DoDo franchise: how to become part of a global brand and recoup expenses in 2 years

Information about the company

The first pizzeria was opened in 2011 in the city of Syktyvkar. A few years were enough to form a full-fledged network. Today it is an international chain that unites 230 pizzerias. In 2013, there were only 9 of them. There are establishments operating under this brand not only in Russia. Dodo pizza has already reached many other countries, for example, China, Kazakhstan, and the USA.

The quick launch was associated with a well-thought-out development strategy. Surprisingly, the business completely paid for itself in less than 1 year. That is why in the future it was decided to implement franchises.

Important. Start-up capital of 1.8 million turned into a business turnover of 180 million rubles in just 3 years.

It is also interesting to know that Dodo Pizza has become a pioneer in many areas. This is the first pizzeria to start delivering orders using a drone and also install cameras in its kitchen. You can prepare your ordered pizza online.

The creator of the network is Fedor Ovchinnikov. The founder is often cited as an example for aspiring entrepreneurs. This is a unique case of development from zero to a billion. A book has been written about a businessman.

The businessman plans to make his chain of pizzerias world famous. And this may well happen, given that establishments are open even far beyond the borders of the Russian Federation.

A million under the cheese: how much does the Dodo Pizza franchise bring in?

Dodo Pizza numbers

70 pizzerias online

924 million rubles — network revenue for 11 months of 2015

12 minutes - pizza cooking time

118 criteria in the system for assessing the quality of work of pizzerias

22 of the day the franchisee undergoes training

350 thousand roubles. — lump sum payment

5% — royalties from the second year of operation

Source: data

A future partner of the company must register an individual entrepreneur or LLC (necessarily a new one) and undergo a 22-day training in Syktyvkar. This mandatory condition has become a natural filter when selecting franchisees - only 30–35% of applicants end up opening a pizzeria. “At first we interviewed applicants, but this method is very subjective - enthusiasts with shining eyes gave up after the first difficulties, and those who did not know how to present themselves turned out to be the most purposeful and stubborn,” explains Ovchinnikov. Entrepreneurs pay for the travel to Syktyvkar and accommodation (Ovchinnikov opened a special hostel for franchisees), the cost of the course is included in the lump sum fee. “We understand that snatching a month out of your life is not easy. But we need people who are completely immersed in the business - we do not take large investors who want their funds to work as partners. You will have to work yourself, and a lot, in the first two years you need to be in the pizzeria every day,” says the founder of the chain.

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Training at Dodo Pizza consists of two parts. At the first stage, the entrepreneur must go from pizza maker to manager of a chain of pizzerias. To do this, he works in the kitchen for ten days, then learns to manage the staff of one point, and then a chain of several pizzerias. The second stage is a theoretical course, consisting of lectures on working with finances and promoting a brand.

Another filter for entering the network is the requirement to try your hand at a small town before going to a large one. If the point shows good results, the head office allows the opening of a pizzeria in the initially chosen location. So, around Moscow there is now a dense ring of entrepreneurs who work in regional cities to get a chance to enter the capital’s market. “This strategy slows down the growth of the network,” Ovchinnikov admits. “But we are willing to wait to develop experienced partners who will immediately win audience loyalty in cities that are important to us.”

Franchisor's view

After training, the franchisee must find premises for the pizzeria. The area and characteristics of the place depend on the chosen format: delivery service without a sales area, family, city pizzeria, an island in the food court and “Dodo Pizza and Coffee”. A family outlet itself must generate traffic - the area of ​​such a pizzeria can reach up to 200 square meters. m, there should be some kind of “magnet” inside for visitors: table football or a playroom for children. A city pizzeria should be opened in a place with high traffic, with an area of ​​about 150 square meters. m. In shopping centers, you can launch a pizzeria “Dodo Pizza Express”, where the “seven minutes or pizza for free” rule applies, and the “pizza and coffee” format, new to the chain. The area of ​​such pizzerias ranges from 30 square meters. m. About 90% of Dodo Pizza outlets today are city and family pizzerias.

The technical requirements for the premises are standard - it must comply with SES, Rospotrebnadzor and fire safety standards. The only peculiarity is the need to connect large energy capacities at the site (from 45 kW) to ensure the operation of the furnaces. The head office creates a design project for the premises and monitors the progress of renovation work. Franchisees can choose the brand of equipment themselves - however, focusing on the matrices given to them by the head office. A large-format pizzeria must have conveyor or deck (without blowing) ovens, an exhaust hood for ovens, microwave ovens, refrigerated and freezer tables for pizza, dough mixers, mixers, heating shelves, a washing bath, a production table, shelving, coffee machines, boards, cheese graters, knife block, etc.

The head office is not involved in the selection of personnel - the franchisee conducts interviews himself and can send as many employees as he wants for training in Syktyvkar (paying for their travel and accommodation). To open a small-format pizzeria, you need at least five employees; for 24-hour urban and family pizzerias - about 50. Franchisees must purchase ingredients for pizza only from suppliers approved by the head office. Seasonal vegetables that meet the standards can be purchased locally.

According to the head office, the starting investment for opening a Dodo delivery service (a kitchen without a sales area) is about 3.5 million rubles, for a food court location or a small-format pizzeria - 7 million rubles, for a family restaurant - 9 million -12 million rubles. Approximately 50% is the purchase of inventory and equipment, about 20% is repairs. The establishment’s revenue varies depending on the format in the range of 1.5–5 million rubles. per month, profitability - 15–20%. The company promises that the investment will pay off in 1.5–3 years after the start.

Inspections of franchisees (up to eight per month) are carried out by a separate legal entity “Dodo Controlling” - its agents monitor the cleanliness of the kitchen, compliance with sanitary standards by employees, freshness of products, etc. There are no fines at Dodo Pizza; they are replaced by verbal warnings. There are no serious conflicts with franchisees, Ovchinnikov assures: “We have a general chat in which each partner can let off steam if he is dissatisfied with something. We hear this criticism and we work with it.”

Franchisee's view

Among the entrepreneurs surveyed by RBC working under the Dodo Pizza franchise, there were leaders in profit (up to 1.5 million rubles per month) and small outlets earning 100–200 thousand rubles. Income mainly depends on the size of the locality and delivery zone - the larger they are, the higher the profit of the pizzeria.

Yana Lozhkina opened a cafe with sandwiches in Sarapul in May 2012. But after six months, the fast food business had to be closed due to low profitability. Having learned about Dodo Pizza franchising from Ovchinnikov’s blog, Yana contacted him and asked for a tour of Syktyvkar pizzerias. To reformat a former fast food restaurant with an area of ​​140 sq. m Lozhkins spent about 4 million rubles. The pizzeria opened just a month after the contract was signed, and began making its first profit nine months later. The initial investment was recouped two years after the launch. Now the outlet operates with a profitability of 8–17%. In September, which was unsuccessful for the pizzeria, the Lozhkins made a profit of only 137 thousand rubles, usually it is more.

Stanislav Semionov's pizzeria in Dolgoprudny near Moscow is one of the leaders in terms of revenue and profit in the chain. Semionov’s father works as the director of the point, but in fact they dealt with all issues together, from scratch: neither the eldest nor the youngest Semionov had anything to do with catering before. The commercial concession agreement was signed in June 2013, the delivery service started operating in February 2014 - it took seven months to find a premises of 230 square meters. m. After another five months, Semionov completed the renovation, recruited staff and launched a full-fledged restaurant. He spent 13 million rubles on the start in Dolgoprudny, including about 10 million rubles on repairs and purchase of equipment.

Now the pizzeria in Dolgoprudny brings in up to 3.5–4.8 million rubles. revenue per month with a profitability of 20–25%. The payback point reached in six months. The investment was returned 1.5 years after the launch. By the new year, 2020, Semionov plans to open a location in Moscow and thus become the first online entrepreneur to enter the capital market. Investment in a location of 168 sq. m have already amounted to 12 million rubles. (imported equipment has become more expensive). Semionov expects that the outlet in the capital will bring in 4 million rubles. revenue per month and will pay off in two to three years.

Denis Grinev, a franchisee in Rostov-on-Don and Taganrog, worked for 12 years as a sales manager at the Ukrainian Schwarzkopf & Henkel. Deciding to change his lifestyle, he moved from Kyiv to Rostov-on-Don, where he decided to open Dodo Pizza. True, the entrepreneur had to start in neighboring Taganrog - the rule of entering million-plus cities from small settlements worked. Grinev settled down thoroughly in Taganrog: having invested 11 million rubles. personal savings, he rented a premises of 370 sq. m, 140 sq. m of which is occupied by a hall, and in February 2014 launched the sale of pizza. The operational payback came quite quickly - in the third month after the start. But he hopes to return the investment only by the middle of next year. Revenue now is 3 million rubles. per month, profitability - 15–20%.

After Taganrog, Grinev was allowed into Rostov. In December 2014, he opened the first Rostov location, and in June 2015, the second. Taking into account the rising prices for Western equipment and high rental rates on the main street of Rostov, it took 12.5–13 million rubles to open each outlet. This time, Grinev chose to work with a private investor, who received a stake in the company. Now one pizzeria gives 2.3 million rubles. revenue per month, the second - 1.8 million rubles, profitability, however, is only 5%, but it is a matter of time, Denis Grinev is sure.

What are the features of the franchise?

The Dodo pizza franchise has a number of characteristic features. They need to be carefully studied before purchasing the right to use the brand. You can select when opening 1 of three available formats:

• standard pizzeria with a hall;
• only delivery within the city;
• Express format pizzeria with counter.

Representatives make demands on both the premises and the entrepreneur. The Dodo franchise cannot be taken out if the basic recommendations are not followed.

The company supports its entrepreneurs at all stages of starting a business. This is a significant advantage for new entrepreneurs.

Features of the Dodo pizzeria franchise

“Dodo” franchising is a separate division of the company that is exclusively engaged in the development of a network of pizzerias, offering its potential partners the following mutually beneficial conditions:

• Anyone can choose 1 of the 3 available work formats - a full-fledged restaurant with a service hall, express delivery points, as well as just stands in food courts in shopping centers.
• All franchise agreements imply that entrepreneurs have registration of a legal entity, a license for food production and the necessary OKVED codes.
• Each entrepreneur is required to rent or own premises in accordance with the requirements of the parent enterprise. As a rule, this is the first floor of a building with an area of ​​120 to 250 sq. m. m with separate access to a busy street. If a potential partner provides a certain area in a shopping center, then he is offered the appropriate format of the establishment. Of course, the enterprise must have an oven for preparing the product and the necessary communications - access to drinking water, 2 types of sewerage and supply and exhaust ventilation both in the room and a separate exhaust from the kitchen space.
• The minimum requirement for a location is that the restaurant or delivery point must be located in a village with a population of at least 200 thousand people to ensure trafficability.
• The Dodo franchise offers its partners transparent working conditions in accordance with the letter of the law and full accounting reporting, which allows them to attract a large number of investors who want to work according to the “white” scheme.
• The standards include a set of rules for personnel to ensure the proper quality of products sold, which, in turn, is controlled by the appropriate inspection.
• All employees must undergo appropriate training in their own educational institution before being hired.
• Each partner receives from the parent company access to a full-fledged support service, which is designed to resolve any controversial issues and support its franchisees in every possible way.
• The new restaurant is immediately entered into the network’s interactive map as another partner division that has the right to work under the guise of a high-profile brand.

“Dodo Pizza” pick-up point at the food court of the shopping center

In order to meet all the standards under a franchising agreement, a businessman must choose partners and advisors with extensive experience in similar companies, since the Dodo pizza franchise implies strict requirements for the sanitary and hygienic conditions of each restaurant in its network.

What is the cost of the franchise

Before choosing Dodo franchising, you need to find out the cost. It cannot be called low, but the entrepreneur is guaranteed a quick payback and high income. To get started, *350 ​​thousand down payment is required. This amount excludes VAT. This amount includes the costs of training all employees, paperwork, connection to the call center and information system, and the design of the future pizzeria. The minimum required investment is *6 million rubles. This amount should be enough to launch the simplest pizzeria format.

It is also important to consider that in the first 12 months you will have to pay 3.5% of monthly revenue. With such expenses, the project pays for itself in 1-3 years.

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*All prices are current as of August 2020.

Partnership Features

Dodo Pizza partners receive a balanced and technologically advanced system. This includes training for employees and partners, access to the entire infrastructure, launch support, all documentation, design project, a single call center and website for receiving orders, free software.

1. A system has been created that allows you to consistently make delicious pizza in 12 minutes using fresh dough. Quality control is carried out at all stages.
2. Balanced and technologically advanced recipes have been developed that are easy to follow. And the guests really like the pizza itself.
3. An internal test textbook is used.
4. Fanatical quality control.
5. A full-fledged design project is created. Pizzerias are designed with an open kitchen so guests can see the pizza making process.
6. Help partners if the pizzeria has quality problems.
7. Pizzeria promotion. Every two months, demand is stimulated with the help of seasonal offers: new pizzas, advertising materials and their promotion on social networks and on the website.
8. The site has a bonus program.
9. A huge database of marketing materials, supplied with all branded features.
10. Advanced technologies with process automation. A cloud-based pizzeria management system is used. Dodo IS is given to partners free of charge; only tablets and wireless Internet are required. As a result, the administrator and manager can manage the pizzeria from a computer, tablet and mobile phone.
11. Franchisee training.
12. Fair terms.

Advantages and disadvantages of a franchise

Before buying a franchise business, you should study all the advantages and disadvantages of this business. Positive qualities include:

• obtaining a ready-made powerful business system;
• the ability to use the information system;
• quick payback;
• full support at all stages;
• application and access to a single call center;
• Constant updating of the range and branded packaging.

The activities of the pizzeria will be constantly monitored and adjusted if necessary. To this end, the head office sends monthly mystery shoppers to pizzerias.

The disadvantages include the cost of a Dodo Pizza franchise. For some, it seems a little overpriced. But this minus is very relative. The return on investment for the business is quite high, so the initial investment will quickly return to the entrepreneur.

Features of “Dodo Pizza”

• Our main rule in delivery is “60 minutes or free pizza.” No conditions or stars. This creates a real “wow” effect for Clients.
• We guarantee stable product quality. All our Partners create a product of the same quality using a system of standards, training, and quality control in the form of a weekly Rating. When placing an order at Dodo Pizza, Customers have no doubt about the quality and speed of delivery.
• We do not hide anything from our Clients. All our kitchens are equipped with webcams that allow you to monitor the preparation of orders on the website online. In all Dodo Pizza pizzerias, Clients can sign up for a tour and see all the production processes. This creates real trust between us and the Clients.

What's included in the franchise

The franchise includes:

1. Design project of the future establishment. The pizzeria always turns out to be free, functional and convenient.
2. Regular quality control. It is carried out with the participation of secret shoppers. This makes it possible to adjust the work of the new restaurant to perfection.
3. Full access to the information system. All you need is a stable internet connection. The information system is fully integrated with the official website and call center. It makes it possible to track orders according to all possible parameters. Additionally, you can monitor the work of staff. The phone number and address of the pizzeria are located on the official website.
4. Inclusion in the loyalty system. It will make it possible to retain regular customers and attract new ones.
5. Education. Not only the entrepreneur, but also all employees undergo full training. This guarantees fast and high-quality work in the future.
6. The opportunity to use the name of an already established brand. This ensures that you receive customers immediately after opening.

The franchise also includes marketing support. Considering the whole package, the answer to the question of how much a franchise costs no longer seems so daunting. The price is completely justified.

What should a franchise buyer be like?

The company imposes conditions on entrepreneurs and their work. The first pizzeria should be launched in a city with a population of up to 500 thousand people. An entrepreneur must be ready for open and clean work. Information on income, quality rating and other data will be posted on open platforms.

An entrepreneur must undergo training. If he refuses, the franchise cannot be sold. A businessman must also be registered with the tax office.

Investing in Dodo

Let's assume that you invested a million rubles in March 2020 in our pizzeria in Sosnovy Bor. More than a year has passed since then, so statistics have been accumulated on which you can rely.

Dodo Pizza Sosnovy Bor is our most ordinary pizzeria. It does not set revenue records and is growing slowly but surely. Before the crisis, the revenue growth rate of this pizzeria was ahead of our forecast.

As of July 2020, it is even surprising how closely actual payments correspond to the forecast. According to the plan, the income per 1 million investment for this pizzeria was supposed to be 235,547 rubles, but in fact it was 233,627 rubles.

If revenue continues to grow as forecast, then your income over 10 years will be 2,089,437 rubles, that is, 20.89% per annum.

If the growth rate decreases significantly (to 0.5% per month - an extremely low figure), then the investor’s income will be 1,974,044 rubles, which corresponds to 19.74% per annum.