Pita power

COEUR d'ALENE - For the fifth straight year, Pita Pit Inc., with 187 U.S. franchises, has made Entrepreneur Magazine's "franchise 500 list."

The chain was No. 1 within its category (pita sandwiches). Pita Pit Inc. is the franchising arm of Pita Pit USA Inc., headquartered in Coeur d'Alene.

Pita Pit was No. 124 in overall top U.S. franchise opportunities, moving up 36 positions from 2010.

Jack Riggs, CEO of Pita Pit, said, "We are thrilled to be recognized yet again by such a prestigious institution and look forward to climbing even higher next year."

While Pita Pit opened nearly 20 locations last year, it opened more than 140 U.S. locations in five years despite rocky economic conditions and other growth difficulties experienced by some franchises.

Entrepreneur Magazine has conducted the franchise 500 survey for 32 years. To determine rankings, each company is evaluated on its financial strength and stability, growth rate, size of system, years in business and franchising, and percentage of unit closings.

"We made great strides toward taking Pita Pit past 180 units this year in the U.S., and are prepping for an even bigger 2011," Riggs said.

In 2011, Pita Pit plans to add 25 franchises, which was its goal last year, but fell short.

The credit market held Pita Pit back some last year, said Pita Pit's vice president of corporate business unit, Peter Riggs, who is Jack Riggs' son.

"A lot of banks are still struggling trying to find the new lay of the land," Peter Riggs said. "Things have loosened up a little," but qualified borrowers are still waiting for loans to open Pita Pits.

Recent changes made to the Small Business Administration system will help franchisees this year, he said. A majority of Pita Pit franchisees use SBA loans, he said.

Pita Pit also has re-negotiated vendor contracts to help franchisees save money this year.

He said the 25 new franchises this year will be spread throughout the U.S. None are planned for North Idaho.

Most franchisees have a staff of about 12 people. A busier outlet with multiple college-student employees could have 20 or more employees.

The Pita Pit model started by opening franchises near universities, and the second store opened near the University of Idaho, in Moscow.

With nearly 300 total locations in North America, Pita Pit initially found a niche by selling a healthy variety of pita sandwiches near college campuses across the U.S. It has since expanded to many cities and communities without a collegiate presence.

Peter Riggs, said, "In 2011, we hope to introduce our concept to more and more untapped markets and rise even higher on the franchise 500 list."

In North Idaho, Pita Pit outlets are located at 320 Sherman Ave., in Coeur d'Alene; at the Prairie Shopping Center, at U.S. 95 and Prairie Avenue, in Hayden; at 900 N. Highway 41, in Post Falls; and at 116 N. First Ave., in Sandpoint.

Pita Pit features a menu based on the customer's choice of grilled meats, vegetables and sauces, all rolled into a pita.