Franchise Evaluator™: Pet Wants

What population does the brand serve? Is the market broad, niche, or somewhere in-between?

The U.S. pet food market was estimated to be valued at USD 35.18 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 3.7% from 2024 to 2030. The market has seen significant demand in recent years, driven by the rise of online purchasing and the impact of e-commerce on the U.S. industry. Key trends contributing to the growth of the pet industry include the introduction of new food products, the emergence of online private brands, treats, and innovative technologies. Additionally, pet owners are increasingly opting for made-to-order, frozen, and fresher meals for their pets, (Americans spend over $50 billion a year on pet food and treats alone), a trend expected to positively impact the U.S. pet food market.

We categorize the market size as a large market.

Is the overall industry growing, that is creating new customers who have never used these services before, or mature where most population segments are already using these types of products and services?

In 2023, the dog food segment led the U.S. pet food market, capturing a 46.9% share of the revenue. This dominance is largely driven by increasing consumer concerns about pet health, particularly in response to the high prevalence of obesity among dogs. With over 65% of U.S. dogs classified as obese, according to PetMD, the demand for healthier dog food options has surged, as pet owners seek to prevent life-threatening conditions like arthritis, cardiovascular disease, and kidney failure. The trend is further supported by the rising adoption of dogs as companions, especially among millennials and Gen Z, who are increasingly turning to e-commerce platforms to compare and purchase high-quality dog food. This shift towards online shopping has heightened consumer awareness of dog nutrition, fueling the growth of the healthy dog food market.

We categorize the Industry Trend as a high growth trend.

What drives the purchase of the product or service? Is it a “need-to-buy” or a “want-to-buy”? How are customers drawn to your business?

Pet Wants Company operates with a focus on freshness, convenience, and trust. Premium products and services drive success. The company uses fresh ingredients and employs slow-cooking methods in small batches to maintain nutrient content, ensuring that its food remains fresh and does not sit for extended periods. Customers have the flexibility to purchase the exact quantity of food they need, whenever they need it. Pet Wants also prioritizes convenience by offering made-to-order food delivered directly to customers’ doorsteps through an auto-delivery service. This approach allows customers to access fresh, nutritionally rich food at a price comparable to most premium commercial pet foods. The company has established a reputation for consistently providing high-quality ingredients at a fair price, with a focus on pet well-being. Pet Wants also offers professional dog grooming services providing expert care and attention to ensure your furry friend looks and feels their best.

We categorize the product and service drivers as high drivers.

Are competitors a major factor in operating your business? If so, is competition sparse or saturated? Will it matter to your business?

Pet Wants operates in a highly competitive environment, facing significant competition from established industry leaders like General Mills, Inc., Mars Incorporated, and Hill’s Pet Nutrition Inc. These key players are heavily investing in brand marketing, product innovations, and quality improvements to enhance brand loyalty and expand their market share. They offer a diverse range of pet food and wellness products tailored to specific breeds, ages, and health conditions, allowing them to capture a broader audience. Additionally, these mature companies remain competitive through strategic pricing and profitability measures.

We categorize the competitive climate as mid-high competitive pressure.

Are the business’s products or services regulated, or do they require licensing? Will you or your employees require special licensing? If so, is the regulatory climate strict or lax? Will this affect recruiting employees?

The regulatory climate for the pet food industry requires compliance with various state, county, and municipal registration requirements, particularly concerning the preparation and sale of homemade goods. While there are no specific laws or regulations exclusively governing the retail pet food industry or pet grooming services that are widely recognized, franchise owners must take responsibility for researching and adhering to any relevant laws in their specific territory.

We categorize the regulatory climate as high regulation.

How experienced is the franchisor at being a franchisor?

Pet Wants, founded by Michele Hobbs in Cincinnati in 2010, specializes in proprietary, fresh, all-natural pet food delivered through both retail stores and home-delivery services. In early 2015, seeking to expand nationally, Pet Wants partnered with The Franchise Funding Group to develop a franchising model.  Hobbs remains a minority stakeholder in the brand and continues to operate the original store in Cincinnati. The franchise system offers a two-phase model, launching with a mobile/event based business that is focused on developing a loyal customer base and creating community connections while generating revenue for the business. The retail component is added near the end of the first year, cementing the business’ place as an anchor in the community while continuing to provide convenient delivery services and exposure to new customers at events. As part of the booming pet care industry, the pet food and treats alone constituting a $50 billion market in the US, Pet Wants provides a promising business opportunity for potential franchisees.

We categorize the Franchising Experience as Extensive.

What is the tenure, background, and commitment of the franchise’s leadership?

Pet Wants’ leadership team includes key figures dedicated to the company’s growth and operational excellence.  DeNita Carani has served as Brand President since October 2022, bringing experience from her prior roles as VP of Operations at Jovie Childcare as well as being a top 10 franchise owner within that system for 10 years. Prior to her time with Jovie, Carani held multiple sales leadership roles, notably with Philips Healthcare. Jessica Riedy, the Vice President of Operations since January 2024, has a background in operational management across various companies.

We categorize the Franchising Leaders as Highly Experienced.

How often and how well does the franchisor engage franchisees? What assistance is provided in starting and operating your business.

Pet Wants franchisees are business-centric individuals with a passion for pets and their communities. Their customers include friends, family, neighbors, co-workers, local businesses, and other community members. By sharing their love for pets and commitment to healthier pet lives, franchisees can easily grow their Pet Wants business while engaging in something they love.  A Pet Wants business can be launched from a home, small office, or store, with or without employees. The primary requirements are the ability to safely receive and store products and use a branded vehicle for deliveries. Franchisees have the flexibility to control the pace of their business growth, starting comfortably and at their own speed. Pet Wants supports its franchisees throughout their journey, ensuring they have the guidance needed to succeed.

We categorize the Franchisee Engagement as Highly Engaged.

In what kind of financial shape is the franchisor?

Pet Wants franchises have shown promising financial performance from 2021 to 2023, reflecting the market demand and growth potential of its innovative franchise model. A detailed analysis of the franchises reveals varied gross revenues across different quartiles, indicative of diverse operational scales and market engagement. The average gross revenues increased significantly, with first-quartile stores averaging $909,510 in 2021 and reaching $1,111,268 in 2023. Second quartile stores saw growth from $501,016 in 2021 to $591,658 in 2023.  This financial data underscores the scalability and potential profitability of Pet Wants franchises while highlighting the importance of effective market strategies and operational management. Overall, the financial health of Pet Wants franchises from 2021 to 2023 demonstrates both the opportunities and challenges within the pet food industry.

We categorize the Financial Health as Sound.