SINGAPORE, Jan 16, 2024 - (ACN Newswire) - Renowned pizza brand from South Korea, GOPIZZA rounded off 2023 with 27 outlets in Singapore. This comes after the addition of six new outlets across northeastern and western zones in Singapore in December 2023 alone. With a base of 17 outlets in 2022, GOPIZZA has grown its store presence in Singapore by almost 60 percent in 2023 compared to the year before. In terms of market share by store count, GOPIZZA now takes third place behind incumbents Pizza Hut and Dominos which have been operating in Singapore for more than two decades.
Starting from a small food truck in Seoul in August 2016, the single-serving pizza company, lauded for its tech-driven process, opened its first brick-and-mortar location in 2018. In May 2019, the company opened its first branch abroad in Bangalore, India. This was followed by branches in Singapore in April 2020 and Hong Kong in March 2021.
“We are very heartened and encouraged by the growth of GOPIZZA’s presence in Singapore. This shows that there is a strong appreciation for fresh, high quality, single-serving pizzas among consumers in Singapore. We are also very thankful to our franchisees for their commitment in helping us make more delicious pizzas available and accessible to all,” said Kelvin Sia, Regional CEO and Head of APAC at GOPIZZA.
GOPIZZA’s healthy growth trajectory can be attributed to the company’s innovative approach to pizza-making, driven by cutting-edge technology and an unwavering commitment to taste-consistency. This is further supported by GOPIZZA’s emphasis on customer satisfaction and its dedication to fostering a strong franchise network.
Based on financial information collected from existing outlets in Singapore, GOPIZZA observed that almost 40 percent of outlets broke even within six months of opening, an achievement that is uncommon in the F&B sector. According to the Singapore Food Agency, the average F&B business runs at an annual operating loss of 8 percent and it takes about 30 months to recoup initial investment[1].
GOPIZZA has a unique franchising model that is designed to help franchisees enter into the F&B market easily and achieve profitability fast. With high start-up costs being a common barrier to entry in the F&B industry, GOPIZZA has managed to cap its setup cost to one-fifth of what F&B businesses usually require. Franchisees also pay a nominal fee that is one-third the standard for brands of a similar nature. The economies of scale that come with an extensive store footprint along with heightened brand awareness among consumers all help to contribute to a viable environment to position franchisees for profitability.
“As fresh graduates, we are excited by the prospect of owning our own business and shaping our own success. My partner and I run the GOPIZZA outlet at Punggol Plaza. Entrepreneurship runs in my blood, thanks to my grandmother who runs her own law firm. I believe she has played an instrumental role in cultivating a spirit of enterprise and commercial sensibilities in me. I appreciate the plug-and-play model that GOPIZZA has designed for scaling the brand,” said Zin Htoo and Afifah Christelle Camut, franchisees of GOPIZZA outlet at Punggol Plaza.
For 2024, GOPIZZA plans to add at least 10 more outlets in Singapore across eastern and central zones, featuring new business formats. GOPIZZA will also be launching new flavours and a series of pizza pop-ups. GOPIZZA is also looking at plans to expand to Indonesia and has most recently entered Thailand with its first outlet.
[1] Source:
https://www.sfa.gov.sg/docs/default-source/food-retailing/guidebook_turning_passion_into_profits.pdf