PMQ Pizza Magazine December 2013

pMQ PIZZA MAGAZINE | December 2013 | Volume 17, Issue 10

December 2013 | www.pmq.com

The Pizza Industry’s Business Monthly | PMQ.com

The Power of

PIZZA 2014 STATE-OF-THE INDUSTRY REPORT

Cheese Blends Raising Expansion capital Security

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DEPARTMENT online at pmq.com

PMQ Blogs ThePizzaInsider.PMQ.com

Recent Videos (pmq.com/video)

Liz Barrett, PMQ’s editor at large, brings you the inside scoop on the industry’s latest trends, marketing and technology.

Recently at The Pizza Insider: Liz takes you inside Pizza Brain in Philadelphia; explains the three reasons you may need to close your pizzeria; and shows you how to ace every restaurant inspection.

PizzaWithoutBorders.PMQ.com From PMQ’s headquarters in Paris, Missy Green, PMQ’s international correspondent, reports on pizza events, trends and curiosities from around the world.

Recently at Pizza Without Borders: Missy explores India’s rapidly growing pizza industry; menu engineering strategies from a Spanish restaurant expert; and pizza flour that promises the fountain of youth.

Pizza TV: The Bluegrass Bakeoff As the Louisville Cardinals and the Kentucky Wildcats prepared to square off in a classic college football rivalry, top pizza makers from Louisville and Lexington went head to head in September’s Bluegrass Bakeoff. The prize: a free trip to compete in the World Championship of Pizza in Parma, Italy, as a member of the U.S. Pizza Team.

SliceofLife.PMQ.com PMQ’s social media director, Melanie Addington, brings you weekly posts on the latest trends and tips in social media.

Recently at Slice of Life: Melanie shares why your company should not be on Facebook; how to get social with webinars; and why it may be time to join Google+.

Pizza 360 PMQ’s This Week in Pizza video newscast has evolved into a new monthly format, Pizza 360.

Featuring in-depth analysis and interviews with pizza leaders, Pizza 360 examines the pizza industry from all angles.

Think Tank Hot Topics (thinktank.pmq.com) PMQ’s Think Tank is the only online forum for the pizza industry. With a membership of nearly 2,500 and more than 80,000 posts, you’re sure to find the answers you’re seeking. Some examples of recent posts: Malt in Pizza Dough – A Think Tanker comes across her father’s old files calling for malt in his pizza dough recipe. Several others chime in on its use and its effects on dough.

This Week in Pizza (pmq.com/thisweekinpizza) PMQ’s weekly e-newsletter brings breaking industry news to your inbox every Wednesday. Receive it free by visiting pmq.com/subscribe.

Cooking Wings in a Conveyor Oven – Several Think Tank members are cooking chicken wings in conveyor ovens; one is looking for tips on how to get the wings to slide off the tray easier after cooking. Several forum members offer tips.

Think Tank

INTERACT WITH THE INDUSTRY DAILY ON FACEBOOK, TWITTER, Pinterest and PMQ’s THINK TANK FORUM PMQ Pizza Magazine 6

PMQ Pizza Magazine

Online@PMQ_Dec13.indd 6

@PMQpizzamag

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thinktank.pmq.com

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CONTENTS December 2013

36

PMQ PIZZA MAGAZINE | December 2013 | Volume 17, Issue

On the cover

DECEMB ER 2013

| WWW.PM Q.COM

9

36 The 2014 Pizza Power Report

The Pizza Industry’s Business Monthly | PMQ.com

Loaded with facts and figures and spotlighting the hottest trends, PMQ’s annual state-of-the-industry report provides an in-depth survey of the current pizza industry, plus valuable insights into the coming year.

By Rick Hynum Photo by Kara Hoffman

The Power

of

PIZZA

2014 STAT E-OF-THE INDU STRY CHEESE BLENDS REPO RT

RAISING CAPITAL EXPANS ION SECURITY

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features

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Incredible, Blendable Cheeses Creating a custom blend of cheeses will give your pizzas a unique and memorable taste that customers notice—and crave.

By Liz Barrett

52 Follow the Money Raising expansion capital remains a challenge in today’s economy, but a solid track record and good credit can still open doors with banks and private investors.

By Tracy Morin

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20 Principles of Underdog Marketing Smaller operators can outfox the big dogs by becoming masters of neighborhood and four-walls marketing.

By Tom Feltenstein

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Playing It Safe A proactive approach to your pizzeria’s security will ensure a higher level of safety while deterring fraud, theft and violent crime.

By Tracy Morin

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The Bluegrass Bakeoff Top pizza makers from Louisville and Lexington, Kentucky, staged a showdown at the fourth annual Bluegrass Bakeoff—with delicious results!

By Melanie Addington

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PMQ Pizza Magazine

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CONTENTS December 2013

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departments 18 Zeak’s Tweaks: Extending Mozzarella’s Shelf Life Jeff Zeak offers tips for making fresh mozzarella last longer without sacrificing flavor.

20 New York’s Finest:

Zucchini Romano Your customers will love this special Italian zucchini recipe developed exclusively for PMQ readers by Chef Santo Bruno.

22 Accounting for Your Money: The Next-Day

Financial Scorecard Your key advisers—including your accountant, bookkeeper and insurance agent—can help you develop tools to evaluate and boost your pizzeria’s performance on a daily basis.

32 Pizza of the Month: Sausage From bratwurst and chorizo to kielbasa and mortadella, sausage is a popular favorite in every corner of the globe and one of the most in-demand pizza toppings.

77 Meet the Tank: Steve Hitchcock In this new recurring column, we’ll acquaint you with seasoned members of PMQ’s Think Tank.

First up: Steve Hitchcock, owner of Soda Creek Pizza in Steamboat Springs, Colorado.

Coming Next Month Specialty Toppings: As consumer interest in gourmet ingredients soars, we take a look at some of the most innovative toppings on the market today.

Hot Bags: The latest advances in hot bags are making cold, soggy delivery pizzas a thing of the past.

98 Time Capsule: Shield’s Pizza With Detroit-style pies on offer since the 1940s, this Motor City institution is passionate about its pizza and well-loved for its support of the community.

in every issue 6

Online at PMQ.com

12

Editor’s Note

14

Letters to the Editor

Check out our Exclusive Digital Edition Content:

16

Pizza Press

 Click here to see a special Pizza TV video: Learn how one pizzeria operator turns security camera footage of thieves and vandals into videos that become viral sensations on social media.

76

Product Spotlight

83

Advertiser Index

84

Pizza Industry Resource Guide

 Click here to read the full version of Tom Feltenstein’s “35 Principles of Underdog Marketing.”  Click here to view more information about raising capital expansion through franchising and crowdfunding.

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64192 D

“You gotta start with quality if you want to end with quality.

Joe Calcagno Owner, La Bella

When you’re a third generation pizza maker, what you serve matters, it’s a part of who you are. That’s why at La Bella’s, Joe Calcagno insists on using tomatoes with the BEST FLAVOR—he insists on Escalon Premier Brands. Our canned tomatoes are packed fresh and steam peeled with no added citric acid and deliver CONSISTENT PERFORMANCE every time.

To sample a better tomato today, call 1-888-ESCALON or visit www.Escalon.net.

©2013, Escalon Premier Brands.

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EDITOR’S NOTE rick hynum

Better This, Better That

PMQ PIZZA MAGAZINE | December 2013 | Volume 17, Issue 9

DECEMBER 2013 | WWW.PMQ.COM

The Pizza Industry’s Business Monthly | PMQ.com

The Power of

PIZZA 2014 STATE-OF-THE INDUSTRY REPORT CHEESE BLENDS RAISING CAPITAL EXPANSION SECURITY

Page

36

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On the cover: High-quality, gourmet ingredients and customer control are the buzzwords for the pizza industry in 2014. To learn more, delve into our state-of-the-industry analysis, the Pizza Power Report, starting on page 36.

Subscribe to PMQ now!

Get your print, digital or mobile edition!

During the compilation of this year’s Pizza Power Report (page 36), certain key words kept popping up in our research and interviews with industry experts and pizza makers.

Words like “more choices” and “control.” Words like “artisan,” “craft” and “quality.”

The pizza industry, it seems, is undergoing a quiet revolution, and the customer stands at the forefront, leading a heroic quest for better pizza, better beer, better soda, better service, better everything.

And it seems that we’ve got Chipotle Mexican Grill to thank for it. Several pioneers of the so-called “fast-casual” trend—in which customers watch their personal-size pies being topped right before their eyes and get to customize it to their hearts’ desire—say they got the idea for their concepts after a meal at Chipotle. But a good idea’s a good idea, and it hardly matters where it came from. If you’re going to borrow, borrow from the best.

(For the record, Subway has been letting its customers build their own sandwiches for decades, but, for some reason, Chipotle gets most of the credit for the model these days.)

Customer control is just one factor in the popularity of these Chipotle-like pizza concepts. Diners also delight in the variety and quality of toppings, sauces and cheeses from which they can choose. Pie Five Pizza (piefivepizza.com) offers seven types of sauce, including Tuscan Marinara, Buffalo Ranch and BBQ, with thin, classic, whole-grain and gluten-free crust options. Uncle Maddio’s Pizza Joint (unclemaddios.com) prides itself on its gourmet toppings and cheeses, including grilled Angus steak, chicken apple sausage, free-range grilled chicken and mandarin oranges.

Indeed, the “better pizza” movement and the fast-casual boom have merged into a single—and singular—phenomenon. And the timing couldn’t be better. As you’ll learn in our Pizza Power Report, research shows that, despite a sluggish economy, customers are increasingly willing to pay more for pies made with gourmet or natural/organic ingredients. They’ll even shell out an extra buck or two for a tastier beverage, whether it’s a craft-brewed beer or an artisan soda. As far as beer is concerned, that’s no big revelation, but this “craft soda” trend really caught my eye. Some industry watchers say these nonalcoholic beverages, typically made in small batches with natural cane sugar, offer a richer, more flavorful finish than some other products that have dominated soda fountains for the past 50 years. Personally, I’ve been in a longtime committed relationship with Dr. Pepper, but one of these nice, cool, refreshing craft sodas could easily tempt me away for the occasional fling.

All in all, it’s a good time to be in the pizza business. The economy may be plodding sluggishly along, but moneymaking opportunities abound for innovative operators who are willing to try something new and different. The pizza industry has good reason to cling to its traditions—they’ve worked for decades, after all—but many consumers have evolving expectations. As pizza professionals adapt and grow with the changing market, they will likely hold on to the best and most useful traditions while starting a few new ones. That is, after all, how you keep an industry fresh and relevant in a society that’s proved increasingly quick to change.

scan to subscribe

Rick Hynum Editor-in-chief PMQ Pizza Magazine

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LETTERS TO THE EDITOR rick hynum FEATUR E STORY

DOUGH EQUIPM

ENT

A P ublication of P M Q , I nc .

Winner of 5 ASBPE Awards Winner of 4 GAMMA Awards ISSN 1937-5263

A Must-Read Article KARA HOFFMAN

I’m writing to you from Italy. I’m a big fan of PMQ Pizza Magazine, and I try in the to grab a copy every time I come to the United States. I had the chance to read P your latest issue, and I really appreciated the article “Rolling in the Dough” (October 2013) by Tom Lehmann. I think that every person involved in pizza equipment sales should read it to better understand the real needs of their clients. I used to sell bakery and pizza equipment, and an article like that would surely have helped to improve my sales at the time. Thank you again for a great job!

Rolling Dough

Choose the right piece of equipme type of pizza. nt for the right

By Tom Lehman

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PMQ Pizza Magazine

The Pizza Industry’s

Business Monthly

n

izza dough is sensitive stuff, and making requires both an it just right capabilitie artist’s touch and s and their limitation a scientist’s knack for calculation s. Here’s an overview and precision. of the most common This is particular when it comes of some types of dough to using dough ly true pizzeria equipment available forming equipmen operators today: sheeters and presses, to t, such as as well as tossing by hand. Every and stretching crust forming method dough Planetary vs.

Spiral Mixers its own unique or procedure imparts characteristics Planetary mixers to the dough, which, affects the finished aren’t just for mixing; in turn, tachment crust and, of course, most come with hub that can also If your business your pizza. an atdrive attachmen is growing and and grinding meats, ts used for cutting you’re thinking chasing some new cheeses and vegetables about pur- different pieces of dough . Simply install agitator, and the equipment or from one type of a switching mixer can be used equipmen for mixing sauce all the myriad possibiliti t to another, you’ll want to consider or whipping up a fancy dessert.

A spiral mixer can es and make sure mix between 12.5 be sized to you understand and 300 pounds their mixers typically of flour, while planetary used in pizzerias are limited to mixing between

Paola Laghetti Verona, Italy

October 2013

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PMQ, Inc. Publisher Steve Green sg@pmq.com ext. 123 Co-Publisher Linda Green linda@pmq.com ext. 121 editorial Editor-in-Chief Rick Hynum rick@pmq.com ext. 130 Editor at Large Liz Barrett liz@pmq.com Senior Copy Editor Tracy Morin tracy@pmq.com International Correspondent Missy Green missy@pmq.com Design/Production Art Director Kara Hoffman kara@pmq.com ext. 135 Designer Eric Summers eric@pmq.com Media Producer Daniel Lee Perea dperea@pmq.com ext.139 advertising Sales Director Linda Green linda@pmq.com ext. 121

Thank you for the kind words, Paola. And just a friendly reminder: You don’t have to visit the United States to read our magazine. Check out our digital edition at PMQ. com/digital each month—you’ll even find bonus content in every issue!

Account Executive Clifton Moody clifton@pmq.com ext. 138 Account Executive Tom Boyles tom@pmq.com ext. 122 Sales Assistant Brandy Pinion brandy@pmq.com ext. 127

Living the Dream I own a pizzeria and draft house in Pittsburgh, and I’ve been in the pizza business for 17 years. I have been reading and using PMQ for as long as I can remember.

I used to print out all of the Think Tank threads and keep them as a resource. I have successfully built a pizza and craft beer program that has become a destination spot in Pittsburgh’s Little Italy district. I moved into an area that already had many established Italian pizza shops, and I am thriving. I just wanted to say thank you for publishing such an influential magazine. I am living my dream, and it all started for me as a young kid reading PMQ. Thanks again!

Circulation Manager Sherlyn Clark sherlyn@pmq.com ext. 120 Director of Operations/ Event Coordinator Brian Hernandez brian@pmq.com ext. 129 PMQ International PMQ China Yvonne Liu yvonne@pmq.com PMQ Australia-NZ Tom Boyles tom@pmqaustralia.com

France Pizza Julien Panet jpanet@francepizza.fr Pizza e Pasta Italiana Massimo Puggina redazione@pizzaepastaitaliana.it

It’s gratifying to know that PMQ Pizza Magazine and the Think Tank have helped readers like yourself for so many years, Nick. And we’re also really happy to hear that your business is thriving. We wish you continued success for many years to come!

Share your passion!

Have a complaint, compliment or suggestion about something you’ve read in the pages of PMQ? Send your letter via email to editor@pmq.com with “Letter to the Editor” in the subject line, or mail to PMQ, ATTN: Letters to the Editor, 605 Edison St., Oxford, MS 38655. We look forward to hearing from you!

Friend us on Facebook! Visit facebook.com/pmqpizzamagazine.

Thank You to Our PMQ Think Tank Moderators Rockstar Pizza: Member since June 2006 ADpizzaguy: Member since January 2007

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administration Chief Financial Officer Shawn Brown shawn@pmq.com

Pizza&Food Gabriele Ancona gabriele.ancona@pizzafood.it

Nick Bogacz Caliente Pizza & Drafthouse Pittsburgh, PA

Daddio: Member since June 2006 Tom Lehmann: Member since June 2006

Marketing Social Media Director Melanie Addington melanie@pmq.com ext. 133

Spain—pizzanet.es Eduard Jiménez info@pizzanet.es Brazil—Pizzas & Massas Michel Wankenne wankenne@insumos.com.br editorial advisors Chef Santo Bruno Tom Feltenstein Tom Lehmann Joey Todaro Ed Zimmerman contributors Chef Santo Bruno Tom Feltenstein Michael J. Rasmussen Jeff Zeak Volume 17, Issue 10 PMQ Pizza Magazine 605 Edison St. • Oxford, MS 38655 662.234.5481 • 662.234.0665 Fax linda@pmq.com PMQ Pizza Magazine (ISSN #1937-5263) is published 10 times per year. Cost of U.S. subscription is $25 per year. International $35.

Periodical postage pricing paid at Oxford, MS. Additional mailing offices at Bolingbrook, IL. Postmaster: Send address changes to: PMQ Pizza Magazine, PO Box 2015, Langhorne, PA 19047.

Opinions expressed by the editors and contributing writers are strictly their own, and are not necessarily those of the advertisers. All rights reserved. No portion of PMQ may be reproduced in whole or part without written consent.

©2013

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A Family Tradition.

Legendary Cheesemaking • Optimum Flavor • Unparalleled Consistency

Saputo Cheese USA Inc., Lincolnshire, Illinois 60069 (800) 824 -3373 • saputousafoodservice.com ©2013 Saputo Cheese USA Inc. All rights reserved. Saputo® is a registered trademark used by Saputo Cheese USA Inc.

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pizza press news & views

The Rock Star Treatment The Rock Wood-Fired Pizza & Spirits (therockwfp.com), with 20 locations in the United States and Canada, celebrated “Rocktober” with the launch of new delivery service to Seattle’s Queen Anne neighborhood. To kick it off, delivery drivers dressed as rock legends (think Gene Simmons, ZZ Top and Jimi Hendrix) on four dates in October. Then, to drive social media buzz, customers were invited to snap a photo with their rock star delivery driver and share it on the pizzeria's Facebook page for a chance to win a $150 or $50 gift certificate; two winners were randomly selected from the uploaded photos at the end of the month.

Customers who called in delivery orders from The Rock got the rock star treatment throughout the month of October.

Celebrating National Pizza Month To celebrate National Pizza Month in October, two pizzerias created monthlong drives to benefit important causes: Dom DeMarco’s Pizzeria & Bar (domdemarcos.com) hosted a benefit "Pizza Challenge" between local firefighters and police. The Firefighters of Southern Nevada Burn Foundation and Friends of Las Vegas Metro Police Foundation each created a signature pizza that was featured on the Dom DeMarco’s menu throughout the month. When someone purchased one of the nonprofit’s signature pizzas, a portion of the sale was donated to that organization— and, at the end of the month, the organization with the highest pizza sales received an additional 10% donation.

The firefighters brought the heat with The Parmesan Red Hot pizza (a spicy Buffalo chicken pie with grilled Parmesan-crusted chicken, ranch, Parmesan, mozzarella and blue cheese crumbles, topped with red onions and drizzled with Frank’s Red Hot sauce). Meanwhile, the lawmen created the Five-0 Meatza Pizza, featuring pepperoni slices, Dom’s signature Italian sausage, red onions, basil, marinara, and mozzarella and Grana Padano cheeses.

Firefighters and police officers engaged in a friendly pizza making competition at Dom DeMarco's Pizzeria.

Meanwhile, at four of its U.S. locations, La Tagliatella (latagliatella.us), with more than 160 locations worldwide, offered a selection of lunchsize pizzas for $1 from 4 p.m. to 7 p.m. on the first three Mondays of October, and every day during the last week of the month. Every dollar of those pizza sales was donated to the nonprofit No Kid Hungry, dedicated to ending childhood hunger. Each guest who purchased a $1 pizza also received a Pizza Passport, entitling him to a free pizza after purchasing four regular-price pizzas anytime in November or December.

La Tagliatella used its lunch menu to raise money for the nonprofit No Kid Hungry program.

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Fast, Fresh and All Italian When fast-casual newcomer Burrissimo Fast Fresh Italian (burrissimo.com) introduced its signature Italian Burrito last year, diners in California’s Orange County took notice. Now, with its second location in downtown Brea, Burrissimo has added artisan pizzas—baked in a gas-fired stone-hearth pizza oven—to the mix. Even better, the company showed its support for the Cystic Fibrosis Foundation’s local chapter, donating $1 for every dessert pizza and 10% of all gift cards sold on the new store’s opening day. For $7.49, customers at Burrissimo can order entrees such as the Italian Burrito, a pasta bowl, a salad bowl or a 10" artisan pizza topped to their specifications and served in about three minutes.

Caporuscio: The Next Generation A new star’s rising in one of New York’s most prominent pizza making families: Giorgia Caporuscio, daughter of Neapolitan chef Roberto Caporuscio from Don Antonio by Starita (donantoniopizza.com) and Kesté Pizza & Vino (kestepizzeria.com). At 23, Giorgia recently made history by becoming the youngest of only two women ever to win first place in the Classic Pizza category at the International Pizza Competition in Naples. Her award-winning dish, the Montanara Starita, is made with lightly fried pizza dough and topped with tomato sauce, imported smoked buffalo mozzarella and fresh basil, then finished in a wood-burning oven. More than 500 pizza makers from 47 countries competed in the event.

Founded by John Parlet, fast-casual Italian eatery Burrissimo recently added artisan pizzas to its menu.

Editors at Large When PMQ senior copy editor Tracy Morin visited New Jersey in August, she hightailed it to DeLucia's Brick Oven Pizza (deluciasbrickovenpizza.com) in Raritan (profiled in September’s Time Capsule). After showing off the pizzeria's kitchen, complete with a cavernous brick oven that's nearly a century old, manager Christian DeLucia whipped up a pizza and an off-the-menu calzone that was out of this world. Try his tip for adding a special touch to a typical calzone: Top the dough with minced fresh garlic; it'll crisp in the oven and add an irresistible extra dimension of flavor.

DeLucia's Brick Oven Pizza tops its calzone dough with minced fresh garlic, which crisps nicely in the brick oven for an added dimension of flavor.

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L.A.'s Pizza Cocktail Trattoria Neapolis (trattorianeapolis.com) in Pasadena, California, complements its wood-fired pies with the Pizza Cocktail, made with tomato water, basil-infused vodka, ghost pepper-infused vodka, porcini powder and muddled basil, shaken and topped with a Parmesan-and-mozzarella foam. Perhaps the LA Weekly described it best: "a scarily accurate drink that tastes as if your slice jumped into a Vitamix with a bottle of vodka." Another round, barkeep!

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SMA TRI SMALL TRIM

Zeak’s Tweaks jeff zeak

Extending Mozzarella’s Shelf Life Fresh mozzarella tastes best on the day that it’s prepared, but experts have a few tricks to make it last longer.

By Jeff Zeak

QUESTION: Can you offer any suggestions for prolonging the shelf life of fresh mozzarella cheese?

ANSWER: In an earlier column, we explored several different options for storing fresh mozzarella, but there are some tricks for making it last longer, too. For starters, you should not reach into the liquid packing solution with unclean hands or gloves—this will contaminate the solution and reduce its shelf life. Additionally, you may have heard that the liquid packing solution should be replaced with water and changed every couple of days with fresh water to prolong the shelf life of the cheese, but this is incorrect. As long as you’ve used clean utensils for reaching into the container and haven’t contaminated the solution with improper handling methods, you should not replace the liquid solution with fresh water—that will deplete the salt levels in the cheese and may cause the cheese to lose some of its flavor and go soft and slimy.

If you suspect that the liquid solution has become contaminated, you can replace it with a fresh mixture of brine solution consisting of 1 tbsp. of salt dissolved in 1 to 4 lb. of 37°F water, depending on the concentration of salt that you desire and its potential effect on the saltiness of the cheese stored in the solution. Stronger brine will do a better job of retarding souring/ spoilage, but the cheese will also become saltier as long as it’s stored in the solution. The concentration of the brine will also affect the texture consistency of the cheese over time as the salt interacts with the proteins in the cheese.

Another way to prolong the shelf life of larger pieces of fresh mozzarella is to remove the piece from its liquid packing solution and encase it in plastic wrap, replacing the plastic wrap every time you open it. These large pieces can be wrapped in plastic wrap and stored for up to seven days, while smaller pieces, which tend to dry out more easily, need to be stored in brine, whey or water solutions.

While unrefrigerated fresh mozzarella tastes best on the day that it’s made, it also tends to release more whey/water during baking as a pizza topping or in lasagna, as compared to fresh mozzarella that has been refrigerated or frozen before use in

baking. On the other hand, refrigerated or frozen mozzarella (and remember, many mozzarella connoisseurs strongly recommend against refrigerating or freezing it) will have a drier mouth-feel when directly eaten, but it won’t release as much whey/water in the baking process. These variations in eating and baking characteristics can be attributed to the proteins in the cheese changing over time.

Finally, studies show that fresh mozzarella that has been refrigerated for a week or longer can be somewhat refreshed to its “first day of production” eating characteristics by soaking it in a warm salted whey or salted milk solution (1 tsp. salt per 1 c. of milk) for about an hour. This process will enhance the direct eating characteristics of the cheese, and it should not be done with cheese that will be used for baking.

Jeff Zeak is the pilot plant manager for the American Institute of Baking (AIB). Need more dough advice? Visit the Dough Information Center at PMQ.com/dough.

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SMALL TRIM

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ALL IM

18 PMQ Pizza Magazine The Pizza Industry’s Business Monthly

SMA TRI

MALL TRIM

BONICI® Readi Rise® Crusts

BONICI® Pepperoni

Tyson® yson® Bacon acon Pieces

BONICI® Meatballs

BONICI® Sausage Crumbles

Tyson® Red Label™ Grilled Strips

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Tyson® Chicken Wings

More options. More price points. More quality.

More info: TysonFoodService.com ©2013 Tyson Foods, Inc. Trademarks and registered trademarks are owned by Tyson Foods, Inc. or its subsidiaries.

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SMAL TRIM

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New York’s Finest Chef Bruno

Zucchini Romano Zucchini adds flavor and color to many popular dishes, making it a perennial favorite in Italian cooking.

By Chef Santo Bruno

E

verybody loves zucchini. A type of summer squash, it’s a special brand of produce that’s sold all over the world. It can be grilled, stuffed, steamed, boiled, baked, fried or even served raw, or you can simply cook it lightly with some butter or olive oil and herbs. It’s low in calories and high in fiber, which helps lower cholesterol and ward off cancer, so it’s also great for your health.

Many Italian restaurants incorporate zucchini in their meals because it brings so many advantages to the table. It’s so universal that you can serve it over pasta, soups, salads and even on top of your pizza. Zucchini adds flavor and color to so many of our favorite dishes that the possibilities seem almost limitless. But if you can’t figure out how to get started with zucchini, here’s a recipe I developed just for you! Mangia!

You’ll Need: 8 small zucchini (about 1½ lb.)

1 egg, beaten with a fork ½ c. shredded mozzarella 3 tbsp. Italian dressing 2 tbsp. butter, melted ½ lb. ham, chopped ½ c. spaghetti sauce ¼ c. olive oil Pinch of black pepper and salt Directions: Wash the zucchini and trim off the ends. Slice the zucchini lengthwise, and use an apple corer to remove the seeds. Put the zucchini in a pan and boil/simmer for about 5 minutes. Drain well. In a separate bowl, combine egg, cheese, dressing, butter, sauce and ham and mix well. Place zucchini slices in a baking dish with some olive oil. Stuff the zucchini with the mixture.

Sprinkle with some olive oil. Bake at 375°F for about 15 minutes or until meat is cooked.

Chef Bruno is PMQ’s culinary advisor, with more than 40 years of international pizza experience. He is the corporate chef for Marsal & Sons and the culinary coach of the U.S. Pizza Team.

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Quality Italian Style Meats, From Our Family to Yours.

π

Quality, Selection, and Value.

That’s the beauty of Bellissimo. From handcrafted, hand-pinched sausage toppings to traditional italian meatballs, our full line of artisan recipe meats will make the meal. delivered by our family of locally owned distributors, Bellissimo meat toppings will be the perfect addition to your signature pizza or pasta. made from all natural ingredients, Bellissimo quality italian style meats, from our family to yours.

To l o c a t e y o u r l o c a l B e l l i s s i m o d i s t r i b u t o r, v i s i t B e l l i s s i m o F o o d s . c o m o r c a l l 8 0 0 - 8 1 3 - 2 9 7 4.

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© 2013 Bellissimo Foods Company

December 2013.indb 21

11/12/13 3:16 PM

Accounting For your Money Michael J. Rasmussen, CPA

The Next-Day Financial Scorecard Build a team of advisers to help you develop tools for daily plate costing, inventory control and other key metrics.

By Michael J. Rasmussen

QUESTION: Why does it take 45 to 60 days after the month’s end to receive my financials?

ANSWER: It doesn’t—or, at least, it shouldn’t! Today, more and more accountants have the ability to generate a “next-day financial scorecard.” They can develop tools to provide plate costing, labor costing and overhead metrics to evaluate the restaurant’s performance on a daily basis. Most national chains already have these systems in place and recognize their value.

So how do you get started? Gather your key advisers—such as your accountant, attorney, bookkeeper and insurance agent— for lunch in your restaurant and present the following scenario: “I’m on a mission to interview and eventually retain a team that can provide me with my operational results—from plate costing to labor costing—on a next-day basis. I want to receive this financial scorecard no later than 6 a.m. on my mobile phone.”

Once you’ve outlined your goals, get back to work and let your advisers sit there and brainstorm for you. Once they’ve finished lunch and your schedule slows down, rejoin the group and listen to their ideas. You’ll notice that a “quarterback,” a key player who led the group in the brainstorming exercise, will emerge. That person could be your accountant or insurance adviser, but at least one individual will have a sincere interest in your restaurant and do anything he can to help you. It may be more than one person, which is even better. Once you’ve identified that person (or persons), arrange a follow-up meeting to discuss the ideas, select the best ones and develop a game plan to start receiving your data. You will ruffle some feathers, but the sincere advisers with your best interests at heart will surface.

22 PMQ Pizza Magazine The Pizza Industry’s Business Monthly

December 2013.indb 22

QUESTION: I need to start making money now! Where should I start?

ANSWER: Do you take a weekly inventory with physical counts? Do you have a system in place to ensure the accuracy of deliveries so that you need only one or two per week? Can you review each day’s sales and identify your top 10 most profitable menu items with precision? If not, you need a new approach.

Without the right inventory system, money goes to waste every day through excess ordering, theft and overportioning. In some cases, a supplier may be neglecting to source the perfect products for your operation. Round up your key advisers and charge them with solving these problems. These may include your foodservice provider, accountant, point-of-sale provider and/or beverage rep. Present a challenge to the group: “I want to decrease my plate-cost percentage by five points in the next 30 days. How can you help?” Again, an informal board of advisers will emerge to support your restaurant, and you will quickly learn who’s really on your team and genuinely interested in your success!

Have a question for Mike? Send it to editor@pmq.com.

Michael J. Rasmussen is the owner of Rasmussen Tax Group in Conway, Arkansas. Visit rasmussentaxgroup.com for additional insight into restaurant-specific tax strategies and technology programs.

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feature story Cheese Blends

KARA HOFFMAN

December 2013.indb 24

11/12/13 3:17 PM

INCREDIBLE,

BLENDABLE

CHEESES There are hundreds of delicious cheese combinations, and nearly every cheese can work to boost your pizza’s flavor profile.

By Liz Barrett

T

here are nearly 70,000 pizzerias in the United States, so it can be an ongoing task to set yours apart from the one down the street.

Amidst the flurry of social media, email marketing, signage and promotions, did you ever consider what your cheese can do to help your business stand out?

While mozzarella will always be the cheese of choice for pizza, many pizzeria operators have discovered that using a custom blend of cheeses gives their pizzas a unique taste that customers notice—and crave.

December 2013.indb 25

December 2013

pmq.com 25

11/12/13 3:17 PM

“Any blend that features higher-flavor products, such as Asiago, Fontina or Parmesan, will wow customers. The key is to add enough to actually taste the other cheeses.”

—Ed Zimmerman, The Food Connector

Cheese blending offers both functionality and flavor, says Mark “The Cheese Dude” Todd, culinary consultant for the California Milk Advisory Board in Modesto, California. “Different cheeses will give you the stretch, coverage and browning you need as well as build a unique flavor profile,” he says. “The good thing is, there’s virtually no cheese you can’t make work on pizza.”

According to Ed Zimmerman, president of The Food Connector in Petaluma, California, the most popular cheese blend used by most pizzerias is a mix of mozzarella, provolone and Parmesan. “Cheese is the ‘center of the plate’ for pizza,” Zimmerman says. “The more an operator can differentiate himself and add value, the more consumers will notice that difference and keep coming back.”

Ruth Gresser, owner of Pizzeria Paradiso (eatyourpizza.com) in Washington, D.C., and Alexandria, Virginia, and author of the upcoming book Kitchen Workshop—Pizza, agrees that cheese should never be an afterthought. “Think of the cheese as a variable topping, not as a given,” she says. “When creating pizza combinations, it’s important to consider cheese—or cheeses—that enhance the other toppings; focus on flavor, texture and the pizza as a whole.”

A custom blend of cheeses will give your pizzas a unique taste that customers will notice and crave.

Blendables So are you ready to do a little experimenting? “Every cheese blend usually starts with part-skim mozzarella, or ‘pizza cheese,’ as its primary component,” Todd says. “Part-skim mozzarella melts, flows and browns well, so it’s a good bulk cheese.” The standard blending ratios are 80/10/10 or 80/20, with the typical additions being cheddar, provolone, whole-milk mozzarella and Monterey Jack. “If you want to set yourself apart, use 80% part-skim mozzarella, 10% cheddar, and 10% of something with a lot of flavor, such as blue cheese, smoked mozzarella or pepper Jack,” he advises. “Even if you get a base blend from your distributor, you can still add in your own special cheese to maximize the flavor.”

Molto Basilico Recipe and photo provided by the California Milk Advisory Board

Ingredients 3 oz. pesto sauce 1 10” extra-thin pizza crust (tart dough or cracker crust preferred) 1 oz. minced garlic 2 oz. shredded Pesto Jack 3 oz. shredded part-skim mozzarella 1 oz. grated Dry Jack 6-8 large basil leaves, fried until crisp and slightly darkened Directions Spread pesto sauce thinly over crust; sprinkle evenly with garlic.

Sprinkle with Pesto Jack, then with mozzarella. Bake at 475°F until the crust has a golden edge and crisp bottom and cheese is slightly browned. Garnish with Dry Jack and basil leaves.

26 PMQ Pizza Magazine The Pizza Industry’s Business Monthly

December 2013.indb 26

11/12/13 3:17 PM

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Cheese Blends_December13.indd 27

11/13/13 10:32 AM

“Local is hot. Consider adding local and regional specialty cheeses to your blends. You can use less because they add more flavor, ultimately improving your bottom line.”

—Mark “The Cheese Dude” Todd

Industry consultant Ed Zimmerman recommends a 50-50 mix of mozzarella and provolone.

For her part, Gresser is a self-described “Gorgonzola girl.” She adds, “That’s an important addition to our Quattro Formaggi, which is actually a five-cheese pizza, with the other four being mozzarella, Pecorino Toscano, Fontina and Parmesan. I’ve tried mascarpone as a foundation for a pizza, and I find it too runny, but mixed with cream cheese, it’s perfect.”

“Mozzarella has to carry the majority, so it determines the flavor,” Zimmerman notes. “Also, mozzarella tends to be the least expensive, so it balances the cost. I love 50-50 mozzarella and provolone; it really kicks in the flavor. Any blend that features higher-flavor products such as Asiago, Fontina or Parmesan will wow customers. The key is to add enough to actually taste the other cheeses.”

When considering cheese blends, many pizzerias leave it up to the pros to blend their cheese, since cheese manufacturers and distributors can now provide small batches that are highly

customized. “Custom blending from a manufacturer will produce a more consistent and food-safe product,” Zimmerman says. “Most operators don’t have the proper equipment to shred and blend in-house; the cheese is too thick and, without weighing, pizza makers will apply too much.”

Say Cheese!

If you’re going to spend time blending your own cheeses—or pay someone else to blend them for you—don’t forget to market this new offering to guests and potential guests. A house blend will differentiate your pies from your competitors’ fare.

“Promote, promote, promote on everything—menus, online ordering, signs in the store,” Zimmerman says. “’Welcome to ABC Pizza—Home of the X Blend.’”

In addition to marketing your cheeses, let your customers have access to them anywhere they want on your menu, mak-

Mole Olé Recipe and photo provided by the California Milk Advisory Board

Ingredients 3 oz. mole poblano/pizza sauce blend (use regular pizza sauce or herbed tomato paste, depending on thickness of mole) 1 10” extra-thin pizza crust (tart dough or cracker crust preferred) 1½ oz. shredded Oaxaca 1½ oz. shredded Asadero 2 oz. shredded Queso Quesadilla 1 oz. grated Queso Enchilado 3 tbsp. shredded cilantro leaves and stems 2 tbsp. chopped pepitas (roasted, salted pumpkin seeds) 1 tsp. toasted black and white sesame seeds Directions Spread mole poblano/pizza sauce blend evenly over crust. Blend Oaxaca, Asadero and Queso Quesadilla cheeses; sprinkle over sauce. Top with Queso Enchilado. Bake at 475°F until crust has a golden edge and crisp bottom and cheese is slightly browned.

Top with cilantro, pepitas and sesame seeds.

28 PMQ Pizza Magazine The Pizza Industry’s Business Monthly

December 2013.indb 28

11/12/13 3:17 PM

Getting Cheesy Looking for a quick blend? Add one of the following cheeses to your mozzarella for an easy flavor twist.

Virtually all cheeses can be used to tasty effect in pizza making, says Mark “The Cheese Dude” Todd.

ing full use of your inventory. “List the cheeses you use in the premade specialty pizza section as well as in the build-yourown section of your menu,” Todd suggests. “Give customers the opportunity to experience your ingredients wherever they want them—on pizza, sandwiches, salads, etc. You’ll make better use of your inventory, and your customers will have a more customized food experience.”

Testing the Limits Combining and blending cheeses can be a lot of fun, but even cheese has its limits. Use too much or too many, and you end up losing money and flavor. Most agree that there’s a limit to

 Asiago  Cheddar  Feta  Fontina  Gorgonzola  Monterey Jack  Muenster  Parmesan  Provolone  Romano  Smoked mozzarella White pizzas have become very popular over the past few years, so here are some common blends for them. Start with a base of soft cheese, such as ricotta, then add:     

December 2013.indb 29

Mozzarella, Romano, Parmesan Fontina, Gruyère Mozzarella, Parmesan, Gorgonzola Goat cheese, Parmesan, mozzarella Mozzarella, Taleggio

December 2013

pmq.com 29

11/12/13 3:17 PM

Tuscan Grotto Pizza

t

Recipe and photo provided by Saputo Cheese

how many cheeses you should use at the same time before the cheese loses its distinction (goodbye, 10-cheese pizza), and there may even be a few cheeses that are best left unblended. “I like using buffalo mozzarella alone,” Gresser says. “I find that if I use it with other cheeses, the subtle flavors of the buffalo get lost.”

There are hundreds of cheese combinations depending on the flavor you’re seeking and the function you desire. Toppings add a whole new element when you consider the nuances of savory and sweet when combined with different blends. There’s not much that won’t work, so have fun with it and show your customers all that cheese can do.

Ingredients 6 oz. pizza dough 3 oz. cheese béchamel sauce 2 c. mozzarella cheese ¼ c. caramelized onions ¼ c. slab bacon, cut into 1/4” lardons 3 oz. roasted chicken, shredded 1 Tbsp. Ricotta cheese ¼ c. Asiago cheese, shredded 2 tsp. fresh thyme, chopped Directions Preheat oven to 450°F. Roll a pizza dough to a 1/4” thick or thinner, depending on preference. Place pizza dough in the oven and par-cook for 2 minutes to allow dough to set. Pull dough from the oven and top with cheese béchamel sauce and mozzarella cheese. Put back in oven for 8-12 minutes, or until pizza reaches desired doneness and color and cheese has melted thoroughly. Top pizza with Ricotta, shredded Asiago cheese and fresh thyme and spread evenly around the entire pizza. Slice and serve immediately.

Liz Barrett is PMQ’s editor at large.

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Chorizo Sausage Pizza Ingredients: 14” rustic pizza crust 3 oz. pizza sauce 3 oz. mild salsa 1.5 oz. bacon bits 4 oz. mozzarella cheese, shredded 0.5 oz. cheddar cheese, shredded 6 oz. chorizo sausage chunks 1 oz. banana peppers, sliced 1 oz. black olives, sliced 2 tbsp. tomatoes, diced 1 tsp. green onions Instructions: Preheat oven to 475°F. Combine pizza sauce and mild salsa, then spread sauce evenly over the pizza crust. Add bacon bits, chorizo sausage chunks, sliced banana peppers, mozzarella cheese, cheddar cheese and sliced black olives over the pizza in that order. Bake pizza for 5 minutes. Add diced tomatoes and green onions to cooked pizza before slicing.

The Sausage Sensation

From bratwurst and chorizo to mortadella, kielbasa and the humble but versatile frankfurter, sausage is popular in every corner of the globe. It has become an increasingly popular pizza topping, with some pizzerias making their own sausage and, in some cases, even raising their own hogs. Nonpork alternatives—such as beef, turkey, chicken and lamb—offer a wide range of flavor profiles, while some adventurous souls literally go hunting for their sausage meats, stalking deer, elk, rabbits and squirrels. Here’s a look at unique sausage-based pies from pizzerias across the country: Located in Sun Valley, Idaho, South Valley Pizzeria fires up the palate with the Basque, a combination of chorizo sausage, diced green chiles, onions, garlic and Asiago cheese.

Nancy Silverton from Pizzeria Mozza (pizzeriamozza.com) points to the upscale Los Angeles restaurant’s sausage pizza as her favorite. It’s made with fennel sausage, mozzarella cubes and scallions, but the magic ingredient is ¼ cup of heavy whipping cream spread over the surface of the dough before baking.

You say pig meat isn’t good enough for you? Apollonia’s Pizzeria (apolloniaspizzeria.com), also in Los Angeles, offers more exotic options with its Dirty Agent specialty pie. It comes with a choice of rattlesnake sausage, duck and bacon sausage or alligator sausage, along with onions and tomatoes. Customers can also build their own pies with all three meats.

We’re guessing you’ll never see Santa Claus dining at Uncle Joe’s Pizzeria (unclejoespizzeria.com). The Anchorage, Alaska, restaurant offers several pies made with reindeer sausage, such as the Street Dog, a lightly sauced pie that also features rope sausage, caramelized onions, mozzarella and a generous swirl of Thousand Island dressing.

32 PMQ Pizza Magazine The Pizza Industry’s Business Monthly

December 2013.indb 32

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December 2013.indb 33

11/12/13 3:44 PM

December 2013.indb 34

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December 2013.indb 35

11/12/13 3:44 PM

feature story Pizza Power Report

December 2013.indb 36

11/12/13 3:44 PM

Click here for exclusive video coverage of the 2014 Pizza Power Report.

The Power of

PIZZA

2014 STATE-OF-THE INDUSTRY REPORT

PMQ’s annual Pizza Power Report provides an in-depth look at the current pizza industry and an insightful glimpse into its future.

By Rick Hynum

T

here’s an invasion under way in the pizza industry.

Everyone from baristas to burger chefs, it seems, wants a slice of the action. The founders of Wetzel’s Pretzels, for example, put their own twist on pizza last year with Blaze Pizza (blazepizza.com), while Chili’s Grill & Bar rolled out a line of pies and flatbreads in early 2013. Smashburger founders Tom Ryan and Rick Schaden launched Live Basil Pizza (livebasilpizza.com) in Denver earlier this year.

And leading the offensive were Scott and Ally Svenson, who co-founded Seattle-based MOD Pizza (modpizza.com) in 2008 after making their fortune with Seattle Coffee Company in the United Kingdom.

For independent operators, all of these big names—and the big bucks they attract—add up to stiffer competition at the higher end of the market. But this trend also reveals something about consumers’ tastes—more discerning, increasingly sophisticated, and, yes, a little pricier than you might expect. People

still like inexpensive, quick-service pizza, and they still enjoy the upscale “slow food” experience, but there’s an in-between niche—called “fast casual”—that’s ripe for exploitation. Where do you fit in?

By reviewing the past year’s overall numbers and examining the trends in some detail, the Pizza Power Report has been designed to help you plan for a more profitable 2014. We’ve culled data from a range of key industry sources, including CHD Expert, Technomic, Mintel, the National Restaurant Association (NRA), Euromonitor and RestaurantData.com.

Let’s get started!

Predicting Pizza It has been particularly difficult this year to estimate the pizza industry’s growth because our sources have not been unanimous in their analyses. But after weighing a wide range of factors, PMQ is predicting a modest increase of 1.16% in overall

Pizza Power Report_December13.indd 37

December 2013

pmq.com 37

11/19/13 10:06 AM

State Rankings: Independent Pizzerias

The chart below illustrates which states boast the highest percentage of independent pizzerias.

State

Source: CHD Expert

pizza restaurant sales for 2013. Bear with us for a moment, and we’ll explain how we arrived at that figure.

Technomic’s figures indicate a sales increase of 4.75% for the Top 50 pizza chains for 2012. CHD Expert, on the other hand, showed a 2.4% decline in total pizza restaurant sales for the year ending October 1, 2013. Also weighing in on the subject was Euromonitor, which predicts a 4.04% increase in pizza sales in North America (including Canada) for 2013. PMQ also took into consideration CHD Expert’s report on the rate of pizza store openings and closings between October 2012 and September 2013. In the latter case, we have reasoned that there was not a substantial difference between the open/close rates

of independent pizzerias vs. chain pizza stores for that period of time—both chains and independents added and lost stores at a roughly equivalent proportion. Finally, we also factored in data submitted by industry researcher Keith Gellman from RestaurantData.com. His research shows that, as of November 1, 2013, there had been a record number of pizzeria openings. Additionally, Gellman’s data shows that pizza store openings have increased by an average of 13% per year since 2011. Gellman also estimates that nearly 10% of all restaurant openings are now pizza concepts.

With these positive projections in mind and since the increase in the Top 50 chain sales would strongly suggest a roughly equal increase in independent

Source: CHD Expert 38 PMQ Pizza Magazine The Pizza Industry’s Business Monthly

December 2013.indb 38

Independent

Chains

Total Units

% Independent

CT

940

137

1077

87%

NY

4269

876

5145

83%

VT

150

31

181

83%

NJ

2125

460

2585

82%

MA

1929

429

2358

82%

NH

410

101

511

80%

RI

276

82

358

77%

PA

3152

1003

4155

76%

ME

281

124

405

69%

AK

94

45

139

68%

DC

78

42

120

65%

DE

190

107

297

64%

OH

2025

1650

3675

55%

NV

341

296

637

54%

FL

2302

1999

4301

54%

IL

1602

1421

3023

53%

MD

706

628

1334

53%

CA

3371

3259

6630

51%

WI

627

620

1247

50%

IN

898

908

1806

50%

MI

1389

1431

2820

49%

SC

469

510

979

48%

MT

113

129

242

47%

WA

630

735

1365

46%

VA

779

932

1711

46%

WV

286

344

630

45%

ID

157

192

349

45%

NC

883

1091

1974

45%

CO

465

575

1040

45%

UT

238

312

550

43%

OR

374

506

880

43%

AR

282

419

701

40%

AZ

452

672

1124

40%

GA

637

959

1596

40%

HI

67

101

168

40%

MN

518

789

1307

40%

TN

470

779

1249

38%

ND

66

110

176

38%

NM

105

188

293

36%

WY

50

91

141

35%

KY

327

615

942

35%

TX

1507

2868

4375

34%

OK

290

568

858

34%

LA

230

466

696

33%

MO

450

1051

1501

30%

AL

225

538

763

29%

SD

62

155

217

29%

IA

303

815

1118

27% 26%

MS

124

347

471

NE

107

315

422

25%

KS

187

558

745

25%

TOTAL

38008

33379

71387

Source: CHD Expert

11/12/13 3:45 PM

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sales, the staff at PMQ is splitting the difference between the reports of CHD Expert and Technomic, thus arriving at our prediction that, when all the numbers come in, total pizza industry sales in 2013 will have grown by 1.16% compared to 2012.

So what’s our final total? By our estimates, total sales for the period ending September 2013 amount to $37,375,108,000. We derived this sum by taking last year’s total sales of $36,786,524,044 (according to CHD Expert) and factoring in our estimated growth figure of 1.16% over the past year.

Store Counts and Averages We have used CHD Expert’s data relating to total store counts. The total number of stores, according to these figures, is 71,387. About 53% of all pizza stores are independents, while 47% are chains. (For the record, we are defining independents as pizzerias with fewer than 10 units; any company with more than 10 stores is referred to as a chain.)

According to our calculations, based on CHD’s total number of pizza stores and our estimated total sales figure for 2013, the average per-unit sales for all U.S. pizzerias (chains and independents combined) equaled $523,556, compared to $511,948 in the previous year.

According to CHD, the chains’ total sales amounted to $22,301,349,410 in 2013. The chains’ average per-unit sales equaled $668,125 in 2013, an increase from $653,859 in 2012.

According to PMQ’s estimates, independent pizzerias’ total sales amounted to $15,073,758,590, compared to $14,557,100,260 in the previous year. The average annual sales for independents amounted to $396,594, compared to $380,111 in the previous year.

Finally, the total sales for the Top 50 pizzeria chains in 2012 was $19,753,075,000, with per-unit sales averaging $721,995 (among 27,359 units), according to Technomic. In 2011, the Top 50 sales equaled $18,472,166,000, with total per-unit sales averaging $653,859 (among 28,251 units). That means the Top 50 experienced a total sales increase of nearly $1,280,909,000, while store counts fell by 892 in 2012.

The Cold War The economy appears to have hit a “sweet spot” as far as the pizza restaurant business is concerned.

While the recovery has been slow, it’s been strong enough to make pizza more attractive as an affordable dining-out option, while the frozen pizza segment, according to Mintel, has declined by 1.1%.

Mintel projects that frozen pizza sales will continue to drop through 2018 “as consumers rediscover

Top 50 U.S. Pizzerias: Ranked by Sales Based on 2012 Sales Rank

Chain Name

2012 U.S. Sales (x1,000)

% Change from 2011

1

Pizza Hut

5,730,000

*

4.2

2

Domino's Pizza

3,504,000

*

3.1

3

Papa John's

2,442,203

4

Little Caesars

1,684,000

5

Papa Murphy's Pizza

733,800

6

CiCi's Pizza

505,000

7

Sbarro

405,000

8

Chuck E. Cheese's

400,000

9

Round Table Pizza

363,000

10

Godfather's Pizza

318,000

11

Hungry Howie's Pizza

290,800

12

Jet's Pizza

214,000

13

Marco's Pizza

190,392

32.3

14

Pizza Ranch

174,952

19.1

15

Peter Piper Pizza

170,600

7.8

16

Donatos Pizza

157,000

*

-5.4

17

Mazzio's Italian Eatery

151,000

*

0.7

18

Papa Gino's Pizzeria

147,844

19

Fox's Pizza Den

138,000

20

Gatti's Pizza

133,329

21

Pizza Pro

114,000

*

-3.4

22

Villa Fresh Italian Kitchen

112,000

*

-0.4

23

Famous Famiglia

103,000

*

19.8

24

Rosati's Pizza

101,000

*

2.5

25

Greek's Pizzeria

96,000

*

1.1

26

Pizza Inn

93,650

*

-5.4

27

Ledo Pizza

89,000

*

-1.1

28

Mountain Mike's Pizza

85,000

*

4.9

29

Happy's Pizza

73,000

31

Monkey Joe's

68,000

*

8.8

30

Imo's Pizza

68,000

*

-1.4

32

Shakey's Pizza Parlor

67,000

*

0.0

33

Wolfgang Puck Express

62,000

*

-1.6

34

Me-N-Ed's Pizzeria

58,500

*

-3.3

35

Monical's Pizza Restaurant

57,748

36

ZPizza

55,500

37

Dion's Pizza

50,000

39

Simple Simon's Pizza

49,500

*

0.0

38

Bellacino's Pizza & Grinders

49,500

*

-2.0

40

Pizza Factory

47,500

*

0.0

41

Straw Hat Pizza

45,000

*

-16.7

42

Pizza Patrón

44,000

*

3.5

43

Stevi B's The Ultimate Pizza Buffet

43,000

*

8.9

44

Vocelli Pizza

42,500

*

-6.0

45

Happy Joe's Pizza and Ice Cream Parlor

40,000

*

-0.5

46

Brixx Wood Fired Pizza

38,500

*

4.1

47

Extreme Pizza

37,500

*

-6.3

48

Sarpino's Pizzeria

37,257

49

East of Chicago Pizza

36,500

*

-1.4

50

Amato's Pizza

36,000

*

5.9

9.2 *

13.8 4.5

*

-2.1 -3.6

*

-4.1 1.5

*

1.6 8.8

*

15.7

0.4 *

-4.2 -0.9

17.7

1.6 *

1.8 8.7

14.6

Source: Technomic *=Technomic estimate

40 PMQ Pizza Magazine The Pizza Industry’s Business Monthly

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Top 50 Pizzerias: Ranked by Number of Units

The Healthcare Challenge

Based on 2012 Units Chain Name

2012 U.S. Units

% Change from 2011

Pizza Hut

6,120

Domino's Pizza

4,928

Little Caesars

3,725

Papa John's

3,131

4.3

Papa Murphy's Pizza

1,329

3.6

Godfather's Pizza

630

4.0

Sbarro

602

CiCi's Pizza

550

Hungry Howie's Pizza

548

-0.2

Chuck E. Cheese's

535

1.1

Round Table Pizza

439

-1.6

Pizza Pro

430

-7.7

Marco's Pizza

331

20.4

Jet's Pizza

283

26.9

Fox's Pizza Den

270

-3.6

Simple Simon's Pizza

220

*

0.0

Villa Fresh Italian Kitchen

205

*

3.0

Pizza Inn

202

-5.2

Papa Gino's Pizzeria

179

-2.7

Pizza Ranch

174

6.1

Mazzio's Italian Eatery

170

4.3

Rosati's Pizza

167

3.1

Donatos Pizza

158

1.3

Mountain Mike's Pizza

145

-2.7

Greek's Pizzeria

144

1.4

Famous Famiglia

120

-8.4

Gatti's Pizza

112

-8.2

Pizza Factory

111

0.9

Pizza Patrón

104

10.6

Vocelli Pizza

98

-3.9

Ledo Pizza

95

-5.0

Peter Piper Pizza

92

2.2

Imo's Pizza

91

0.0

ZPizza

89

0.0

Happy's Pizza

83

10.7

East of Chicago Pizza

74

1.4

Bellacino's Pizza & Grinders

67

-4.3

Monical's Pizza Restaurant

64

-1.5

Monkey Joe's

63

3.3

Shakey's Pizza Parlor

57

-3.4

Me-N-Ed's Pizzeria

56

-5.1

Straw Hat Pizza

55

-22.5

Happy Joe's Pizza and Ice Cream Parlor

53

-7.0

Amato's Pizza

48

2.1

Stevi B's The Ultimate Pizza Buffet

47

4.4

Sarpino's Pizzeria

45

21.6

Wolfgang Puck Express

41

7.9

Extreme Pizza

40

-4.8

Brixx Wood Fired Pizza

21

0.0

Dion's Pizza

18

5.9

*

Like it or not, the Affordable Care Act keeps moving forward, but its full impact on restaurants remains unclear. The White House in July delayed the employer mandate—which requires large employers to provide healthcare coverage to workers or pay a penalty—by a year, allowing businesses additional time to prepare for it.

Once the employer mandate kicks in, restaurants that average 50-plus “full-time-equivalent” employees will be considered “large employers” and must offer healthcare plans to those employees or face penalties. Companies with fewer than 50 full-time employees won’t have to offer the benefits or pay penalties, but other parts of the law still apply. For example, existing healthcare plans must comply with new ACA regulations, and all employers covered by the Fair Labor Standards Act must provide written notice to their employees about government-run marketplaces.

Regardless of their size, operators will need to familiarize themselves with the details of the law, including its definition of full-time employment and how to determine the status of seasonal employees or those with varying hours. They should be prepared to fulfill the law’s requirement for tracking and reporting employee data. And they’ll have to make sure they know what constitutes an “affordable” healthcare plan and what could trigger a penalty.

1.0 0.4

*

5.9

-1.5 *

-4.0

their spending power and open their wallets for food away from home.” According to a survey of 2,000 pizza-eating households released by Mintel in July 2013, consumers cited taste and healthfulness as barriers to frozen pizza growth. Mintel also states that, although black consumers and families with kids are more likely to eat frozen pizza, these two groups will likely grow only modestly between 2013 and 2018.

Overall Restaurant Growth On the whole, the restaurant industry continues to enjoy modest growth and is the nation’s secondlargest private-sector employer, according to NRA research. The NRA projects restaurant-industry sales of $660.5 billion for 2013, an increase of 3.8% from 2012’s figure of $636 billion and equal to 4% of the U.S. gross domestic product. This was the fourth straight year that sales went up for the restaurant industry. Meanwhile, restaurant job growth in 2013 continued to outpace national employment

Source: Technomic *=Technomic estimate

December 2013.indb 41

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‘M

Store Counts per Capita Above Average State

No. of Stores

Pop. (2012 U.S. Census Data)

Stores/ 10,000 People

New Hampshire

511

1320718

3.87

Iowa

1118

3074186

3.64

Massachusetts

2358

6646144

3.55

Rhode Island

358

1050292

3.41

West Virginia

630

1855413

3.40

Pennsylvania

4155

12763536

3.26

Delaware

297

917092

3.24

Ohio

3675

11544225

3.18

Maine

405

1329192

3.05

Connecticut

1077

3590347

3.00

New Jersey

2585

8864590

2.92

Vermont

181

626011

2.89

Michigan

2820

9883360

2.85

Indiana

1806

6537334

2.76

New York

5145

19570261

2.63

South Dakota

217

833354

2.60

Kansas

745

2885905

2.58

No. of Stores

Pop. (2012 U.S. Census Data)

Stores/ 10,000 People

T

Source: CHD Expert

Average State North Dakota

176

699628

2.52

Missouri

1501

6021988

2.49

Wyoming

141

576412

2.45

Minnesota

1307

5379139

2.43

Montana

242

1005141

2.41

Arkansas

701

2949131

2.38

Illinois

3023

12875255

2.35

Nevada

637

2758931

2.31

Nebraska

422

1855525

2.27

Maryland

1334

5884563

2.27

Oregon

880

3899353

2.26

Oklahoma

858

3814820

2.25

Florida

4301

19317568

2.23

Idaho

349

1595728

2.19

Wisconsin

1247

5726398

2.18

Kentucky

942

4380415

2.15

Virginia

1711

8185867

2.09

Pop. (2010 U.S. Census Data)

Stores/ 10,000 People

Below Average State

No. of Stores

South Carolina

979

4723723

2.07

North Carolina

1974

9752073

2.02

Colorado

1040

5187582

2.00

Washington

1365

6897012

1.98

Tennessee

1249

6456243

1.93

Utah

550

2855287

1.93

Alaska

139

731449

1.90

District of Columbia

120

632323

1.90

California

6630

38041430

1.74

Arizona

1124

6553255

1.72

Texas

4375

26059203

1.68

Georgia

1596

9919945

1.61

Alabama

763

4822023

1.58

Mississippi

471

2984926

1.58

Louisiana

696

4601893

1.51

New Mexico

293

2085538

1.40

Hawaii

168

1392313

1.21

growth for the 14th straight year, adding jobs at a projected rate of 2.4% and topping the national rate of 1.5%. Nearly 10% of American workers—or 13.1 million people—drew paychecks from the restaurant industry in 2013. The NRA also reports that the restaurant industry is expected to add 1.3 million jobs over the next decade for a total of 14.4 million by 2023.

The “Better Pizza” Movement Pizza, the old joke goes, is like sex: When it’s good, it’s great, and when it’s bad, it’s still pretty good. Fortunately, with the rising popularity of artisan pizza, bad pies are getting harder to find. Many consumers today simply demand more from pizza makers, and pizzerias have stepped up to the challenge. It’s all part of the so-called “better pizza” movement, which has kept pace with the “better beer” and “better burger” trends. Cheap and basic often just doesn’t cut it anymore. The freshness of farm-to-table ingredients creates the perception of a healthier pie, while exotic cheeses and meats—think Gruyère and sopressata—convey an aura of sophistication and provide a new experience in flavor profiles.

“The consumer is really starting to figure things out, and everybody’s looking at quality,” says Scott Wiener, owner of Scott’s Pizza Tours in New York. “In part, I think that’s because the consumer base is more educated today. People know more about what they’re eating. When they walk into a pizzeria now, they’ll ask you if you’re using San Marzano tomatoes or buffalo mozzarella cheese.”

42 PMQ Pizza Magazine The Pizza Industry’s Business Monthly

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Ethnic Flavor Trends According to research firm Technomic, ethnic flavors are coming to the fore in the pizza industry, including: Thai Breaker—Top That! Pizza offers this Thai-themed treat, made with Thai peanut sauce, whole milk mozzarella, marinated chicken, roasted garlic, caramelized onions, chopped scallions, julienne carrots, sharp cheddar and roasted peanuts.

Despite a sluggish economy, many customers will pay more for artisan pizzas with gourmet toppings.

Aging baby boomers also play a role, helping to fuel the “better pizza” movement with their higher expectations, refined tastes and disposable cash. Born after WWII, they were the first generation of Americans to grow up on pizza, and, unlike their parents who had to pinch pennies in the Great Depression, baby boomers will typically pay more for higher quality, although good value remains important to them.

In general, most consumers haven’t let a sluggish economy get in the way of pleasing their palates; if anything, they’re getting pickier about quality. In a 2012 survey by research firm Technomic, 34% of diners said they were willing to pay more for gourmet ingredients, compared to 26% in 2010, while 27% said they’d shell out more for natural or organic ingredients, up from 21% two years earlier. In the same study, 33%

Jamaican Jerk—A popular specialty pie at Uncle Maddio’s Pizza Joint, this exotic pizza features tomato-basil sauce, mozzarella, grilled jerk chicken, red onions, green peppers, pineapples and cilantro.

Athenian—Pie Five Pizza Company serves up this thincrust Greek pizza with Italian herbs, fresh garlic, chicken, Kalamata olives, red onions, banana peppers, crumbled feta, fresh basil, sun-dried tomatoes and a mozzarella/ provolone blend.

said they were “interested in trying pizza with highly innovative toppings,” a big jump from 13% in 2010.

“I think people are still holding back on their dining-out budgets, but they see an upscale pizza as a better value than a midscale steakhouse or seafood,” Wiener notes. “A high-end pizza is still quite affordable—the high point is probably about $22 for a personal pizza. And that’s still pretty inexpensive

Customer Survey: To Create a Good Pizza, Operators Should Focus on Quality and Freshness 78%

fresh toppings

84% 67%

a large quantity of toppings

74% 68% 73%

appetizing appearance

68%

Variety of toppings to choose from

70% 63%

a large quantity of cheese

69% 58% 58%

strong aroma 36% 38%

new or innovative toppings

2010

2012

As this Technomic survey indicates, pizza consumers’ expectations are rising, and freshness of ingredients is a major factor.

Base: 1,500 consumers ages 18+ Respondents indicated their opinion on a scale of 1-6, where 6 = agree completely and 1 = disagree completely Source: Technomic Pizza Consumer Trend Report

44 PMQ Pizza Magazine The Pizza Industry’s Business Monthly

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34% of diners are willing to pay more for gourmet ingredients, compared to 26% in 2010. —Technomic when you’re comparing an entrée at a nice restaurant.”

For proof of artisan pizza’s growing popularity, look no further than the country’s largest chains, including Domino’s (dominos.com), which leapt into the market a couple of years ago and offers such selections as the Chicken & Bacon Carbonara, the Tuscan Salami & Roasted Veggie and the Spinach & Feta. Meanwhile, take-and-bake giant Papa Murphy’s (papamurphys.com) tested a premium line of pizzas made with gourmet ingredients ranging from fennel sausage and goat cheese to prosciutto and arugula.

Power to the People As buzz phrases go, “fast casual” doesn’t really say much. It fails to capture the essence of a movement that is rapidly transforming the national pizza scene, with concepts such as Blaze Pizza, Project Pie (projectpie.com) in San Diego and Las Vegas, Social Life Pizza (sociallifepizza.com) in San Diego, and 800 Degrees (800degreespizza.com) in Los Angeles leading the way. For that reason, many operators prefer terms like “customizable” and “build your own” to describe this red-hot business model.

Based on the Chipotle Mexican Grill/Subway paradigm, these stores put the customer in the driver’s seat. Proceeding along an assembly-line station, guests can design their own pies from the crust up, selecting from a plethora of toppings and sauces, requesting a little more of this, a little less of that. Super-hot ovens bake the pies in just a few minutes, and the price often remains the same for any combination of toppings, typically in the $7.50 range.

With locations in Oklahoma, Texas, Colorado and the United Arab Emirates, Top That! Pizza (topthatpizza.com) has been on the forefront of the fast-casual trend since its first store opened in 2010. “People are very interested in what goes into their food these days, and feeling like they finally have the power to create a pizza of their own has made this new category very popular among just about every demographic out there,” says Top That! co-founder Lori Walderich. “Guests can see their pizzas being made and know exactly what’s going on top of it. The perceived value of the pizza is higher, along with customer satisfaction, as opposed to typical delivery or commodity pizza.”

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Fast-casual pioneers like Lori Walderich, co-founder of Top That! Pizza, have empowered customers to take control of their dining experience.

James Markham has helped launch three different fast-casual concepts, including MOD Pizza (modpizza.com) in Seattle, Pieology (pieology.com) in Southern California and the aforementioned Project Pie. “I think it’s universally appealing,” he says. “People want to be able to get it the way they want it. You can’t get it exactly the way you want it when someone’s making it in the back kitchen.”

What took pizzeria operators so long to come up with the idea? “As we were developing Top That! Pizza, we were wondering the same thing,” Walderich says. “One possible reason is that pizza operators over the years have been afraid of losing money due to the assumption that guests would overload their pizzas with too many expensive ingredients. Or perhaps they just flat-out didn’t think of it since pizzas have been done the same way for all these decades. So many pizza places focus on delivery, convenience and cheap pricing and achieve a good level of profit, so why change?”

Technological advances helped pave the way, too, Walderich observes. “There have always been wood-fired ovens that can cook pizzas in as little as 90 seconds. But the advent of the Turbo Chef ultra-fast impinger oven really set things in motion because of its ease of use and affordability.”

You know an innovative concept has broken through to the mainstream when the big chains hop on the bandwagon.

Dallas-based fast-casual eatery Pie Five Pizza (piefivepizza.com) is a Pizza Inn Holdings company, while Sbarro (sbarro.com), long known for its low-priced pies served in malls and airports, recently opened Pizza Cucinova (pizzacucinova.com) in Columbus, Ohio. But the pizza giants don’t have the field to themselves. Matt Andrew, co-founder and former president of Moe’s Southwest Grill, launched Atlanta-based Uncle Maddio’s Pizza Joint (unclemaddios.com), while Smashburger masterminds Tom Ryan and Rick Schaden, as previously mentioned, brought Live Basil Pizza to life in Denver. Even Buffalo Wild Wings has gotten into the act, purchasing a minority stake in PizzaRev (pizzarev.com) in Los Angeles. All of these companies have aggressive growth strategies, and the Wetzels’ Blaze Pizza has even attracted well-connected celebrity investors, including Maria Shriver and LeBron James.

The Old-World Ways Of course, no one knows the concept of “better pizza” like the pizzaioli from Naples, which may explain why Neapolitan pizza has become booming business. “Neapolitan is still really big, and it’s getting bigger,” Wiener says. Neapolitan authenticity means following strict rules dictating quality and origin of ingredients, dough making and proofing methods, even the size and specs of the wood-fired oven. But that hasn’t discouraged celebrity chefs—such as Nancy Silverton, Mario Batali and Mike Isabella—from signing on, notes Jay Jerrier, owner

World Growth of Pizza Industry (in billions of USD)

150.000 118.082

120.000

131.720

125.048

independents

90.000

46.340

41.117

60.000

49.254

Chains

82.465

78.707

76.370 30.000

0

total

This chart shows the steady growth of the pizza business around the world between 2010 and 2013.

2010

2012

2013

source: © euromonitor international

46 PMQ Pizza Magazine The Pizza Industry’s Business Monthly

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Regional Annual Growth Rate 2013 eastern europe 10.20% australasia 8.30% Latin america 7.35% asia pacific 7.11% middle east and africa 5.39% The pizza industry has enjoyed moderate to strong growth in various regions of the world over the past year, with Eastern Europe showing the largest increase and North America, an already mature market, showing the smallest increase.

Western europe 4.99% north america 4.04% 02468

10

12

source: © euromonitor international

of Cane Rosso (canerosso.com) in Dallas. “These chefs get a lot of press, so when they open a side project with Neapolitan pizza, it gets a lot of attention with the public and spurs a lot of people on the sidelines to try this style,” he says.

“The trend to eat healthier has been a big driver,” Jerrier continues. “Neapolitan pizza is a very light, digestible dough, and the cheese is all-natural fresh mozzarella, usually made inhouse. Customer sensitivity to ‘eating local’ encourages pizza makers to take advantage of local produce. And even if you’re adding meat to your pizza, it’s generally housemade or locally sourced sausage or house-cured charcuterie. That appeals to the rising foodie movement.”

However, some operators are more interested in capturing the essence of Neapolitan pizza without bothering with all those hard-and-fast rules, Wiener explains. “Beyond the traditional Neapolitan pizzerias, Neapolitan-inspired pizzas are getting even more powerful,” he says. “More places are doing the

artisan, wood-fired pizza concepts without the Italian-origin ingredients. That’s all over the place now.”

With its emphasis on high-heat ovens that can bake a pie in just a couple of minutes, the Neapolitan model fits perfectly with the fast-casual format, Jerrier says. “I think Anthony Carron at 800 Degrees has done an amazing job with that. He created a build-your-own model using high-end ingredients and a fast-service concept. Punch Pizza (punchpizza.com) in Minnesota does a good job with this, too. They make an artisanal pizza style much more accessible to a much broader audience.”

L.A.’s Social Life is another example, serving up custom-made Neapolitan-style 12” pies baked in a domed oven.

Flatbreads, Craft Sodas and Gourmet Toppings Speaking of old-world traditions, flatbreads, once a staple in ancient Egypt and Mesopotamia, continue to find new

World Pizza Market 2013 (in billions of USD)

north america 44.202 Western europe 51.901 Latin america 16.394 asia pacific 8.712 eastern europe 4.421 middle east and africa 3.414 This chart illustrates the current size of the world pizza market according to region.

australasia 2.665 source: © euromonitor international

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life on American pizzeria menus. Pizza Hut (pizzahut.com) expanded into the category in June with its Firebaked-Style Flatbreads, which come six to a box with three toppings for $11.99. The Fazoli’s (fazolis.com) chain debuted two flatbread pizzas—the Tuscan Chicken and the Chicken Margherita—in the “Lighter Options Under 550 Calories” section of its menu. And Chili’s Grill & Bar was so eager to introduce its trio of flatbreads—the Margherita, Chipotle Chicken and California Grilled Chicken—that the company moved the rollout date from June to May. With their lighter crust and “shareability,” flatbreads appeal to women in particular, industry observers say.

Men, on the other hand, love beer, which should surprise no one. The craft brew phenomenon keeps picking up steam as more local and regional breweries step up to meet rising consumer demand for specialty ales and lagers in the pizza restaurant environment. But diners who prefer nonalcoholic alternatives have some pretty fancy options, too, thanks to the rise of artisan sodas from companies such as Boylan Bottling Company, DRY Soda and SIP. “I’m finding a lot of Boylan’s on tap instead of just Coke or Pepsi,” Wiener says. “We’re seeing more of these names pop up in pizzerias that are trying to distinguish themselves from their competition.”

A Boylan fountain has already earned a prominent spot in Markham’s Project Pie stores, and its sodas are also served in Andiamo (andiamopizzamiami.com) in Miami, Emma’s Pizza

The rise of artisan sodas has given pizzeria consumers a wide range of new beverage options.

(emmaspizza.com) in Cambridge, Massachusetts, and Skinny Pizza (skinnypizza.com) in Long Island, New York. Though the company has been bottling since 1891, its recipes (made with only pure cane sugar—no high-fructose corn syrup allowed), are a bona fide throwback hit. Other specialty soda companies specialize in high-end, unexpected flavors, such as Lavender Lemon Peel, Coriander Orange and Rosemary Lime (SIP) or Vanilla Bean, Rhubarb and Lavender (DRY).

Meanwhile, gluten-free options continue to sprout up on pizzeria menus across the country, from delivery and carryout

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F&B Trends for 2014 Food and restaurant consulting firm Baum + Whiteman recently predicted some of the hottest food and beverage trends for 2014, including: 1. Tasting-only menus. Tasting menus guarantee a specific average check along with precosted, highly controlled inventory.

2. Haute chicken. Upscale chicken restaurants are taking flight around the United States.

3. Fishy fish. Americans are giving anchovies, sardines and mackerel a second look.

4. Bubbling, fizzing beverages. Think craft sodas, teas, vermouth, sour beer and pressed juices.

5. Creative spreads. When butter’s not enough and EVOO’s old hat, some chefs are offering vanilla tapenade, tomato jam, smoked ricotta and whipped chicken liver butter.

6. Green is the new black. Fast-growing vegetarian chains, such as Sweetgreen, Chop’t, Tossed and Tender Greens, urge you to eat your vegetables.

7. The new Asian wave. Kimchee on burgers and pizza?

Schichimi togarashi on chicken wings? Chefs are finding novel uses for exotic Asian flavors and seasonings.

8. Tastes of the Middle East. Foodies fleeing turmoil in Iraq, Iran, Egypt and other Middle East nations are bringing their food to the West, including za’atar, pomegranate molasses, shakshuka and freekeh, to name a few.

eateries to fast-casual operations. More restaurants also tout locally sourced ingredients, and gourmet toppings have earned a certain cachet among diners wanting something a little different, Wiener says. “Instead of sausage and pepperoni, it’s brussel sprouts, pancetta and sopressata. Again, people just know more about what they’re eating now. They think of sopressata as classy pepperoni when it shaves and puts on a nice suit.”

The Social Scene The fundamentals of effective restaurant marketing haven’t changed much over the years, but recent advances in mobile technology have spawned various new tools that marketers cannot afford to ignore. Most restaurants now have a website, and online ordering has begun to enter the mainstream and will continue to spread, thanks to integrated systems developed by leading POS companies. Social media has become the 400-pound gorilla that restaurant marketers ignore at their own peril. Complicating the situation is the proliferation of so many social media outlets—too many for your average independent restaurateur to keep up with. As moms, dads and even grandparents have commandeered Facebook, younger

consumers are slowly drifting away to Instagram, Snapchat and Tumbler, to name a few options. But Facebook remains a rock-solid stronghold for mainstream adult consumers and a must-have marketing tool for pizzerias, notes Doug Brandt, owner of Pie Hole Pizza Joint (pieholepizzajoint.com), which has two stores in Chicago.

“Pie Hole thrives off social media,” Brandt says. “Our market falls right in line with people of any age who are also active on social media. In a multi-unit environment, you should already have a Facebook page for each location, plus one for the brand overall. You also should be active on Twitter, and, by all means, jump on Instagram!”

Meanwhile, more restaurateurs have added mobile apps to their marketing arsenal. Pie Hole presently has an app for Android smartphones, but Brandt’s goal is to develop one that’s compatible with iPhones as well. He also wants to be able to offer online ordering with his app. “I’m not sure that every independent pizzeria needs an app,” he says. “However, I would most definitely say that, if you appeal to a college, urban or young ‘digerati’ market—or if you have three or more locations—then, yes, jump on it right away. You might not get a tremendous amount of use out of it right away, but having one early will reap rewards down the pike.”

If you’d prefer not to bother with an app at this point, Brandt says a mobile-friendly website—that is, a site that is customized for tablets and smartphones—is the next best thing. “There are plenty of websites out there that will automatically convert your website into something suitable for a smartphone,” he says. “These work to varying degrees of success, depending on how complex your website is. Website developers are now making smartphone-friendly sites right alongside the traditional desktop versions. Soon, websites will be designed primarily for portable devices and only secondarily for desktop monitors.”

In fact, many experts predict that a technique called “responsive design” will soon dominate website development. With responsive design, a website’s appearance and functionality change depending on the end user and the type of device on which the site is viewed. This tailored approach provides a better browsing experience for the customer, regardless of the type of device he’s using.

In other words, customers may soon have as much control over their Web browsing experience as they now enjoy over their pizzeria dining experience. Although this will undoubtedly pose some short-term challenges to operators, it should be a win-win in the long run. Customers will derive greater satisfaction from their interactions with the restaurant, both online and in-person, and operators will be able to count on repeat business and a more contented clientele. After all, when the customer truly comes first, the customer keeps coming back for more.

Rick Hynum is PMQ’s editor-in-chief

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feature story raising expansion capital

METRO PIZZA

MUSIC CITY PIZZA

MOD PIZZA

MOD PIZZA

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(Clockwise from top) Metro Pizza has expanded to five locations and two licensed operations; MOD Pizza boasts 15 locations and fast growth; MOD’s model is based on the growing fast-casual segment; Music City Pizza got up and running thanks to friend and colleague fundraising.

11/12/13 3:45 PM

Follow the Money

By Tracy Morin

Looking to raise capital for expansion? Experts weigh in on how to boost your chances with banks and private investors.

E

ven in a booming economy, raising money for the risky business of restaurants can be difficult. In today’s climate of government shutdowns, tight credit and politically fueled fiscal crises, many independent operators may feel like there’s no point in even trying. There are options—bank/SBA loans, self-financing or taking on investors that are passive or working for the business—but no easy answers. “When self-funding, it can take a long time to amass the money you need, and banks traditionally hate restaurants, so the process can be challenging,” says John Arena, the co-owner of Las Vegas-based Metro Pizza (metropizza.com), which has five locations and two licensed operations in Nevada.

When Keith Hayman, the co-owner of Music City Pizza (musiccitypizza.com) in Nashville, Tennessee, was looking to open his first location, he visited seven banks with no success.

“Even with a great business plan, great credit and an established

“You have to build a personal guarantee on any money you borrow. And a lot of people will underestimate costs—you need working capital, not just the money it takes to get a second location open.”

—Drew French, Your Pie Franchising location, restaurants are the biggest fear for lenders,” he says.

“It’s a bit easier if you have proven cash flow, but, ultimately, I had to go to friends and colleagues for fundraising, requiring a lot of dialogue, business planning and a great product.”

This approach, also known as the “friends, family and fools” strategy, paid off for Hayman in the long run; He raised $800,000 to open his pizzeria last September. Meanwhile, Drew French, founder of Your Pie Franchising (yourpie.com), based in Athens, Georgia, got a similar less-than-enthusiastic reaction from banks when he presented a business plan for his first unit just as the economy tanked. Luckily, a family member

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METRO PIZZA

Metro Pizza has grown its reputation in the Las Vegas area through a winning combination of painstaking record keeping and a proven product.

“When self-funding, it can take a long time to amass the money you need, and banks traditionally hate restaurants, so the process can be challenging.”

—John Arena, Metro Pizza invested in the concept and helped him get it off the ground.

Once French was able to show lenders eight months of profitand-loss statements, he more easily obtained a loan to open a second location, then a third and fourth. “We found out that you still borrow your own money,” he says. “You have to build a personal guarantee on any money you borrow. And a lot of people underestimate costs—you need working capital, not just the money it takes to get a second location open.”

Arena agrees that every time you go to a traditional lender, you put your personal assets on the line, while you risk giving up ownership with venture capital. When opening an additional location, he recommends seeking out an existing turnkey operation; it requires a smaller investment, and you can simply convert the operation to fit your brand. “As an independent, you can self-finance, but you bet double or nothing,” he notes.

“Every failure risks what you have.”

Scott Svenson, co-founder/CEO of the 15-unit MOD Pizza (modpizza.com), based in Seattle, notes that although investors offer more expensive and dilutive capital compared to loans, acquiring debt comes with its own constraints and risks—so evaluate the options carefully to find one that’s right for you.

“You want to marry the right capital strategy with the right growth and brand strategy,” he says. Thus, he recommends being more adventurous with risk if your growth strategy is less expansive, or less adventurous financially if you want to grow to larger proportions.

Weighing the Options According to Hayman, there is some good news for operators looking to raise expansion capital. He notes that, in regions experiencing growth, some banks are starting to loosen their purse strings, and operators with an established track record, combined with good credit, face less skepticism from lenders.

To get started, he suggests approaching a bank with which you have an established relationship. Just keep in mind that

MOD PIZZA

MOD Pizza with a formula of convenient, quick, artisan-style pies was launched in 2008 and has quickly expanded.

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YOUR PIE

TRACY MORIN

(Left to right) Your Pie’s founder raised the capital to open his first store through a family investor; Metro Pizza’s latest location incorporated a full bakery called Lulu’s Bread & Breakfast.

you’ll often need to find guarantors who will receive equity and cosign the loan for you. “To give you X amount of dollars, generally, banks want to see three times that amount so that they feel like they’re taking no risk,” Hayman explains. “Basically, you need to have a lot of money and know people with a lot of money!”

For growing concepts to less than six units, David Barr, chairman of Your Pie, recommends finding a local lender working with the SBA or seeking help from friends and family. For faster growth, however, a unique concept with the potential for national expansion might receive institutional money, such as from a private equity firm. Meanwhile, he adds, the SBA

is expanding its reach to assist small businesses in a difficult economy, benefiting both small and larger markets, although the mid-sized market (loans for $1 million to $50 million) remains difficult. “The process is more arduous because of bank regulators scouring every document, but the capital is there,” Barr says. “Going to friends and family, by contrast, is more expensive capital; it requires a higher return than the 6% rate that banks would charge, so debt is the first choice.”

When it comes to private investors, each deal will be made differently; they may want a percentage of interest, equity in the company or a hybrid of the two, French says, and what you choose depends on what you’re trying to accomplish and

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Michael’s Pizzeria owner Michael Dene was able to self-fund his pizzeria thanks to the addition of two partners.

what you’re willing (or not willing) to give up. To get the most out of your private investors, Svenson recommends finding like-minded individuals who can not only invest capital but who will add value to the overall business. “Tie your capital strategy and your talent strategy together,” he advises. “Investors should feel a sense of ownership and engagement. Once you have that private capital, other options will open—such as debt capital from banks, institutional capital or even accessing the public market.”

For example, Michael Dene, owner and managing director of Michael’s Pizzeria (michaelspizzeria.com), with three locations in Southern California, was able to self-fund his pizzeria thanks to the addition of two partners who also brought valuable expertise to the business—an architectural contractor who builds out locations and a marketing director who spreads the word. “Both have a vested interest in developing the business,” Dene says. “That’s important, because our vision is to have 20 to 30 locations within five years.”

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Finally, Hayman advises, you can always ask for help from like-minded businesspeople. “Visit entrepreneurial centers, which offer networks of successful people who are often looking for investment opportunities and have chapters all over the country,” he says. “Or, if you’re looking to franchise, try the National Franchise Association. Talk to people who can help you get where you want to be.”

Proving Your Worth Whether you’re looking to reach out to private investors or traditional banks, you need to ensure that you present your growth as risk-worthy. However, Arena notes, the No. 1 challenge for a restaurant owner is inaccurate record keeping, so make sure someone is accurately documenting every aspect of the business to satisfy bankers or investors. “If you’re less than forthcoming about your purchasing, payroll or sales figures, you have no documentation that gives banks a sense of security,” Arena says. “You can’t be paying taxes on $500,000 while telling the bank you make $1 million in profits; you need realistic, accurate numbers and performance.”

Dene recommends developing a business plan that includes a forecast for the next three to five years and shows revenue, food costs, and gross and net profit. “Have an accountant put together a plan based on your history, throughput, location and number of seats you have,” he says. “You have to do a lot of research, and it’s a long process. Owners often underestimate the time everything takes, so set up a team and get organized.”

If you’re using your own capital, including taking on debt, you might start small, Hayman says. “Start with a sellable business plan; bankers really pore over projections and profit-andloss statements, so don’t just have a vision and forget to polish your plan,” he warns. “You have to know every number and every point of projection—the devil is in the details.”

Barr agrees that detailed, accurate, timely and relevant financial statements are crucial. Show the economics of the existing unit(s), plus accurate projections for the new unit(s) and your working capital needs. “People forget that they need money to fund labor and other items during the startup phase, so work

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“To give you X amount of dollars, banks generally want to see three times that amount so that they feel like they’re taking no risk.”

—Keith Hayman, Music City Pizza with a lender to identify your needs,” Barr advises.

Ultimately, a good reputation and longstanding presence in the community will help, since banks are looking for verifiable documentation, a good track record, collateral and a business model that works, Arena adds. But keep in mind that, no matter whom you turn to for capital, there is one incontrovertible factor: the bottom line. “Investors are interested in one thing: Do you have a healthy profit?” Arena says. “They’re looking at return on investment vs. risk: ‘Am I going to make enough money to offset the inherent risk? Is it a sound investment, and can you prove it?’” Hence, before even considering any type of expansion, pizzeria operators would be wise to first ask themselves those questions—then start on the lengthy legwork to make their dreams of expansion a reality.

Tracy Morin is PMQ’s senior copy editor.

Click here for bonus content on franchising your pizzeria and crowdfunding.

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feature story Underdog Marketing

Principles 20

of Underdog

Marketing Try these proven strategies for winning the war against larger competitors that have bigger ad budgets. By Tom Feltenstein

T

hroughout history, time and again, the underdog has seized victory from the jaws of defeat. In Biblical times, the bookies made Goliath an oddson favorite over David, but we know how that contest turned out. From Truman’s upset over Dewey in 1948 to the Outback Steakhouse victory over the big casual-theme restaurants that stunned the foodservice world, underdogs have been turning preconceived notions upside down throughout history.

But these victories were not flukes. They were the result of careful preparation.

Outback orchestrated its win by building an indomitable force from within its four walls. Every merchandising zone inside the restaurant became a potent marketing weapon loaded with points of persuasion. Outback gave each of its general managers equity ownership in their own stores, generating an esprit d’corps that turned Outback’s internal customers into fierce warriors whose only mission was to vanquish their foes by dazzling their guests. People thought Outback was just another steakhouse with no guarantee of victory. But the owners knew what nobody else knew—that they would win.

Underdog Marketing is so basic that it can’t be considered a discipline that’s separate from neighborhood marketing. It’s the whole business seen from the point of view of its final result—that is, from the customer’s perspective. It is a business philosophy, a management discipline for running a business with one prime objective: to satisfy the needs of the customer. I’ve developed 35 principles of Underdog Marketing to serve as a guiding philosophy for success. Here, I’ve condensed them down to 20 principles, and I invite you to peruse the complete list in PMQ’s digital edition at PMQ.com/digital.

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“

From exterior signage to the four walls inside, Underdog Marketers use every inch of their properties to convey important messages to the thousands of customers who flock through their doors.”

1 2 3 4 5

It’s not the size of the dog in the fight that matters; it’s the size of the fight in the dog. If the Underdogs want to run with the Big Dogs, they must get off the porch and have the discipline to prepare. Feisty and independent by nature, they can make up for their smaller size by becoming fiercely aggressive and highly disciplined, especially when defending their home territory.

Underdog Marketers look, act and feel like leaders. They cast a larger-than-life shadow across the path of the nearest Big Dogs and watch them shrink. If the Underdog can project the image of a Big Dog, everyone will soon be pointing to him as the Big Dog instead of the other guy.

Underdog Marketers are Olympic thinkers who settle for nothing less than gold-medal results.

They will not accept second-place finishes. They don’t make excuses and, to them, mediocrity is a dirty word. They know they cannot achieve a world-record performance unless they set their standards far higher than anyone else’s.

Underdog Marketers don’t mourn the death of mass marketing; they celebrate it. They pronounced mass marketing dead long before the competition realized it was ailing. While these competitors keep blasting away at the market with everything in the Madison Avenue arsenal, Underdog Marketers are conquering their own neighborhoods and winning the war.

Underdog Marketers know the power of persuasion begins in their places of business. Realizing that their restaurant is the most powerful selling tool of all, Underdogs use every inch of their property to convey important messages to the thousands of customers who flock through their doors.

From the exterior signage to the four walls inside, they divide the restaurant into persuasive merchandising zones. They never miss an opportunity to tell guests what makes their pizzeria special.

PIECASSO PIZZERIA & LOUNGE

Piecasso Pizzeria & Lounge, located in Stowe, Vermont, uses its outdoor signage to describe its various offerings, including pizza by the slice, wi-fi, live bands and delivery.

6 7

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Underdog Marketers use their forces wisely. They have the wisdom to fight the battle where they can best win the war—within their four walls and in their own neighborhoods. They know that there are only four ways for sales increases to explode the top line: bringing in new customers; attracting more repeat purchases; raising check averages; and increasing party size. These sales targets are the focal point for the Underdog’s prime marketing objectives.

Underdog Marketers know that what’s right at home is what’s best. They spend at least 60% of their marketing dollars at home, within the four walls of their pizzeria. They take control of their four walls and their message centers or zones to create messages that zero in on the minds of their best customers, turning the zones into point-of-persuasion money machines. Underdog Marketers don’t have to begin comparing drive time and weekend insert costs before announcing that they’ve added flatbreads or a new line of local craft beers to their menu. Their message centers—including table promotions, tent cards, posters and menus—will convey these messages first.

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8 9

Underdogs use “trickle-down marketing” in reverse. They know how quick and easy it is for the entrepreneur to put a new idea to work compared to Big Dog marketers, who must start with big ideas that cost big bucks, then rush to justify the expense. Working from the bottom up, Underdogs expand their marketing effort by taking small steps first, then lengthening their stride until they’re at full speed and on their way to accomplishing their goals.

Meanwhile, the Big Dogs continue to develop their strategies while gazing downward from Mt. Olympus, hopelessly out of touch with the local marketplace.

Underdogs may not bark the loudest, but they bark more often. They target their audiences with more personalized communications compared to the Big Dog’s broad-based messages.

TOM MAYNARD

Using eyecatching graphics and bright colors, Chattanooga, Tennessee-based Lupi’s features several merchandising zones throughout its property.

11 12

TRACY MORIN

Las Vegas-based Metro Pizza promotes all of its locations on its pizza boxes.

10

Underdogs conceptualize their battle plan.

Whenever they think of a new promotion, menu item or service, they first recognize the value of their own property. Underdog Marketers put their advantages to work by devising an overall marketing strategy that starts within the zones of their four walls and property line before extending themselves into the neighborhood.

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Underdog Marketers know that four-walls marketing begins with the people who share their foxholes. Their programs don’t start with a thousand fliers in Walmart’s parking lot; they begin with the pizzeria’s employees. They energize their staff by keeping them focused on the strategies that keep customers coming back and by exploring new opportunities. In return, they are rewarded with their employees’ loyalty.

Underdog Marketers know there is a secret marketing revolution going on. Expensive advertising campaigns may dazzle and distract. Underdog Marketers, however, quietly sneak up on their competitors. Without fanfare, they identify the best prospects and customers by name and address and gain their deep loyalty through direct communication. They do not treat a loyalty program as a mere add-on; building a highly loyal customer base is an integral component of their business strategy. They know that building one-on-one relationships will make them the customers’ first choice when deciding where to spend their food dollars. It’s much easier to bring in current customers 10% more often than it is to increase new visits by 10%.

Underdog Marketers know that the ability to sustain a large base of loyal customers is a powerful key to the success of the pizzeria. They know that loyal customers are the marketing apostles who spread the good word about their pizzeria. A 5% increase in customer loyalty can produce double-digit profit increases. Word-ofmouth, still the most effective form of advertising, can generate exponential numbers of new customers!

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“14

Always embarrass the Big Dog by turning his weight and size against him; then out-deliver him with product excellence and friendly service that he cannot hope to match.”

15

Big Dogs with deep pockets can generally win a war of attrition. Unless the Underdog can sell what the Big Dogs sell for less, he should not challenge the Big Dog to a price war; that simply puts the fight on the Big Dog’s terms. Even the most persistent Underdogs know they cannot match the Big Dog’s bankrolls. So, to put the odds in their favor, they keep backyard battles manageable. The Big Dog’s standardized price structure provides a foundation based upon which a service-savvy or quality-obsessed Underdog Marketer can charge a premium.

The Underdog’s best effort will always outstrip that of the Big Dog’s because the Big Dogs are tied down by limitations and procedures dictated by chain-wide red tape. Unlike the Big Dogs, Underdogs are free to take their best shot whenever it serves their interests.

Practice “corporate judo” when challenging a leader. Underdogs think smart (and get the most for their buck) by out-maneuvering the Big Dogs in every way they can, from promotional events to the purchase of product lines.

If the Big Dog offers a coupon for $1, the Underdog Marketer should make his coupon worth $2. If the Big Dog offers free dessert for birthdays, the Underdog should offer a free cheese pizza. Always embarrass the Big Dog by turning his weight and size against him; then out-deliver him with product excellence and friendly service that he cannot hope to match.

16 17 18

An Underdog counteroffensive is doubly offensive to Big Dogs. Big Dogs don’t want to become increasingly involved with the Underdog’s counteroffensive tactics, but these tactics will win the Underdog many allies. The public loves a good fight. Brand yourself effectively as the Underdog, and the public—as well as the media—will be more likely to take your side. Everyone loves the Underdog!

Underdog Marketers make innovation, service, pricing or quality their strongest attribute. Once the Underdogs make their choices, they stake their reputations on it.

They never pass up the opportunity to tell the public why they are the very best pizza makers in the area.

Getting your share of stomach means elevating products and service over the Big Dogs.

Underdogs know what they’re best at: quality of food, service and know-how. They get on top because Big Dogs tend to sleep a lot, miss much and haven’t yet figured out how to motivate their staff to match the loyalty the Underdog commands among his employees.

It’s the point upon which a battle often turns.

With a full-service bar and large selection of craft-brewed beers, Blue Moon Pizza in Atlanta turns locals who come for a cocktail or two into regulars who are hooked on the pizza.

AMY HUNSINGER

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CANE ROSSO

Cane Rosso, an authentic Neapolitan pizzeria in Dallas, stands out from its competitors by cultivating a hip, fresh and irreverent personality.

19

20

Underdog Marketers create a distinctive personality.

They are youthful, hip, and often a bit irreverent. They bark a lot and keep clamoring for attention. Brash personalities are always more engaging and memorable than those that you’d find inside corporate boardrooms. A bright and energetic attitude is what the public expects but seldom finds in a typical chain operation. Underdogs create a Unique Selling Proposition (USP) and let prospects in their area know about that USP at every opportunity. The Underdog’s USP is the reason customers should eat at his pizzeria rather than the competitor’s.

The USP becomes the badge that Underdogs place on all of their marketing messages. This may be higher quality, better service, customization, lower price or a combination of all of these things. The USP tells the Underdog’s customers—and the world—why the Underdog’s pizzeria is the only pizzeria for them!

Underdog Marketers practice transcendental marketing.

They know that human desire transcends time, language and culture. Since the beginning of time, people have desired health, happiness, status, security, beauty and prosperity. The specifics of these desired qualities may change in different areas and times, but the basic desire transcends all. Underdog Marketers make sure all of their marketing speaks to these basic human desires.

Tom Feltenstein is a restaurant marketing consultant and the CEO/Founder of Tom Feltenstein’s Power Marketing Academy.

Click here to read an expanded version of this article, “35 Principles of Underdog Marketing.”

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feature story Security

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Playing It S fe Keep your pizzeria—and your customers and employees— protected with a multipronged approach to security.

By Tracy Morin

P

rotecting your business against a variety of possible dangers should always be a top priority for pizzeria owners. As recurring headlines about delivery driver murders, pizzeria robberies and similar crimes amply demonstrate, there are many reasons to properly equip your building and your employees to handle any threatening scenario, but too often operators wait for something to go wrong and then install the proper equipment and procedures—when it’s too late. By being proactive about your business’ security, you can ensure a greater level of safety at your pizzeria and deter fraud, employee theft and, most importantly, potentially violent crime.

A Culture of Safety Before you buy high-tech alarm systems and surveillance cameras, ensure that your company makes safety a priority through training, education and constant vigilance. “Security measures like cameras and alarm systems are excellent tools, but they’re not that helpful unless there’s an underlying culture of safety and security,” notes

Security_December13_Digital.indd 67

Click here to learn how one pizzeria operator turns security camera footage of thieves and vandals into videos that become viral sensations on social media.

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Mike Brumagin, CEO of Flippin’ Pizza (flippinpizza.com), with 15 locations in California and the Washington D.C. area.

“As with all things regarding culture in the workplace, it starts with leadership at the top and down through the leadership chain. If they take safety and security seriously, then layering on these tools makes sense.”

Proper employee training can prove even more important than the right equipment. “Cameras record crimes; they don’t prevent them. So just because you have cameras doesn’t mean you’re safe,” says Jeff McKissack, president of Defense

by Design in Dallas. “The best key to a locked door is a good story—so many operators tell me of people coming to the door late at night saying someone has been injured or needs to use the bathroom, and employees unlock the doors for them.” So, first, staff members need to be trained about potential ruses that criminals may use; if they aren’t, it’s easy for a criminal to circumvent security.

McKissack also suggests that operators instruct employees to keep a simple rule in mind: Don’t take what customers say personally. Violence often breaks out when verbal confrontation between a customer and employee escalates. Teach your employees to resolve these conflicts before things get out of control, and everyone benefits. Additionally, all employees should leave together at the end of the night (each time one person leaves, someone else can enter), and management should be informed the following day of any threats received or restraining orders

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filed. Meanwhile, McKissack adds, operators should assume that any fired employees may come back for revenge, so they should let all shifts know about terminations; retaliation usually occurs 48 to 72 hours after the incident.

Security has become a major issue for the Chuck E. Cheese’s (chuckecheese.com) brand, which has made headlines in recent months for outbreaks of violence among bickering customers.

The company spends more than 8,000 hours annually training store employees to recognize signs of potentially escalating and unsafe situations. All locations undergo education on proper capacity management, robbery, crisis response plans, and cash management safety procedures. “Safety awareness training is really important,” notes Catherine Olivieri, senior vice president of human resources and risk management for Irving, Texas-based CEC Entertainment, owner of Chuck E. Cheese’s. “You must train employees on what to look for and report anything that raises a red flag to a manager. You want to be aware who’s inside and outside the building and ensure that employees don’t open the back door after dark or do anything that would set themselves up to be robbed. It’s not about money—it’s about protecting employees.”

Security Measures Many businesses use video surveillance for a variety of reasons, and safety is only one part of the equation. “Cameras

Safety First!

Security cameras and well-lit parking lots make a big difference, but, when it comes to creating a safe, secure restaurant environment, there’s no substitute for a well-trained staff and smart security policies. Mike Brumagin, CEO of Flippin’ Pizza, offers a number of tips to establish a culture of safety at your pizzeria: qq Conduct regular safety meetings qq Include employees in the process, asking for suggestions and taking them seriously qq Commit to regular safety and security inspections and immediately correct any deficiencies qq Involve your insurance carrier qq Make safety and security part of orientation for new hires qq Conduct ongoing training qq Offer detailed policies and reprimand any employees who don’t follow them (including discipline and termination if necessary)

www.PMQ.com/census13

qq Ensure that policies also cover the conduct of vendors and customers.

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are not only for securing the property itself; they’re also helpful in slip-and-fall situations and food handling disputes,” says Robert Kramer, senior system engineer, security group, at Panasonic System Communication Company in Newark, New Jersey. “In case of litigation, you can review what actually happened.

It’s also common to tie in surveillance with POS data and play back transactions—so if you notice a lot of voids on a particular day, the manager can check why. Surveillance is also useful to reduce

shrinkage and liability for an owner.”

At Chuck E. Cheese’s, a family-friendly environment translates into rigorous safety measures to protect both guests and employees. “Our video surveillance system deters criminals because we have signage on the door that says security is in place,” Olivieri explains. “It also monitors against fraudulent claims, helps address poor employee practices and helps with police investigations. We average 30-something cameras per store to get good visibility in all areas, and it’s synced

with our POS to examine potential employee theft.” Because Chuck E. Cheese’s has so many locations, it also works with a security company that predicts how safe an area is based on criminal activity, which helps determine what safety measures to put in place (such as fencing around the property or on-site security guards). Meanwhile, their Kid Check program ensures families that come together leave together.

To create efficient security, use the surveillance systems according to instructions, and make sure they work properly at all times, Brumagin says. You’ll also want to ensure the cameras are visible and that customers and employees know about the security system. He recommends using camera technologies that have a secure recording system that captures and stores enough historical data to be useful (in many cases, claims come days or even weeks after an incident).

Finally, you should let employees know now and then that someone in management is actually watching (for example, call into the restaurant and point out something so they’ll know—and tell each other—they’re being monitored). “Use this for good,” Brumagin advises. “Call a store and compliment an employee because you were watching through the camera and saw what a great job he did cleaning the dining room or opening the door for a customer.”

Securing the System To find the right security system for your operation, Kramer recommends looking for cameras with a small profile so as to not detract from your decor. Cameras with a wide dynamic range, he says, will be better equipped to record images in different lighting situations (for example, when bright sunlight is coming in through the window). He recommends placing cameras at front and back doors (or any other entrance points), at the cash register, near the freezer area or in the freezer (a common point of product loss), prep areas (to guard against improper food handling or contamination), in the manager’s office or near a safe, and anywhere else where important personal

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“For employee safety and liability management, it’s a good idea to have cameras to ensure that doors are locked or that no one is lurking around the corner when an employee leaves at night.”

—Brad Morehead, LiveWatch Security or financial information is stored. Finally, for dine-in operations, a camera with a wide field of view can be used to cover the restaurant floor.

With today’s technology, operators can monitor what’s happening in the store remotely and be alerted if something is amiss. “For employee safety and liability management, it’s a good idea to have cameras to ensure that doors are locked or that no one is lurking around the corner when an employee leaves at night,” says Brad Morehead, CEO of LiveWatch Security in Chicago. “Business owners can now set up alerts to know when openers arrive or closers close, and there are codes that can track which employees are coming and going.”

Additionally, security information can now be stored digitally “in the cloud,” and operators can set up rules so they’re contacted through text or email at certain times, such as if a door is open when it’s supposed to be closed. This “rules-based”

approach can cut down on false alarms, while the company you work with can also monitor footage to know if something is amiss and contact police if you’re away from the store.

Morehead advocates making cameras clearly visible so that employees are aware they’re held accountable, although certain places—such as where there’s an expectation of privacy (i.e., bathrooms and perhaps even break rooms)—may be off limits. Operators should research local regulations for possible restrictions on camera placement. Cameras should be infrared to see through windows in the dark, Morehead notes. And, finally, he recommends asking any potential security system company whether you’ll be leasing or buying the equipment (he promotes buying), and look for short-term contracts. “You can go month-to-month or by the year; there’s no need to sign a five-year agreement anymore,” he says.

Additional Considerations Delivery is a common concern for pizzerias, and drivers are often at risk for robbery and other crimes, so make sure you have proper procedures in place to protect your business and employees. McKissack recommends the following: Create a hold-harmless addendum for drivers in case they need to use self-defense so your business isn’t held responsible; don’t give a driver anything for self-defense (including weapons or pepper spray); offer training so drivers remain alert on the street and are familiar with common lures from criminals; document

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“We average 30-something cameras per store to get good visibility in all areas, and it’s synced with our POS to examine potential employee theft.”

—Catherine Olivieri, CEC Entertainment

your procedures; and follow up on training to keep up with staff turnover.

And don’t overlook cash management, advises Brumagin.

“Consider time lock safes, very strict, well-enforced cash management policies and regular deposits with security measures in place (such as varying times or the route taken),” he recommends. “Many robberies have an internal component to them, and when word spreads about the tight cash management policies in place, the lock-down on the safe, etc., it deters theft.”

Chuck E. Cheese’s locations utilize drop safes for employee protection, since research on robberies has proven that criminals tend to target businesses that have easy access to cash.

Some locations have a small safe for petty cash and a larger safe in which money is placed as a manager closes a shift. “The manager inputs information in the safe log and drops the money,” Olivieri says. “The safe has a dual key system, with the second key for armored access only. Signs on the front door, safes and manager’s office make it clear that employees don’t have access to this money.”

Finally, lighting in parking lots should be “bright enough to read a newspaper,” Olivieri says. Visibility is also important inside and around the store. “If you have signs covering the windows on the front of the store, people can’t see what’s happening inside. If you have high hedges or bushes, criminals can hide behind them,” she notes. “Robbers pick places based on visibility and ease of access, so even things like lighting and landscaping play a part in safety.”

Tracy Morin is PMQ’s senior copy editor.

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feature story Bluegrass bakeoff

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Click here to view our special video coverage of the Bluegrass Bakeoff!

Bluegrass Bakeoff The

By Melanie Addington

DiOrio’s Pizza & Pub of Louisville takes top honors in Kentucky’s fourth annual pizza making showdown.

T

(Opposite, clockwise from top) Rachel Williamson, Vic DiOrio, and Candace Cochran from DiOrio’s Pizza celebrate their victory; Alan Rosenberg of Papalinos shows off his pig tattoo; Rosenberg’s pie, The Righteous Pig, helped him place third in contest; and pizza fans enjoy samples from the culinary competition.

he Kentucky-Louisville college football game may have been the hottest ticket in town, but it wasn’t the only heated rivalry unfolding in Lexington back in early September. Pizza makers from Kentucky’s two largest cities staged a showdown of their own at the fourth annual Bluegrass Bakeoff on September 10—and it was delicious.

Standing outside in cool, breezy weather in downtown Lexington, nearly 700 people came out to enjoy good pizza, Kentucky Ale brew and live music by the band Superfecta. Meanwhile, it was Lexington vs. Louisville in the fight for the title of best pizza in the Bluegrass State. And just as the Louisville Cardinals prevailed in Commonwealth Stadium, a team of pizza makers from DiOrio’s Pizza & Pub in Louisville took home top honors in the bakeoff. The team, led by owner Vic DiOrio, won with a pie called Aaron’s Heat and Sweet, a pesto-sauce pie with spicy sausage, jalapeños, sweet red onion, pepperoni, and basil covered in fresh mozzarella.

Greg Spaulding of Lexington-based Puccini’s Smiling Teeth (puccinissmilingteeth.com) finished

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in second place while Louisville-based Papalinos (papalinospizza.com), led by Alan Rosenberg, took third prize. Fourth place went to William Bodne from Pazzo’s Pizza Pub (pazzospizzapub.com) in Lexington.

As the first-place winner, DiOrio earned a spot on the U.S. Pizza Team and is eligible to compete with the team in the World Championship of Pizza in Parma, Italy, next spring. Spaulding has previously won the Bluegrass Bakeoff and has been a member of the U.S. Pizza Team for several years.

A total of 20 competitors vied for the title in the Bluegrass Bakeoff. Event sponsor Pizzaovens.com teamed up with food supplier Presto to bring the ovens and other needed materials for the pizzaiolos. The competing pizzerias brought their own toppings and sauces for their pizzas.

Helping the Community Pizzaovens.com began the competition four years ago to tie into the big in-state rivalry football game, and he soon learned that the competition was fierce.

For Fash Asvadi, owner of PizzaOvens.com, it’s less December 2013

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PMQ publisher Steve Green poses with representatives from FatKats Pizzeria & Restaurant in Georgetown, Kentucky.

about making money than about helping the community by bringing together sponsors and pizzerias, to create an event that gives back to local charities. The Lexington Humane Society was the natural choice for Asvadi, while partner Presto, a food supplier, chose Ronald McDonald House. The partners ended up raising nearly $5,000 for the two charities.

“Tuesday night is not too busy for pizzerias so they can all attend, and it typically takes place on the week that the University of Kentucky plays Louisville, so there is a passionate intensity about who is going to win—Louisville or Lexington,” Asvadi says. “The objective is to bring pizza operators together and try to help some of the local charities in the process.

Everybody loves pizza, and everybody loves to gather where there is live music, pizza and beer.

“It takes a lot of people to organize it,” Asvadi adds. “This time around, we had about 40 people, including volunteers,

helping us out. I started planning this maybe six months ago.

It is a lot of work, but my passion is to put projects like this together. It is one of the things I really enjoy doing—while, in the process, helping charities. I don’t think you can put a monetary value on how much business this brings us. The objective is to have a nice, fun, competitive evening and help whoever we can as much as we can.”

Neighbor vs. Neighbor With a slightly changed format this year, the competition’s judges chose the top four finalists before moving into the final round to determine the best of the best. Two of the finalists, DiOrio’s Pizza and Pub and Papalinos, are family-owned businesses located just down the street from one another in Louisville, but the owners say they’d never really had a conversation before the Bluegrass Bakeoff. “Papalinos is a block down from us and is a really good pizza restaurant, but it is different from ours,” DiOrio says. “They’ve won all kind of awards. It was nice to get to talk to [Rosenberg] for a bit.”

DiOrio says he had doubts whether his team could pull off a victory this year. “We won in 2011 and then didn’t place in 2012,” he says. “Everybody there had a pretty good pizza. A lot of times it really comes down to the ingredients you buy. There absolutely is a difference in quality product.”

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Bayram Vatansever from The Bridge Pizza in Lexington competed again this year after winning the 2012 bakeoff.

DiOrio’s opened three years ago when Vic and his brother decided to get back into the pizza business after a short hiatus.

They had owned a couple of popular pizzerias, Gevito’s Pizza, in Atlanta, for about 12 years before selling out and changing careers. They recently opened their second store in The Highlands in Louisville.

“Everybody pitched in and opened it,” DiOrio recalls. “We have a lot of family, so the younger generation comes in and helps. It makes it a lot easier to work there. Some say you can’t work with your family, but I actually enjoy it.”

For this year’s competition, DiOrio worked with his two nieces, Rachel Williamson and Candace Cochran. Meanwhile, Rosenberg partnered with his son, Dustin Hernandez. The two also work side-by-side at their pizzeria daily. “This was our first time competing,” Rosenberg says. “His sister works there too, but it is just the two of us today.”

Like DiOrio’s, Papalinos participated in the Bluegrass Bakeoff at the request of John Harrison, sales manager at Presto.

“Presto helps us out so much that we had to give it a shot,” Rosenberg says. “It’s a little hectic but fun.”

Harrison says Presto’s work with pizzerias in the region led to the company becoming involved in the Bluegrass Bakeoff.

“I think it’s a great showcase to compete in because it’s about independents,” he notes. “Anytime independents can get the

accolades for being the ‘best of ’ in a competition, it’s a good award to have on your menu. The pizza community is a tightknit group. It’s competitive, but all of our customers are competing against Papa John’s and Little Caesars, so whenever we have an opportunity to push the independent businesses into the spotlight, it’s great.”

DiOrio says he is excited to travel to Italy as a member of the U.S. Pizza Team next spring. “I don’t know what I will be doing for the team, but I can toss dough out very quickly and fold boxes fast. You learn to do stuff very quickly in a high-volume restaurant,” he adds with a laugh. “But it is cool that the sponsors do this kind of thing and help bring awareness to pizzerias.

There need to be more competitions like this out there.”

Melanie Addington is PMQ’s social media director.

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The pizza exchange product spotlight

High-Powered Flours With more than 100 years of flour milling experience, a strong distribution network and personalized customer service, Pendleton Flour Mills (PFM) is committed to its pizzeria clients’ success. PFM’s Mondako Flour is ideal for hand-tossed and machine-rolled pizza crusts, extra-thin cracker-type crusts, calzones and stuffed pies. Its Power brand is specially formulated for thick-crust and deep-dish pizzas.

855-809-9089, pfmills.com

Getting Up to Speed SpeedLine 7 from Speedline Solutions opens up a new level of specialized control for full-service concepts with pizza on the menu. This POS system enables operators to simplify training, speed up service and manage the front of house more efficiently, with custom floor plans and visual service cues offered at a glance.

888-400-9185, speedlinesolutions.com

The Best of Blends Grande Italian Cheese Blends deliver the authentically rich and creamy flavor that will distinguish your pizzas from your competitors. Every blend melts evenly, displays excellent reheat qualities, provides excellent stretch and features tender mouthfeel. Flavors include East Coast Blend, Mozzarella Provolone Mild Blend, Cheddar Blend and 50/50 Blend. 800-847-2633, grandecheese.com

Rack ‘Em Up! Prairie View Industries Food Service offers a full line of quality aluminum and stainless equipment made in the United States. The company’s Lifetime Pizza Racks come with a limited lifetime warranty on the structural integrity and are NSF-approved.

They feature an open slide design for easy cleaning, product visibility and reduction of contamination. 800-554-7267, pvifs.com

More Throughput, Less Space In 2008, TurboChef introduced the HhC 2020, the world’s first UL-certified ventless conveyor oven. The company recently expanded its conveyor line to include the HhC 1618 and HhC 2620. Each conveyor is stackable up to three-high for maximum throughput. Additional features include simple controls, eight cooking profiles and mono-finger design.

214-379-6000, turbochef.com

Spray Gunning for Glory National Marketing Inc.’s KREBS LM25 is a food-safe handheld gun that’s perfect for spraying most low- to medium-viscosity liquids, including oil, sauces, egg wash, butter and marinades. Easy to use and simple to clean, its bent nozzle extension allows you to spray upwards, downwards or on edges and slants.

734-266-2222, nminc.com

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MEET THE TANK Liz Barrett

Meet the Tank

PMQ’s Think Tank (thinktank.pmq.com) is the only pizza industry forum on the Web, with 2,500 members who meet online regularly to discuss the pizza business. In this new column, we’ll introduce you to some of the Tank’s seasoned members who can show you the ropes and lend insights into how the forum has benefited their businesses.

Think Tank username: Bodegahwy Date Joined: June 16, 2007 Number of Posts: 2,633 Real Name: Steve Hitchcock Pizzeria: Soda Creek Pizza, Steamboat Springs, CO PMQ: How many years have you been in the pizza business?

Bodegahwy (Steve): I first worked in a pizza business in 1978 and worked in several stores, including management training with Domino’s. I opened my first store, and purchased my second, in 1999; I’m coming up on 15 years as an owner.

Do you remember why you joined the Think Tank?

I was an active member of an a guitar-related forum that I enjoyed and wondered if there was a community like that for pizza. A few minutes on Google, and voilà!

Why have you continued to return to the Think Tank over the years?

I’ve enjoyed being an active member of the Think Tank community. I find it to be a place where I can enjoy the “company” of other operators, find answers, contribute knowledge I’ve gained, and share frustrations and successes with people who will understand them.

Can you share an example of a business tip you picked up in the Tank that helped your business?

There have been many times that the Think Tank provided resources for finding things I needed. This has been true for specialty kitchen items, parts resources and also for information. For example, I learned that it is possible to “recycle” dough by mixing in blown dough with a new batch and that the amount that can be used is about 20% to 25% of the combined batch. This has saved us from throwing away unused dough when we overprepped.

What should a newbie know when first entering the Think Tank?

Many, many questions have been discussed over and over again. Have a look through the history and use the search function before starting a new thread.

We (business owners) all think we know a lot. Some do and some don’t. Keep it civil and understand that reality varies by market, and some of the things you may regard as holy writ are simply not the case for others. Civility is more important than “winning” on the forum.

Some of the most important discussions have been among the harshest in that pointing out poor assumptions may prevent a new operator or potential new operator from making expensive mistakes. If you are providing that kind of contribution, keep it respectful; if you are receiving it, try to understand that it is most often offered with a genuine desire to help.

Connect with fellow operators in the Think Tank!

Visit today at thinktank.pmq.com

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December 2013

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The Pizza exchange bulletin board

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The Pizza exchange bulletin board

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Compete to Win a Trip to Italy The U.S. Pizza Team Acrobatic Trials will take place at the

2014 North America Pizza & Ice Cream Show (NAPICS), February 9-10th in Columbus, Ohio.

Compete for your chance to win a spot on the U.S. Pizza Team Acrobatic Squad and an all-expense paid trip to Parma, Italy, to compete in the World Pizza Championships in April 2014.

To register, visit USPizzaTeam.com or PMQ.com/trials.

Non-competitors may also accompany the team to Parma, Italy, to provide support and enjoy the cultural experience.

To sign up for the Parma trip or for more information about the U.S. Pizza Team or the World Pizza Championships, visit USPizzaTeam.com or WorldPizzaChampionship.com or contact Brian Hernandez at 662-234-5481 x129 or at brian@pmq.com.

THANKS TO OUR U.S. PIZZA TEAM GOLD SPONSORS:

THANKS TO OUR U.S. PIZZA TEAM SILVER SPONSORS:

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advertiser index December 2013 Advertiser

Phone Website

Page

AM Manufacturing . . . . . . . . . . . . . . . . . . . . . . . 708-841-0959 . . . . . . ammfg.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29 American Metalcraft . . . . . . . . . . . . . . . . . . . . . 800-333-9133 . . . . . . amnow.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49 Avantec Ovens . . . . . . . . . . . . . . . . . . . . . . . . . . 800-322-4374 . . . . . . . avantecovens.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71 Bacio Cheese . . . . . . . . . . . . . . . . . . . . . . . . . . . 855-222-4685 . . . . . . baciocheese.com . . . . . . . . . . . . . . . . . . . . . . . . . 34, 35 Bay State Milling . . . . . . . . . . . . . . . . . . . . . . . . 800-553-5687 . . . . . . baystatemilling.com . . . . . . . . . . . . . . . . . . . . . . . . . . . 59 Bellissimo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-813-2974 . . . . . . . bellissimofoods.com . . . . . . . . . . . . . . . . . . . . . . . . . . 21 Delivery Bags USA . . . . . . . . . . . . . . . . . . . . . . 888-501-2247 . . . . . . deliverybagsusa.com . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Doughmate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-501-2458 . . . . . . doughmate.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 Escalon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 888-ESCALON . . . . . escalon.net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 EZ Dine . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 877-853-1263 . . . . . . ezdinepos.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 79 Fontanini . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-331-6370 . . . . . . . fontanini.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Grande Cheese . . . . . . . . . . . . . . . . . . . . . . . . . 800-8-GRANDE . . . . . grandecheese.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 HTH . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-321-1850 . . . . . . hthsigns.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 La Nova . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 716-881-3366 . . . . . . lanova.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 4 Le 5 Stagioni . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-780-2280 . . . . . . . le5stagioni.it . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51 LFI Incorporated . . . . . . . . . . . . . . . . . . . . . . . . . 888-882-0551 . . . . . . lfiincorporated.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . 55 Liguria. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-765-1452 . . . . . . . liguriafoods.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30 Lillsun . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 260-356-6514 . . . . . . lillsun.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65 MF&B Restaurant Systems . . . . . . . . . . . . . . . 888-480-EDGE . . . . . edgeovens.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 74 Marsal & Sons . . . . . . . . . . . . . . . . . . . . . . . . . . 631-226-6688 . . . . . . marsalsons.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 69 Masters Gallery . . . . . . . . . . . . . . . . . . . . . . . . . 920-893-8431 . . . . . . mastersgalleryfoods.com . . . . . . . . . . . . . . . . . . . . . . 57 Menu Express . . . . . . . . . . . . . . . . . . . . . . . . . . . 856-216-7777 . . . . . . . themenuexpress.com . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Microworks . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-787-2068 . . . . . . . microworks.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 Middleby Marshall . . . . . . . . . . . . . . . . . . . . . . . 877-34-OVENS . . . . . . wowoven.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Moving Targets . . . . . . . . . . . . . . . . . . . . . . . . . . 800-926-2451 . . . . . . movingtargets.com . . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Napics . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . napics.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 NJ Restaurant Equipment Corp . . . . . . . . . . . . 888-770-4479 . . . . . . . njrecorp.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45 One Two 3 Print It . . . . . . . . . . . . . . . . . . . . . . . 888-800-4455 . . . . . . 123printit.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81 Our Town America . . . . . . . . . . . . . . . . . . . . . . . 800-497-8360 . . . . . . ourtownamerica.com . . . . . . . . . . . . . . . . . . . . . . . . . . 43 Perfect Crust . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-783-5343 . . . . . . . perfectcrust.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 78 Pendleton Flour Mills . . . . . . . . . . . . . . . . . . . . 855-809-9089 . . . . . . pfmills.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 2 PizzaOvens.com . . . . . . . . . . . . . . . . . . . . . . . . . 877-367-6836 . . . . . . . pizzaovens.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 47 Pizza Skool . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 517-395-4765 . . . . . . . traintogreatness.com . . . . . . . . . . . . . . . . . . . . . . . . . . 63 Prairie View Industries Food Service, Inc . . . 800-554-7267 . . . . . . . pvifs.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 Restaurant Depot . . . . . . . . . . . . . . . . . . . . . . . . 718-762-8700 . . . . . . . restaurantdepot.com . . . . . . . . . . . . . . . . . . . . . . . . . . 56 RockTenn . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 816-415-7359 . . . . . . . rocktenn.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cover 3 Saputo Cheese . . . . . . . . . . . . . . . . . . . . . . . . . 800-824-3373 . . . . . . . saputousafoodservice.com . . . . . . . . . . . . . . . . . 15, 58 Stanislaus . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-327-7201 . . . . . . . stanislaus.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4, 5 Sunray Printing Solutions . . . . . . . . . . . . . . . . 320-492-3017 . . . . . . sunrayprinting.com . . . . . . . . . . . . . . . . . . . . . . . . . . . 75 Turbo Chef . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800-908-8726 . . . . . . . turbochef.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Tyson Foods, Inc . . . . . . . . . . . . . . . . . . . . . . . . 800-248-9766 . . . . . . . tysonfoodservice.com . . . . . . . . . . . . . . . . . . . . . . . . . 19 US Table Tops . . . . . . . . . . . . . . . . . . . . . . . . . . . 607-239-6728 . . . . . . . ustabletops.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80 XLT Ovens . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 888-443-2751 . . . . . . xltovens.com . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13 PMQ provides this information as a courtesy to our readers and will not be held responsible for errors or omissions. To report an error, call 662-234-5481 x127.

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The pizza exchange Pizza Industry Resource Guide Grab a direct weblink to every advertiser in this guide at PMQ.com

advertising

cheese Cont.

computer systems: point of sale

Apps

Redshift Backpage Ad (Draft 1).pdf

1

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Mobile Voice Recognition For Hands Free Ordering www.redshiftcompany.com (720) 884-6853 baking schools AMERICAN INSTITUTE OF BAKING..........................................................Manhattan, KS 785-537-4750.................................................................................Fax: 785-537-1493

All The Tech Your Pizzeria Needs • •

cheese

Tablet and Traditional Point-of-Sale Integrated online & smartphone ordering

• •

CALL FOR A DEMO TODAY!

Self Serve Kiosk ordering Automated customer loyalty marketing

800.750.3947 www.granburyrs.com

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The pizza exchange Pizza Industry Resource Guide computer systems: point of sale

crusts

Mountain harvest pizza crust co.......................................................................... Billings, MT Contact: Eric LeCaptain...........................800-342-6205......................................Fax: 406-248-7336 Sheeted Dough, Prebake Crusts, Dough Balls, Freezer to Oven, Self-Rising Crusts in Standard, Wheat and Nine Grain..................................................................... eric@mountainharvestpizza.com

cutting boards - equal slice

dough

DeIorio Foods

@DeIorios

blog.DeIorios.com

DeIorios.com

consulting

pmq.com/Recipe-Bank/

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The pizza exchange Pizza Industry Resource Guide dough dividers/rounders

dough trays/proofing trays • Dough Trays – extremely durable and airtight!

Outlasts All Other Dough Trays • Dough Tray Covers – designed to fit!

• Plastic Dough Knives – two ergonomic designs!

• Dough Tray Dollies – heavy duty!

Excellence in Customer service since 1955!

The preferred dough tray of the largest pizza companies in the world.

Buy direct from the manufacturer with over 25 years manufacturing in dough trays.

Call 800-501-2458 ........... www.doughmate.com ......... fax: 908-276-9483

When Dough Matters!

Eliminate racks, lids and tins with our stackable, airtight and cost effective Dough Trays.

1-502-969-2305 www.DoughTrays.com COST EFFECTIVE

STACKABLE

AIRTIGHT

DURABLE

ORDER DIRECT

4601 COMMERCE CROSSINGS DR., STE 300, LOUISVILLE, KY 40229 | p: 502-969-2305 | f: 502-810-0907

WWW.DOUGHTRAYS.COM

flour, Gluten-free dough presses, rollers

Bay State MIlling Gluten-free Pizza mix............................................ baystatemilling.com Gluten-Free All-Purpose Flour, Custom-blends and Co-Packing Dedicated production area for exceptional purity...........................................................800-55-FLOUR

flour

800.835.0606 ext. 205 | www.doughxpress.com

dough presses, dough dividers/divider rounders, dough dockers, carts and accessories

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The pizza exchange Pizza Industry Resource Guide flour Cont.

gelato

True Artisan Gelato

(888) 316-1545 www.stefanosgelato.com

gluten-free products W H O L E S O

M E

&

D E L I C I O U S ™ WHOLES

OME & DELICIOUS

™

food distributors hygiene

A FLY KILLER Kills all flies, cockroaches & spiders Guaranteed elimination

888-282-3079, or 631-237-1414 www.fruitflybarpro.com

Industry Statistics

RESTAURANTDATA.COM Easy Access ■ Flexible Searches ■ Smart Results 1 Bridge St • PO Box 285 • Irvington NY 10533 • 914-591-4297

1051 Amboy Avenue, Perth Amboy NJ

800-997-0887 or 732-346-0600 Fax:732-346-0882

Serving NY, NJ, PA, DE, CT

www.vesuviofoods.com

insurance 

 

     

Pizzapro..............................................................Low cost pizza delivery insurance program Contact Julie Evans (717) 214-7616..............................................................www.pizzapro.amwins.com

franchising Should You Franchise Your Restaurant?

Call today to receive your free DVD on “How to Franchise Your Business” and learn about one of the most dynamic methods of expanding your business in today’s marketplace.

708-957-2300 • www.ifranchisegroup.com

®

FRANCHISE CONSULTANTS

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The pizza exchange Pizza Industry Resource Guide machinery/ovens/equipment

MIDDLEBY MARSHALL

OVENS MIXERS

RANDELL

PREP TABLES

AMERICAN RANGE

WALK-INS

SOMERSET

PARTS SMALLWARES

1-800-426-0323

www.northernpizza.com

IMPERIAL

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The pizza exchange Pizza Industry Resource Guide marketing ideas Cont.

meat toppings magnets

BURKE CORPORATION....................................................................................... www.BurkeCorp.com Italian, Mexican-Style and Specialty Fully Cooked Meats Contact: Liz Hertz.............................. sales_info@burkecorp.com.............................800-654-1152 Sugar Creek Packing Co.,............................... Private Label Precooked Meat Topping Specialists www.sugarcreek.com.......................................800-848-8205............................sales@sugarcreek.com

mailing services

mixers used hobart 60 qt. mixer for sale at US $4980.00 plus shipping.

Call Lynn at 214-552-3218.............................................................................. or e-mail tbfm@tbfm.com

American Baking Systems

319-373-5006 • www.abs1.net

• • • •

Spiral Mixers Planetary Mixers Dough Sheeters Deck Ovens and more!

management

PIZZA BUSINESS CARD PACK

Get in on our Spring 2014 mailing!

keep more of your hard earned dough!

3 money saving programs:

sCheduLing • aTTendanCe • daiLy Log

FAST, PAINLESS SCHEDULING • MONITOR LABOR COSTS • REDUCE TURNOVER • NOTIFY EMPLOYEES • ELIMINATE BUDDY PUNCHING • IMPROVE COMMUNICATIONS • WEB-BASED

save time and increase profits!

www.timeforge.com 866.684.7191

marketing ideas LOCALGIFTCARDS.COM...........888-494-9760.....Your pizzas are mobile – why not try mobile gift cards? Sell e-gift cards and m-gift cards on your website. No upfront costs. Simple set up.

Visit LocalGiftCards.com to get started.

View the pizza industry’s best deals online at www.pizzacardpack.com!

Get your message into the hands of: • Every subscriber of PMQ Pizza Magazine (a BPA audited circulation) • Top officers of the 500 largest U.S. pizza chains • Pizza industry vendors and promoters

SPACE IS LIMITED! CALL TO RESERVE YOUR CARD NOW! Tom Boyles | tom@pmq.com | 662-234-5481 x122 Linda Green | linda@pmq.com | 662-234-5481 x121 Clifton Moody | clifton@pmq.com | 662-234-5481 x138

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The pizza exchange Pizza Industry Resource Guide mobile catering trucks/units

online ordering

moisture-absorbent toppings conditioner

pizza boxes

Krisp-it LTD............................................................................... 800-KRISP-IT (800-574-7748) Keep it Crisp with Krisp-It! www.krisp-it.com......................................................................................................nick@krisp-it.com

olives

pizza box liners

Pizza Training

on hold marketing

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The pizza exchange Pizza Industry Resource Guide pizza delivery thermal bags

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The pizza exchange Pizza Industry Resource Guide pizza delivery thermal bags

pizza ovens Cont.

Keep Your Pizza HOT & DRY 5 Pie & 10 Pie Bags

Electric Pizza Delivery Bags 888-556-2024 • www.RediHeat.com Call or Order Online

ELECTRIC HOTBAG

DELIVER GUARANTEED OVEN-HOT PIZZA EARTHSTONE OVENS, INC. ................6717 San Fernando Rd....................Glendale, CA 91201 800-840-4915........................Fax: 818-553-1133........................... www.earthstoneovens.com All units UI listed.

• Heats and stays at 160-175° • Dry electric heat = no moisture • Removable heating elements

Fired Up Kitchens ...................................PO Box 698........................ Bedford Hills, NY 10507 914-733-2845.................... info@firedupkitchens.com..........www.firedupkitchens.com

• Made of rugged 1000 Denier nylon • Easily cleaned

• Buy one bag or make a system • Wired with AC power • Heats all bags simultaneously • Quick release connectors, no hassle

800-927-6787

Made in the USA

Wood Stone CorporatioN.......................................Stone Hearth & Specialty Commercial Cooking Equipment..................................... 1801 W. Bakerview Rd.............Bellingham, WA 98226 TOLL Free 800-988-8103......................Fax: 360-650-1166............woodstone-corp.com

www.HOTBAG.com

pizza ovens MARSAL & SONS, INC.................................................. The new standard in the Pizza Industry Brick Lined Deck Ovens • Standard Deck Ovens • Prep Table Refrigeration 631-226-6688.......................... marsalsons.com ......................... rich@marsalsons.com roto-flex oven co...............................................................................Contact Richard Dunfield 135 East Cevallos, San Antonio, TX 78204 PH 800-386-2279................... www.rotoflexoven.com.........................Fax 210-222-9007

pmq.com/Recipe-Bank/

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The pizza exchange Pizza Industry Resource Guide pizza ovens Cont.

pizza pans

Inventor of

The Quik-Disk™

The best screen replacement since 1989.

LLOYD INDU STR IES ®

100’s OF SMART PIZZA PRODUCTS ONLINE!

Buy Direct and Save $$ • www.lloydpans.com • 1-800-748-6251

AMERICAN MADE

Pizza Screens • The Ultimate in Bake Disks Pizza Pans... Round, Square, & Rectangular Sauce/Cheese Rings • Pan Covers Pizza Cutters/Knives

P.A. PRODUCTS, Inc. BAKEWARE SPECIALISTS

WWW.XLTOVENS.COM

33709 Schoolcraft • Livonia, Michigan 48150 (734) 421-1060 • FAX: (734) 421-1208 www.paprod.com

TO ORDER CALL (316) 943-2751 | TOLL-FREE: (888) 443-2751 | FAX: (316) 943-2769

pizza peels

pmq.com/Recipe-Bank/

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The pizza exchange Pizza Industry Resource Guide pizza supplies

printing

• Pizza Preparation and Delivery Products •

BEST CHOICE PRINT & MARKETING EXPERTS.................................................For over 25 Years Best Prices & Quality: .............................................................. Menus, Flyers, Door hangers, Post Cards Print & Mail, Menus or Postcards .................................................................... Includes postage 27.5 ea WWW.bcms.US ................................................................................................... or call 800-783-0990

National Marketing, Inc.

www.nminc.com 800-994-4664

734-266-2222

Fax: 734-266-2121

Manufacturers’ Direct Pricing • Call or order online • We export

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Get your message into the hands of: • Every subscriber of PMQ Pizza Magazine (a BPA audited circulation) • Top officers of the 500 largest U.S. pizza chains • Pizza industry vendors and promoters SPACE IS LIMITED! CALL TO RESERVE YOUR CARD NOW! Tom Boyles | tom@pmq.com | 662-234-5481 x122 Linda Green | linda@pmq.com | 662-234-5481 x121 Clifton Moody | clifton@pmq.com | 662-234-5481 x138

December 2013.indb 97

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DEPARTMENT time capsule

Shield’s Pizza This Motor City institution is passionate about its pizza, but it’s also well-loved by the community for its heart.

In 1940s Detroit, pizza was picking up steam as a favorite food. When a former employee of a local pizzeria brought his recipe to the Polish owners of Shield’s Bar, pies were quickly added to the menu to feed hungry patrons. The bar—opened in 1937—began to serve food in 1946 and found success with the pizzas until selling the establishment to Deano Moraitis in 1974. In 1992, Moraitis’ nephews, Paul and Peter Andoni, bought the business, and they continue the tradition to this day. “Our Detroit-style deep-dish pizza is the centerpiece of the menu, but we’ve expanded to appeal to a wider variety of customers, with salads, appetizers, pasta, ribs, burgers and sandwiches,” says Paul, co-owner of Shield’s Franchise Restaurants (shieldspizza.com). “But when it comes to the pizza, we don’t take any shortcuts—we use the same recipes for sauce and dough that have been handed down for years, and we’re proud to maintain the quality that made Shield’s famous.”

Today, Shield’s has two locations in Troy and Southfield, Michigan, plus a third franchise location, opened in nearby McComb Township in 2005. Despite the area’s recent hardtimes economy, all three stores are going strong. It didn’t hurt that the Andoni brothers had plenty of real-world experience (their father owned both a franchise and a family-style restaurant) as well as the education (degrees in marketing and economics) to succeed. “We knew that Shield’s was a wellrespected, established name and brand, so we wanted to grow and expand it,” Paul says. “We love this business—from greeting the customers to building a team of great employees that are doing the best job possible to satisfy our guests. It’s in my blood!”

The payback has been significant: countless “best pizza” awards, kudos from both local and national press, and expansion planned through additional franchising in Michigan. But Paul insists that his greatest successes have centered around giving back to the community. At the height of the recent recession, the pizzeria fed free pizzas to unemployed locals.

When the Detroit Lions were winless in the first several games of a season, Shield’s promised free pizza to all when they scored their first win. “We had lines around the buildings for these events, but it’s more than a PR stunt; it gives people the opportunity to enjoy Shield’s Pizza,” Paul says. “It’s great to make a profit, but it’s more important to support the local community. When you have that passion, you look forward to coming to work every day.” —Tracy Morin

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(Top to bottom) The original Shield’s location, pictured here in the 1970s, began as a bar that later added pizza to the menu; former Shield’s owner Deano Moraitis (center) poses with Detroit Lions receiver Charlie Sanders (left) and former Detroit Piston and current Detroit mayor Dave Bing (right) in 1978.

Has your pizzeria been in business for 50 or more years?

If so, contact us at tracy@pmq.com.

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Links to Extra Content

Featured Video: The 2014 Pizza Power Report

Featured Video: Pizza 360: The Art of Pizza Box Design

Featured Video: The Bluegrass Bakeoff

Featured Video: Pizzeria’s Security Camera Footage Goes Viral

Turn the page to read:  35 Principles of Underdog Marketing  Follow the Money - Part 2

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Digital Edition Exclusive Underdog Marketing, Part 2

Underdog Part 2

Marketing In this expanded article, Tom Feltenstein offers 15 additional restaurant marketing principles to help small operators outfox the big dogs.

By Tom Feltenstein

LENNY & JOHN’S

In the wake of the 9/11 attacks, cops, firefighters and other rescue workers from the neighborhood made Lenny & John’s (co-owned by brothers Danny Scandiffio and Jimmy Scandiffio) their unofficial pizzeria of choice. In the process, they created a tribute to the heroes of 9/11 that remains on the restaurant’s wall to this day.

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Underdog Marketers select “eye-full towers.”

Underdogs place wine bottles on the table and prepare dessert carts that are brimming with sweet temptations. They exhibit these products in the most dazzling and spectacular ways to entice their guests. They recognize the truth behind the old adage, “What the eye admires, the heart desires.”

Underdog Marketers operate every aspect of their business from a marketing perspective. The successful Underdog Marketers know that a 2% increase in sales is effectively better than a 10% reduction in expenses. They focus on building top-line sales to create room for the business to grow comfortably without having to gasp for air every time the climate changes.

Underdog Marketers know where to set their traps. Underdogs take the long-range view of building a large customer base from within.

Serving 125 customers at $6 each is better than getting 75 customers to spend $10 each. Underdogs know it is better to insulate with volume than to lose major revenue if customers drop off.

They can always build better check averages once the customer base is solidified.

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“

“

Take the long view of building a customer base. Serving 125 customers at $6 each is better than getting 75 customers to spend $10 each.”

Building a steady customer base through repeat visits is easier—and more profitable—than constantly targeting new customers.

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Underdog Marketers know the marginal net worth of a customer. If they determine that a new customer represents $1,000 a year in profit and that they can attract that new customer through a marketing program that only costs $100, they jump at the chance to take advantage of this ten-fold return on their investment. They also know that if they teach their staff to become marketers instead of order takers, they can add a buck to the check of every new customer without having to spend a dime in advertising.

Underdog Marketers know that all marketing efforts must lead with the benefits, then substantiate with the features. Consumers buy what they need when they’re reminded of what they need. For example, some key benefits of a Burger King Whopper are: It’s cheap, it’s close to where you are, and you can almost always get it without waiting. A strong feature of the Whopper that substantiates its benefits and reminds consumers of what they need from that product is that, just as Burger King’s slogan proclaims, you can have it your way.

Underdog Marketers tell the whole story and educate their prospects about all the reasons they should be buying from them.

They know that informed customers make educated purchases. When a customer knows everything he needs to know about the Underdog’s product, he’ll buy with confidence, knowing that he’s made the right choice. Underdog Marketers know that goods aren’t sold—products and service are bought!

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Underdog Marketers don’t rely on the grand slam or the Hail Mary pass. They know that more ball games are won on timely singles and doubles than grand slams. They practice continuous innovation in every aspect of their business and do so in small, carefully planned plays—or increments—to ensure maximum effectiveness.

Underdog Marketers know that promotions should tickle the funny bone, gain consumer interest and convince customers that they want to spend time in a relationship with their brand. They know that promotion is the art side of marketing.

The logical side is pricing strategy, product, menu, operations and customer service. The art side of marketing says, “Who would’ve thunk it?” when a promotion strikes a chord with the target audience.

Underdog Marketers know that promotion and advertising are fashion-driven and ask consumers to “badge” with their brand.

The term “badge” comes from the beer industry, where consumers identify themselves by the brand of beer they drink, by the badge on the label. Underdogs want the customer to “badge” to their brand. A great promotion is a relationship, a way to say, “Spend a few minutes with me and have a little fun.”

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Underdog Marketers know their traffic generators. Underdogs make a special effort to involve retailers in the trading area, such as the shopping center across the street, as valued customers and customer contacts. These traffic generators exist on every main street or side street in your neighborhood—in the schools, the hotels and motels, the retail stores, and in commercial and industrial complexes. The smart Underdog Marketer regularly involves those traffic generators in promotional efforts.

Underdog Marketers use technology as a tactic. They tilt the playing field in their favor by being the first to adapt technological strides that are obviously going to become industry-wide. Big Dogs have to wade through layers of bureaucracy and paperwork before implementing change.

The quicker the Underdogs move, the slower Big Dogs appear to be moving.

Underdog Marketers know when it’s best to be a settler rather than a pioneer. They aren’t afraid to blaze new trails, but they pick their ventures in innovation carefully. They don’t forge trails that might lead to more peril than profit.

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Smart marketers know that relationships with local schools—as well as nearby hotels and shopping centers—can be used to generate traffic.

Underdog Marketers know that prescription before diagnosis is malpractice.

When an ailing business needs major surgery, Underdog Marketers are smart enough to use more than a band-aid.

While the Big Dog’s marketers try various remedies, hoping one of them works, the Underdog prescribes the right medicine based on careful testing, insightful research and thorough knowledge of the market conditions. They get rich by dominating their niche. Rather than exhausting their firepower to stand toe-to-toe in every battle with the Big Dogs, they use their ammunition wisely by finding a niche in the market that they can claim as their own and exploiting that niche to maximum growth. They are the Top Dogs in their specialty because they offer the best product, value and service.

Successful Underdogs plan for war by conducting thorough renaissance. They use Customer Attitude Profile Surveys to discover the attitudes and purchase patterns of their target customers and Internal Customer Surveys to measure the battle readiness of their staff. They never go to war without determining the boundaries and size of their trading area. They learn the lay of the land by conducting trading area tracking surveys, which empowers them to focus and effectively target their marketing efforts in those areas most likely to generate business.

Underdog Marketers distance themselves from the competition by measuring what they manage. Underdog Marketers know their successes cannot be validated, performance cannot be evaluated, and rewards cannot be given objectively without reliable forms of measurement. They realize that, unless rewards are connected to success, there is no motivation to achieve excellence. The Underdog Marketer cannot manage success unless he can measure it!

Tom Feltenstein is a restaurant marketing consultant and the CEO/Founder of Tom Feltenstein’s Power Marketing Academy.

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11/19/13 11:19 AM

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11/19/13 11:20 AM

Digital Edition Exclusive FOLLOW THE MONEY, PART 2

Follow the Money

By Tracy Morin

PART 2

Operators offer more tips for raising capital to expand your pizzeria business.

W

hen John Arena, co-owner/co-founder of Las Vegas-based Metro Pizza (metropizza.com), with five locations and two licensed operations, wanted to fund his latest venture—a $5.5-million buildout—he found that the Small Business Administration gives a credit for energy savings. “If you can demonstrate that your new building uses significantly less energy than your other store, instead of you coming up with 25% of the money, you might have to come up with 20%,” he explains.

After all, every little bit helps when you’re looking to raise money to expand your restaurant operations. In addition to the suggestions offered in our print edition, here are some more options to consider:

folks for their hard-earned cash. Mostly, though, crowdfunding seems to be a benign enterprise, and websites such as Kickstarter and Indiegogo help aspiring entrepreneurs tap into a vast network of willing investors who don’t necessarily demand high returns for their money.

The Crowdfunding Craze If you’ve never relied on the kindness of strangers, now may be the time to start. Crowdfunding, a new method of raising capital for business owners, has arrived, generating headlines and, in some cases, controversy. You can thank the film industry for the latter as some directors and actors have begun using crowdfunding sites to raise money for pet projects, leaving many aghast that rich Hollywood types would hit up regular

TRACY MORIN

Credits for energy savings from the Small Business Administration helped Metro Pizza in Las Vegas fund a $5.5 million buildout.

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MUSIC CITY PIZZA

MOD PIZZA

For operations like MOD Pizza (above) in Seattle, franchising has its good and bad points; Your Pie (top, right) partnered with a private equity firm to assist in its franchising plan, while Keith Hayman of Music City Pizza (right) hired a director of operations to help avoid the YOUR PIE

According to Howard Orloff, founder of CrowdfundingWebsite-Reviews.com, there are four types of crowdfunding campaigns: donation, reward, debt and equity crowdfunding. “The two most relevant to pizzeria owners are reward and equity crowdfunding,” Orloff adds. “Reward crowdfunding would be as simple as selling a coupon or gift card to raise funds for something like a replacement oven or minor renovations. Equity crowdfunding is a great way to raise capital for additional units.”

Orloff shares some tips to ensure a successful crowdfunding campaign: • Transparency is key. The more information an owner is willing to publish and share, the more likely he is to run a successful campaign.

• Reward crowdfunding requires little more than great product and service. It all starts by reaching out to your loyal customers for support.

• Follow these steps to success: Build your social network; find the right crowdfunding platform for your type of campaign; and consider working with a crowdfunding consultant (running a successful campaign can be more difficult and timeconsuming than it appears).

The Franchising Route Scott Svenson, co-founder and CEO of Seattle-based MOD Pizza (modpizza.com), has expanded to 15 locations through a franchise model and believes that franchising is great for grow-

ing a concept in a capital-efficient way, but this option has trade-offs, he notes. “You’re not capturing as much of the upside, but you’re outsourcing your capital needs to the franchise partner,” he explains. “This helps you to grow quickly and over a broad area.”

However, if you think you can franchise your business with little up-front investment, think again. “Franchising can be expensive. If you have one store and you want to franchise another, it’s going to cost just as much as opening up a second unit on your own, so you shouldn’t enter into this lightly,” says David Barr, chairman of Your Pie (yourpie.com), based in Athens, Georgia. “Be sure you understand the success of the current concept and how it might translate into future units.”

When he decided to franchise, Drew French, founder of Your Pie, partnered with a private equity firm to grow at a faster rate. “They invest in the franchise company, not in individual stores,” he notes. “Franchising is capital-intensive on the front end, but they have become partners with an equity in the business and allow us to grow faster.”

Finally, Keith Hayman, owner of Nashville-based Music City Pizza (musiccitypizza.com), advises evaluating each franchise deal to ensure that it’s sound and supports manageable growth. To help, Hayman hired a director of operations that understands the franchise model to avoid mistakes. “You want to get quality people around you and quality people for your franchised units,” he explains. “But you also need to fully understand the costs.”

Tracy Morin is PMQ’s senior copy editor.

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