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1. The Power and Strength
of the Segment &
Latest Trends
Investing
in Pizza:

2. There are an ample amount of business concepts that have the
potential to prosper in America, but none of them quite compare to
that of the pizza franchise industry. This report will serve as a guide
to further examine the growth of the franchise and pizza industry
and why today is a great time to invest in a pizza franchise brand.

3. Franchise Industry Success:
Restaurant Sector
America is known for its abundance of restaurants, ranging from fine-dining
establishments to the newly popular quick-service restaurant, and accordingly,
Americans love dining out. In fact, $680 billion is spent at restaurants each year
by Americans alone. Due to this love for eating outside of the home, the restaurant
industry, specifically the franchising sector, has been experiencing significant growth
over the past few years and continues to prosper.
Restaurants make up the largest portion of the franchise segment. Today, there are
155,571 quick-service franchise restaurants and 36,981 full-service franchise
restaurants. Franchise restaurants tend to have built-in demand because consumers
regularly look for franchise food outlets due to their consistent products and services.
Over the past few years, the quick-service restaurant segment of the franchise
industry has truly thrived. The specific segment includes limited-service eating
establishments, cafeterias, fast food restaurants, carry-out restaurants and other
establishments that focus on serving a meal without taking an extended period of
time and offering limited customer service.
In terms of sales, the quick-service industry is one of the fastest-growing sectors in
franchising, experiencing about 6.1 percent growth in 2013 alone, according to
the International Franchising Association (IFA). In particular, restaurants in this segment
are expected to be one of the main drivers of job creation in 2014, adding an
estimated 75,596 new jobs to the U.S. economy, according to the IFA. Additionally,
one of the front-runners in the quick-service franchise industry is the pizza sector.
$680
BILLION
is spent at
restaurants
each
year by
americans
full-service
franchise
restaurants
exist
today
6.1%
GROWTH
the current
growth
rate of the
quick-service
industry
75,596
NEW JOBS
were created
in quick-
service
restaurants in
2014
36,981
RESTAURANTS

4. Customers Want a Slice
of the Pie - Driving Pizza
Franchise Growth
It shouldn’t be a surprise that pizza ranks as one of America’s most beloved foods.
In fact, an immense 93 percent of Americans enjoy a slice of pizza at least once per
month, and for each meal of the day, about 13 percent of people can be found
consuming pizza. Approximately 3 billion pizzas are consumed in the United States
each year, and Americans eat nearly 100 acres of pizza every single day – that’s the
equivalent to the area of 75 football fields!
Unmistakably, pizza has mass appeal across the United States, so it should not be
unexpected that the pizza industry in the U.S. is worth $40 billion. As a result of the
astounding success of the current pizza segment in the U.S., over 70,000 pizza
establishments currently are in operation in America, making up 20 percent of all
U.S. restaurants.
Of all of these pizza businesses spanning the U.S., pizza franchises in particular are
among the most prosperous. According to the Pizza Power 2013 State of the Industry
Report, last year the pizza industry experienced its third consecutive year of
growth, and this is expected to extend through the tail end of 2014 and most likely
into 2015.
Due to their consistency and reliability, pizza franchises account for 60 percent
of pizza sales in the U.S. regardless of only accounting for 47 percent of the
aggregate amount of pizzerias. These figures provide entrepreneurs with a promising
business archetype to invest in when looking to join the pizza industry.
Franchises
account for
60% of
pizza sales
in the U.S.
Franchises
account for
47% of the
pizzerias in
the U.S.

5. Capitalizing on Demand
for Healthier 0ptions
Nutrition is increasingly becoming more
important to the American consumer
today, and for worthy reason. The health
risks associated with unhealthy eating
and weight gain are top-of-mind to many
individuals. According to the Centers for
Disease Control and Prevention (CDC),
about one third of adults in the U.S. are
considered obese. When an individual
is considered obese, they are at greater
risk for a plethora of other conditions
including heart disease, stroke, type II
diabetes, certain types of cancer and
more. Due to the rising obesity rate in
modern America, numerous consumers
have started to second guess their
food consumption habits.
As a substitute of ingesting oftentimes
gluttonous and high-calorie meals,
Americans are beginning to consume food
products with more nutritional and health
benefits. Accordingly, frequent restaurant
goers have started to demand healthier
options. In fact, more than 70 percent of
adults are looking to eat healthier when
they at restaurants according to the
National Restaurant Association (NRN).
The NRN similarly reports that over the last
several years, consumers have seen an
escalation in the health and nutritional
needs and demands of consumers when
eating out at restaurants.
In response to these new customer
demands, many restaurant franchises
and establishments have answered with
implementing healthier choices into their
menus. The majority of restaurant owners,
according to the NRN, have started to
add healthier dishes to their menus, and
customers are taking notice. In fact, as many
as 86 percent of adults have reported that
over the past two years, they have seen
an uptick in the quantity of healthier items
offered.
In fact, Technomic’s Pizza Consumer Trend
Report showed that more than 40 percent
of frequent pizza customers are looking for
their favorite pizzerias to implement more
nutritious options into their menus such as
whole wheat crust, organic toppings, natural
or locally cultivated ingredients. Pizza can
be engineered to be remarkably healthy
and nutritious by cutting back on higher-fat
elements, such as extra cheese, thick crusts
and salted meats and instead adding in
more nutritious toppings like vegetables.
Pizza brands don’t need to sacrifice the
taste of their final products to accommodate
healthy ingredient requests. In fact, the Pizza
Power 2013 State of the Industry Report
revealed that almost 40 percent of pizza
consumers actually prefer the taste of thinner
crust options over pan-style or thicker crust.
A large amount of consumers recognize
that in some circumstances, these dietary
demands may increase the price of their
pizza, but a large percentage of customers
are actually accepting of this. In fact,
according to this same report, 34 percent
of diners said that they were willing to pay
more money for healthier ingredients. Many
pizza chains are beginning to move their
focus toward using superior ingredients
or thinner crusts to satisfy their customers,
and this is only expected to become more
prevalent.

6. Kono Pizza takes on
Nutritional Customer
Concerns
Consumers are expected to become even more health-conscious
as more studies on obesity and the dangers of eating an
unbalanced diet continue to populate the media, PMQ reports. As
pizza franchise customers continue to crave fresh ingredients, an
increasing amount of pizzerias are expected to utilize high-
quality products and cooking methods.
Kono Pizza, home of the original pizza cone, is an industry
leader in this practice. Kono Pizza is an exceptional franchise
concept in the pizza industry, capitalizing on a unique product
with built-in, healthy alternatives. The Kono team has worked
diligently to deliver optimal ingredients to its consumers including
the finest cheeses, fruits and vegetables from local merchants.
Each Kono location serves breakfast, lunch, dinner and dessert
cones that incorporate healthy alternatives into several menu items.
There are a total of seven low-calorie cones on the menu,
and they are visibly identified as being low-calorie so consumers
know that they are making a nutritious choice. Some of the premium,
nourishing ingredients that are included in these lower-calorie cones
include eggs, peppers, turkey, lettuce, tomato, feta cheese, olives
and more.
Kono Pizza has discovered how to implement delicious ingredients
into its menus without packing on the calories. A standard piece of
vegetable pizza contains on average 450 calories. Comparatively,
a margherita cone from Kono Pizza, which includes turkey, swiss,
tomato, lettuce and the cone itself, totals just
250 calories. With the cone’s low-moisture cheese and thinner
crust, the majority of this franchise’s cones are between 250-280
calories a piece. Because of the product’s unique shape, the pizza
cone is perfect for on-the-go consumers because it tends to be
mess-free.
Due to the pizza industry’s continual growth and popularity not
just in America, but around the world, consumers have shown that
pizza franchises are here to stay. As pizza franchises adapt to
consumer lifestyle and taste trends, the fresh and calorie-friendly
pizza industry proves to be a great value for the money as they will
experience growth and enduring profitability.

7. Kono Pizza takes on
Nutritional Customer
Concerns
250
Calories
(vegeterian)
450
Calories

8. The Kono Pizza
Franchise 0pportunity
Because of its delicious and consumer-friendly product, the pizza cone, the Kono
Pizza model has already attained international success. Currently there are 130
franchise locations operating in 20 countries, and Kono Pizza USA is looking to
expand in the U.S. marketplace.
Kono Pizza is a flexible franchise to own, and franchisors are there to help with every
step of the process. Kono Pizza is an optimal franchise to own for a plethora of
reasons, including:
Location Support: When choosing a
location from available markets, each
franchisee will have the chance to work
with a Real Estate Representative to
help franchisees determine the best
location for their new store and support
negotiations on rental spaces. Kono Pizza
also offers site selection support and can
aid in the actual design and layout of a
franchise location.
Format Options: Prospective franchisees
have the option to choose from three
different franchise formats when investing
in a Kono Pizza, including a quick service
restaurant (QSR), a kiosk or a food
truck. Kono Pizza is currently looking into
potentially offering cart locations, as well,
where franchisees will have the choice
of what specific cones (breakfast, lunch,
dinner or deli) they will sell. This increased
variety in location makes investing in this
pizza concept more realistic for a wider
range of prospects due to the varying
initial investment depending on the type
of store chosen, as the start-up cost is on
the lower end, ranging from $150,000 to
$340,000.
Simple Operations: Limited staff is needed to
run this operation, ranging from 4-8 part-time
employees and one full-time manager. All staff
members will follow detailed instructions and
a set menu while preparing food, making it a
virtually mistake-free preparation process.
Thorough Training: All franchisees and
store managers will go through training,
including intensive onsite workshops, online
courses and hands-on training at Kono Pizza
USA’s corporate training facility to ensure
the successful operation of each location.
During these trainings, franchisees will not
only learn how to create the perfect pizza
cone, but they will learn how to create a
superb customer service experience for all
visitors. Field staff will meet with prospective
franchisees to help strategize and build and
execute their business plan unique to their
local community.
Grand Opening Support: Franchisees are
supported throughout every aspect of the
exciting store opening process, such as by
providing ongoing marketing and advertising
support to get the word out about the new
store opening. The Kono Pizza team will
assure that each franchisee’s store opening is
truly impressive and will help set them up for
continual growth.