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Donatos Pizza to debut in TN

Donatos Pizza has announced plans to expand its southeastern footprint and debut in Tennessee with as many as 30 restaurants.

October 22, 2015

Donatos Pizza has announced plans to expand its southeastern footprint and debut in Tennessee with as many as 30 restaurants. Over the next 10 years, the Ohio-based chain expects to open restaurants in Nashville, Memphis and Knoxville, according to a company press release. The first Tennessee restaurant is scheduled to open in Nashville by the end of the year.

"As the pizza market continues to grow in size and popularity throughout Tennessee, the state’s most populous cities — Nashville, Memphis and Knoxville — are extremely attractive markets for our brand," said Tom Pendrey, Donatos COO. "They present a perfect opportunity for Donatos to expand its customer base and will no doubt welcome our premium quality products and exceptional service with open arms."

Donatos was founded in 1963 when Ohio State sophomore Jim Grote bought a small pizza shop in Columbus, Ohio, from a young seminarian for $1,300, the release stated. The chain was acquired by McDonald’s in 1999 as a way to get into the pizza business, but was bought back by the Grote family in 2003.

"The components that define the fast-casual pizza category — fresh, super-premium toppings, inventive and unique flavor combinations, and the ability to customize to your heart’s content — have defined the way that we have operated for more than 50 years," Pendrey said. "As the segment’s pioneer, coupled with the increasing number of consumers seeking out this type of meal, we expect to see a lot of opportunity for growth in the coming years."

Donatos is actively seeking local franchisees with restaurant experience, the release stated. Including a franchise fee of $30,000, the initial investment to own and operate a Donatos restaurant ranges from $460,000 to $670,000. The average store is about 2,000 square feet and the 2014 average volume nationwide, per store, was $1,006,000.

Donatos and its franchise partners operate more than 150 restaurants in six states, and its products are served in more than 15 entertainment and sports venues.