Marco’s Pizza Profit, Owner Salary & Failure Rate 2024

Are you looking to invest in a Pizza chain franchise and thinking whether Marco’s Pizza could be a great choice? Well, you have landed in the right place!

In this guide on how much does a Marco’s Pizza franchise owner make, you will learn about the nitty-gritty of this franchise opportunity, including details about the investment needed, profit potential, sales figure, and more! So let us begin!

How Much Does A Marco's Pizza Franchise Owner Make

About Marco’s Pizza

Marco’s Pizza is a fast-food restaurant chain that specializes in serving pizzas along with some delicious beverages, salads, cheesy bread, sandwiches, desserts, and more.

Well, there are plenty of top companies that serve Pizza, but still, Marco’s Pizza has been able to make its place among the top 5 main pizza restaurants.

The secret to the success of Marco’s Pizza is its authentic Italian taste.

The Pizza chain was founded by Italian-born Pasquale “Pat” Giammarco In 1978 in Oregon, Ohio.

Owing to his authentic Italian taste Pasquale was able to grow his brand throughout Indiana, Ohio, and Michigan initially.

Later, in the mid-2000s, a restaurant industry veteran, Jack Butorac, saw the potential in Marco’s and turned it into a 1,000-unit high-quality pizza franchise.

Consequently, in 2003 he became a consultant for Marco’s and purchased the franchise rights in the year 2004 with just 120 stores, and then Marco’s just took off.

And today, there are 1,153 (and counting) Marco’s Pizza outlets in the United States, and it is one of the fastest-growing pizza franchise chains.

Marco’s Pizza offers franchise opportunities to business entrepreneurs, and if you want to learn about its franchise opportunity in detail, then keep reading.


How Much Does A Marco’s Pizza Franchise Owner Make?

The money that Marco’s Pizza Franchise owners make can vary based on their management skills, location, and operating expenses, among other factors.

However, Marco’s pizza franchise owner makes sales of $912,000 annually on average and profit of $228,000 a year on average.

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How Much Does Marco’s Pizza Employee Earn?

How Much Does Marco’s Pizza Employee Earn

The salary of Marco’s Pizza employees may vary depending on their position, department, skills, etc.

However, as per ZipRecruiter, Marco’s pays its employees $16/hour on average, the lowest wage being $6.89 an hour and the highest wage being $34.28 an hour.

If we look at this in yearly terms, then it pays $33,437 per year on average to its employees, the lowest wage being $14,339 a year and the highest wage being $71,294 a year.


Marco’s Pizza Franchise Costs

In order to start a Marco’s Pizza Franchise, you will need a total estimated initial investment of $242,142 – $633,109. Here’s a breakdown of this amount:

Type of expenseAmount
Initial franchise fee$25,000
Real property$6,000 – $18,666
POS computers $14,000 – $26,000
Equipment fixtures$97,725 – $125,000
Leasehold improvements$34,000 – $283,642
Credit card processing$6,175
Signage$3,000 – $12,000
Opening inventory$7,000 – $8,500
Small supplies$11,800 – $19,000
Pre-paid expenes and deposits$2,500 – $6,000
Business licenses$500 – $1,500
Insurance note$2,366 – $16,500
Training expenses$3,150 – $10,150
Brand launch program$15,000 – $25,000
Menu boards$600 – $1,200
Store technology infrastructural system$800 – $2,400
Miscellaneous expenses$500 – $5,000
Architectural and engineering $6,650 – $10,000
Delivery area platform maps $500
Additional funds$9,000 – $30,000
TOTAL$242,142 – $633,109

Pro & Cons Of Marco’s Pizza Franchise

Pros Of Marco’s Pizza Franchise

  • Well Known Brand
  • Offers five days of classroom training and six weeks of store training.
  • Offers marketing support
  • High potential for growth
  • Offers territory protection
  • Highly profitable
  • Charitable
  • Provides discounts to military veterans, first responders, and qualifying multi-unit investors.

Cons Of Marco’s Pizza Franchise

  • Long selection process
  • High competition from other pizza brands
  • No financing

Marco’s Pizza Franchise Average Revenue & Profit

The average revenue and profit of Marco’s Pizza franchise may vary from outlet to outlet depending on its location, management, skills, etc.

However, on average the revenue that Marco’s Pizza franchise makes is $912,000 a year in sales and with an average profit margin of 25%, it makes $228,000 in annual net profits on average.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%912000.00
Rent9.38%(85500.00)
Insurance4.69%(42750.00)
Salaries18.75%(171000.00)
Franchise Royalty Fees4.69%(42750.00)
Utilities1.88%(17100.00)
Cost of Goods Sold (COGS)23.44%(213750.00)
Labor (Variable)12.19%(111150.00)
Total (Expenses)75.00%(684000.00)
Net Profit25.00%228000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Marco’s Overall Company Revenue

Over the past few years, Marco’s has seen tremendous growth and success.

Last year, in 2022, Marco’s surpassed  $1 billion in sales, generating an annual revenue of $300 million. 

The increase in revenue for Marco’s Pizza can be attributed to the demand and increasing popularity of Marco’s Pizza.

In fact, as per Marco’s, its top 50% of franchised stores reached (AUV) of $1,198,201 in 2021 alone.


Marco’s Pizza Franchise Failure Rate

To determine Marco’s Pizza franchise failure rate, let us have a look at the number of Marco’s outlet that opened and closed between 2018-2020 in the table below:

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2018825844+19
2019844875+31
2020875912+37

For the Franchised outlets:

  • In 2018, the growth rate was (19)/825×100≈2.30%
  • In 2019, the growth rate was (31)/844×100≈3.67%
  • In 2020, the growth rate was (37)/875×100≈4.22%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20184239-3
20193940+1
20204042+2

For the Company-Owned outlets:

  • In 2018, the failure rate was (3)/42×100≈7.14%
  • In 2019, the growth rate was (1)/39×100≈2.56%
  • In 2020, the growth rate was (2)/44×100≈5%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2018867883+16
2019883915+32
2020915954+39

For Total outlets:

  • In 2018, the growth rate was (16)/867×100≈1.84%
  • In 2019, the growth rate was (32)/883×100≈3.62%
  • In 2020, the growth rate was (39)/915×100≈4.26%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets of Marco’s Pizza grew from 2019 to 2021, showing a growth rate between 2.30% and 4.22%.

On the other hand, for company-owned outlets, the number of outlets started declining in 2018, showing a failure rate of 7.14%. However, in the coming years i.e 2019 and 2020, the outlets increased, showing growth rate between 2.56% and 5%.

Overall, when we combine the data of franchise and company-owned outlets, we can see that Marco’s Pizza franchise has expanded in the years 2018-2020, showing a total growth rate between 1.84% and 4.26%.


Qualification for Ownership of Marco’s Pizza Franchise

These are the basic qualification that you must meet in order to be eligible for getting Marco’s Pizza franchise:

  • For 1 store = $200,000 liquid capital and $600,000 net worth
  • For 2 stores = $300,000 liquid capital and $900,000 net worth
  • 3 stores = $400,000 liquid capital and $1,200,000 net worth
  • A credit score of 680 or more
  • Experience in business ownership

Marco’s Pizza Franchise Payback Period

Marco’s Pizza Franchise Payback Period

To determine the Marco’s Pizza franchise payback period, let us do some calculations by taking the initial franchise fees, ongoing monthly fees, minimum liquidity, etc. into consideration.

AVERAGE INVESTMENT$438,000
AVERAGE REVENUE PER OWNER$912,000
AVERAGE PROFIT PERCENTAGE25%
AVERAGE PROFIT PER YEAR$228,000
AVERAGE PAYBACK PERIOD2 Years

PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 438,000/228,000 = 1.9 = 2 Years based on median

The average investment for the Marco’s Pizza franchise is $438,000, and the average revenue per owner is $912,000.

With an average profit percentage of 25%, the average profit per year is $228,000.

This means that the average payback period for the Marco’s Pizza franchise is approximately 2 years on average, as the total investment of $438,000 would be recouped within this period.


Facts About Marco’s Pizza

  • Marco’s Pizza added pizzas without crust to make them a healthier option for those who are diet conscious.
  • Marco’s Pizza has been using old-world pepperoni even before it became a social media trend.
  • Marco’s Pizza has been flourishing at a rapid speed and is one of the fastest growing Pizza chains in the world.
  • Marco’s Pizza got into a lawsuit with its long-term supplier Sofo Foods, in 2010, and they filed a case against Marco’s Pizza for fraud, defamation, conspiracy, etc.
  • At some Marco’s Pizza locations, you can order a pizza along with a movie both in-store and via delivery, thanks to the agreement between Marco’s and Family Video, a video rental chain.
  • The Marco’s Pizza chain’s interior is specially designed to give an urban Italian kitchen feel.

((https://www.mashed.com/293597/the-untold-truth-of-marcos-pizza/))


What Is Marco’s Pizza Known For?

Even amidst tough competition from Pizza giants like Pizza hut, Domino’s Pizza, Little Caesars, etc. Marco’s Pizza has been able to stay on top for a number of reasons.

Marco’s is known for its authentic Italian taste, coupled with high-quality ingredients, thanks to its native Italian founder.

The company takes the “quality” aspect of its food very seriously. They make fresh pizza dough daily from spring wheat flour, high-quality yeast, and specially filtered water.

Along with this, they use premium, thick-cut meats obtained from quality suppliers and never use frozen cheese or vegetables.

And that’s not it; their proprietary secret pizza sauce recipe and three-cheese blend, which was developed by the founder himself, along with all of their other quality preferences, is what makes Marco’s Pizza stand out.

Here are some of the most liked items of Marco’s Pizza:

  • Italian Chef Salad.
  • Cheese Pizza.
  • Mushroom Pizza.
  • Pepperoni Calzone.
  • Steak & Cheese Sub.
  • Double Chocolate Brownie.
  • Meatball Bake.
  • Garden Pizza.

((https://www.marcos.com/franchising/what-makes-marcos-pizza-franchise-pizza-so-ahthentic/#:~:text=Every%20Marco’s%20pizza%20is%20made,from%20blended%20tomatoes%20and%20spices.))


Is Marco’s Pizza Franchise Profitable?

The profitablility of any company depends on a number of factors such as the investment amount, operating expenses, sales made, location, management, etc.

If we see the overall performance of Marco’s Pizza over the last few years, then there has been a definite positive growth in terms of sales, revenue generated, number of Marco’s pizza chains opened, etc.

As a Marco’s Pizza franchise owner, you can expect to make.


Marco’s Pizza Franchise Earning Potential

The earning potential of any company is directly related to its sales performance.

So if we take into consideration the sales figure of 778 franchised Marco’s Pizza restaurants in 2021 for all quarters, then here’s what we see:

There was a +13.4% increase in revenue of Marco’s Pizza when compared to the previous year, 2020. And on average, Marco’s Pizza makes $912000 in sales per year, which is growing each year too.

You can keep a profit margin of 15-25% and by looking at the continuous growth in revenue and sales of Marco’s Pizza franchise, we can say that it has a high earning potential.


Wrap

After learning about all the details of the Marco’s Pizza franchise, here is what we conclude.

In order to open a Marco’s Pizza franchise, you need to meet some requirements, wait for 30-90 days, and complete a comprehensive training period.

Not to mention opening this franchise requires a large amount of investment, and the company does not offer third-party financing as well.

However, Marco’s Pizza has a very low failure rate, it is one of the fastest-growing pizza chains, and even its profit earning potential is high.

So to conclude, Marco’s Pizza is a great company to invest in, and you can definitely buy Marco’s Pizza franchise if you are looking to invest in a successful business.


Frequently Asked Questions

Does Marco's Pizza offer financing?

No, Marco’s Pizza does not offer to finance. However, they do have a list of preferred lenders that are familiar with their brand and that invest in franchisees’ businesses.

Does Marco's Pizza franchise offer any discounts and incentives?

Yes, Marco’s Pizza franchise offers the following discounts and incentives:

  1. They reduce the initial franchise fees of $25,000 to $15,000 for qualifying veterans and waive it completely for veterans with a 50% or more military service-connected disability rating.
  2. They charge only $20,000 as initial franchise fees from first responders.
  3. For qualified multi-unit franchisees that have more than 5 units they offer reduced royalty rates and discounted franchise fees.
  4. They also offer an incentive for those who open 4 or more units on an accelerated timeframe.

How much royalty and advertising fees does Marco's Pizza charge?

Marco’s Pizza charge 5.5% of net royalty sales, which can be increased up to 6%, and they charge 7% of net royalty sales (1% for brand development+, 2% for regional or local store marketing + 4% for National Advertising Fund) as advertising fees.

((https://www.marcos.com/franchising/faqs/))

Who founded Marco's Pizza?

Marco’s Pizza was started in 1978 by Pasquale Giammarco. He brought the authentic touch of his pizzas when he opened his first restaurants in America.

Where is Marco's Pizza Headquartered?

Marco’s Pizza is the fastest-growing pizza restaurant in US, which is headquartered in Toledo, Ohio.

How many locations does Marco's Pizza has?

As of 2023, Mraco’s Pizza is operating 1,158 restaurants in the United States.

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