Marco’s Teams Up with Family Video With Aim to be 4th-Largest Pizza Chain

""“Toledo-based Marco’s Pizza on Thursday announced an agreement with Illinois-based Family Video that eventually will put hundreds of Marco’s shops in the movie rental chain’s stores. The partnership should give a considerable boost to Chief Executive Officer Jack Butorac’s long-term goal of becoming the fourth-largest pizza chain in the United States. ‘It’s going to have a huge impact,’ Mr. Butorac said. ‘We’ve given them financial incentive to build stores on a timely basis and aggressively.’

“In all, Family Video has committed $100 million to developing the Marco’s stores. The first, in Wheeling, Ill., should open some time before the end of March. Permit applications are in for nine other stores. The plan calls for 250 stores within seven years and perhaps eventually 350 or more stores. Family Video will be the franchisee, owning all the Marco’s stores in its locations.”

“Marco’s, founded in 1978, has more than 280 stores in 21 states, and has been on an aggressive growth track. Last year, 61 franchises opened. This year, company officials expected at least 100 new locations prior to the agreement with Family Video. Executives from both companies said the partnership is a perfect fit — beyond the simple pleasure of picking up a pie and a movie for a night in. Having stores in Family Video locations will allow Marco’s to tap into new markets with guaranteed foot traffic.”

“For Family Video, the addition allows them to fill unneeded space in their stores created by the shift of home movies from VHS to DVD. Where the stores once needed 7,000 square feet, they now need about 5,000. Some stores already house independently owned pizza franchises, but company President Keith Hoogland said Family Video had been looking for an opportunity to fill that space with something the company owns. They’re also open to adding Marco’s locations to new Family Video stores. The company has 762 locations in 19 states.”