth and the advantages of the franchising system reflect plenty of potential for this Southwest icon.
Expanding and evolving
Charles Bruce, CEO and president of the franchise, has announced an ambitious expansion plan, according to Phoenix Business Journal. The company is aiming to open 50 additional locations over the next five years. Nearby states like Colorado, Utah, Idaho, Oklahoma and Kansas are projected targets for expansion. These states were chosen for proximity to established markets in the Southwest and availability of inexpensive media opportunities.
Much of Peter Piper's continued success has been of a result of willingness to market directly to the Hispanic community, says Nation's Restaurant News. The company's unique appeal to kids and adults has made the pizza joint a stock choice for birthday parties and community celebrations, and its Arizona roots have planted the business in center of the nation's rising Hispanic population. The company's desire to serve Hispanic communities eventually led Peter Piper Pizza to open dozens of stores in Mexico.
Peter Piper Pizza has also prioritized the process of funding renovations solely through cash flow. Bruce noted that eight of the brand's company-owned stores will receive full renovations this year, and all 32 company-owned units are expected to get a facelift in the near future, notes the Phoenix Business Journal. The brand's willingness to invest revenue back into each unit has helped Peter Piper Pizza stay relevant and appealing to customers for over 40 years.
On the auction block
The rapid expansion of Peter Piper Pizza seems a bit out of place, considering the company is slated to change hands as early as October. However, Bruce described the two developments as "complementary" and noted that companies described the franchise's plans as "positive and of value to the company." Buyers are so confident in the continued success of the franchise that is expected by an anonymous source to receive a multiple of 7.5 times for the sale, notes Nation's Restaurant News. Peter Piper Pizza's success reminds investors that a smart push for growth can quickly put a franchise in a more advantageous position.