Still branching out

COEUR d'ALENE - Pita Pit USA Inc., based in Coeur d'Alene, continues to see franchise growth while many other food franchises have been slowed by the continued weak economy.

Company representatives also said that the company has seen an increase in the number of applications for franchises, but the franchisor has been selective about new owners and franchise locations.

Many new Pita Pit franchise owners are recent college graduates, some of whom have had difficulty finding employment because of the economy, a trend which is expected to continue. Other new franchise owners are people who have lost their jobs in the economy and have become frustrated working for others, said Kevin Quinn, director of franchise development.

The recent college grads often partner with parents or others who can provide the financial backing, he said. "The young franchisees fit well in the college environment," said Quinn.

New stores originally were anchored to colleges and universities, but many new outlets are not, as customer demand spreads as loyal customers leave college and move away but still want the stores' pitas, he said.

"And the perceived security in big corporate jobs is waning," he said.

For those who lost their jobs, who have the money, they are motivated to be their own boss, he said.

"Franchising is a natural way to do that," he said.

And because a franchisee would be starting a business with a proven model, it's less risky, he said.

Many others also applying to be franchisees are owners of other franchise concepts, he said.

"It's a simple concept, but it's not easy" to have successful stores, said Quinn.

Corey Bowman, vice president of franchise development, said a Pita Pit franchise is "not recession proof, but they're a lot more recession stable."

The company is offering development incentives to attract more franchisee candidates and continue the growth trend.

The trend of more people choosing to eat healthy food has increased Pita Pit's popularity, and the food has a lower price point, Bowman said.

Bowman said Pita Pit is projecting 25 new stores to open their doors in 2010, after opening 18 last year. There now are 40 in development, he said. There currently are 180 stores.

"We are undersaturated in probably every market in the U.S. except North Idaho," said Bowman.

Still, the company has identified other markets in North Idaho and Eastern Washington to develop. The company would like see its first Sandpoint store open, and is looking for a franchisee, he said.

The closest stores to Coeur d'Alene to open in 2009 were in Lewiston and Walla Walla, Wash., he said.

Pita Pit has stores in Coeur d'Alene at 320 Sherman, Hayden at 271 W. Prairie Shopping Center, and Post Falls at 900 N. Highway 41. The three employ about 40 people, and are all corporate-owned locations. The fourth corporate store is at the Spokane Valley Mall.