The highlight of Noble Roman’s first quarter report was the first franchised Noble Roman’s Pizza & Pub in Lafayette, Indiana, that opened on May 2. Operated by Holly and Patrick O’Neil, franchisees of 18 Dairy Queens in Indiana, the location averaged $57,000 per week in the first two weeks, perhaps twice the most optimistic expectations.
The O’Neils have signed on to open their second location, this time in West Lafayette, Indiana adjacent to Purdue University. Relative to the first location, all observers are prepared for sales to moderate after a honeymoon period, but sales down the road should still be very impressive and highly profitable. The O’Neils obviously have the capability to build quite a few more Pizza and Pub stores and other potential franchisees will likely surface in the wake of the dramatic results in Lafayette. As demonstrated by the four company-operated stores in 2018, store level EBITDA of over 20% (before royalties) is possible, at an average volume of $1.3-$1.4 million. Higher volumes will obviously be even more profitable.