As featured in the Houston Business Journal this month.
A popular Midwestern pizza chain is entering the Houston market as part of a Southern expansion.
Following its first two Texas locations opening in the Dallas-Fort Worth area last fall and another one on the way, Columbus, Ohio-based Donatos Pizza hopes to enter Greater Houston by the end of the year with the recent signing of two local franchisee groups.
The company aims to bring more than 100 franchised restaurants to Texas over the next decade, including 40 to 50 in Greater Houston and a similar number in the Dallas area, said Jeff Baldwin, Donatos' vice president of development and franchising. In addition, Donatos is looking for franchisees in East Texas, Waco and Austin.
The Houston groups signed their franchise agreements in January and March, respectively, and are currently searching for locations with the help of local brokers, Baldwin said. One is looking in suburbs north of Houston, specifically the Tomball and The Woodlands areas, and the other is focusing on the southwest around Missouri City, he said. Both groups will open three locations initially. "Obviously, we have a huge market and a huge opportunity in Greater Houston, and so we're really focused on that area and bringing in high-quality partners, restaurant operators, ...that can open multiple stores and fill in the Houston market," Baldwin said.
Donatos restaurants are typically around 2,000 square feet, seating up to 30 guests, and located in shopping center endcaps, often with a drive-thru pick-up window, he said, adding that some franchisees also build their own standalone buildings.
Donatos was founded in 1963 by Jim Grote in Columbus and has since grown to 178 restaurants across 12 states, the majority in the Midwest. About 50 of them are company-owned, all in the Columbus area, Baldwin said. In addition, Donatos pizzas are available at multiple Red Robin restaurants across the country and at sports and entertainment venues, such as at Paycor Stadium, where Donatos is the official pizza for the NFL's Cincinnati Bengals team.
The entry into Texas is part of a broader growth strategy to expand outside the Midwest, primarily in the Southeast. Donatos opened its first Oklahoma locations in 2023.
While the brand will have to compete with numerous other pizza vendors, the Southern market is dominated by major national brands, Baldwin said, such as Domino's and Papa John's. Donatos sees a market gap for its style of pizza, which Baldwin described as a Midwestern style. Donatos prides itself in its edge-to-edge toppings - with more than 100 pepperoni pieces on a large pizza - thin crust, party cuts and portability.
"There are a lot of people who have migrated from markets that are in the Midwest into areas like Houston, like Dallas," Baldwin said. "And so we have a brand awareness already built in with a percentage of the population, so that's a real benefit for us."
About Donatos Pizza
Donatos Pizza, founded by Jim Grote in 1963 in Columbus, Ohio, is a family-owned business known for its famous thin-crust pizzas with abundant toppings spread Edge to Edge®. Headquartered in Columbus, Donatos and its franchise partners operate over 175 stores. Additionally, Donatos Pizza is proudly served in nearly 300 non-traditional locations nationwide, including select Red Robin restaurants. Committed to quality, community, and customer satisfaction, Donatos Pizza has received numerous awards and accolades, reflecting its dedication to excellence and innovation. For more information about Donatos Pizza and franchising opportunities, visit www.donatosfranchise.com.
Click on this link to read the full article in the Houston Business Journal.