Industry News | February 13, 2012

Marco’s Pizza Partners with Family Video

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Looking to maximize its prime real estate properties and further expand its business Family Video has formed a partnership with Marco’s Pizza in order to operate and serve authentic Italian pizza.

All told, the partnership with Marco’s Pizza has the potential to create more than 7,000 new jobs over the next seven years.

Through the new growth initiative, more than one-half of Family Video’s current 735 Retail Plazas, typically occupying 7,000 square feet or more, will use 1,500 square feet of its retail space to operate Marco’s Pizza restaurants.

Family Video has built a real estate portfolio over the past 30 years by purchasing, rather than leasing, retail space.

Joining a brand that is experiencing tremendous growth is a strategy that is mutually beneficial to Family Video and Marco’s Pizza. Together, the compatible brands will train Family Video’s employees and integrate them into the Marco’s Pizza family.

“In the course of building our video store portfolio, we have accumulated an impressive real estate portfolio, one that includes multiple sites that are ideal for the Marco’s Pizza target market,” says Keith Hoogland, President of Family Video.

“Core to our success at retail is the culture of service we have built through best practices in hiring and training. By converging our strong service ethic and Marco’s high quality pizza product, we have the ideal partnership.”

Because Family Video buys and develops most of its buildings and land, the company has the ability to easily convert existing retail space into a brand of its choice. Marco’s Pizza, looking to expand its national footprint, was an ideal choice, as the brands share an almost identical customer base and customer service philosophy.

Marco’s Pizza has continued to experience consistent growth through franchising through an Area Representative model. In the first half of the year, Marco’s Pizza grew to more than 280 locations in 21 states, sparked by a record-setting 61 new store openings in 2011.

In addition, based on agreements already in the pipeline, not counting the Family Video conversions, Marco’s Pizza projects to open 100 additional new stores in 2012. The partnership with Family Video will enable the already fast-growing pizza brand to expedite its growth and enter currently untapped markets where the movie rentailer owns property.

“In this economic climate, we are constantly looking for innovative ways to expand, and partnerships with companies such as Family Video are just one of many that we are considering or pursuing,” says Jack Butorac, CEO of Marco’s Pizza.

“With a strong real estate portfolio, and service-oriented culture, Family Video’s business model aligns well with Marco’s Pizza.  This partnership will help us achieve our expansion goals much sooner than later.”

The first Marco’s Pizza to open on property owned by Family Video will be in Wheeling, IL, slated for the first quarter of 2012. An estimated 350 conversions will follow, primarily in the Midwest, starting with Illinois and Indiana, and eventually expanding into other regions around the country.

Headquartered in Toledo, Ohio, Marco’s Pizza (Marco’s Franchising, LLC) is the fastest-growing pizza company in the U.S. (based on the number of stores signed into development since 2007). Marco’s was founded in 1978 by Italian born, Pasquale (“Pat”) Giammarco and is committed to making Ah! thentic Italian pizza with fresh ingredients.

We operate more than 735 Family Video stores in 19 states and we are opening more all the time.  We have developed more than 600 retail strip centers and count Fortune 500 companies as well as Mom and Pop retailers amongst our 200 tenants.


Great idea. How is the pizza though? This could be the final blow to Family Video.

Family Video knows the video store is on its way out. Family Video owns all of its real estate and they will be the immediate franchisee of 100 Marco's Pizzas with the rights to eventually be a minority coowner. They will continue to add real estate and open Marco's Pizzas. Families will be able to rent a film and get a pizza or get both a film and a pizza delivered. As the video store enters its final demise Family Video will now be coowners of Marco's Pizza and they will be the biggest francisee of Marco's Pizza. They will close the video stores and lease the prime strip mall real estate they own Get it?!?

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