Pizza chain plans 38 Okla. eateries

August 13, 2007

OKLAHOMA CITY – Marco’s Pizza, a national chain, is planning to open 38 stores in Oklahoma City and Tulsa beginning in October. The company, which began in Toledo, Ohio, in 1978, has 159 pizza restaurants in Ohio, Michigan, Indiana, Wisconsin, Florida, North Carolina, Nevada and Arizona.

Jack Butorac, president of Marcos Franchising LLC, said a franchise agreement was signed locally with MG Pizza Ventures.Plans call for 21 of the stores to open in Oklahoma City and 17 in the Tulsa area.The Marco’s Web site reports the initial franchise fee is $17,500 for each franchised location. The ongoing royalty rate after the store opens is 5.5 percent of net sales. Between the franchise fee and equipping the actual store, Marco’s estimates the costs to open one of the restaurants runs from about $150,000 up to $315,000 for each location.

Ron Hingst, spokesman for Marco’s, said in recent years the company hired another company that assesses retail markets around the country. He said the study looked at about 100 markets where a pizza store would have a good chance of success.When Oklahoma was identified as a potential market, the next step was to look for local investors.He said the company has opened successful operations in the last few years in Florida, North Carolina, Arizona and Nevada.

The company hopes to have 500 stores established by 2010.Hingst said the decision to open so many locations in Oklahoma was based on the strength of the market and the company’s hope that people are ready for a different pizza chain. “They think there are enough good locations and enough of a market,” Hingst said.Each store will have a staff of about 25.And when it comes to competition, Hingst said the company is not looking to go head-to-head with the large pizza chains. “Whenever you think in this country that we don’t have room for another pizza store, if you put out a good product and provide good service, there’s always room,” Hingst said.

Well...call me shocked. Never thought I would see them down here, but definitely not a bad thing. Pizza isn't bad at all and they definitely compete well with the other guys. They have a good variety, not just pizza, which helps set them apart. They are probably closer to a Pizza Shuttle like place than a Dominos or Papa John's.