Written By: Gouri Ghosh

The fast-food sector in India has exponential growth, with pizza emerging as one of consumers' most preferred food items. The increasing urbanization, changing lifestyles, rising disposable income, and growing appetite for international cuisines have significantly propelled the trend. The influence of Western food habits is the most important factor in this high demand for pizzas. According to market research, the Indian pizza industry is expected to witness a steady growth rate of 11.5% CAGR towards 2025. This vehement growth is due to the rise of QSR and food delivery services like Swiggy, Zomato, and UberEats, thus, therefore, pizza is becoming easily accessible. Such a huge moneymaking venture has made the investment in a pizza franchise which is a highly lucrative employment option. Sbarro is positioning itself strongly against the competition amid expanding its well-known chain of pizza franchise brands.

What is Sbarro Franchise?

Sbarro is a pizza chain from New York that was established in 1956. The chain is known for its huge New York-style pizza slices, fresh dough, and quality ingredients. It has operations in over 600 locations worldwide in various Asian and Western countries and caters to a wide variety of consumers.

While most of the other pizza chains, Domino's, Pizza Hut, and La Pinoz, provide almost Indianized custom-style flavors, this is what makes Sbarro's pizza special: It stands for the authenticity of Italian flavors, with a New York-style twist. 

Unlike heavily customized flavors, the Indian tastes of Domino's and Pizza Hut.  Sbarro employs traditional pizza-making processes that honor fresh dough, classical toppings, and its signature thin crust.

This growing urge for international food products in India has made Sbarro make a very fervent entrance into that food market in India. With the right location, good marketing strategy, and good operations, Sbarro franchise could be as good as any other profitable business. 

What Is the Franchise Price for Sbarro in India?

The startup amount for establishing a Sbarro franchise in India does require a large investment, but comparatively less than other competing brands like Domino's and Pizza Hut, which will ask for an investment above ₹1 Crore.

Breakdown of Investment:

• Franchise Fee: ₹50,000 – ₹1 Lakh
• Investment for Infrastructure: ₹35 Lakhs – ₹70 Lakhs
• Total Amount Required as an Investment: ₹35.5 Lakhs – ₹71 Lakhs
• Shop Space Requirement: 400 – 1500 Sq. ft.
• Revenue Sharing: Franchise owners take 91% of the earnings, making for a margin larger than many other international franchises.

Is Sbarro the Best Pizza Franchise to Invest in for 2025?

With increasing competition in the Indian pizza sector, an astute business investor will need to weigh investment alternatives. While Domino's and Pizza Hut are better established, Sbarro provides unique investment opportunities in:

• Lower investment costs compared to major competitors.
• Higher revenue retention (91%), allowing franchise owners to keep a larger share of profits.
• Differentiated product offering, focusing on New York-style pizza, setting it apart from traditional pan pizzas.

However, brand awareness, penetration capabilities, and consumer preference constitute challenges that must be addressed. Critical to the ready acceptance of the brand is the set of psychological looms associated with Domino's and Pizza Hut, but Sbarro has yet to create a see-through brand or penetrate aggressively into the market.

The Process for Starting a Sbarro Franchise in India

Setting up a Sbarro franchise in India follows a systematic course, extending from the expression of interest to the grand opening. Below is a close examination of the various significant steps involved.

#1: Submit an application.

• The first step toward starting your Sbarro franchise is expressing your interest. This can be done online at the official website of Sbarro India or by reaching out directly to the franchise team.
• Application Submission: Usually, you'd fill out an online application with basic details like your personal information, business experience, preferred location, and investment capability.
• Initial Review: The Sbarro franchise team will then review your application to ensure you meet their criteria for potential franchisees.

#2: Discuss the franchise terms.

After approval or shortlisting, the franchise team of Sbarro will contact you for further discussions. This is an important process, as this step discusses the financial commitments and the operational expectations needed by a franchise.

This stage covers a lot of important issues concerning the franchise:

• Franchise Costs: Sbarro informs you about the initial investment needed, including the franchise fee (₹50,000 – ₹1 Lakh), infrastructural investment (₹35 Lakhs – ₹70 Lakhs), and other hidden costs. 
• Revenue Sharing Model: They will explain all the particulars of how revenue sharing works. A franchisee keeps about 91% of sales, and the rest goes to the franchisor. You must understand how this structure dovetails into your financial aspirations and visions. 
• Anticipated Profits: Based on your site quality, operating efficiency, and marketing activities, sales forecasts, break-even periods, and return on investment (ROI) will be communicated to you by the team. It is a poignant time to ask about the performance of Sbarro franchises in different markets in India.

#3: Finalize Location

One of the most relevant steps to setting up an effective franchise is to work out an appropriate site. For any outlet of Sbarro, a minimum space of 400-1500 square feet, depending on the specific site layout and its customer's potential foot traffic.

• Location Parameters: Sbarro's preference is always for locations with good visibility and high footfall, as these ensure maximum revenue. Potential locations include:
• SHOPPING MALLS: With a considerable potential market.
• FOOD COURTS: Ready customer markets looking for small meals.
• Main ROADS/COMMERCIALLY ACTIVE AREAS: These streets or business hubs ensure a working crowd—more customers in conjunction with a delivery service.
• Lease Negotiation: The next part would involve negotiations on the available tenancy terms of the chosen site. Select a location where there is visibility with easy access, and this attracts customers. The property cost will play a pertinent role in your overall investment.

#4: Setup & Training

Once you sign the agreement and site, your concentration returns to the restaurant setup and training. This step includes physical setup complemented by operational training. 

Setting Up the Infrastructure:

• Sbarro will help you design the restaurant layout according to its brand guidelines. This includes kitchen space, dining area, counter design, and storage.
• You will also need to install necessary kitchen equipment, signage, and décor that align with Sbarro’s global standards. The total setup cost typically ranges between ₹35 Lakhs and ₹70 Lakhs, depending on the size and location.
• The infrastructure investment will also cover purchasing kitchen appliances, furniture, interior design, and other startup costs.

Training Program:

Sbarro offers comprehensive training for franchisees and staff. 

• Operational Procedures: This ensures that the franchise runs smoothly and in line with Sbarro's global standards.
• Customer Service: Training your team to deliver excellent customer service is crucial to maintaining brand reputation.
• Quality Management: Sbarro’s recipes and cooking methods are precise to ensure consistency in taste and quality.
• Inventory and Supply Chain Management: Managing the sourcing of fresh ingredients, inventory, and waste minimization is critical to maintaining profitability.
• Health and Safety Standards: Compliance with Indian food safety laws and hygiene protocols will be part during training.
• Training ensures that both the franchise owner and the staff are well to run the business effectively and provide a consistent experience for customers.

#5: Grand Opening & Marketing

After completing the setup and training, the next big step is to launch your Sbarro franchise with a grand opening event. The opening is an important marketing opportunity to attract customers and create buzz around your new store.

Grand Opening Event:

• A promotional event can include free tastings, special offers, or discounts to draw in customers.
• Inviting local media, influencers, and food bloggers to attend can help create additional buzz.
• Soft openings (a limited opening for select customers) can also help test operations before the grand opening. 

Marketing Strategy:

So, Social Media Marketing: Advertise your opening on Instagram, Facebook, and Twitter, highlighting some behind-the-scenes activities, as well as running contests or giveaways that can excite customers.

• Advertising Locally: Print advertisements in local newspapers, leaflets, or by digital ads to create awareness in your area.
• Promotions: Discounts, combos, or loyalty programs act as excellent incentives for first-time visitors, converting them into regulars.
• Tying up with Delivery Services: You can tie up with services like Swiggy and Zomato so that your products are within reach for customers who prefer ordering them at home.

Conclusion

Opening a Sbarro pizza franchise in India in 2025 is a lucrative prospect for entrepreneurs who want to tap into the rapidly growing pizza market. With greater demand for international food brands, growing popularity for New York-style pizza, and lower startup costs compared to competitors enrolled in Domino's and Pizza Hut, Sbarro provides a relatively lower-cost and profitable option.

However, the success of one's venture is by certain parameters such as location selection, marketing strategy, operational management, etc. Careful franchise management can allow owners to get back their investment within two years, considering sustained profit.

The demand for piercing into the fast-food industry in India, especially among the youth and urban, makes a Sbarro franchise a very intelligent move, provided there is a firm commitment to it.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.