Noble Romans Inc (OTC: NROM)

Noble Roman’s, Inc. sells and services franchises and licenses and operates company owned stand alone restaurants and non traditional foodservice operations under the trade names Noble Roman’s Craft Pizza & Pub, Noble Roman’s Pizza, Noble Roman’s Take-N-Bake, and Tuscano’s Italian Style Subs. The company has been active in the pizza and quick service restaurant sector since 1972, offering a menu that reflects its longstanding recipes. Its core products include traditional and Sicilian style pizzas, breadsticks with spicy cheese sauce, freshly prepared salads, pasta dishes, chicken wings, and baked submarine sandwiches. In addition to dine in service, the company provides carry out, curbside pickup, and delivery options at many of its locations. The company owned outlets serve as both revenue generators and testing grounds for new menu concepts and service initiatives. Franchisees and licensees replicate the brand’s offerings in a variety of settings, from standalone sites to non traditional venues such as hospitals and convenience stores.

Revenue is generated from three main streams: franchise fees, ongoing royalties, and direct sales at company owned locations. Franchisees pay an initial fee that depends on the format, with non traditional units costing $7,500, non traditional hospital units $10,000, and traditional stand alone units beginning at $30,000 for the first unit and decreasing for additional units. Ongoing royalties are calculated as a percentage of franchisees’ gross sales and provide a recurring income stream that scales with the performance of the network. Company owned locations contribute revenue from the sale of food and beverages to consumers who visit the restaurants for dine in, carry out, or curbside service. The company also earns income by selling its proprietary dough, sauce, cheese, and other ingredients to franchisees through a network of approved distributors who ensure consistent product quality across the system. In addition, the company receives occasional government assistance such as loans or tax credits, but these are not considered core revenue sources.

The pizza and quick service industry is intensely competitive, with national chains, regional operators, and independent venues all vying for customers based on price, convenience, food quality, and service speed. Noble Roman’s, Inc. distinguishes itself through its decades of experience in both traditional restaurant operations and non traditional foodservice, which gives it insight into effective unit economics and operational consistency. The company’s proprietary recipes and high quality ingredients, including a specially prepared crust and a sauce made from fresh tomatoes, set its product offering apart from many competitors. Its background in managing company owned units provides expertise in training, supply chain logistics, and cost control that many newer entrants lack. Competitors include large pizza brands such as Pizza Hut and Domino’s, casual dining chains, and other specialty food providers that operate in similar venues like hospitals, convenience stores, and entertainment facilities. Noble Roman’s also benefits from a recognizable brand identity and a suite of trademarks that support its marketing and franchise sales efforts. The company’s strategic focus on expanding non traditional franchising, highlighted by the 2023 development agreement with Majors Management for up to one hundred locations, demonstrates its plan to leverage operational expertise to attract experienced franchise partners.

The company serves a diverse customer base that includes individual consumers who dine at its company owned and franchised restaurants, as well as patrons of non traditional locations such as hospitals, convenience stores, entertainment centers, and other host facilities. Franchisees and licensees represent another important customer group, comprising entrepreneurs and operators who acquire the rights to use the Noble Roman’s brand and sell its menu items in their respective markets. The company has entered into development agreements with operators like Majors Management, LLC, which aims to open up to one hundred franchise locations under the Noble Roman’s brand. Through these arrangements, the company supplies its proprietary ingredients, provides training, and collects ongoing royalties from the franchisees. The company’s products are distributed to a broad range of foodservice venues across the United States, reaching both traditional pizza consumers and customers seeking quick service options in non traditional settings.