in new YorkStYle

with the

a world-class pizza franchise

how to become a franchising partner

RussosFranchise.com

birthplace of the world’SgreateSt pizza

new york, new york

iT ’s aBouT a lovE For

CrEaTiNg FrEsH, auTHENTiC

iTaliaN CuisiNE

aNd a PassioN To sHarE iT

WiTH THE World.

about chef ruSSo The son of first-generation italian immigrants, Chef anthony russo grew up in a New Jersey home where the kitchen was the center of family life. There was always cooking and baking at home, and many of the ingredients came from the family garden. Just the way his grandpa and Nonna russo did back in avellino, italy.

These experiences stuck with young Anthony as his family moved to Galveston, Texas, in 1978. His father opened Russo’s Italian Restaurant, which quickly became a local favorite. Just like that, Anthony found a second home in the restaurant kitchen. By the age of 12, he was learning family recipes from relatives who flew in from Naples and Sicily each summer. Making pizza and squachatta (calzones) became a passion. Since launching in 1990 in Houston, his original approach to New York-style pizza has been a booming success from coast to coast, now with over 35 franchise locations nationwide and expanding internationally, with locations from the South Pacific to the Middle East. The world over, Russo’s New York-style pizza has come to symbolize the excitement of the city where traditions meet and travelers stand in line for a slice of the action.

it’S all about the food, and that’S what ruSSo’S haS been all about for the paSt 30 YearS.Our secret recipe? Our family recipes, which are over 100 years old, with their custom blend of spices and proprietary ingredients, will leave your competitors far behind. For instance, we make our pizza dough fresh daily; and to make a true New York-style crust, you need the right flour. Our pizza sauce is made fresh, too, from our traditional family recipe formulated for Russo’s, with tomatoes grown in California, topped with 100% mozzarella cheese from a Wisconsin dairy farm. Real ingredients, nothing packaged.

Always fresh, never frozen, in every Russo’s location: you’ll be making fresh pesto sauce and marinara sauce, hand-crushing tomatoes, chopping fresh vegetables or rolling fresh Italian meatballs, stirring minestrone soup simmering with the aroma of fresh garlic. Everything works together to keep this an award-winning pizza brand true to its chef-driven roots. High quality and authenticity are hallmarks of Russo’s New York Pizzeria, a worldwide chain with a boutique feel. We don’t just follow a formula in our kitchen–we really cook. Whether you come to us or we come to you via catering or delivery, you’ll be tasting Italian cuisine as it was meant to be experienced, crafted with skill and care and art, with high standards and high expectations.

Chef Anthony went on to train formally, and has studied cuisine across America and Italy. But his family’s enduring passion for the finest, freshest ingredients is what has made him the chef he is today.

Join our familY Join the russo’s family and own a unique, one-of-a-kind location, under a strong brand umbrella at a lower cost of entry than most competitive brands in the fast-casual industry. We’ll school you in our commitment to quality ingredients and preparation, so you’ll be sharing our excitement for superior pizza–italian cuisine with a slice of success.

gioie della tavola – JoYS of the table In traditional Italian families, many of life’s greatest joys take place around the table. This is where hearts are opened, ties of affection and friendship are strengthened, and life’s celebrations unfold. At Russo’s we strive to recreate this feeling, to foster the bonds between family and friends at each and every meal. Russo’s is about so much more than the food, it’s about the experience–the warmth, the conversation, and a sense of belonging that keeps customers coming back.

let uS tell You a bit about ourSelveS and our brand.The restaurant’s atmosphere conveys an air of freshness and openness of body and mind: the daily production of fresh pizza takes center stage in our dining experience. Our open kitchen concept creates foodie excitement and a sense of participation. Russo’s menu offers the simplest yet amazingly delicious classics of New York-style pizza, salads, and flatbread sandwiches that enjoy tremendous popularity worldwide.

generationS in the making Traditions are passed down for a reason. They provide a way to honor and maintain bonds with our ancestors. Chef Russo’s family traditions play a role in every aspect of the business. They’ve all been passed down through generations, so as never to be forgotten.

Where life’s celebrations unfold.Where life’s celebrations unfold.

whY ruSSo’S?all across the globe, the fast-casual dining concept has really caught fire, and russo’s owns a unique slice of it. Today, according to the food-service consulting firm Technomic, the fast-casual industry accounts for $34 billion in u. s. sales. People have a serious interest in high-quality food these days, and we take that interest very seriously.

Russo’s caters to a more professional class, in every sense of the word. People who eat out often are very aware of the choices that are out there, and we offer them an affordable luxury– a very special cuisine based on unpretentious excellence. We have confidence in our legacy of Old Country cooking and don’t need to dress it up with a lot of overpriced “foodie” artifice and excess. We put our money where our mouth is, in fresh flavor and a fresh approach to the pizza business. Our recipes, our ingredients, our artisanal, thin-crust pizza, all meet the demands of modern consumers who demand taste and quality, and are willing to pay a little more for it– slightly upscale, gourmet-conscious diners who place a premium on fine natural ingredients and preparation, who want to feel like somebody’s cooking for them personally.

The world’s eating habits are changing, and we’re helping that happen in a healthy, appetizing way. In keeping with modern tastes, there’s a wine bar, there’s a gluten-free menu, there’s a source for our ingredients, there’s a trained chef in the kitchen. Italians are famously emotional about their cooking, and that feeling is what makes pizza so loved by people the world over: it’s a social food, meant to be shared and exclaimed over, with a sense of occasion. Russo’s is constantly widening its horizons, reaching into the past and toward the future. Our dynamic domestic market has broadened into an international market, with over 35 locations in development around the world, as our business grows by leaps and bounds.

how iS ruSSo’S different? russo’s sells more than pizza. We sell Naples and New York along with every slice, the sense of “being there.” russo’s boasts a definite flavor of theatre in its venues–the ambience is as authentic as the menu, for enjoyment that discriminating customers appreciate.More than merely a pizzeria, Russo’s is a dining destination. The look and feel of New York’s little Italy surrounds you, with exposed brick walls and tile floors and framed photos on the wall that impart a sense of family and “the old neighborhood.” When you walk through the door, you’re stepping into the Neapolitan culture where pizza was born and raised. What makes Russo’s unique is our dedication to serving the best-tasting New York-style pizza in every market. You don’t have to live in New York to get a taste of famous New York-style pizza. Now we can serve it anywhere in the world. What separates us from the other pizza chains? Most franchises in today’s marketplace don’t make their own pizza dough, pizza sauce, fresh pasta, or pasta sauce anymore. Instead, they rely on a commissary to deliver pre-made frozen items, then top it at their location and call it pizza. Every Russo’s New York Pizzeria answers the needs of its community. It becomes what it needs to become, depending on which services are most in demand– counter service, dine-in, delivery, takeout, or catering with full service. Under your guidance and with our support, your business will reflect what your customers are all about, and will take shape around the neighborhood’s particular demographic. We’re not a cookie cutter operation; your business strategy can be as flexible as your customers’ changing tastes. Our recipes are standardized, but our service isn’t; the best mix of services is something you’ll need to discover, in terms of how to adapt to local events and surrounding businesses, wherever occasions call for quality dining. At Russo’s we sell more than fine food, we sell pleasure, molto piacere. Enjoyment is real at Russo’s. Real ingredients, real opportunity for an enterprising franchisee to cultivate a devoted clientele. Once people get used to Russo’s, no place else will do.

“The quality of the food, in my opinion, is exceptional. It really makes a difference in the food quality because we use fresh ingredients and our customers enjoy that pasta dishes are made to order.”Allyson Huston coal-fired italian kitchen franchisee, 2008

don’t reinvent the wheel a proven business model is a huge advantage for franchising versus a start-up business. With a Russo’s franchise, you’ll benefit from over 30 years of success. During that time, we’ve fine-tuned our operations from Point-of-Sale systems to training, to management structure, to marketing, to culinary research. You start off with an experienced mentor on your side. You don’t have to worry about getting all of the systems in place. We’ll help you do that. You just have to run your business and we’ll train you to do that. Do you have passion? Can you see yourself as the host in your Russo’s, creating this fantastic atmosphere, welcoming your guests as you would welcome your friends?

together we can make it happen.We welcome applications from individuals or teams whose professional expertise and personal qualities fit the requirements for a Russo’s franchisee. You have the freedom to push your vision to its limits and think beyond a single restaurant, to an entire territory or even a country. Russo’s will work closely with you to assess the potential of your chosen market and/or territory. Our multi-functional team will then assist and support you throughout the entire process, from signature to opening and throughout your operation.

“I definitely looked at the benefits and discounts and compared them with other franchises. I never had my own business, and from day one he walked me through every step.”Robert Carlisle coal-fired italian kitchen franchisee, 2013

we provide:• A proven concept serving authentic New York-Style Pizza dating back since 1992.

• A unique corporate identity with growing international recognition.

• Long-term growth perspective with 10-year contracts.

• Architects to design a New York-style ambiance.

• Professional support in location scouting and evaluation.

• Professional support in construction, recruitment and training, marketing, and all areas necessary for a sound entrepreneurial structure.

• Continuous system improvements.

• A trustworthy and helpful franchisor committed to transparency and partnership.

Sit-down diningOur classic pizzerias serve fresh, made-to-order pizza, pasta, and

salads, allowing customers to experience the

traditional New York pizzeria feel, but still at

a reasonable price.

deliverYPizza delivery services allow customers to call in or, increasingly, place

their orders online. Traditionally, this is a

key service to most popular pizza franchises, but what differentiates

us is our full menu in addition to pizza, which increases overall sales.

takeoutApproximately 20% to 45% of our customers

prefer takeout, making this service the most

popular and profitable, offering the same quick convenience as delivery,

but minus the tip.

catering We offer full-service

catering for events large and small, corporate or private. Let our serving staff take the pressure

off, so you can relax and enjoy the occassion. We

offer a full menu of Italian specialties, or we can customize a buffet

for a less formal setting.

1 32 4

income streams flow togetherThe pizza industry is teeming with opportunity and room for

innovation. However, before plunging in, you need to fully analyze the different profit segments of the fast-casual market.

Russo’s New York Pizzeria concept grows more sales per sq/ft than our competitors do in today’s marketplace. Four big income streams flow together, to capture more market share:

Two Concepts , One FamilyWe’ve taken an great care in developing two distinct franchise opportunities that blend the passion of the Russo’s dining experience with proven business models. We invite you to learn more about our two concepts–Russo’s NY Pizzeria and Russo’s Coal-Fired Italian Kitchen. New York Pizzeria has experienced steady growth since 1992, now with more than 30 locations and international expansion. The success of this award-winning, fast-casual concept prompted the addition of Russo’s Coal-Fired Italian Kitchen. Two different formats, but siblings, if you will, related by culinary paternity.

our brand promiseOur mission is to serve fresh-to-order meals that reflect the integrity of our original family recipes–in a fast-casual environment. From fresh ingredients to authentic know-how, every Russo’s franchisee will master the skills it takes to deliver a delicious, quality Italian meal for our customers–every time. Chef Russo visits the Italian old country each year to tour family wineries, oversee olive oil production, and sample local cheeses and meats to ensure that his family’s high standards for quality live on in his restaurants. Mangiamo!

our faSt-caSual franchiSe concept In the 19th and 20th centuries, New York was the port of entry for hundreds of thousands of Italian immigrants. Some moved on to other cities, but many stayed and settled in New York City. One of the culinary capitals of the world, New York is known for its Italian food and, particularly, pizza. Our overall approach is reminiscent of some of the first authentic pizzerias that emerged from budding Italian neighborhoods in the 1800’s, where everything was made from scratch with hand-picked ingredients, in a traditional Italian style. Russo’s New York Pizzeria is designed for the lunch guest on-the-go, fast-paced counter service, where a slice and salad can be delivered in under seven minutes. The menu features our award-winning pizza, together with an ample selection of appetizers, salads, and pasta dishes for guests who prefer to dine-in. This franchise has the option of offering full-service experience, depending on the day part or the guests’ needs. For most of our New York Pizzerias, takeout or delivery services constitute the lion’s share of their business. All New York Pizzerias serve beer and wine as a complement to a menu mix that averages between 5-10% of total sales.

“I have so many customers that come here on a regular basis; every time they visit, they have good comments on the excellent pizza, excellent food, and excellent service.”Akshey Patelnew york pizzeria franchisee, 2006

our upScale dining franchiSe conceptRusso’s Coal-Fired Italian Kitchen is our pizzeria concept without the rush. Guests are encouraged to sit back, relax and enjoy a bottle of wine while sampling our extensive list of appetizers, salads, and pastas. And don’t forget our New York-style pizza baked in our centerpiece coal-fired oven. There’s no counter here, and while takeout is an important part, it is downplayed in this concept, with delivery as an option for the franchisee to pursue. All Coal-Fired Italian Kitchens serve beer and wine as a part of the dining experience, with a menu mix that averages between 10-15% of total sales. This concept is all about Italian culture and authentic atmosphere, the experience revcreated inside every Russo’s Coal-Fired Italian Kitchen across the globe. We call it, “sitting at Chef Russo’s table.” It’s the ability to show your guests the joy, warmth, and magic created around the Italian table. It is this experience that will keep your loyal customers coming back for more. The warmth, the flavors, the wine, the family… it’s all part of the memories and traditions that began in Nonna Russo’s kitchen in the quaint city of Avellino, Italy. You were welcomed with open arms and the aroma of fresh-baked bread. Farm-fresh cheese and home-cured prosciutto were abundant. Garden-fresh vegetables and herbs graced the homemade sauce and just-rolled pasta. The wine flowed freely as did the conversation. You couldn’t leave without two things: a happy belly and a satisfied soul. Abbondonza!

“We opened a Russo’s Coal-Fired Italian Kitchen near our home because we knew people would support us, which is exactly what happened.”Ali Ahly coal-fired italian kitchen franchisee, 2007

countrieS/territorieS where we’re looking to expand Russo’s is making careful and continuous analysis of the many potential markets all around the world. This is an overview of the countries which we have targeted for strategic expansion. We’re actively seeking partners for those countries and strongly welcome all applications by qualified individuals or groups. For now, we’re concentrating our attention on developing these targeted countries. If you’d like to introduce Russo’s in a country that isn’t on our

target list, you can register your interest and we’ll put your application on hold. Should our strategic evaluation change and your selected country becomes available, we may get back to you. If the expansion rights have already been granted for your targeted territory, we would need to discuss alternate options. Or, if you’re interested in several countries, tell us your first preference. During the franchise application process, we can review specific territorial boundaries with you.

available franchiSing marketSCanada*ChinaColombiaEuropean unionHong Kongindiaindonesia israelJapanMacaoNew ZealandPhilippinesrussiasingaporesouth africa Thailandusa*uruguay vietnam

*Some areas in these countries/territories may be unavailable for franchising.

“What appealed to us with Russo’s is the fact that it has fresh ingredients.”Murad Al Nasur new york pizzeria franchisee, dubai, 2013

no reStaurant experience needed We have no set background requirements or preset guidelines for the ideal franchisee. Business ownership or management experience is a definite plus, but the only true recipe for success is the russo’s franchise system itself. if you’re willing to put your trust in our proven, successful systems and rely on our leadership team that has seen so many succeed before you… your confidence will be well repaid.

let uS tell You about the Search for our kind of franchiSe partnerS.Rather than looking for pure investment partners, Russo’s places great importance on building partnerships strengthened by the acumen of both franchisor and franchisee. Russo’s brings a coherent concept which has already proven itself in numerous markets, one which promises great likelihood for success when implemented systematically. The franchisee brings his or her entrepreneurial skills, knowledge of the local business and cultural climate, and a personal network and contacts, all of which are essential to assure success of every franchise.

russo’s promise

“if it iSn’t freSh, don’t Serve it.”

application proceSS What happens when? From the initial contact to your first restaurant opening. We have a standard procedure for franchise candidates. Here’s what happens and how long it’s likely to take. Please remember, this is approximate and subject to change due to many factors. depending on how it all works out, this process usually takes nine months to a year from the initial contact to the opening of your first russo’s restaurant.

“Because our company holds our family name and family recipes, we’re dedicated to continuing the family tradition. Every day, I’m honored to have this legacy passed on to us.”Anthony Russoceo and founderrusso’s new york pizzeria

PHASE 1: up to one Week

init ial contact on the webSite FranchiseRussos.com is where to first show your interest, by providing some basic information about yourself and indicate where you would like to introduce Russo’s. You can download a package of information about becoming a Russo’s Franchise Partner, our brand, and our recent successful growth and its future potential. After completing a short introductory questionnaire, you’ll receive an email about continuing the process.

PHASE 2: one to Two Weeks

providing more information On our website, you’ll download a more detailed questionnaire about your background and experience and also your financial resources. This will help us make a fuller evaluation of your application. You’ll also download the Confidentiality/Non-Disclosure Agreement, which is necessary to assure the security of all information that we exchange during the candidacy process. A signed and returned NDA is necessary for us to proceed.

PHASE 3: one to Two Weeks

telephone interview Together we’ll schedule a telephone call with our franchise representative. In this first person-to-person contact, we’ll ask about your experience, current projects, vision of how you would like develop Russo’s in this country or elsewhere, how you got to know Russo’s, etc. We’ll answer whatever general questions you may have about our company.

PHASE 4: Two to Three Weeks

diScoverY daYS at ruSSo’SWe’ll help you organize visits to one or several Russo’s locations, where you can meet some of our representatives and successful franchisees, tour their restaurants, and learn about their experiences as Russo’s franchise owners.

PHASE 5: one to Two Weeks

location Search Once you’ve done the Discovery Days, and if all goes well in Phase 5, you’ll be well prepared to start evaluating locations for your restaurant. Location is essential, and this critical task will receive our full attention.

PHASE 6: Two to Four Weeks

letter of intent Once we determine a location, we’ll formulate an initial agreement about how to set up your franchise as single- or multi-unit, define your scope of territory, number of outlets, timeframe for expansion, etc.

PHASE 7: one Week

contract talkS You and your representatives will meet with our team to negotiate, and if necessary, to adapt the Development and Franchise Agreements to local regulations.

PHASE 8: Two to Four Weeks

Signing the contractOnce all details have been finalized by our legal team, the moment has arrived at last: we will be able to welcome your team to the Russo’s family by signing the Franchise Agreement. A Development Agreement will then follow suit, as you gradually expand in accordance with our agreed time schedule.

PHASE 9: Three to Four Weeks

foreign market viSit If you choose to open in a foreign country, it’ll be our turn to visit you there. You’ll take the lead in showing our franchise representative around and making your detailed market presentation. To help prepare, we’ll provide you with sample P&Ls and a business plan. We’ll want to get a feeling for your local market environment and your network with potential partners, suppliers, and relevant area regulators. You should have realtors ready to show us suitable locations. Furthermore, you’ll also indicate your closest competitors, together with an analysis of the market landscape. We’ll want to know your growth targets: how many outlets, timeframe, specific locations, etc.

PHASE 10: Four to six Months

pre-opening In cooperation with us and our partners, you’ll plan and construct your first restaurant, hire and train restaurant management and staff, and set up the supply chain.

timeline: from signing to opening

do You qualifY? if you’re investing in a single-unit russo’s New York Pizzeria or a russo’s Coal-Fired italian Kitchen, we’ve spent years developing successful business strategies for initial investments that are among the lowest in comparable restaurant industries. As a best practice, we first evaluate all applicants based on a checklist of considerations:

how to applY and get Your own Slice of the pieContact us today if you have the desire to join our Russo’s global family. Follow this link, www.applyfranchise.nypizzeria.com, to our new online site for franchise inquiries. You’ll be asked to provide some information which will let us know how you fit into our concept. The system will guide you through the first steps of the process. Tell us where you want to do business. It can be your home town or anywhere in the world. You’ll find a list of countries available for franchising. If you’d like to introduce Russo’s to a country that isn’t on our list, let us know. Unless we already have a partner in that area, we’d be happy to consider your proposal. Or, if you’re interested in more than one

territory, tell us your first preference and later on we can discuss other areas to explore. Please complete all of the information fully, so that we can make an initial evaluation of your candidacy. We’ll contact you to let you know whether you fit our partner profile. If so, we’ll schedule a telephone conversation with our franchising expansion representative, to begin answering your questions about becoming a Russo’s partner. The whole process takes a bit of time, but it’s essential for us to get to know each other well before committing to this important partnership. We look forward to hearing from you soon.

perSonal characteriSticS • A sound background in business development• A willingness to be hands-on in the running of your business• The ability to work independently within the structure of the Russo brand• A well-established network of local partners, authorities, and opinion leaders• Good standing within the community• A track record of maintaining a successful business

financial qualificationS • Net worth minimum: $1 million• Good credit standing• Have capital to invest or access to third-party financing – Minimum cash-on-hand: $200,000 for Russo’s New York Pizzeria – Minimum cash-on-hand: $450,000 for Russo’s Coal-Fired Italian Kitchen

opening and ongoing coStS• Average cost per unit: $650,000 to $1.4 million• Ongoing royalty payment: 6% of gross sales

Our agreement will vary in different countries.In the international market, Russo’s is not selling single-unit locations, only territory agreements for multi-unit

birthplace of the world’SgreateSt pizza

we’re making headlineS We do things differently, and people notice. From rave reviews to franchise expansion news, these are some of our recent press accolades, which you can read in full on our website–NYpizzeria.com.

we’re extremelY proud of our franchiSe SYStem and are honored bY anY recognition we receive.

“No matter how you slice it, Anthony Russo’s pizza is tops.”

“Culinary Queen Rachel Ray chooses best pizza in the country; Russo’s Coal-Fired Italian Kitchen makes the cut.”

“A Slice of Heaven: New York Pizzeria bakes up a pie that’s the stuff of dreams”

“2009 Nominee... Best Pizza in Houston Contest”

Entrepreneur MagazineTop 500 Franchises

Entrepreneur MagazineTop 120 Franchises

2008 Houston Chronicle“Best Pizza” in Houston

Pizza Today MagazineTop 100 Pizza Companies

HoustonPress Magazine“Best Pizza”t

Experience

how to become a franchising partner

new york pizzeria, inc. | 5847 San Felipe, Suite 1700 | Houston, TX 77057 Toll-free 855.978.7767 | Office 713.821.1322 | Fax 713.821.1318For new franchise inquiries, visit RussosFranchise.com or contact our franchise sales team at franchise@nypizzeria.com.