Don’t Panic! Key Lessons from the World’s Boldest Brands
#6
Michael Lastoria Founder & CEO &pizza
BRANDINGMAG | DON’T PANIC!
A Brandingmag Publication
1
11.2017
brandingmag.com
Don’t Panic! is a monthly 1:1 interview series with a fearless leader to discuss the key growth challenges of their brand – and how they’ve tackled them head on.
Brandingmag is the original branding magazine, an independent journal narrating the discussion around branding with thought leadership from across the globe. Our dedicated team of writers strives to keep readers informed and intrigued with unique work from brands across the globe, concentrating on fresh brand strategies, executions, identities, development, and overall evolution. And it’s not just us. We’re supported by a beloved group of renowned experts who collaborate and celebrate creativity by bringing their international expertise and experiences to our pages. Together, we propel a vision in which quality content is the value exchange. Together, we applaud the work of our peers, big and small. Together, we persevere with enthusiasm and curiosity, across both themes and borders. Together, we are Brandingmag. And we believe that the name speaks for itself. Flavia Anghel Editor-in-Chief flavia@brandingmag.com
Advertising / Media Kit Requests advertising@brandingmag.com General Info info@brandingmag.com Web www.brandingmag.com Facebook www.facebook.com/brandingmag Twitter www.twitter.com/brandingmag Instagram www.instagram.com/branding.mag
Community first.
It’s no coincidence that &pizza begins with an ampersand. For &pizza’s founder, Michael Lastoria, the symbol represents unity, connection and inclusiveness. And those values are more than just marketing-speak – they form the heart and soul of a company with the potential to become one of the most admired, purpose-led brands. Founded in 2012, the DC-based, fast-casual restaurant chain concept is spreading like wild-fire: shops have popped up in Philadelphia, Baltimore, Manhattan; soon more will open in Boston, Miami, New York; and eventually &pizza will go international. Why such confidence? All you have to do is read the early signs: long lines of food enthusiasts who crave the sustainably sourced ingredients, funky store designs, partnerships with local artists, a strong sense of pride amongst employees (or ’tribe members’ as Michael calls them), and a social purpose that catapults &pizza into the sphere of brands that tap into the current culture to make a difference. And last, but not least: a recent round of funding by RSE Ventures who has in the past been an early investor in beloved brands like SoulCycle and Equinox. We spoke to Michael about the mark &pizza wants to leave – both on its category and the world. And, most importantly, which challenges he had to overcome to successfully position &pizza in one of America’s most competitive industries.
BRANDINGMAG | DON’T PANIC!
4
11.2017
Q1
What inspired you to bring &pizza to life?
I had been an entrepreneur since I was 22 and mostly worked in the creative service industry, where I helped a lot of companies define their core purpose and values. In 2012, it felt like it was time to practice what I had preached!
What gave birth to &pizza was the desire to create a powerful cultural movement.
,,
What gave birth to &pizza back then was the desire to create a powerful cultural movement. We wanted to build a brand that does right by its customers, its employees, and the communities it lives in. Pizza has always been a product that brings people together. It’s very inclusive. So we built the brand on a strong set of values: unity, individuality, inclusiveness.
BRANDINGMAG | DON’T PANIC!
5
11.2017
Q2
What is the biggest challenge you’ve faced in trying to make it happen?
Wow, there were so many! (laughs) But here are two that were probably the most difficult ones during the early days: The first one was ‘the challenge of inexperience’: I was getting myself into this whole restaurant business without any experience in the sector. Of course, you might point out that there is an advantage in inexperience – that childlike naivety that makes you think you can do anything before society changes that belief. But trust me, it is hard! I had to develop skills in Operations, HR, Manufacturing, Creative Branding, and Financial Planning.
We had to attract the right people, who would take a leap of faith and believe in our values and our purpose. Especially since our operating model was pretty out of whack.
The second big challenge was to attract the right people, those who would take a leap of faith and believe in our values and our purpose. Especially since our operating model was pretty out of whack: we’re paying above minimum wage. We’re all about community. We’re designing pizza stores that look nothing like pizza stores. We play loud music. We price our products very affordably and thus we are inclusive in the first place – and then we invite our guests to choose unlimited toppings.
,,
So considering both of these challenges, it became really important to convince investors to believe in our overall vision, first!
BRANDINGMAG | DON’T PANIC!
6
11.2017
Q3
Which bold moves have you made to tackle this challenge?
That’s pretty simple: First of all, we take care of our employees. We treat them right and empower them to take care of our customers. It’s our tribe members who really drive our success.
Every aspect of our business goes against what others in the industry have been taught to succeed.
,,
Beyond that, virtually every aspect of our business goes against how others in the industry have been taught to succeed. We design every restaurant individually to reflect the neighborhood. We’re the only fast-casual restaurant chain that voluntarily pays above minimum wage and walks on Capitol Hill for the Raise the Wage Act. We took a risk on financial feasibility by introducing what we thought was right: an all-inclusive pricing model that allows guests to select unlimited toppings. I think it really is about having a vision and being bold enough to either succeed or fail based on your execution against that vision.
BRANDINGMAG | DON’T PANIC!
7
11.2017
Q4
Think 5 years ahead: what do you think is the biggest opportunity for &pizza – and how will you unlock it?
Part of what makes brands special is the fact that they evolve into something bigger than what their original vision was, so I see three opportunities for &pizza.
I want &pizza to help reshape the way companies think about their people and culture.
First, I want &pizza to help reshape the way companies think about their people and culture (especially in the restaurant industry where 10% of Americans are employed). We should pay the highest wage possible, take care of our people and their families – so they can take good care of our customers.
,,
Second, we can revolutionize the pizza category, internationally. There are not a lot of options in other countries for pizza chains and there is a real need for a more responsible, healthy and sustainable player. I’d like to think that &pizza can be that brand. The third opportunity is brand diversification. We could do &beer. Or &coffee. Simply because our core values remain the same, and those are the key inputs for a purpose-driven brand that people love and embrace. So, overall, I believe in managing for culture more than in managing for growth!
BRANDINGMAG | DON’T PANIC!
8
11.2017
Q5
What is your single most important advice for other founders who have a great idea and want to bring it to life?
You know you have a great idea when everything inside you tells you that there is great risk in not putting your vision of reality into the world.
Make sure there is a really good purpose at the core of why you’re getting into business.
,,
If you decide to do it, one of my biggest watch-outs is this: Make sure there is a really good purpose at the core of why you’re getting into business. If you’re going in for the money and not the right reason, then you’re most likely going to fail.
BRANDINGMAG | DON’T PANIC!
9
11.2017
Michael Lastoria
Dominik Prinz
Michael Lastoria is a serial entrepreneur. He builds companies on four core principles: design-driven, culture-centric, brand-led, and most importantly, morally sound.
Dominik is a regular contributor to brandingmag.com. He is also a partner at boutique management consultancy cg42 in NYC, where he leads the expansion of the firm’s customer experience and innovation practice. Dominik was previously Interbrand’s Head of Strategy and is a widely recognized thought leader on the integration of business, brand, and purpose.
In 2012, he co-founded &pizza, a fast-casual pizza chain built to that end. In four years, he has raised $40 million for expansion and growth, opening 15 shops in the Washington, D.C. area and Baltimore, with significant expansion on the horizon. He is also a Founding Partner at JWALK, a New York based full service creative agency, leading the company in growth strategy and business development.
Have any questions? Interested in being a Don’t Panic! participant? Reach out to Dominik at dprinz@cg42.com
Today, Michael is a well-recognized leader in the startup world and speaks regularly on the value of design thinking, innovation and entrepreneurship. Michael has been identified as one of the country’s of the top 25 fast casual executives, and named one of the Washington Business Journal’s 40 Under 40. www.andpizza.com
BRANDINGMAG | DON’T PANIC!
10
11.2017
Read this and future issues with the Brandingmag iPad App
BRANDINGMAG | DON’T PANIC!
11
11.2017
DISCLAIMER
Š 2017 Brandingmag. Some Rights Reserved No part of this publication may be used or reproduced in any manner without written permission from the publisher, except in the context of reviews. Brandingmag accepts no liability for any unsolicited material whatsoever. Opinions contained in the editorial content are those of the contributors and not necessarily those of Brandingmag as a publisher. Despite careful control, Brandingmag accepts no liability for the content of external links. All images contained in this book are copyrighted property of their respective owners.
www.brandingmag.com