PMQ Pizza Magazine June/July 2006 by PMQ Pizza Magazine

No Matter How You Top It, Your Buonamici Distributor Has Got You Covered. The nation’s top pizzeria operators have realized by working with their Buonamici Foodservice Distributor they will receive quality products, outstanding service, and increase their proﬁtability. To ﬁnd out more about your local Buonamici Foodservice Distributor please call Ross Violi at 800.347.0695 or visit www.buonamici-intl.com

Meet The Progressive Face of Italian Foodservice

Kitchen Design: Think it Through

Opening Your First Pizzeria: Market Targeting Dino Ciccone explains how to find your place in the pizza market and what to expect from your customers.

Pizza? Healthy? Yep.

FEATURES

Welcome to Orlando! PMQ’s Orlando Pizza Show is coming! Learn about U.S. Pizza Team Trials, keynote speakers, and everything that will be going on.

Kitchen Design: Think and Plan Before You Build The ins and outs of functionality inside your kitchen and floor planning of your first pizzera.

Amadeus Pizza Sounds a Winning Note Starting from scratch or starting with an existing pizzeria, Willian Kaminski, owner of Amadeus Pizza in Vancouver, B.C., explains how to get into the right location.

Big Pizza: Chinese Pizza’s New Sensation With a growing demand for pizza in China, it’s no surprise that Big Pizza has opened 14 stores throughout Beijing, with plans for more.

Cool Customers: Refrigeration and Display Cases From the World of Pizza, Great Britain brings you this article that challenges you to think about your presentation of refrigerated and heated items and adding aesthetics in your restaurant.

Nat’s New York Pizzeria In Vancouver Nat’s New York Pizzeria in Vancouver, B.C., explains how awards, celebrities and community awareness can significantly increase your sales.

JUNE/JULY 2006

Cascarino’s: The Perfect Pitch Rob Cascarino explains how his idea to become the official pizza of the New York Mets and Shea Stadium came to life.

Open it Right, or Not At All John Correll of Correll Consulting offers this 14-step guide to opening your first pizzeria. Here, you’ll find an abundance of information from branding, recipes and location to profit projections, finances and accounting.

A Taste of Italy: Touring with the U.S. Pizza Team From the New York Pizza Show to Salsomaggiore, Italy, hear about the U.S. Pizza Team’s 2006 trip to Italy.

Pasquale’s Ristorante and Pizzeria: A Winnipeg Staple Owners Joe and Sandro Laschiavo purchased the failing restaurant in 1990 and have since become a staple in their community…learn how they did it.

Melt Pizza In Australia’s Neutral Bay In this article, you will learn about half-and-half pizzas, magnetic menu value, and LOTS of marketing ideas.

Healthy Pizza? Definitely. Examine the science of creating, marketing and selling your own delicious, healthy pizza that your customers will go crazy for.

Smart Pies – Just What the Doctor Ordered Evelyne Slomon explains the nuances of a healthy pizza and how to offer healthy choices for health-conscious customers.

6 PMQ — The Pizza Industry’s Business Magazine

Opening Your First Pizzeria

Cost of Goods Sold

104

Marketing on a Shoestring

From the Publisher Steve Green gives you an idea of what to expect in this issue.

Letters to the Editor Read what other operators are writing in to PMQ about. If you have a comment, suggestion, complaint, or question, send it to us.

The Pizza Press A roundup of interesting, useful and sometimes quirky pizza news spanning the globe and the world of pizza.

Pizza Can Take You Places Chef Santo Bruno explains how the pizza business can take you around the world, create genuine celebrity status and help others along the way.

Prime Vendor Agreements

DEPARTMENTS

JUNE/JULY 2006

Driving Components in Prime Vendor Agreements Chef Eric Hahn explains the prime vendor contract and points out reasons why it can be good or bad, depending on your specific needs.

Cost of Goods Sold: Unlocking the Secrets David Scott Peters picks through your inventory to help you improve your bottom line and keep your money from being tied up in product.

Your First Successful Takeout Menu Michael D’Agostino explains why it’s important to choose the right menu for your restaurant and how menu marketing can improve or hurt your business.

102 When is a Pizzeria Not a Pizzeria? When it’s a Construction Site

Bruschetta and the Basic Art of Italian Cooking Maria Liberati explains the proper way to produce bruschetta.

PJ Giannini, PMQ’s Insurance Guru, examines the construction site and how and what to expect for insurance purposes.

104 Marketing On a Shoestring

In Lehmann’s Terms Tom Lehmann, our resident dough doctor, tells you how you can make your dough healthier with whole-wheat, multi-grain, rolled oats and various fibers.

Getting in the Door to Make Your Pitch The brothers Slutsky explain cross-promotion and the advantages of business co-opping and just how to do it.

PMQ’s Idea Forum More products and ideas and how they can benefit you.

8 PMQ — The Pizza Industry’s Business Magazine

Sy Sperling points out methods to capturing the media’s attention, free publicity and how to get cheaper advertising rates towards deadline time.

108 What is a Business Plan? CPA Michael Rasmussen reveals the rules on developing a business plan to maximize consistency and preparation.

111 PMQ’s Pizza Industry Resource Guide PMQ’s listing of the best pizza resources and products.

A WORD FROM THE PUBLISHER Winner of 4 GAMMA awards PMQ MAGAZINE Publisher Steve Green sg@pmq.com ext. 123 Co-Publisher Linda Green linda@pmq.com ext. 121 EDITORIAL Editor-in-Chief Tom Boyles tom@pmq.com ext. 122 Managing Editor Jim Dees jim@pmq.com ext. 129 Associate/Web Editor Lucas Leigh lucasl@pmq.com ext. 126 Culinary/Technical Editor Evelyne Slomon evelyne@pmq.com DESIGN/PRODUCTION Creative Director Eric Summers eric@pmq.com ext. 124 Art Assistant Rebecca Hollis rhollis@pmq.com ext. 135 PMQ Webmaster Lance Felker lance@umfoundation.com ADVERTISING Ad Sales Director Michelle Smith michelle@pmq.com ext. 127 Sales Executive Holli Ratcliffe holli@pmq.com ext. 138 Traffic Manager Rosalind Smith rosalind@pmq.com ext. 130 ADMINISTRATION Accounting Shawn Brown shawn@pmq.com Circulation Manager Sherlyn Clark sherlyn@pmq.com ext. 120 Trade Show Director Nadia Ahmed nadia@pmq.com ext. 136 USPT Coordination Caroline Felker caroline@pmq.com ext. 125 PMQ INTERNATIONAL PMQ China Weihua Xiao Watson weihua@pmq.com ext. 128 Australia Publisher Stephen Millar smillar@pmq.com.au Italian Liaison Enrico Fama enrico.fama@pizzanew.net

BY STEVE GREEN • PMQ PUBLISHER

THE HEALTHIEST, BEST TASTING PIZZA IN THE WORLD

he world is waiting, and if we put our heads together, why can’t we come up with one? Imagine the benefits: more profits, better image and even longer-living customers. With all the new food products, cooking technology and nutritional knowledge, which is available to us right now, how could we not accomplish this worthy goal? Calling all pizza makers, corporate chefs and nutrition experts: Let us now achieve the goal of finding or building the healthiest pizza in the world and then, most importantly, share it and celebrate it with our world of customers. Are you with me? Now let’s set a date: August 19th. That’s when PMQ will hold the “A Slice of the Action” Healthy Pizza Contest in Montreal at the Fitness Party. See page 90 and 91 for more details. The top American winner will earn a automatic seat at the American Pizza Championship in Orlando, while the Top Canadian winner will represent their country at the America’s Plate International Pizza Competition.

UNLIMITED INTERNATIONAL PIZZA OPPORTUNITIES What an incredible pizza market! After returning from Asia’s largest food show in April, FHA 2006, I have never been more optimistic about the growth of our industry. Our industry is fortunate enough to work with a food that can cross any border and change its form to become a local food favorite in every country on this planet. Currently, most pizza is consumed in North America, Australia and Europe, which have a combined population of just over 1 billion. The Asian market is closing in on 4 billion potential pizza consumers, and so far pizza is a colossal hit. PMQ was in Singapore as part of an eight-company-sponsored Pizza Industry Information Center, which was created to educate the many prospective pizza entrepreneurs who came by to learn about the pizza business. We were also well positioned to learn more about the industry by speaking with the top international pizza people from all over the world. PMQ’s Pizza Industry Information Center was sponsored by eight of the world’s most forward thinking companies. How about a round of applause please for our great sponsors: DeIorio’s, Fonterra, KR Castlemaine, OEM, OneSystem, Papa John’s, Perfect Italiano, and Williams Refrigeration.

United Kingdom Liaison Steve Woods uk@pmq.com Latin Liaison Julia Bussade bussade@olemiss.edu French Liaison Julien Panet jpanet@pizza.fr EDITORIAL ADVISORS John Correll Correll Concepts LP Tom Lehmann American Institute of Baking Joey Todaro La Nova Pizzeria Ed Zimmerman Success Foods Marketing Chef Santo Bruno Exec. Chef, Marsal & Sons CONTRIBUTORS Jeff & Marc Slutsky Authors/Consultants Dino Ciccone Eastown Pizza Tom Lehmann American Institute of Baking P.J. Giannini Pizza Profit Systems Chef Santo Bruno Exec. Chef, Marsal & Sons David Scott Peters Smile Button Enterprises Maria Liberati Author/Contributor Lee Simon The General Group John Correll Correll Consulting Eric Hahn RestaurantEdge.com Michael D’Agostino Takeout Printing Sy Sperling SySperling.com

OPENING YOUR FIRST PIZZERIA? So many times I have been asked by prospective pizza operators about going into the business; now I have a much better and shorter answer to their question, which is “Read the June Issue of PMQ that includes John Correll’s ultimate guide to opening a pizza store.” See John’s article on page 78. It contains a lifetime of wisdom and practical advice for anyone considering entering the pizza business. And by the way, if you want to visit with him, come by PMQ’s Pizza Industry Information Center, which will make it’s American debut at PMQ’s Orlando Pizza Show, part of the Florida Restaurant and Lodging Show. www.thepizzashow.com

PMQ Magazine - June/July 2006 Cover Photo: Photography: Eric Summers/PMQ Magazine Food Styling: Tom Boyles/PMQ Magazine

PMQ Magazine is published eight times per year in the months of January, March, April, June, August, September, October and November. Cost of U.S. subscription is $25 per year. International $35. 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 Magazine may be reproduced in whole or part without written consent. PMQ Magazine is produced using Adobe InDesign CS2, Adobe Photoshop CS2, and Adobe Illustrator CS2. Body copy is set in Helvetica Neue Condensed, and titles are set in Folio Bold Condensed. PMQ’s staff members are all pizza lovers, but we are secretly battling a crippling addiction to Ring-Dings.

10 PMQ — The Pizza Industry’s Business Magazine

GOLD SPONSORS

SILVER SPONSORS

A BIG THANKS TO OUR 2007 US PIZZA TEAM SPONSORS!!!!!

PMQ would love to hear from you. This is your chance to let us know what you think about the current state of the industry, comment on previous issues/topics in PMQ, give us feedback on topics you would like to see in PMQ or just voice your opinions... If you would like to send a letter to the editor, type it up and email it to tom@pmq.com and put Letter to Editors in the subject line or mail it to:

PMQ Magazine ATTN:Tom/Letter to Editor 904 N. Lamar Blvd. Suite 2 Oxford, MS 38655 We look forward to hearing from you.

LETTERS TO THE EDITOR

Dear PMQ, I am a customer of Super Fast Pizza in Fond du Lac, WI (PMQ July/Aug. 2005 article “Hot Pizza Delivered in 15 minutes?!” at www.pmq.com/mag/2005july-august/superfast.php). I have had many pies from them and like the Internet ordering. I have told Scott he is not the first in Wisconsin to do this. In the late 60’s Red Lantern Pizza in Oshkosh had a truck with gas ovens working the University of Wisconsin, Oshkosh campus equipped with a CB radio. Scott asked me what happened to that guy. The driver didn’t turn the gas off all the way and the truck blew up. The guy that ran the truck was finishing school and never got a new truck. For about five years people would say, “I miss that pizza dude in the truck.” By the way, in the late 60’s, I ate about 300 pizzas a year. Now older, and following the advice of my doctor, I am down to about 150-175 a year. Steve Yeah, that was in interesting article. Too bad about the Red Lantern guy. Also, you can get your pizza consumption back up without the risk…read the Healthy Pizza article in this issue. Dear PMQ, It was a pleasure meeting you at the NAPICS. As I mentioned, the popularity of several Happy Joe’s pizzas created a demand for our products from Midwesterners no longer living in our sixstate Midwest market. Many of our guests pay $100 to have a minimum of three pizzas, frozen and packed in dry ice, shipped to them via FedEx, so they can re-live the memories of Happy Joe’s experiences from their youth. That’s brand loyalty that is off the spectrum in today’s world. If you are interested in learning more, let me know. Bob • Ex. Dir. Franchise Development It was a pleasure meeting you as well. Don’t forget about PMQ’s Orlando Pizza Show (Sept. 8-6, 2006) and PMQ’s New York Pizza Show (March 4-6, 2007) in NYC. We have seen many questions about shipping pizza overnight posted to the PMQ Think Tank. Looks like it is a good topic to cover…be expecting a call from one of our writers. 12 PMQ — The Pizza Industry’s Business Magazine

Dear PMQ, Why are more and more national food chains sending coupons to consumers while they are at work? Consider these factors: • Americans spend more than 60 percent of their waking hours at work. • The majority of food purchases are made on the way to, from or at the office • At-work consumers have stronger buying power than the average consumer-- they are employed -- and do the majority of their purchasing on their way to and from or at the office Over the past year, over 100 national brands including McDonald’s, Blimpie, Subway, Dairy Queen and Applebee’s have started using companies that drives sales by delivering buying incentives to over 64 million Americans in their workplace to execute advertising campaigns. And they all have reported redemption rates that are 5 to 10 times the redemption rate of coupons in newspapers, direct mail or FSIs. I thought you might be interested in doing a piece on workplace marketing and the value of the at-work consumer. Arlyn Very interesting. I will pass along this info to our readers. You are right, many decisions about dinner are made before people leave the workplace. Incentives delivered to potential customers before they start the drive home can provide very good response rates. In a related article, check out the article on Payroll Marketing from the Sept/Oct issue of PMQ at the following web address: www.pmq.com/mag/2005september-october/payroll-marketing.php

SEND US YOUR LETTERS! Got a beef, compliment or suggestion? Send us your letters! This is your chance to let us know what you think about the current state of the industry, give us feedback on topics you would like to see in PMQ or just voice your opinions... If you would like to send a letter to the editor, type it up and email it to tom@pmq.com and put Letter to Editors in the subject line or mail it to: PMQ Magazine • ATTN:Tom/ Letter to Editor • 904 N. Lamar Blvd. Suite 2 • Oxford, MS 38655

Above All, A Better Tomato.

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ÂŠ2006, Escalon Premier Brands.

INDUSTRY Slice of the Pie: Smart Pies, a Healthy Pizza Alternative, page 64

The Monday, June 5, 2006

Pizza Press

50 Cents

Publisher: Stephen M. Green

A Division of PMQ Magazine

WORLD’S LARGEST PIZZA-THE BIG ONE www.foxnews.com A Pittsburgh pizzeria is trying to gain a place in the Guinness World Records for the world’s largest commercially available pizza. Mama Lena’ Pizza House is already offering The Big One… a 150-slice pizza that runs for $99. The Big One measures about 3 feet by 4.5 feet and takes up the almost the entire cooking space in the store’s brick oven. Paul Rever’s Pizza in Mount Pleasant, Iowa is the current record holder. It’s Ultimate Party Pizza is 4-foot in diameter. It takes more than 10 pounds of dough, 48 ounces of sauce and about 5 pounds of cheese to make it. Mama Lens’s customers better be ready to wait when they order The Big One though. It takes about 15 minutes to prepare and another 20 to 25 minutes to bake, according to Rob Carrabbia. Rob’s wife Wendy owns the pizzeria in McKees Rocks, which is a suburb of Pittsburgh.

PIZZA PIZZA AND PEPSI INTRODUCE PIZZAZZY “FIND THE FLASHING CAN” CONTEST

15-YEAR-OLD PIZZA CHAMP

Promotional contests have come a long way from the days when a person filled out an entry form, answered a skill-testing question and put their name into the bin. Clever and sophisticated technology are taking much of the blandness out of these games of chance and injecting a dash of dazzle and pizzazz. This alignment of hi-tech and innovation is at the forefront of the “Find the Flashing Can” contest, a collaborative effort by Pizza Pizza and Pepsi-Cola Canada. The contest, which is being rolled out throughout the Ontario network of traditional Pizza Pizza restaurants, is a first in its kind within the restaurant industry. “Find the Flashing Can” draws on the technical know-how of Riverside Technologies International in producing more than two million specially made Pepsi cans, 305 of which have been fitted with a sensor device that produces an orange flash once the can is opened. Consumers who have been flashed win a Video iPod, valued at $379. The specially made winning Pepsi cans are to be sold with all walk-in and delivery orders at Pizza Pizza. Pizza Pizza has planned an extensive marketing campaign surrounding the contest. The support campaign includes the special events team hitting the streets of Toronto and Ottawa on launch day and distributing flashing orange lights to pedestrians.

http://www.mlive.com/bctimes/ According to an article from www.mlive.com, fifteen-year-old Chris Pappas walked into B&C Pizza as just another teenager and left as a pizza legend. Pappas is the first person in 17 years to successfully complete the B&C Pizza Lovers Challenge, which consists of eating an entire B&C Party Pizza (18-inches and 7 pounds) in under an hour. It is covered in pepperoni, sausage, bacon, ham, green pepper, green olives, onions, mushrooms, cheese, and sauce, according to the report. He finished the 24th and last slice with only a second to spare-right at 59 minutes and 59 seconds. Bud Sivak was the last person to eat the entire pie and that was in 1988. Sivak tried to conquer the challenge again but couldn’t do it twice. One hundred and ninety people have taken the challenge and Pappas is only the second to walk away a winner, the report stated.

BREAKS 17-YEAR-OLD RECORD

HEALTHY EATERS

A new survey conducted by Harris Interactive shows that 64% of US adults consider themselves to be healthy eaters, while 45% say that they follow some kind of health conscious diet. The authors of the report say that a substantial number of US adults claim that they try to incorporate healthy foods into their meals and snacks, adding that many consumers turn to organic products as a healthier option. Half of all adults (50%) say they sometimes buy organic food. Of those that do eat organic, a majority cite the health benefits associated with the absence of pesticides and preservatives as their motivation. “Growth in the organic foods industry over the last decade is certainly impressive. While produce tends to be consumers’ main pathway into this category, many are now taking advantage of the wide selection of organic foods. Now is the time to “beef” up your marketing and build your brand and position. Data provided by Ed Zimmerman, Successfoods Marketing, Inc. • 415.382.6010 www.successfoods.com ed@successfoods.com

14 PMQ — The Pizza Industry’s Business Magazine

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INDUSTRY

PIZZA CAN TAKE YOU PLACES! BY CHEF BRUNO • MARSAL & SONS orking in the pizza industry isn’t just an enjoyable and rewarding job, it can take you around the world too. In my career, I have been all across globe. Just recently, pizza carried me and over 40 other members of the U.S. Pizza Team to Italy for the World Pizza Championships and I had a wonderful time with the PMQ group. Another person that has traveled the world because of his involvement in the pizza business is Tony Modica. Tony and I are very good friends and I’m writing this story to familiarize you all with his “Pizza Dance”, which is just one of the things he does that has carried him out of the Ozone Park area in New York City. If you are ever in NYC, you must stop in and see Tony Modica and the “Pizza Dance” at La Bella Vita Restaurant. He has a dance night on Tuesdays, which he sings and dances the “Pizza Dance”, a choreographed song and dance routine he developed. He also sings in Italian and English. Tony came to the U.S. from Sicily when he was very young and like myself, Tony followed his love of food and made a career for himself. Tony is very well known in the NYC area and has a pizzeria, two catering halls, several restaurants and an incredible talent. He loves to entertain people not only with food, but with his music.

Along with cost effective health insurance benefits, disability insurance and various business products, services at reduced savings to its members, PMATA is expected to launch its membership programs by late spring 2006. 16 PMQ — The Pizza Industry’s Business Magazine

Tony does a lot of his Pizza Dance marketing right out of his store, selling cassettes, CDs and numerous other promotional items.

If you stop by his restaurant, you can’t help but notice his great collection of photos of famous people such as Governor Pataki, former Mayor Giuliani, President George Bush…even a few pictures of wise guys. He is friends with everyone. It’s not just Tony’s quality food and the “Pizza Dance” that entices people, both locals and national celebrities, to visit La Bella Vita. Tony is involved with many charities in Washington D.C. and NYC as well as many other organizations. Lately he has been making appearances in magazines as well as TV. Additionally, he has just completed a movie. He also is currently working on toys for kids and a CD. He shows up at local area schools and surprises kids and has them all dance. He reminds me of a Hollywood star, which I think he is. Tony’s latest passion is as the Founder and President of the Pizza Makers and Allied Trades Association (PMATA). PMATA will offer collective buying power to pizzerias, restaurants, delis, etc. nationally. Along with cost effective health insurance benefits, disability insurance and various business products, services at reduced savings to its members, PMATA is expected to launch its membership programs by late spring 2006. Look forward to more information about PMATA in my future articles. The point I want to make here is that you, like Tony, can make a difference. Tony has helped others through his charities, entertained thousands and showed kids how the joy of pizza can put a smile on everyone’s face. In the process, he has traveled the world doing what he loves. You can too. Pick one thing, do it well and try to help others in the process and maybe you’ll find your very own “Pizza Dance” that will take you around the world. Ciaó, Chef Bruno - PMQ Chef Bruno wishes he could dance like Tony Modica. He thinks he can sing better, and will burst into song at any given moment to prove his claim. One of these days we’ll have a Bruno-Modica karaoke dance party to crown the king. www.pmq.com — PMQ 17

FOOD

BRUSCHETTA

AND THE BASIC ART OF ITALIAN COOKING

B Y M A R I A L I B E R AT I • A U T H O R / C O N T R I B U T O R ruschetta is a food that originated in central Italy. In Tuscany, Bruschetta is called fettunta — which literally means ‘oiled slices’. In the U.S., we tend to think of Bruschetta mainly as grilled slices of Italian bread with fresh tomatoes, basil, olive oil, and garlic. In Italy, it is one of the easiest and quickest dishes to prepare for a casual dinner or evening with family or friends. And there are so many variations with a variety of ingredients that complement each other. Its main advantage is that the ingredients used to make Bruschetta don’t require long periods of time for cooking or preparation. If you follow the classic recipes for Bruschetta, all you need is an oven for toasting the bread and, mainly, great authentic Italian bread (should be crusty on the outside and soft inside), garlic and extra virgin, cold-pressed olive oil. Like all great Italian recipes, each type of Bruschetta is made with a small amount of ingredients and each ingredient is important to the taste of the finished product. So, each ingredient used must be the best quality; i.e., extra virgin, cold-pressed olive oil, fresh mozzarella, authentic cheese, fresh vegetables, fresh cheeses, good quality meats or fish. If you’d like to throw a Bruschetta party, which is a great summertime idea, you can put together a simple quick yet fun and delicious party by arranging the following ingredients on a table and letting the guests choose their choice of toppings: • 1 bottle of extra olive oil with pourer top for drizzling • Fresh mozzarella cut into small cubes • Chopped hazelnuts and walnuts • Pignoli nuts • Chopped olives- green and black • Steamed, peeled, cleaned shrimp • Grilled vegetables- eggplant, peppers, onions • Tomatoes, cut into small cubes (should be fresh and ripe plum tomatoes) • Celery leaves chopped • Basil leaves chopped • Anchovies canned in olive oil • Arugula • Provolone cheese cut into cubes • Thinly sliced prosciutto • Pesto sauce - PMQ -

18 PMQ — The Pizza Industry’s Business Magazine

BRUSCHETTA RECIPES Every region of Italy has its favorite Bruschetta recipes and it is more usual to find in the central and southern parts of Italy. Here are some of my favorite Bruschetta recipes. Serve as an appetizer or for a quick light dinner for two or four. For two, make half of each recipe and share. For four, make the full recipe and serve in four. Bruschetta con limone (Bruschetta with lemon) Ingredients 1 fresh lemon- squeezed 1 lb. of crusty Italian bread- sliced into 1/2” slices Handful of fresh parsley finely chopped 1/2 lb of smoked salmon- cut into small pieces 1/4 cup of whipped cottage cheese or cream cheese Olive oil for drizzling Instructions Place bread slices on grill or in oven under broiler till golden and crispy. Drizzle with just about 1 tsp. of olive oil on each slice. Remove, while still hot, and spread on whipped cottage cheese. Place chopped salmon and chopped parsley on top of cheese. Drizzle about 1/2 tsp. fresh lemon juice on top and serve. This recipe serves four and each serving is about 200 calories. Bruschetta con filetto (Bruschetta with filet) Ingredients 1 fresh carrot 1/4 lb. fresh mushrooms 2 tblsps. extra virgin olive oil 1 small golden onion 1 lb. of crusty Italian bread 1/4 lb. of potatoes 1 celery stalk 1/4 cup ripe cherry tomatoes 1 cup dry white wine 1 lb. of filet of flounder Instructions Wash all vegetables and cut into small cubes. In a large frying pan, place in olive oil and half of the onion chopped. When oil just starts to bubble, add in flounder cut into small pieces. Let flounder cook for about three minutes then add in the tomatoes (cut into cubes) and the other vegetables. Pour white wine over all, let wine evaporate. Stir gently, every so often. Let cook for another minute or until golden. When finished, remove from heat. Grill bread sliced into 1/4” to 1/2” thick slices. When bread is golden and crusty take out of oven, top with flounder mixture and serve. This recipe serves four and is about 150 calories for each serving. Buona Bruschetta!!!!

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Dole’s Chef Collection CD recipes and menu tutorials feature the hottest food trends and techniques. Call 1-800-723-9868 to order your free copy. ©2006 Dole Food Company, Inc. DOLE is a registered trademark of Dole Food Company, Inc.

FOOD

Visit www.pmq.com and look under PMQ Column Contributors to see previous articles by Tom Lehmann, or click Ask the Experts to ask Tom a question.

IN LEHMANN’S

TERMS

BY TOM LEHMANN • AMERICAN INSTITUTE OF BAKING e are now entering into a time when a greater number of our customers want to feel good about eating pizza. In order for them to feel good though the pizza that they purchase must effectively get across the message that the pizza in question is more than your regular run of the mill pizza, it must get across the message that it is healthier to eat this specific pizza than another pizza. Enter into the world of the “healthy pizza.” Our regular thin crust pizzas with just cheese or cheese and vegetable toppings, really isn’t too bad as far as nutritional profile is concerned. It might be a little high in salt and fat content, and now that we’re interested in the type of fat, it has to be brought to light that the fat, coming mostly from the cheese, is going to be one of those nasty “trans fats.” It’s not realistic to remove all of the cheese from a pizza just to make it healthy, so just what can we do to give our pizzas a healthy facelift? To begin we must recognize that our customers look for certain things in the foods they eat that help to get the message across that the pizza they are about to purchase is actually healthy or healthier for them to eat than other types of pizzas. The key words seem to be whole grain or multi-grain, oats, low fat, “0” or low trans fats, reduced sodium, and reduced calories. This last “buzz word” reduced calorie seems to convey a mixed message to many consumers. It seems that they have been exposed to so many poor quality reduced calorie foods that this reference has almost become a turn off for many consumers. Let’s see what we can do to make our pizzas look a bit more healthy and appealing for those wanting some redeeming value in their pizza. We can go with a whole, white wheat flour (Farmer Direct Foods, Kent Symns, <ksymns@farmerdirectfoods.com> ). This flour is different from ordinary wholewheat flour that you might be familiar with. It has a more “nutty” taste and lacks the characteristic bitterness of regular whole-wheat flours made from dark spring wheat varieties. This will allow us to produce a crust that can be advertised as “made from whole grains” or you might opt to go the multigrain route. In this case your flour will consist of 75% regular strong pizza flour and 25% of a commercial multi-grain blend (available from any local bakery ingredient supplier). Now you can refer to your crust as a multi-grain crust. Gee, that already sounds pretty good. To that, try adding about 10% oatmeal to the dough formula. You won’t taste anything different, but you

20 PMQ — The Pizza Industry’s Business Magazine

could now advertise your crust as a multi-grain and oatmeal type of crust. For the sodium content (salt) I’d suggest reducing the amount of salt added to the dough to 1.25%. If you reduce it any lower you’re likely to end up with a starchy tasting crust. Remember, the cheese will be a major contributor of salt to the pizza so you may want to look at reducing the total amount of cheese that you put onto the pizza by at least 25% or more. This, combined with the salt reduction in the dough should net you about a 40% reduction in total salt content as compared to a regular cheese pizza. Next there is the fat content. By using one of the newer cheese analogs we can have a cheese product that has “0” trans fats and cholesterol. By formulating our dough with olive oil we can maintain these trans fats and cholesterol values and come up with a cheese pizza having that highly sought after “0” trans fats and cholesterol content. With regard to toppings, we now have a good number of “healthy” image toppings to choose from. There is always the ever popular “veggie” pizza that is really fantastic when made with slices of fresh tomato to replace the sauce. Just brush the dough skin lightly with olive oil, then apply the tomato slices and sprinkle with onion powder, garlic powder, and fresh basil or dried oregano. This is followed by the cheese/cheese product and any variety of vegetable toppings. If meat toppings are on the order, we can choose from a lean bison or poultry pepperoni, or add strips of chicken or

turkey, fat free ham, or fish such as salmon or tuna which will pick up on the omega-3 oil. So, lets take a look at what we might have to offer to our health conscious customers. How about a whole grain or multi-grain and oatmeal crust? Would you like to have that with our “0” trans fats and cholesterol cheese? Would you like to have our regular sauce or fresh tomatoes? And what kind of toppings would you like to have on your pizza? As you can see, this pizza is already looking pretty good and it’s just on paper. Just think of what you can do with it if you show the various toppings with a brief descriptor next to each one such as: Our special cheese product (made from rice flour with the taste and texture of mozzarella cheese but with “0” trans fat and cholesterol) Note: This descriptor will change with different cheese products. Grilled tuna/salmon (great flavor - loaded with omega-3 oil) Bison pepperoni (all of the flavor of our regular pepperoni but with reduced fat) Sliced, skinless chicken breast (provides a great flavor and meaty texture with low fat content) Fresh vegetables (naturally full of flavor, low in fat, and provide a great eating texture) You can do this for all of your “healthy” pizza toppings either on your menu board or on a separate menu for promoting your healthy pizzas. As you can see, making a healthy pizza is really pretty easy. Just remember to use a thin whole grain or multi-grain crust, don’t go too heavy on the cheese or cheese product to control the sodium level, and give it some real eye appeal by using fresh vegetable toppings. You don’t need to go heavy on the toppings either. Remember, this customer is probably more interested in getting a pizza that they can feel good about eating, they don’t want to be presented with a mega-topped pizza, but would rather have a pizza that is sized just right for them. Above all else, it should look fresh and attractive and have a great flavor.

Olive oil: 2% Compressed yeast: 3% Water: 62% +/* ADM Arkady 800-637-5843 Procedure: Put water in mixing bowl. Add the remainder of ingredients except for the olive oil. Mix for two minutes at low speed. Add the olive oil and mix one minute at low speed.Mix at medium speed for eight to 10 minutes or until dough has a smooth appearance. Targeted Finished Dough Temperature: 80 to 85˚F. After mixing, take dough directly to the bench for scaling and forming into balls. Place dough balls into plastic dough boxes, wipe lightly with canola oil and take to the cooler. Cross stack the dough boxes in the cooler for two hours, then down stack the dough boxes and nest to prevent drying. The dough will be ready to use after about 12 hours in the cooler, and it will keep for up to three days in the cooler. To use the dough, remove a quantity from the cooler, keeping it covered in the dough boxes. Allow the dough to warm at room temperature for about 90 minutes before forming into dough skins. - PMQ -

Tom Lehmann wrote his first publication on pizza for the AIB in 1979, and has since written several more in addition to writing monthly articles for PMQ Magazine and other pizza publications. Tom is Director of Bakery Assistance with the American Institute of Baking in Manhattan, Kansas (www.aibonline.org). He can be reached at 800633-5137 ext. 165.

HEALTHY CRUST FORMULAS Whole-grain Crust: *Whole white wheat flour: 100% Salt: 1.25% Honey: 3% Compressed yeast: 3% Olive oil: 2% Water: 60% +/* Farmer Direct Foods (Kent Symns) ksymns@farmerdirectfoods.com Procedure: Place water in mixing bowl followed by the remainder of ingredients except for the olive oil. Mix at low speed for 2 minutes, add olive oil and mix for one minute in low speed. Mix dough for about 8 minutes at medium speed, or until the dough takes on a smooth appearance. Target Finished Dough Temperature: 80 to 85˚F. Take dough directly to the bench for scaling and rounding into balls. Place dough balls in plastic dough boxes, wipe dough balls lightly with canola oil. Take boxes of dough to the cooler. Cross stack for 2 hours, then down stack and nest the boxes for overnight storage. Dough will keep for up to three days in the cooler. To use the dough, remove a portion from the cooler, leaving them covered in the dough boxes. Allow the dough to warm at room temperature for 90 minutes, then begin forming the dough skins as needed. Multi-grain Crust: Flour (strong pizza flour) 75% *Multi-grain blend: 25% Salt: 1.25% Honey: 3% www.pmq.com — PMQ 21

MARKETING

OPENING YOUR FIRST PIZZERIA:

MARKET TARGETING BY DINO CICCONE • EASTOWN PIZZA

A lot of us baby boomers remember when going out to eat was a real treat and very special event; today eating out has become as common as going to school or work. Whether we are grabbing a slice on the run, sitting down to an elegant five star extravaganza or anything in between, North Americans are eating out more than ever and there is no sign that this trend is changing. It seems that there has never been a better time to open a restaurant. However, it must be done with the utmost care and complete planning. By 2011, projections show that the restaurant will operate more than 1.1 million units with sales of $583 billion meaning it will total 55 percent of every food dollar. If you are confident and smart about it one or more of these enterprises could be yours. Even though all indicators suggest a bright future for the food service industry, you already know there are no guarantees - only death and taxes, as the saying goes. Any experienced operator will probably tell you that it is not easy, the hours are long and you will not get rich over night. If you can manage for the long haul and your recipe is successful, you will realize the fruits of your labors. The disappointing fact is that many restaurants fail in the first year, mainly due to poor planning and execution. This does not mean you have to be a rocket scientist or it has to be extremely complicated. In fact, it is and should be kept as simple as possible. Focus on your market and dominate it. James Flowers, owner of M/T Foods says, “The formula for success is: First - quality and great tasting food; 22 PMQ — The Pizza Industry’s Business Magazine

Second - good fast service; Third - great friendly people. This has always served me well.” TARGET MARKETS There is no single food service concept that has universal appeal. This is a fact that most aspiring new entrepreneurs have trouble digesting and accepting, but it is the reality. You will never capture 100 percent of anything so focus on the 5 to 10 percent of the market that you can get and simply forget the rest. Generation Y - This generation is also called the millennial generation and the echo or boomlet generation. This group includes those born between 1980 and 2000. Generation Y is the most ethnically diverse generation yet and is approximately three times the size of Generation X . They are a prime target for a food service business. Generation X - The X group are young adults born between 1965 and 1977. This generation has matured and has strong family ties and values. Baby boomers focused on doing financially better than their parents, Xers prefer to focus on their relationship with their kids. These consumers prefer casual, convenient operations instead of formal, upscale restaurants. They are also focused on value, and they frequent quick-service restaurants and middle of the road places that offer all-you-can-eat salad and food bars. So offering a comfortable atmosphere that focuses on ambiance and value would appeal to this group. Baby Boomers - Born between 1946 and 1964 this

group makes up the biggest North American consumer group. They are affluent professionals that can afford to visit upscale restaurants. Their children have left or are leaving home and they are now becoming grandparents. They frequent restaurants that offer familyfriendly atmosphere as well as formal upscale concepts where they can visit or entertain without the children. Empty Nesters - This group of people in their early 50’s to about 65 typically have grown children no longer at home. Their ranks will continue to grow as the baby boomers age. This is the richest group and they frequent upscale establishments. Their concern is to have excellent service and outstanding quality food. They look for elegant and sophisticated places with great ambiance. Seniors - This beautiful group are people 65 and older. It is a market that will continue to grow as empty nesters and baby boomers continue to age. Seniors tend to be on fixed incomes and so they tend to lean towards family-style restaurants that offer good service and reasonable prices. Their health may be an issue so their appetites tend to be towards early bird specials, seniors menus with lower prices and smaller portions.

By 2011, projections show that restaurants will operate more than 1.1 million units with sales of $583 billion, meaning they will total 55 percent of every food dollar.

The four restaurant types are quick service restaurants, fast food restaurants, midscale and upscale restaurants. You need to pick one that reflects what you do best. Then you must select a concept. Concepts provide structure for what the restaurant is. Some popular concepts include casual dining, family style, ethnic, seafood, steakhouses, sandwich/delicatessen, bakery, coffeehouse and our beloved pizzerias. Pizzerias - Pizza is a $30 billion market and there are two main choices. One is to go restaurant in a modest facility with a specialized pizza and beer-focused menu. Limited seating and self-service atmosphere. The other is a full service pizza restaurant with a menu that features not only a variety of pizzas, beer and wine, but also Italian entrees like spaghetti and meatballs, ravioli and lasagna, side dishes such as salads, salad bars and some desserts. Of course, the main thing and focus has to be good pizza (is there any other kind). Make good pizza and word of mouth will keep them coming back. You will need serious planning, decide on your specific segment and niche you will occupy. You should do a self-analysis and see what you are best suited for and can you develop a niche in your market. The best way to learn is to work in the same restaurant type you wish to start. It is the best way to learn and will tell you if you are cut out for this industry. Look at it like you’re being paid for an education, and there is nothing wrong with that. Yours In Pizza...Dino Ciccone - PMQ -

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OPERATIONS

Visit www.pmq.com and look under PMQ Column Contributors to see previous articles by Jeff and Marc, or click Ask the Experts to ask Jeff and Marc a question.

GETTING IN THE DOOR

TO MAKE YOUR PITCH BY JEFF & MARC SLUTSKY • STREETFIGHTER MARKETING hen you’re having trouble getting in to see your prospects, you need to get a little creative. That’s exactly what Dan Nichols did to promote his Figaro’s franchise pizza restaurant in Eugene, Oregon. We were training the franchisees in Eugene on how to set up cross promotions. In the beginning stages of implementing cross promotions, we suggest they start with people they know, in particular their own customers. The advantages are that the prospect is coming to you and they are already familiar with your product and the quality of your service. However, some of the biggest cross promotion opportunities in their trading area happened to be businesses with managers or owners who were not his customer. So, Dan suggested that if the decision maker were not coming to him, he would have to go visit the decision maker. Of course, the problem there is that business people don’t like to receive sales pitches. Dan solved that problem by simply taking him a pizza with him on each visit. He would show up about 11:30 with a large pizza, and in just about every instance, was welcomed with open arms. His goal was to deliver one pizza a day to a key business in his area. In just one month, he made numerous contacts and set up many promotions. We had a similar experience several years ago when a local bank manager came to visit our office. He brought with him a jar filled with gourmet jellybeans. It was just enough to get our attention. As a result, that branch manager had the opportunity to ask us some questions about our business and banking needs. That cold call resulted in that bank refinancing the mortgage on our office building. To be successful on a first contact, first have a way to capture the attention of the prospect. Hot pizza, jellybeans or other fun type “peace offerings” can be just the ticket to get you past a gatekeeper. Keep it fun and not too expensive. Dropping off a catalogue or promotional materials would not fall into this category. That comes later. Sometimes it helps to call first. Generally, it’s very difficult to reach decision makers by phone, but you can use a telephone call to determine the days and time your prospect is likely to be in. If the opportunity allows, see if you can gather

24 PMQ — The Pizza Industry’s Business Magazine

STREETFIGHTER ACTION PLAN: 1. Show up bearing gifts, but not expensive ones. 2. Be prepared to leverage the few minutes you get with the decision maker. 3. Try calling first for conducting some initial research. 4. Don’t try to do too much in the first visit. 5. Follow up with a thank-you note right away.

some key information about your prospect from the receptionist; including the name of his or her personal secretary, official title, hobbies, and pet peeves. Next, should you get an opportunity to talk with a decision maker, you’ll want to have several key questions prepared so that you can determine in just a few minutes if this prospect has potential. If the prospect looks promising, offer to stop by when he or she has more time to learn about how you can provide the “benefit” he or she is looking for. Try to nail that person down to a specific time for the second visit. Lastly, get a “thank you” card in the mail that day. You want that card to show up within a few days of your initial visit. This card helps to reinforce that initial contact and remind the prospect of your future visit. Don’t try to do too much too soon. Most selling efforts have a natural rhythm to them and if you try to rush the process, the prospect becomes defensive. That’s why it’s important to work a number of new prospects all the time. Have a steady pipeline of potential new business every week. - PMQ Jeff and Marc Slutsky are co-authors of five books including StreetFighting. They are executives of StreetFighter Marketing in Columbus, Ohio, which specializes in teaching how to promote, market and increase sales without spending a lot of money. Jeff and his brother, Marc, have a variety of audio and video tapes. For further information contact Jeff or Marc at: 800 (SLUTSKY) 758-8759 • 614-337-2233 fax • 467 Waterbury Court • Columbus, OH 43230

Two Great Shows. One Great Show Floor.

pmq magazine and reed exhibitions present the orlando pizza show! September 8-10, 2006 Orange County Convention Center Orlando, Florida

EVERYTHING YOU NEED TO SUCCEED.

Presented by PMQ Magazine and Reed Exhibitions, the Orlando Pizza Show will be co-located within the Florida Restaurant & Lodging Show. This expanded show floor guarantees 550 plus exhibiting companies. This is the must attend South East industry event for pizza operators from across the US. Donâ&#x20AC;&#x2122;t miss our jampacked exhibit hall, our exciting pizza industry expert speakers, our gourmet pizza competition, the American Pizza Championship, and our exciting U.S. Pizza Team competitions. Every square inch of the Orlando Pizza Show is dedicated to helping you:

>> >> >> >> >> >>

Market and promote your pizza business Build non-stop traffic Improve your customer service Increase your sales Boost your profits Dominate your market

PMQ’s pizza industry information center Finally, there’s a place where prospective and experienced pizza operators can get the pizza information they need. Everything from dough to delivery, the Pizza Industry Information Center is a combined effort by PMQ Magazine, pizza industry experts and leading industry sponsors. Visit the pavilion located within the Orlando Pizza Show section of the Florida Restaurant & Lodging Show and take advantage of the free advice from experts, interactive demonstrations and valuable literature that you will find. Some key events include: • Tom Lehmann, the famous “Dough Doctor” will be on hand to answer questions and speak to operators personally. • See Evelyne Slomon in action everyday at noon as she demonstrates the art of making the quintessential New York style pizza! • Visit the PMQ Knowledge Center and grab as much critical pizza information as your hands can hold!

PMQ China Editor Weihua Watson was on hand at the Pizza Industry Information Center in Singapore. www.pmq.cn

Great food. great marketing.

Great speakers. Tom Feltenstein, Keynote Speaker

The Orlando Pizza Show is very proud to present Tom Feltenstein, noted author, consultant and marketing guru as our keynote speaker. Prior to being a consultant to both Fortune 500 companies, franchises and independent businesses for the past 30 years, he served as senior vice president for an international, billion-dollar advertising agency, Bozell Advertising. He also owned a chain of 14 restaurants. He is a renowned motivational speaker and is the CEO and Founder of Power Marketing Academy (PMA,) a leading marketing strategy firm that serves and educates businesses in the retail, franchise, hospitality and service industries.

Bring your thoughts,

lose your mind! Tom will also host an interactive brainstorming session geared around marketing ideas for the independent pizzeria owner. You’ll leave this empowering seminar with hundreds of marketing ideas and strategies, ready to implement the minute you get back to your store!

Tom has received acclaim from the media for his profound, counter-intuitive marketing strategies on Larry King Live, traded barbs on CBS’s Late Night with David Letterman, argued the waste of Super Bowl advertising on the FOX Pre-Game Show, CNN’s Tips from the Top and has shared his innovative insights in interviews with Bloomberg Radio, Voice of America, CNN, US News & World Report, The Food Channel, Lou Dobbs, Wall Street Journal, USA Today, Entrepreneur Magazine and other media.

Join us in welcoming Tom to the Orlando Pizza Show on September 8th!

GET

MOTIVATED

“You touched my heart and the hearts of my employees. My passion and enthusiasm for my business has doubled and I feel confident like I’ve never felt in my life. You are not only a brilliant marketer but you also bring out the best in people.” -Peter Sarris, President, T-Bones Great American Eatery

Christopher Muller, Ph.D Director - Center for Multi-unit Restaurant Mgmt., University of Central Florida

The Four Factors Behind the Pizza Purchase Pizza’s foremost academic researcher takes an analytical look at why people buy pizza and how to use those factors in developing your optimum business model. Using the attributes of Quality, Convenience, Price and Time, Professor Muller will offer a dynamic model with valuable lessons for all operators in the segment. Christopher Muller is a leading academic expert in the field of chain restaurant management. He has had extensive experience in the hospitality service business and has served as a consultant to numerous restaurant, beverage, and hospitality management companies.

GET

EDUCATED

National Pizza Institute:

Come be a part of the inaugural formation meeting of the National Pizza Institute. The Institute is being set up in order to: • Research and maintain statistical information for the pizza industry • Pizza industry education and training • Set standards for the pizza industry To be included in this event, co-hosted by the University of Central Florida’s Rosen College of Hospitality Management and Christopher Muller, PhD., please contact Steve Green at sg@pmq.com.

Tom Lehmann,

The Dough Doctor

Solving Dough

Evelyne Slomon

Problems

How to Make Great Pizza Even Greater!

Tom Lehmann rolls up his sleeves once again to help solve your dough problems. He’s never met a dough problem he couldn’t solve! Improve consistency and optimize your dough for your cooking environment. ALL QUESTIONS ANSWERED! Tom Lehmann, “The Dough Doctor”, has worked with the American Institute of Baking since 1965 and is recognized as the foremost technical “pizza expert.” Tom wrote his first publication on pizza for the AIB, and has since written several more in addition to writing monthly articles for PMQ. Tom has traveled the world, solving dough problems in over 15 countries.

A hands-on explanation, by PMQ Magazine’s Culinary/Technical Editor and one of the industry greats, of how to turn a good pizza into a great one!

GET

CREATIVE

GET

ANSWERS

Evelyne Slomon is the author of the historic The Pizza Book; Everything There Is to Know about the World’s Greatest Pie, a food writer and Culinary Editor for PMQ Magazine. She is one of the most respected pizza consultants, and an industry icon who has been used as an authority by the History Channel and the Food Network.

the u.s. pizza team

If you’re a pizza maker with fast hands and a desire to bring lots of attention to your store we strongly encourage you to go out for the team. Do it for fame, for increased sales, for the education or simply to enjoy the camaraderie. Since 2000, the U.S. Pizza Team has been finding and training America’s most talented “pizzathletes” for the World Pizza Championship in Italy. Only the Orlando Pizza Show hosts the most exciting Pizza Team event of them all – the U.S. Pizza Team Acrobatic Trials. But the excitement doesn’t end there. Winners of the Acrobatic Trials also earn a spot on the 2007 U.S. Pizza Team and the chance to represent the American pizza industry in next year’s World Pizza Championship in Salsomaggiore, Italy.

The U.S. Pizza Team

Acrobatic Finals competitions for:

feature Fastest Pizza Maker

Hand-stretching and covering five pie screens with dough in the shortest time.

Largest Dough Stretch

Stretching a 14-ounce dough ball the largest in under 5 minutes.

Freestyle Pizza Tossing

A 2-4 min. throwing routine set to music. Bring your own dough, or use ours.

For details, call Caroline Felker at (662) 234-5481, ext. 125 www.USPizzaTeam.com

an open call to competitors: Think you have what it takes to become one of the world’s greatest pizza makers? Can you use your skills to join the best of the best? Do you want to be a part of the pizza industry’s most valuable publicity machine, responsible for years of profitable champions?

Then sign up to compete in the U.S. Pizza Team Acrobatic Trials at PMQ’s Orlando Pizza Show! The winner from each competition will earn a spot on the 2007 U.S. Pizza Team and travel to Salsomaggiore, Italy, to represent America at the World Pizza Championship!

For details, call Caroline Felker at (662) 234-5481, ext. 125 www.USPizzaTeam.com

2006 U.S. Pizza Team Gold Sponsors

2006 U.S. Pizza Team Silver Sponsors

the american championship

pizza

The American Pizza Championship is a culmination of a year’s worth of competitions and regional contests coming together for one final challenge. There are several competitions around the country where you can earn a berth in the American Pizza Championship at the Orlando Pizza Show on September 9, 2006. During the year pizza makers will be picked at regional competitions, including the Southeast regional final on the first day of the show. Visit www.americanpizzachampionship.com for further details on 2006 regional competitions. These chefs will compete along with the previous year’s defending champion. That winner will then compete in the 3rd Annual America’s Plate competition at the New York Pizza Show in New York City on March 4-6, 2007, as well as the 2007 World Pizza Championship in Salsomaggiore, Italy, and will represent America against pizza chefs from across the world. Whether you are a spectator or competitor, the American Pizza Championship is an exciting event displaying some of America’s premier pizzaioli.

Win a chance to represent the US in the America’s Plate Competition next March in New York City!

Submit your recipe and our culinary pizza expert Evelyne Slomon will chose the top contenders to battle it out in Orlando at the Orlando Pizza Show. The winner will then compete with other regional winners to become the America’s Pizza Champion! The overall winner will go on to represent the U.S. in the America’s Plate competition at the New York Pizza Show in March 2007. Send your recipes NOW to caroline@pmq. com! For more information on the rules and regulations, please visit www.americanpizzachampionship.com

PizzaTV will be on-site at the Orlando Pizza Show to get footage for a video production. Bring your interesting marketing ideas, customer dramas, and unusual funny tales from your pizzeria to be on camera! We will be filming the most interesting equipment/product demonstrations and stories from the field. Visit www.pizzatv.com to see yourself at the show!

Two Great Shows. One Great Show Floor. Nobody serves up the Florida market like the Florida Restaurant & Lodging Show. With more than 15,000 foodservice professionals in attendance, it’s the largest foodservice and hospitality exhibition in the Southeast. In fact, two-thirds of attendees agree that the Florida Restaurant & Lodging Show is a must-attend event.

Features: • New Product Gallery – No more showcases. Join us in this interactive arena where you can take a close look at more than 100 products newly introduced to the market. Come by for sampling and demos each afternoon from 2:00-3:30 p.m. • Lodging – The Florida Restaurant Show has grown into the Florida Restaurant & Lodging Show. Check out what new, hot and innovative in this very competitive market. • Nightlife Corner – Dozens of specialty beers, ales, wines and spirits are here for sampling and sourcing. Distributors and suppliers will answer questions and offer assistance on serving innovative, popular and profitable beverages your customers will want. • Culinary Institute of America Courses: Instruction and insight from professionals from the world’s premier culinary college. Earn continuing education credits, too!

World-Class Culinary Competitions

Experience the excitement! See chefs showcase their talents as they compete to be considered the best at a wide variety of cooking and pasty contests!! Pre-registration and Additional Fee Required.

win a pizza cruise! What if the most enthusiastic pizza industry leaders and performers gathered for a week, reviewed our progress as an industry and discussed ways we could make our industry a better place to do business? Welcome, pizza industry operators, manufacturers, advertising agencies and distributors. Get on board for the Pizza Cruise! History will be made on January 20, 2007, as the inaugural PMQ Pizza Cruise sets sail! The six day, seven night cruise will offer all the amenities of a Carnival Caribbean cruise on the Carnival Glory, as well as pizza-exclusive activities, such as seminars from industry greats, pizza expeditions at multiple ports of call, and fun, sun and pizza! For more information, contact: Sharon R. Viotto • Cruise Planners American Express Travel Services 516-867-7215 • 0011 1 516 867 7215 Intl. 888-799-SHIP • www.PizzaCruise.com

pizza talk!

Get on board with seminars from pizza industry giants such as Tom Lehmann, “The Dough Doctor,” and Jim Fox, founder of Fox’s Pizza Den.

Win a Pizza Cruise!

Come by the Pizza Cruise booth at the Orlando Pizza Show (or to our website, www.pizzacruise.com) to learn more about how to win a free trip on the Pizza Cruise!

Carnival Glory Ship’s Registry: Panama

reserve your fun!

How’s this for a dream come true? You’re just in time to catch The Happiest Celebration On Earth – the biggest celebration in Disney history. With all four Walt Disney World® Theme Parks featuring never-seenbefore attractions, parades and live entertainment, there has never been a more magical time to visit the Walt Disney World® Resort. And to help you see it all, Disney’s Multi-day, “After-2pm,” and “After4pm” Meeting/Convention Theme Park Tickets are more flexible than ever and are designed to accommodate any agenda. Available only to attendees, their guests and family members, select multi-day tickets also include 10% advance purchase savings and a bonus multi-club visit to Pleasure Island nightclubs. “After 2pm” and “After 4pm” Meeting/Convention Ticket In meetings all day? Whether you want to catch up with your family or make the most of your free time after the day’s meetings have ended, these tickets are a great option for those on a limited schedule. Multi-Day Magic Your Way Meeting/Convention Ticket Looking to extend your stay? What a great opportunity to share in all the magic with family and friends by transforming the days before or after your scheduled meeting into a complete Disney vacation. Start with a multi-day Magic Your Way Meeting/Convention Base Ticket and enjoy admission to one Theme Park per day for the specified number of days on your ticket, plus one multi-club visit to Pleasure Island nightclubs. Here’s the best part - the more days you add to your ticket, the less you pay per day. Then customize your ticket by adding additional options including: • Park Hopper® Option • Water Park Fun and More Option • No Expiration Option For details and advance purchase, call 407566-5600, visit www.thepizzashow.com or call Nadia Ahmed at 662-234-5481, ext. 136.

travel resources & special hotel rates 1. Hawthorn Suites 6435 Westwood Blvd

$99/99

2. Homewood Suites king $115/115 8745 International Dr double $145/145 3. Peabody Hotel 9801 International Dr

$155/155

4. Quality Inn Plaza 9000 International Dr

$72/72

5. Rosen Centre 9840 international Dr

$149/149

6. Rosen Plaza 9700 International Dr

$140/140

Rates as of April 17, 2006. Confirmed rates will appear on your confirmations.

Map not to scale. Used to indicate hotels’ approximate location to the convention center.

INTERNET: Book your reservations online at: www.flrestaurantandlodgingshow.com EMAIL: Email your information to: frls@ttgonline.com

MAIL: Florida Restaurant & Lodging Show Travel Desk 110 West Hubbard St. Chicago, IL 60610

TELEPHONE: Florida Restaurant & Lodging Show Travel Desk 7am-6pm CST, Mon-Fri 800.388.8002 (toll free) +1.312.527.7300 (int’l)

Please answer

Three easy ways

to register: 1. Register online at www.flrestaurantandlodgingshow.com/PIZZA 2. Fax form to: (708)344-4444 3. Mail to: Florida Restaurant & Lodging Show P.O. Box 552 Brookfield, IL 60513-0552

To receive your badge in the mail, we must receive this form no later than August 4, 2006. Badges will begin mailing 2 weeks prior to the Show. International Badges (including Mexico and Canada) will not be mailed and must be picked up on-site. FOR THE TRADE ONLY. NO ONE UNDER 18 WILL BE ADMITTED, INCLUDING INFANTS. PHOTO ID IS REQUIRED. For additional questions call us at (888) 372-3976.

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First Name: _________________________________________________________________ Last Name: _________________________________________________________________ Title: ______________________________________________________________________ Company: __________________________________________________________________ Address: ____________________________________________________________________ Address 2: __________________________________________________________________ City: ______________________________________________________________________ State/Province: ______________________________________________________________ Zip/Postal Code: _____________________________________________________________ Country: ___________________________________________________________________ Business Phone: _____________________________________________________________ Fax: _______________________________________________________________________ Email Address: ______________________________________________________________ Re-enter Email Address: _______________________________________________________ We collect this data in order to provide you with information about the Florida Restaurant & Lodging Show and other companies in your industry. If you prefer not to receive further information, please see our Privacy Statement at www.recusprivacy.com or call our Privacy Administration at (888) 372-3976.

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Item________________________________________________________ Price ___ Quantity __ Total Registration on or Before 8/4/06 _________________________________ $25 ____________________ After 8/4/06 __________________________________________________ $45 ____________________ CIA Courses CIA Package Pass (includes all 4 sessions) _________________________ $375 The “New” Healthy Cuisine, Friday, 9/8, 10:30 am - 1:00 pm___________ $125 Maximizing Your Wine List, Friday, 9/8, 2:30 pm - 5:00 pm ____________ $125 Great Sauvignon Blanc Around the World, Sat., 9/9, 2:30 - 5:00 pm ____ $125 A World Flavors Primer, Sunday, 9/10, 10:30 am - 1:00 pm ____________ $125

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Restaurant Rookie Boot Camp, Friday, 9/8 11:00 am - 5:00 pm _________ $295 ___________________ Multi-Unit Blueprint, Sat., 9/9, 11:00 am - 5:00 pm __________________ $375 ___________________ Chef’s Table Luncheon, Friday, 9/8, 12:30 pm _______________________ $35 ____________________ Chef’s Table Luncheon, Saturday, 9/9, 12:30 pm_____________________ $35 ____________________ Chef’s Table Luncheon, Sunday, 9/10, 12:30 pm _____________________ $35 ____________________ TOTAL AMOUNT DUE ____________________ Please select payment method:

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Account Number _______________________________ Exp Date _____________________________ First Name ____________________________________ Last Name ____________________________ ____________________________________________________________________________________ Cardholder’s Signature. I agree to pay the above total amount according to my card issuer agreement.

the following

demographic questions Questions must be answered for registration purposes. 1) Are you over the age of 21? qYes, over 21 qNo, under 21 2) Are you at least 18 years of age? qYes qNo No one under the age of 18 will be admitted to the Show at any time, including infants. No exceptions. 3) Badge Category qBuyer qNon-Buyer 4) Is your establishment? qIndependent qMulti-Unit qOther 5) Position (Please tell us which ONE best describes your area of responsibility.) qManagement (Partner/Owner) qManager/Supervisor qPurchasing qChef qDietitian/Nutritionist qSommelier/Server/Bartender qMarketing/Sales/ Public Relations qEdu. Administrator/Faculty/ Student qCaterer/Private Chef/ Event Planner qFinancial/Operations/ Administration qDistributor qOther (please specify)

6) Type of Business (Choose ONE only.) qRestaurant/Table Service/ Full Service Restaurant qRestaurant/QSR/Franchise qDeli/Bakery/Pizzeria qHotel/Motel/Resort/Casino/ Cruise Ship qSchool District/School/ University/Camp qHospital/Healthcare/ Correctional Institution/Military qMunicipal Service/ Municipality qCorporate Dining Services/ Office/Plant qCoffee Bar/Ice Cream/Yogurt qCountry/Membership Club qBar/Lounge/Night Club qNon-Hotel Banquet Facility/ Catering Establishment qSports Arena/ Amusement Park/Concession/ Convention Center qArchitect/Design/Real Estate qConsultant/Specifier

qRetail Store/Supermarket qDistributor/Dealer/Broker qImporter/Exporter qManufacturer/Mfg. Agent qAssociation qOther (please specify) 7) Categories of Interest (Please tell us which products you are coming to see at the show. Select ALL that apply.) qAppetizers qBar Equipment Products qBeverage, Alcohol qBeverage, Non-Alcohol qCleaning Supplies & Services qDairy qDécor/Design qDessert qDressings/Sauces qFood Equipment & Service qFood Distributor qFranchise qFurniture/Furnishings qHospitality Services qKosher Foods qMeat/Poultry qPasta and Rice qPizza Products qPoint of Sale Equipment qPaper and Plastic Products qProduce qSeafood qTableware qServices qOther (please sepcify):

8) Is your menu predominantly (Select ALL that apply): qAmerican qItalian qAsian qLatin / Mexican qEuropean qMediterranean qSeafood qOther (please specify): FRLA Policy: Included in the registration fee is a voluntary contribution to the Florida Restaurant and Lodging Association Political Action Committee, the organization through which the foodservice industry supports political candidates supportive of restaurant government affairs, positions and interest. Dues, payments, contributions or gifts to the FRLA are deductible as normal business expenses. Contribution/dues to the FRLA PAC are not deductible. Contributions to the FRLA PAC entitles you to PAC membership. q If you do not wish to make a voluntary contribution mark this box. The $3 per person contribution will be applied instead to the admission cost. Your admission price will not change.

FEATURE

KITCHEN DESIGN: THINK AND PLAN BEFORE YOU BUILD! BY LEE SIMON • THE GENERAL GROUP

on success that they will not allow themselves to see minor inconveniences as inhibitors to performance. Often unknowingly, potential modifications that could improve overall performance of the operation are overlooked, resulting in negative impacts on labor, service, and revenue.

HUMBLE PIE I have met with many clients over the years, and heard some ideas that range from impractical to completely ridiculous. Earlier in my career, I would often respond to such misguided direction with confident resistance for two main reasons. First, I wanted the best for them, their operations, and their future endeavors. Second, I lacked the experience and perspective to understand that this is not an industry built on ideal situations and endless funding to allow for a perfect scenario on every project. The first reason hasn’t changed. However, experiences have led to a more moderated, openminded approach to some of the wacky ideas…my earlier approach was wrong. The hospitality industry has been built by hard-working, determined individuals that have invested many hours and made an untold number of sacrifices in exchange for successes. In other words, we are a hardy group, capable of overcoming challenges. This “can do” and “we’ll make it work” attitude is often evident in the facilities that we operate. Our managers, operators, and owners are so focused

NOT AN EXACT SCIENCE When an electrical engineer approaches a project, there are a limited number of acceptable solutions. There are standard code requirements, materials, and practices that result in predictable options. Sure, approaches may differ, but the variables are somewhat limited. In foodservice design, no such luxury exists. For the electrical engineer, all electricity works and flows the same way. I have yet to meet two chefs, operators or managers – even inside the same organization – that work the same way. The hospitality design community is presented with a much greater challenge than most other design professionals. There simply is no one right answer. There are an infinite number of solutions, which are based on the preferences of the operations team. Yes, we have codes that we must abide by, however these codes are general guidelines and offer much more flexibility than most other disciplines, thereby allowing for preferences to play a much greater role in our designs. Take something as simple as a preparation area – a prep sink will be required, but the location of that prep sink is completely subjective. How about a cooking line? The order, arrangement, and desired adjacencies can vary from one operator to another. Consider now the equipment items selected, which can vary greatly based on the culinary team’s desired preparation methods. With this updated perspective, it becomes clear that while there may be some options that are better than others,

o way, there is just no way that will work… a restaurant that serves over 1,200 covers every evening, but only has one 10’ prep table with a single sink. A facility with dry storage that can only be accessed from outside the building. The travel distance from one table to the bar or washing area (two areas frequently accessed by table’s server) is nearly two-thirds of a football field…each way. Can’t be done… or so I used to think. In the past I would have clearly stated that none of the scenarios described above would work. I would have professed their certain failure. Well, it’s a good thing I didn’t put my comments in writing, because I would have been dead wrong!

38 PMQ — The Pizza Industry’s Business Magazine

there are numerous solutions that will work. Considering this perspective, in conjunction with the “never-say-die” attitude of those on the front line of our industry, and yet another realization becomes clear. Operations teams are like water…they take the path of least resistance. These front line warriors will blast through any obstacles and then find a way to work around those that they cannot remove. I have found that individuals in our industry have an inherent ability to adapt to any situation. Thus, the lack of sufficient preparation space may be overcome through the development of a customized in-house production system and creative scheduling that make the problem go away. In fact, that is exactly what this one particular operator decided to do…and they have found a way to support 1,200 covers with only one prep table. This power should not be underestimated. I once worked closely with a management team in the design of a restaurant. The team wanted a specific flow for the servers through the kitchen – in one door and out another. A single direction door was provided that would only swing in. Great! On both my first and second visits, servers had propped the door open and bypassed the carefully crafted plan. By the third visit, the management team had given up and the door was changed. In another example, there was a restaurant in

a very well-known hotel that was running a 150-seat dining room and lounge in a remote location with two portable butane burners and a mobile heated cabinet from the main kitchen…24 stories below. Did I mention that there was only one chef and one bartender staffed each night? It was truly amazing what they were capable of accomplishing. There are countless examples where operational obstacles have been overcome. This skill, however, can also become a liability during the planning and design of a new or renovated facility. By nature, we are creatures of habit. I have found teams become so accustomed to overcoming challenges that when a blank slate is provided, they often fall back on what they are familiar with and recreate the problems that they currently have. Unfortunately, this happens too often and hinders the operations’ true potential for efficiency, performance and profitability. CONCLUSION To sum it up, just about anything will work … it is simply a matter of how well it will work. Sure, you can cart drinks hundreds of feet, but the staff is likely to stop promoting drinks if it inconveniences them. Absolutely, you can reduce your storage to the point where daily deliveries are required, but what does that do to the cost of the product? Yes, anything is possible, but there is a fine line between making something work and forcing something to work – the key is knowing where that line is, and ensuring that it is not crossed. - PMQ -

www.pmq.com — PMQ 39

WORLD OF PIZZA - CANADA

AMADEUS PIZZA:

GRAND ON THE ISLAND AMADEUS PIZZA SOUNDS A WINNING NOTE B Y J I M D E E S • P M Q S TA F F aking over an existing pizzeria has built in advantages – and disadvantages – and making an existing place your own can be quite a challenge. If the existing operation was a success, then the new owner may want to only consider minimal changes. If the store was struggling, the new owner may second-guess the decision to go into a troubled location. William Kaminski found himself faced with the latter situation when he and his mother, Raisa Goldenchtein, took over a small pizza parlor in Granville Island, Vancouver British Columbia. The town’s waterfront and outdoor recreational opportunities make it a bustling tourist destination bringing in 12 million visitors a year. There are ample places for food and drink – over 300 businesses in town – which may explain why the previous owner of the pizzeria had downsized to 99 cent pizzas. Even at that giveaway price, the pies may have been overpriced. (The local newspaper once called the place “revolting.”) Kaminski and his mother gave it a shot anyway. “My mom moved to Vancouver Island and we looked for a business to buy for the whole family to work,” William recalls. “We found a pizzeria for sale at the foot of Granville Island in downtown Vancouver. We figured that would make a great family business. I was a chef by trade but had never made pizzas in my life, and it was a little scary, but we bought the place.” Diving in courageously and putting in long hours worked for a while but then Kaminski’s creative urges took over. Along with being a chef, he has also worked as a design consultant for several restaurants in Vancouver. He put his consultant expertise to work on his new business. “We ran it as it was for about six months then I shut it

40 PMQ — The Pizza Industry’s Business Magazine

down and gutted it, and totally renovated it and changed the whole concept and design. My plan was to create my own style of pizza and I came up with gourmet thin crust Italian pizza.” FOOD FIRST “No matter what a place looks like, I know the food has to come first,” William says. “This is a big city with lots of places to eat. Just serving tasty pies wasn’t going to cut it. This pizza has to be exceptional.” To create “exceptional” pizza, William says, “we needed memorable dough.” To this end, William decided to bring his grandmother from Toronto. Her dough is a thin crust that is a recipe from her Russian childhood, which she calls, the “Old Country.” “That’s right, authentic Italian pizza made with a Russian recipe,” William chuckles. The sauce is made from fresh tomatoes, olive oil, fresh herbs and spices, and has a hint of sweetness. Kaminski lined up a local meat distributor to provide the choicest meats created specifically for pizza such as chorizo sausage, ham, pepperoni and capicolla. For cheese, he decided on a blend of Mozzarella and Edam cheese that he says is particularly flavorful. Daily, fresh produce is purchased at Granville Island Market to ensure the highest quality of pizzas. “Our goal is to use the freshest products to make the best pizza available in Vancouver,” he says. “THE THINNER, THE BETTER” is the Amadeus Pizza slogan, referring to the thin crust pizza. “I think one of our secrets is the thin crust.” William says.

Most of our business for delivery is mostly middle to upper income consumers. We have larger companies like accounting firms. We’re also located near a theater district so we have a lot of actors and musicians. We have a minimum order amount of $15 with no delivery fee. “The thin crust allows the pizza to be rich with toppings, sauce and cheese.” Among the gourmet toppings offered are a garlic-infused basil olive oil, asparagus, Portobello mushrooms, grilled leeks and eggplant. “Our key non-pizza items are salad. Greek Caesar salad is our biggest selling salad. Everything else is just add on. But we have sandwiches, like turkey and tuna on grilled Focaccia. We offer calzones with three regular toppings. We make a four-cheese meat lasagna. We have oven-baked BBQ chicken wings and potato skins. We had regular customers that asked for those things, but it’s nothing I bank on. Pizza is where I hang my hat.” The signature pie, William says, is a 16-inch pepperoni pizza that is available for pick-up only. Called the “Pepperoni’s Lovers Special,” the pie boasts 100 slices of pepperoni for a price of $13.99. “A 16-inch pepperoni with 100 slices of pepperoni is a lot of pizza. In fact, it takes about ten minutes to make it. It gives us something special to be known for.” Once he was happy with his menu, he and his mother had to figure out how to market Amadeus Pizza. WORD OF MOUTH WATERING “We’ve never advertised,” William says. “We ran an ad in the local entertainment book but we cut it out because it wasn’t working for us. We don’t even offer coupons; nada. We’ve relied on word of mouth for seven years.” William says that because of his store’s size, too much advertising could backfire. “We have seating for about 15 customers so it’d be easy to over load the kitchen. It’s tough, you know, with fliers you can flood people. But we’re not in that style of pizza place. Everything takes longer and that will end up just making customers angry. Our pizzas are made by hand. We just build our business by trying to get one new customer a day and impress them so much, they tell a friend.” Delivery is an important aspect of Amadeus’ business. Luckily, the location of Amadeus is in the middle of a business area, so callin orders are plentiful. “Most of our business for delivery is middle to upper income consumers. We have larger companies like accounting firms. We’re also located near a theater district so we have a lot of actors and musicians. We have a minimum order amount of $15 with no delivery fee. We have anywhere from two to three drivers that we pay by the hour. The price of gas skyrocketed ten cents a liter just yesterday which may affect our prices but hasn’t yet. We probably do 75 percent of our business in take out and by the slice.” Williams says another area that he’s got his sights set on is making extensive use of Amadeus’ web site (amadeuspizza.com). Right now the site is used primarily to display his menu and give a brief history of the operation. However, he foresees a much larger role for the site. “Everybody in Vancouver is online, and more and more businesses are realizing the importance of an online presence,” William says. “Right now I‘m concentrating on making it possible to order off

The signature of an Amadeus pizza is the thin, thin crust. The Amadeus Pizza slogan is “The thinner, the BETTER.”

our website. We’ll start off using it for next day delivery on large orders only. Once we get the kinks out, I’d like to make online ordering available for same day orders. I just think it’s a natural evolution. “Right now, we do ten to twelve different flavors of pizza by the slice,” William continues. “The slices are already done in the store and then we just heat them up in the oven. The website has been key for us on this.” William says right now he’s offering an online special that he says his customers have been warming up to. “We offer 15 percent off when you buy four large pizzas. The pies have to be ordered by 6 pm the day before delivery. Normally the large pizzas run anywhere from $20-26, so we’ve gotten good response to this. In the near future, we’ll be offering other online specials.” BEST OF THE WEST Amadeus Pizza won a popular poll of “Best Pizza” sponsored by a Vancouver newspaper two years in a row in 1999 and 2000. William says the resulting free advertising and publicity enabled him to keep his marketing costs down. But even that success wasn’t enough activity for him. Not one to rest on his laurels, once he felt like Amadeus was on solid footing, he opened another business right around the corner. “I have a deli called Phat Deli which I run, then I get off at night and go over to Amadeus and help my mom run it. I’m close enough that I can do both. So we’ll keep these two going for a while.” William says a key for any operator, opening a new business or taking over an existing one, is constant vigilance. “We’re very careful to stay focused and keep an eye on what’s selling and what’s not and how to position items on our menu. This is a rather healthy-eating clientele we have here in Vancouver, so all the gourmet toppings and salads make sense for us.” Keeping what works and tweaking what doesn’t, expanding online ordering and delivery, and maintaining quality control – at both his restaurants – will keep William Kaminski busy in Vancouver. However, he says the most important thing is to not let all these other aspects of his operation take the place of his number one duty. “We’re going to keep working on our food,” he says. “Our pizza is phenomenal and it’s worked out well for us. But you can always improve.” - PMQ www.pmq.com — PMQ 41

WORLD OF PIZZA - CHINA

BIG PIZZA:

CHINESE PIZZA’S NEW SENSATION B Y W E I H U A X I A O WAT S O N • P M Q S TA F F n recent years, new scenery can be seen on the streets in Beijing city…huge orange Big Pizza signs. These orange signs have added a very bright color to the beautiful night of the city; and the feeling of the endless enthusiasm for the people of Beijing, especially when the blinds are drawn. Big Pizza is an Italian-style pizza buffet restaurant owned by a local Chinese company and already has 14 stores in Beijing since their 2002 opening. Each Big Pizza location has a huge dining area with a very nice traditional Italian style decor. The kitchen is completely open so you can see the whole process of how the food is made. At Big Pizza, for only RMB39.00 (USD$4.85), you can taste 14 different kinds of Italian style pizza, 20 different salads, Italian-style pasta, chicken wings, soup, soft drinks, fresh-made fruit juice, draft beer, wine and ice cream. Would you believe that this allyou-can-eat buffet with free drink refills will only cost you five bucks? Not only does Big Pizza offer a low price, there is a very special thing that Big Pizza offers in that a customer can make their own pizza or they can ask the chef to make the pizza exactly the way they want. “We came about this idea because we want to encourage people to learn the new things. They come here to eat, but can also learn about pizza and how to make it. Once they start to like pizza, then they’ll eat more of it. We combine the dining with entertainment together here; it’s a part of the culture of Big Pizza,” marketing manager Liu said.

42 PMQ — The Pizza Industry’s Business Magazine

“Do you make any money for that low price?” I asked. “Sure we do,” Liu said “We are busy all the time, especially on weekends and holidays. Our price is very affordable for the local Chinese, so they come here a lot more often than going to other expensive pizza restaurants. We make money from the volume of consumers, that’s why we chose the big dining area. We use high quality ingredients and will not lower our food quality just because we have a low selling price. We are not the only RMB39 (USD$4.85) pizza buffet restaurant in Beijing. We have to compete with others and there are millions of cheap and tasty Chinese food restaurants in Beijing as well,” Liu said.

“You can tell how fast the pizza market has grown in Beijing when you walk around the shopping area center, ride on the taxi, bus or bicycle down the street. You can see there are so many pizza restaurants here. But, compared to the population of Beijing, there still are not yet enough pizza restaurants. We have competition here, but it isn’t strong.”

Not only does Big Pizza offer a low price, there is a very special thing that Big Pizza offers in that a customer can make their own pizza or they can ask the chef to make the pizza exactly the way they want. Serving healthy pizza to their customers is the aim of Big Pizza. “We only use a little bit of oil on our pizza because we know that if we avoid adding too much oil, we are creating pizzas that are good for consumers’ health. We don’t offer too much fried food here either. Most our food is grilled. We have so many different kinds of fresh vegetables that our customers have choices that are healthy. We also try to keep the original Italian style of our food; we don’t want to confuse the Chinese food with the Western food here. To keep the characteristics of Big Pizza is very important for our brand.” Liu said. Big Pizza not only offers a pizza buffet, they also have delivery for customers. Their delivery business is 20 percent of store sales. Big Pizza also has some great marketing strategies to help increase sales. The VIP card is a very successful marketing idea they use to keep loyalty of customers. Customers can buy a VIP card for RMB20.00 (USD$2.50) at any Big Pizza store and earn one point on the VIP card each time they eat at Big Pizza. When they earn 10 VIP card points, they get a certificate for a free Big Pizza buffet. The more points they earn on their VIP card, the more discounts they get for buffets. Customers can earn discounts also and the highest discounts they can reach is 20 percent. VIP members also receive a free buffet certificate on their birthday. Besides the VIP card, Big Pizza also gives 50 percent discounts for senior citizens (Age 70 or older) and children (body height of less than one meter qualifies them). When customers come as a group, their group will get one buffet free when they have 13 or more people eat at the buffet. Beijing is the capital city of China, the center of national economics and politics. Beijing has a population of almost 14 million. Ever since 1990, when Pizza Hut opened their first store in Beijing, pizza has become one of the most popular Western foods, just like McDonald’s and KFC. “Pizza Hut is the No.1 pizza restaurant in China. It’s not just because they are a very famous international brand with strong financial background; it’s also because they have created a pizza culture in China,” Liu said. “But, China is a huge market, so

no one company will monopolize the whole market and everybody has opportunity to build their success here. You can tell how fast the pizza market has grown in Beijing when you walk around the shopping area center, ride on the taxi, bus or bicycle down the street. You can see there are so many pizza restaurants here. But, compared to the population of Beijing, there still are not yet enough pizza restaurants. We have competition here, but it isn’t strong.” When I asked where and how they found their equipment suppliers and food distributors, Liu said, “We buy cheese from an agent in New Zealand. Their prices are quite high, but it’s the best cheese that we can find at market so far. We designed and made our delivery pizza boxes by ourselves. They cannot really keep the pizza warm, but they help the pizza to keep from getting cold too fast. The oven we use is OK, but we are still looking for a better pizza oven at a fair price. Even though the Chinese pizza market is behind American and the European countries, with the fast growing market here, we should get more attention from the world’s pizza industry.” After Big Pizza had success with several operator stores in Beijing, they started to franchise. Liu has some suggestions for franchisees, “Location is a very important element in the pizza industry here in Beijing, especially for our buffet style. It’s difficult to find a good location with big space and low rent in Beijing. Also, Beijing’s government has new rules to control the use of the utility systems in restaurants. For example: a lot of business buildings can’t be used for a restaurant; many types of restaurants can’t use fire as cooking energy; many business buildings don’t offer exhaust and sewage system for restaurant etc. You cannot ignore these government rules when you set up your restaurant, otherwise you won’t get your restaurant permit after you put in all of your money.” Big Pizza plans to make a market expansion in the next three to five years, which will include opening seven to 10 operator stores in Beijing; three stores in Shanghai and set up an Eastern branch office and seven franchisee stores in 2006. Plans include opening 20 operator stores and 10 franchise stores between 2007 and 2010. Also, Big Pizza plans to set up their Southern branch company in 2009. By 2010, Big Pizza plans to have at least one hundred stores. To learn more about Big Pizza in China, please visit www.bigpizza.com.cn. If you would know more about Chinese pizza market, contact Weihua Watson at weihua@pmq.com or visit our Chinese website www.pmq.cn. - PMQ www.pmq.com — PMQ 43

WORLD OF PIZZA - UNITED KINGDOM

COOL CUSTOMERS PRESENTING YOURSELF IN A BETTER LIGHT WITH REFRIGERATION AND DISPLAY CASES R E P R I N T E D F R O M U K P I Z Z A PA S TA & I TA L I A N F O O D M A G A Z I N E here is no doubt that the large pizza chains have been responsible for shaping and altering the trading conditions for smaller, and independent, operators throughout the UK, as well as upping the expectations of customers when they walk into your outlet. Increased competition (bringing with it uniformity of quality, improved perceptions of hygiene and greater convenience) has inevitably accelerated the demise of the less innovative, independent operators. However, as we shall see here, by utilising good presentation skills and some of the technological advancements that have been made, it is perfectly possible for independents to create their own style via good use of counter-top and refrigerated display areas.

GOOD DESIGN MAKES GOOD SENSE Good design and sensible equipment choices can be the keys to success for independent operators striving to compete on a leveller playing field with the much larger, national chains. Good design, in a visual sense, not only creates the all-important ambience for customers, but also helps to send out the right messages about the type of outlet and food they can expect. Studies and analysis of customer perceptions suggest that a hotchpotch design (where equipment and counters do not necessarily match, or possess an integrated look) can lead customers to start expecting a poorer product accordingly. Papa John’s, who in advance of designing their new-look stores, conducted research into this area, were alerted to this potential risk, so took steps accordingly. As a result, a strong feature of their new look was sleek-looking cabinets and counter top area that serve to present and deliver their pizzas 44 PMQ — The Pizza Industry’s Business Magazine

in an up front, appealing manner that the customer (should they so choose) can have full sight of. Thus, the vast majority of customers, are becoming familiar with the polished interior designs of the larger pizza chains. They are also more selective than ever before, and no longer quite so prepared to accept poor aesthetics, even in the smallest of outlets. Not only is good design easy on the eyes, it can also assist in ensuring that an outlet runs efficiently. Few would argue that efficiency has a direct link with levels of improved, or enhanced, customer satisfaction, if it leads to faster deliveries, reduced waiting times and greater throughput of customers during peak, busy periods. Any chilled display unit and serve-over should look part of the overall design, rather than a separate entity, advise the refrigerated display company, ISA (UK) Ltd. Certainly, design cohesion – giving an integrated look throughout the bar, counter and refrigerated sections – is an increasing trend and minimum requirement for the smaller operators trying to compete with the big names. This has become the trade mark ‘look’ which is becoming more readily available from Europe’s leading manufacturers.

Good design and sensible equipment choices can be the keys to success for independent operators striving to compete on a leveller playing field with the much larger, national chains.

HYGIENIC It is important, ISA also point out, that experienced design input is received early in the planning stages. This will help to ensure that chilled serve-over units, displays, counters, preparation areas and tills can all be integrated in order to maximise efficient working practices. Aiming for integrated design for efficient working invariably also leads to hygienic working as a direct result. It is clear that the larger chains and multiple operators have raised perception levels of hygiene in outlets where food and drinks are prepared, and so, in marketing terms, it is vital that independent operators seek to meet, or exceed, these expectations. Cleaning regimes can be made easier through good design, as appropriate materials can be combined effectively. Hygiene is not only about cleanliness. Proper refrigerated food storage and display is equally important. Recent years have seen the introduction of ever more stringent environmental health guidelines relating to the storage and display of chilled and fresh foods. The choice of the right refrigeration equipment to meet these guidelines is therefore essential. Whatever equipment is finally selected must be able to ensure that the required product temperature can be maintained, within the specified tolerances. IN A COOL LIGHT As many in the foodservice and food retail sectors know, one problem that is often associated with traditional cold display units can be the display lights, which help to show food items to great effect, but, at the same time, give off heat. This warmth from the lights can not only heat the food within, but increase energy consumption as the refrigeration unit struggles to keep the temperature down. Moffat (www.ermoffat.co.uk), a catering equipment supplier based in Scotland, say that they have developed a

system with ‘cold’ light that allows food to be lit up without the attendant heating. How is this achieved? The system uses fibre optics, with the light source hidden away in the unit’s body and the light piped through to where it is needed for food display. The company believe that this innovation (which was shown in prototype form at Hotelympia last year) that will radically change cold food display because the fibre optic lighting radiates no heat on the food. This means that any products that are heat-sensitive such as cold desserts, drinks, salads etc, can now be lit better, more dramatically for customer appeal, but also more safely. “It’s extraordinary that no one has thought to develop the designs to do it before,” says Moffat’s sales director, Gary Allen. “As well as eliminating the heat issue, fibre optics are extraordinarily versatile when it comes to striking design. They even allow the colour of the lights to be changed - like fibre optic ‘bush’ lamps - or they can be used in other dramatic effects, such as to display a logo or message on the fascia of a food display unit. In fact, they offer the caterer a whole new world of ways to display food!” For example, Gary points out, the lack of heat means that, for the first time, multi-tiered, cold food display units as used in takeaway outlets, can have lights under each shelf, illuminating all the products on display. The fibre optics used in the Moffat system are manufactured by SCHOTT Fibre Optics. They are manufactured of quality glass, as opposed to plastic, since it performs best in this type of display application. “This first counter just scratches the surface of the potential uses,” Gary Allen enthuses. “We expect that fibre optics will have a dynamic affect on food display design in the next few years.” - PMQ-

HOT TECHNOLOGY If you are looking to display hot pizza right under your customers’ noses, then smaller, heated cabinets and display cases such as Lincat’s (www.lincat.co.uk) pizza merchandiser are worthwhile investments for pizza outlets. There is nothing like the sight and smell of freshly-baked pizza to encourage those impulse purchases. Display equipment supplier, Hatco (www.hatcocorp.co.uk), have developed a range of three types of product, all designed with this very aim in mind. Available in a wide variety of sizes, colours and finishes, food can be prepared in advance of busy periods and stored safely and consistently, say the company. “We work closely with our customers to assess their needs and then provide the ideal solution,” says Mark Poultney, Hatco’s UK sales director. “We are finding that all of the products we sell fit a very real and increasing consumer demand for hot and exciting offerings from the foodservice sector.” Hatco’s Ultra-Glo™ food warmers use a line of ceramic elements, and allow an intense heat energy which is not only designed to combat the problem of heat loss at the edge of the food display area, but also allow greater working space between the warmer and the holding surface. Their Glo-Ray® mini-merchandisers place fresh product in front of customers whilst using a limited amount of counter space, and because the infra-red heat holds the temperature of the food without further cooking, you can be assured of hot, fresh food ready to serve at all times say the company. In addition, Glo-Ray® pizza warmers can also keep boxed or bagged pizzas hot, Hatco points out. Their Flav-R-Savor® range of heated and humidified display cabinets feature a controlled, moisturised heat, creating a blanket effect of warmth around the food and maintaining the correct serving temperature and keeping food moist and tender. The Flav-R-Savor®’s fluorescent lights also help showcase the product, and waste is also reduced as food can be stored for longer, Hatco claim (the largest Flav-R-Savor® can hold up to 16 boxed or eight bagged pizzas, or pizzas can be displayed without any packaging). www.pmq.com — PMQ 45

WHAT’S COOL IN REFRIGERATED DISPLAYS?

VICTOR’S CDU-30 The CDU-30 is a recent tabletop chilled display unit from UK foodservice equipment manufacturer. This handy piece of refrigeration equipment can help you to keep food chilled for up to two hours. It is particularly useful in small foodservice operations, suggest Victor, for presenting sandwiches, salads and snacks, cakes and bottled or canned drinks. Manufactured in stainless steel, the unit measures 1110 x 580 x 520mm, and has a toughened glass sneeze screen, together with fluorescent lighting (www.victoronline.co.uk).

VALERA’S NEW SERVE OVERS Valera has introduced two new serve over counters to its range, featuring stylish contemporary designs and the technology to match, say the firm. The Prestige model is suitable for fresh meat or delicatessen displays, is built to individual specifications, and incorporated integral or remote refrigeration systems, 90 degree and 45 degree internal or external corners, salad well, dry heated deck and bain marie with or without steam as required. The basic refrigerated units are available in six lengths ranging from 600mm to 2900mm, with all end walls measuring 55mm. The Passion model is suitable for fresh meat, delicatessen or patisserie applications, say Valera, again with the option of integral or remote refrigeration, 90 degree and 45 degree corners, and the choice of six lengths (integral) or seven lengths (remote). The range is enhanced by the addition of an ambient bread display available in three lengths - 950mm, 1400mm and 1900mm - and straight or cornered counter extensions (www.valera.co.uk).

GASTRO PRO As part of the Climate Change Levy programme, up-front tax relief is being provided for businesses who can demonstrate that they have invested in energy-efficient equipment, so it could be worth while looking out for such opportunities when it comes to refrigeration equipment.

CONTINENTAL COFFEE SHOP SYSTEMS Aura in Stirling, a vibrant university town lying roughly midway between Edinburgh and Glasgow, lives life as a bar, café, restaurant and deli, and was one of the first café outlets in the UK to adopt the new Continental Coffee Shop Systems from refrigeration equipment suppliers, Trimco (www.trimco-coolair.com). Aura’s specific requirement had been for a multi-operational counter-top area that could refrigerate, display, serve as a bar and service area, and of course greet and impress. Agnes Robertson, one of Aura’s joint proprietors, is sure that their counter area equipment (supplied by Lovats Catering of Kirkcaldy) has definitely enhanced the image of their business with their customers, and that it is both prestigious yet functional in design. “We had seen similar systems when we visited Madrid, but had not been able to find something of comparable quality in this country until we heard about Trimco,” she recalls. Available exclusively from Trimco the Continental Coffee Shop System installed at Aura in Stirling features a natural wood finish with granite worktops and a curved glass display cabinet together with mirrored back bar shelving units to create that striking first impression.

46 PMQ — The Pizza Industry’s Business Magazine

Foster Refrigeration (www.fosterrefrigerator.co.uk), for example, is just one company who are currently offering energy-efficient additions to their ranges. Their Gastro Pro range of cabinets and counters are 95% recyclable, say the firm, and are available with an energy saving hydrocarbon refrigeration option. All units have self closing doors with durable stainless steel hinges, ensuring food safety and efficiency is not compromised by prolonged exposure to warm air. The Gastro Pro Counter Range are designed to work efficiently in hot kitchens, exceeding Climate Class 5 operation up to 43∞C (the toughest official standard for commercial refrigeration) and selected cabinets from the Gastro Pro range are available on the ECA Scheme (also known as the Enhanced Capital Allowance scheme).

WORLD OF PIZZA - CANADA

NAT’S: NEW YORK PIZZA

IN VANCOUVER B Y L U C A S L E I G H • P M Q S TA F F

any pizzaiolos pride themselves in their product. This is no exception for the Canadian pizzeria, Nat’s New York Pizzeria, in Vancouver, B.C. Nat’s has been the recipient of more than 10 honorable awards and opportunities unusual to most pizzerias, including a cover story from the 1999 Teen People Magazine, which featured Nat’s as Josh Jackson’s favorite restaurant, and Flare Magazine’s 1999 choice for the “Best take-out pizza in Canada.”

THE FOOD Nat’s New York Pizzeria, which is owned by cousins Nat and Franco Bastone, first opened its doors in Kitsilano in 1992 after acquiring their 100-year-old family recipe for thin-crust dough and a New York sauce. “We have relatives in Yonkers, New York, that own the Raceway Pizza. As a kid, I used to visit there, and always loved the business. In my high school annual I wrote that one day I would be opening my own Italian pizza shop,” Nat said. In January of 2000, the Bastones opened their second store to the West End to help provide more for the customers in that area. The pizza at Nat’s is the original Neapolitan style. It’s cooked in a Baker’s Pride brick oven with traditional cheese, but heavier on toppings than a traditional Neapolitan pizza. “We don’t offer desserts, but we do salads and East coast style foot-long Heros in chicken, meatball, and veal cutlet— plus we have great pasta dishes such as lasagna and spaghetti with meatballs,” Nat said. “Mama Rosa’s homemade chicken soup recipe has also been written up in the local Province newspaper because it’s so good,” he said. 48 PMQ — The Pizza Industry’s Business Magazine

COMMUNITY VALUES “We are right in our old high school neighborhood, so my cousin and I cater to our old high school,” Nat said. They’ve received numerous awards that have helped bring people into their restaurant, such as their 2004 nomination for the Ethics in Action award and Vancouver Magazine’s selection as the best pizza in Vancouver, a city with more than 3 million people. But with all the action coming their way, they felt it was time to give back to the community that made them thrive. “We helped start the Giovanni Bastone Foundation (GBF) in my father’s name, which supports childhood cancer research. We raised $30,000 this year at our annual Casino, Dinner and Dance night,” Nat said. To date, the GBF has raised over $50,000 for children’s cancer research that goes directly to the Michael Cuccione Foundation, which was started by Michael, who eventually died of cancer after a seven-year struggle at the age of 16. “Our next casino night is in May,” Nat said. One small thing that Nat’s does to get the business of the local kids is use these special individual pizza slice trays. Kids will bring in parties just to complete a “pizza.”

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Nat’s has a lot of cool chalk-drawn artwork on the walls, depicting popular New York-local characters such as Spider-Man, Conan O’Brian, and scenes of the Bastone cousins flitting about New York City making delivieries.

SPECIALS AND BIRTHDAY PARTIES Nat said that the majority of his business comes from the local high schoolers and families. “We do a huge lunch crowd for the high school. Many of the teenagers come during their 40 minute lunch break and we give them a $3 big slice of cheese pizza with a Pepsi,” he said. “Our main focus is the neighborhood. For small kids, we cut pizza into bite-sized slices and serve them on funny trays. The kids love them,” Nat said. He also admitted that children have come in crying after birthday parties with pizza from other restaurants because they won’t eat any other pizza than Nat’s. “All the art on the walls and throughout the restaurant keeps them entertained. We try to tie the New York theme in with all the art. We have cartoons of Franco and I with Spiderman, the Letterman Top 10 Reasons to eat at Nat’s, and also pictures of me and my cousin on our bikes delivering and eating pizza,” he said. “Since our restaurant is a casual 30 seats, we love to host children’s birthday parties. Usually we’ll do parties for three or four dollars a person,” Nat said. “We like to work with people on this because our restaurant is so small. In fact, that’s one of the biggest mistakes we made here when designing the restaurant. We only work with two ovens, so it makes it tough to have a lot of orders at once. If I could change one thing, I would have made more accommodations and planned for bigger crowds. But birthdays work well for us, because we have just enough room most of the time.” ADVERTISING AND PUBLICITY Although Nat’s does no advertising or direct mail, unless it’s free publicity or an event they are sponsoring (such as the GBF, Big Brothers of Greater Vancouver, Big Sisters of BC Lower Mainland, and all the Vancouver Canucks, BC Lions, Vancouver Canadians, and Vancouver Giants games), a normal week brings about 4,000 people to the two restaurants. “We discourage advertising because we only have two ovens and on Friday and Saturday nights it gets so busy we sometimes have to take the phone off the hook just to catch up,”

“Our main focus is the neighborhood. For small kids, we cut pizza into bite-sized slices and serve them on funny trays. The kids love them.” - Nat Bastone, Nat’s New York Pizzeria 50 PMQ — The Pizza Industry’s Business Magazine

Nat said. Though he wouldn’t divulge his sales numbers, he said they were very, very good. “Delivery is about 25 to 35 percent of our business on a rainy day and on a normal day, it’s between 15 and 20 percent,” he said. “The more Domino’s commercials that come on, the busier we get. We are all about customer service, so if there is a problem with an order, I take care of it right away. Call us and let us know the problem and without hesitation, we will replace the pizza and leave you the one you have as an appreciation.” Nat’s is in a special spot because of the publicity they received in 1999 from Teen People Magazine, which featured a cover story about the “Dawson’s Creek” actor, Josh Jackson. Josh grew up in Vancouver, and went to Kitsilano high school where Nat and Franco attended as teens. Since Nat’s was Josh’s favorite place to eat growing up, and even still today, he decided to do his photo shoot for the magazine at Nat’s Pizza. “That article brought people from all over the world because they wanted to see where Josh Jackson ate,” Nat said. In an effort to sponsor sports teams and to help provide tickets to less fortunate children who otherwise wouldn’t have the chance to see the games, Nat’s buys a Gold Sponsorship to the Vancouver Canucks for $4,000. They also sponsor the BC Lions for $500, and the White Caps for $500. For each event they sponsor, they receive a certain number of complimentary tickets. For the Canucks, they get 80 tickets included in the Gold package. For each ticket they are given, Nat’s matches that number and then distributes them to their favorite charities such as Big Sisters, Big Brothers and various community centers for less fortunate children. For buying these sponsorships, their name gets printed in the teams’ season programs, and occasionally gets announced at the games as a sponsor. “We also have banners up at the games we sponsor,” Nat said. FINAL WORDS A pizzeria owner/operator can take some good advice from Nat and Franco Bastone, “The best thing we have done for our business is being consistent. If you’re consistent with a good product, attitude, and service, people will pick up on it right away,” Nat said. He stressed that it’s a good idea to keep your “no’s” in the drawer and make people feel like they are coming into your home instead of a restaurant. “You have to give things when need be if someone needs something.” - PMQ -

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WORLD OF PIZZA - NEW ZEALAND

MELT

IN NEUTRAL BAY B Y T O M B O Y L E S • P M Q S TA F F

ou’ve read about Melt Pizza in New Zealand, but it seems that more than one person has considered this a perfect name for a pizza shop. Peter and Nina Augoustis, finalists in the Best of the Best Pizza Challenge, approached me at a function back in September and asked me where the Melt pizza shop in New Zealand got their name and when did they open. As it turns out, Peter and Nina have a shop in Australia called Melt. Coincidentally, both their shop and the one in New Zealand opened about the same time. After talking with Peter for a while, I thought it would be a good idea to make a visit because he seemed to have his business in order, so I drove out to Neutral Bay to check him out. We sat and had a beer and sampled about seven different types of pizza, of which the Morrocan Lamb was the standout. With my

52 PMQ — The Pizza Industry’s Business Magazine

belly full, I thought it might be best to start figuring out what he did with his business before my full stomach put me to sleep. THE INGREDIENTS When you walk into the shop all of the ingredients are out on display and it is possible to see how Melt got their popularity in the North shore. All of the toppings are fresh, and prepared daily on their premises, and the result is seen in the final product – a great tasting pizza. MENUS THAT “STICK” AROUND One of the first things I noticed when I walked in the shop was his menu. They were designed with magnets on the back. “The beauty of this menu is that it sticks out… and around,”

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Melt does a pretty hefty business with their half-and-half pizzas. Some of the ground rules for their half-and-halfs are shown here.

Peter laughed. “It costs a bit to print these, but we put a magnet on the back. By paying more and having the magnet, at the end of the day we hope the menus are still there and not thrown in a drawer with the other menus. We keep our menu simple and divided into categories, but we have a lot of choices. One thing that is popular is the extensive vegetarian menu, probably the biggest in the North Shore. Here we have a lot of vegetarians and with a lot of choices for them, they come and eat here. We have even started to do gluten-free bases, opening our market further. If you buy something like 5,000 menus, they’d be $1 each, but if you buy 100,000 you can get a better price. I order 20,000 at a time and pay close to $3,000, which will last me about four months. We do the letter drops maybe every three months we do close to 10,000. I’ve noticed if you do too many, say if I want to do maybe 40,000 and go and hit every suburb… imagine all those people calling. You cannot do it. We want to make sure of our priorities and make sure that it’s only the best product that comes out of the oven.” SPONSORSHIPS AND SPORTS Peter said they also market themselves through sponsorships, like their local soccer team, which is the girl’s 1st division team. Peter says he spends close to $2,000 for the sponsorship and gets their logo on the team’s jerseys and it gets the Melt info on their web site. “They put me on their website, so that is exposure to an additional 4,000 potential customers,” Peter explains. “There’s about 400 people that live in the suburbs that are with this cause, so being a sponsor has really been great and done us well. In addition to exposure from the jerseys

Peter said one thing that does work is mail drops. He does 2,000 a day for five days. “It’s $35 for 1,000,” he said. “Some people will call you on the night they get them in the mail, some people call you on the weekend, but it works out to be about four to five days from the time I send them that I see the results.” and web site, we do additional marketing. We offer discounts and specials and sponsor their events, which is great for the teams and makes them come back to us because they get a discount. That’s been great and the return on that has been fantastic.” Another thing they do with the teams is that every year they have a whole team come to the shop and he teaches them how to make their own pizzas. “We teach them how to be part of the community and how to make pizzas,” Peter said. “It’s very satisfying when people come up and start conversations that have resulted from working with the groups. A lot of people recognize you when you walk down the street – it’s a very friendly community. They call me Pizza Pete – it was quite funny in the beginning but now I am used to it. “Some like sports marketing and some don’t, but I’ve tapped into using someone else’s website and tapped into another 4,000 readers and that’s exclusive for a whole year, and I get first pick for next year. We have our own website, which is great, and you’d be amazed at how many people call and say, ‘I don’t have your menu.’

www.f-i-b.org

“The beauty of this menu is that it sticks out… and around,” Peter laughed. “It costs a bit to print these, but we put a magnet on the back. By paying more and having the magnet, at the end of the day we hope the menus are still there and not thrown in a drawer with the other menus.

We just direct them to www.meltgourmetpizza.com.au and they call you back in five minutes.” NEWSPAPERS Peter said they have also tried the local papers. He said the local paper is a great paper, it has color, shows realistic advertisements, editorials, the whole works. They did that and it was about a $600 investment that they tested to see if it was going to work. To track the effectiveness, they ran a special, like you get free margarita on school holidays if you order the special deal, and the customer had to show the coupon. That showed how many people actually

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“For delivery management, I get into my delivery software on the POS. I’ll and go thumbing through the delivery driver, and I’ll do the date, and then the driver who was working last night. It prints up how much he had in paid orders last night, how many deliveries he’s done because he gets paid for delivery, how many have been done on credit card and that is it. He just adds these up, does his totals on the back and gives me the printed slip.”

responded to the newspaper offer. He said that was unsuccessful for the amount of money because he got maybe eight or nine coupons back. MAIL DROPS Peter said one thing that does work is mail drops. He does 2,000 a day for five days. “It’s around $50-$60 for a 1,000,” he said. “Some people will call you on the night they get them in the mail, some people call you on the weekend, but it works out to be within four to five days from the time I send them that I see the results. On a Friday it dwindles, that’s what you have to worry about, you have to space it out and like I said if you do 20,000 in one week, you can’t keep up.” Peter said his POS system is a very good investment for monitoring mail drops and running the business. “We log what date and time we do certain streets in a certain area with mail drops, so I know who has been mailed and who hasn’t. I don’t want to annoy them nor do I want to waste money hitting the same area twice. CORPORATE MARKETING “We’ve also tapped into the corporate market,” he said. “We’ve done a few mail-outs with the corporate market, so we’ve really had some big orders. Right now we just did one for a local advertising agency, and they’ve ordered from us every Thursday for the last six months. We bill them over the phone by credit card. It’s the same time, same place, same pizzas every week. To get the corporate accounts we have to approach them or we get mentioned by one of our customers that works up there. “What we do is give them a lunch on us for free. We tell them that we are right up the street. I will ask if they are hungry and tell them that we can fix their pizzas in about an hour. So we’ve done that before and when we leave our menus there, the orders come in the next week. It’s loyalty building and it’s well liked.” 56 PMQ — The Pizza Industry’s Business Magazine

HOW THE POS SYSTEM HELPS Melt uses an Aussie-based POS system. To set up the system, they had to buy a computer, which was about $1,500 and then basically license the software from them. “ We pay about $88 a month and paid about $1,500 in hardware, which included the cash register, the printer and the flat screen,” he said. “It runs on DOS, which is a bit of a dinosaur system, but very fail safe. The total was about $3,000 in equipment and $88 a month for the service. We could pay a programmer to make our own program, but we would pay like Peter and Nina were finalists in the 2005 Best of the Best Pizza Challenge, and have used that to generate new business.

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“We’ve also tapped into the corporate market,” Peter said. “We’ve done a few mail-outs with the corporate market, so we’ve really had some big orders. Right now we just did one for a local advertising agency, and they’ve ordered from us every Thursday for the last six months.

$10,000-plus. A POS simplifies your whole system. “It looks after every area of the pizza shop… it tells you how much chicken you’re putting on your pizzas. You can weigh up how many chicken pizzas you sold and how much chicken you’ve bought, so you can work out if your staff is putting too much product on. You can work out how long it is taking you to put on different stuff. In no time I can pull those numbers up or find out how much business I did last night, what’s not selling, what’s the best seller, what’s not the best seller, or why am I going through so much salmon…all I have to do to look is pull it up on the screen. This stuff is there, that $3,000 or $4,000 is worth much more to you when you get bigger. The POS guy is based out of Melbourne. Currently it’s running on DOS. I know a lot of big businesses want to run on Windows, but to me the DOS system is fail-safe. With the POS, I can monitor how much I make. “For delivery management, I get into my delivery software on the POS. I’ll go thumbing through the delivery driver, and I’ll do the date, and then the driver who was working last night. It prints up how much he had in paid orders last night, how many deliveries he’s done because he gets paid for delivery, how many have been done on credit card and that is it. He just adds these up, does his totals on the back and gives me the printed slip.” CONCLUSION Melt in Neutral Bay has been open now 16 months and Peter and Nina are extremely happy with their decision to move to the pizza business. Peter was working in a Greek restaurant that did more traditional style pizza and learned how to mix dough when he was about 13 after school. He used to mix all the dough and do all the dough balls and then they made him start running the whole show for the pizzas. “I did that all through studying aviation and then I turned to aviation to support my lifestyle for about eight years,” Peter said. “I kept remembering the food industry and I’m an evening kind of person. Now I just spend time in the day with my kids and I see my wife. We put our menu together with some help of family and friends, research and some advice from chefs saying what would go with what. It took us about four months to finalise our menu and we just went with it. There have been very little changes, which was really lucky for us…we felt we should keep it simple, keep it easy.” - PMQ 58 PMQ — The Pizza Industry’s Business Magazine

“I know a lot of big businesses want to run on Windows, but to me the DOS system is fail-safe,” says Peter. “With the POS, I can monitor how much I make.

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FEATURE

HEALTHY PIZZA?

DEFINITELY.

B Y T O M B O Y L E S • P M Q S TA F F

izza can be a wonderfully nutritious and healthy meal,” emphasizes Anita Jones, MPH, president and CEO of Healthy Dining. What is healthy? Jones explains that a healthy meal is full of nutrient-rich ingredients, while balanced in calories, fat, carbohydrates and protein. Healthy meals include plenty of fresh fruits and/or vegetables, whole grains and lean proteins. “A pizza crust, especially a whole grain crust, is the perfect foundation to hold a medley of healthy ingredients.”

MARKETING HEALTHY PIZZA #1: Achieve Great Taste: “Probably the most important key to success in marketing healthy pizza is taste. Guests are looking for taste first and then health benefits,” emphasizes Jones. “And the best way to achieve great taste and good nutrition is to use high quality ingredients.” Amir Sabetian, Z Pizza’s director of operations reflects, “Twenty years ago, when we opened our first Z Pizza, we were committed to using only the best ingredients. Over time, we have added wheat crusts, low-carb crusts, part skim mozzarella cheese, non-fat cheese, lowfat organic sauces and lots of vegetables! Our customers

Probably the most important key to success in marketing healthy pizza is taste. Guests are looking for taste first and then health benefits. 60 PMQ — The Pizza Industry’s Business Magazine

love our food.” A Z Pizza guest recently raved after trying the Sweet Potato and Arugula Salad Pizza, “this is the best combination of flavors EVER in my mouth at the same time!” #2: Provide Accurate Nutrition Information: When offering healthy choices, it is important to have the menu items analyzed for nutrition content to verify that they meet recommended nutrition guidelines. For accuracy, make sure the nutrition analysis is performed by a professional nutrition organization proficient in restaurant nutrition analysis. “Many times, we have met with restaurants who are offering inaccurate nutrition information done by a dietitian who is a customer. It’s important that the nutrition information is accurate and that requires a culinary nutrition professional trained in restaurant nutrition analysis,” contends Jones. “We regularly receive e-mails from our patrons asking for the nutrition information,” emphasizes Rebecca Andrews, marketing director of Sammy’s Woodfired Pizza. “We have found that our customers are very interested in nutritional content from the restaurants they frequent.” Z Pizza has recently posted nutrition information for all Z Pizza menu items on their website, www.zpizza.com. “Our customers are pleased to have nutrition information for our menu items. It is just one more thing that sets us apart from our competition and shows our customers that we care about them,” says Sabetian. #3. Utilize Marketing Strategies Within Your Restaurant: • Menus - Provide guests with a listing of menu items that meet the healthy dining guidelines. Healthy dining

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menus also include nutrition information and ‘Special Request’ ordering information, if needed (i.e. ‘Request less cheese’). “We have a variety of healthy dining menu options for our customers to choose from. We have found that the menus are perfect to promote our healthy options to our customers,” says Andrews. • Stickers - Use window stickers on menus to let customers know that they will be able to find healthy choices. • Menu Emblems - High-quality labels that can be placed on standard menus to notify customers that healthy menu items and nutrition information is available upon request. • Website - Have nutrition information in an electronic format that can easily be uploaded to the restaurant’s website. #4. Emphasize Marketing in the Community “We have found that the media loves a story about restaurants with a healthy twist,” reveals Jones. “We recommend that restaurants deliver their healthy fare with a press release to local television anchors, radio talk show hosts, and radio dee jays. Also, send invitations and information to food and health editors at your local newspapers. Your healthy food is your best advertising and you are sure to get some great buzz! In addition, you can send coupon offers and information to nearby physicians, dietitians, weight control and fitness centers. There are so many community organizations and professionals that are interested in restaurants that offer healthy choices.” Healthy Dining provides a list of strategies that guides restaurants in promoting healthy choices to the media and the community. EXAMPLES OF HEALTHY PIZZA: Z Pizza (30 locations in California, Nevada, Arizona and Virginia) offers the following healthy pizzas: TUSCAN MUSHROOM PIZZA With mushrooms, green onions, oregano, garlic sauce and feta cheese on a whole wheat crust. 325 calories, 9 grams fat for 1/2 of 10” pizza. SANTE FE PIZZA With chicken sausage, red onions, corn, Serrano chiles, tomatoes, cilantro and southwest chipotle pesto with non-fat mozzarella cheese on a whole wheat crust. 440 calories, 10 grams fat for 1/2 of 10” pizza. PROVENCE PIZZA With artichoke hearts, capers, tomatoes, roasted garlic, basil, marinara, and non-fat mozzarella cheese on a whole wheat crust. 425 calories, 8 grams fat for 1/2 of 10” pizza. 62 PMQ — The Pizza Industry’s Business Magazine

Healthy only sells if you market it properly. Round Table Pizza has an entirely separate menu devoted to healthy pizza alternatives.

THAI PIZZA With spicy chicken, red onions, cilantro, carrots, bean sprouts, peanut sauce and non-fat mozzarella on a whole wheat crust. 430 calories, 6 grams fat for 1/2 of 10” pizza. Sammy’s Woodfired Pizza (12 locations in California, Nevada & Arizona) offers the following healthy pizza: VEGETARIAN PIZZA With grilled eggplant, onions, bell peppers, fontina, garlic, zucchini and Roma tomatoes with fat-free mozzarella. 445 calories, 11 grams fat for 1/2 of pizza. Fitness Pizza (2 locations in Southern California) offers the following healthy pizza: HOCKEY PLAYER PIZZA Marinated pieces of chicken breast and plenty of artichoke hearts topped with fresh pesto sauce. 325 calories, 10 grams fat for 1/2 of pizza. IRON MAN PIZZA Fresh spinach, sliced mushrooms, low-fat ricotta cheese and sliced black olives. A great source of iron and folic acid. 265 calories, 12 grams fat for 1/2 of pizza. Roundtable Pizza offers the following healthy pizza: GUINEVERE’S GARDEN DELIGHT PIZZA Our classic red sauce, three cheeses, mushrooms, black olives, Roma tomatoes, yellow onions and green peppers. 420 calories, 14 grams fat for two slices. GOURMET VEGGIE Creamy garlic sauce, three cheeses, artichoke hearts, zucchini, spinach, mushrooms, Roma tomatoes, red and green onions, Italian herb seasoning and lots of chopped garlic. 440 calories, 18 grams fat for two slices. CHICKEN & GARLIC GOURMET PIZZA Creamy garlic sauce, three cheeses, roasted chicken, mushrooms, Roma tomatoes, red and green onions, Italian herb seasoning & lots of chopped garlic. 460 calories, 18 grams fat for two slices. - PMQ -

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FOOD

SMART

Visit www.pmq.com and look under PMQ Column Contributors to see previous articles by Evelyne or check Ask the Experts to ask Evelyne a question.

PIES JUST WHAT THE DOCTOR ORDERED B Y E V E LY N E S L O M O N • P M Q S TA F F

n preparation for this article, I thought long and hard about “healthy” pizza and I have arrived at this conclusion: when it comes to pizza, healthy is more a state of mind than adhering to a rigid dietary regimen. Diets come and diets go, but pizza will always remain popular. Take the recent attack of the low-carb diet craze—it has bitten the dust just as most all of the hottest diets did before it, and how the newer ones will in the future. Diets can be great motivators in helping a person lose unwanted pounds, but unless that person has fundamentally changed the way they live and eat for good, the old bad habits will return, as will most—or all, of their hard-earned lost pounds. Most diets do work for a while, but unless one can make a lifelong commitment to never again eat foods that are bad for us, we set ourselves up for eventual failure.

NEVER IS A VERY LONG TIME Pizza is one of those dishes that has become thoroughly ingrained into the American psyche. To say that one will never again have pepperoni pizza because it is not healthy is to dangle the proverbial forbidden fruit under your nose. The more you can’t have it, the more you crave it, so that when you finally break down and have it, you will binge and eat way more than you would if you’d had it all along. Am 64 PMQ — The Pizza Industry’s Business Magazine

I condoning a steady diet of pepperoni pizza? No, but I do condone eating a couple of slices of pepperoni pizza every once in a while. That being said, once in a while, means every few months. Now, hold on before you begin blowing your tops about eating pepperoni pizza once in a while. I don’t mean all pizza, just the high fat, high calorie, loaded meat and cheese laden monsters. Pizza can, and should be part of a normal healthy eating habit. Responsible operators will create pizzas that offer consumers viable, tasty alternatives in making a smart choice when it comes to choosing what’s good for them and what tastes good. SMART EATING =GOOD EATING =SMART PIES Never before have consumers been more informed about what they put in their mouths. Reading food labels in the supermarket aisle has developed into a national pastime. Yet, obesity, adult onset diabetes and heart disease have reached epidemic proportions. The road to a healthy life seems paved with black and white bricks, with all or nothing approaches to diets. Perhaps it is just part of our puritanical roots to punish ourselves so that we can become good. Imagine that. Well, I’m here to say that smart pies make perfect sense when it comes to making sound nutritional decisions instead of reactionary ones that embody the latest diet fad.

WHAT’S SO SMART ABOUT SMART PIES? First of all, smart pies cut both the operator and consumer some slack when it comes to strict dietary disciplines by steering clear of diet plan references such as The South Beach Diet™ or The Atkins Diet™, or playing the “heart-healthy, light, low-fat or free” claim game. Whenever one of these terms is used, strict regulations must be followed regarding truth in advertising. Creating recipes that are consistently on target in regards to specific diet plans can be problematic if not strictly enforced. Other food claims must be substantiated in writing. If the pizza is independently analyzed by an outside source and it fails to deliver what it claims, legal ramifications could ensue. Smart pies draw from diet fads and current nutrition information in a more subtle and generalized manner. WHAT’S IT GONNA TAKE? Does the average operator have the time to study all of the various hot diet programs or, to pour over reams of nutritional information to create healthier, good tasting pizza options? No. Operators are looking for simplified answers that they can easily incorporate into their menus and consumers are looking for simple and tasty solutions to eating right. It is a proven fact that subtle dietary changes, when made consistently over time, are far more effective than more aggressive changes over a shorter time. In other words, pizzas that taste good first, and secondly, are good for us, are the answer.

OFFERING HEALTHY CHOICES I promised myself that I wouldn’t burden you all with a load of facts and figures that would make your eyes glaze over—so I won’t. But I will ask you to read magazines or surf the Internet, or read some books on the subject. You’d be surprised what very useful information you can glean in a very short time. Go out there and create delicious smart pies that will develop a solid following based on how wonderful they are, and not what they aren’t. SMART PIE SOLUTIONS In part two of this piece, we are going to take a look at the basics of healthy pizza construction starting from the crust and on through to the toppings. There will be plenty of tips and tricks to choose from. USE THE CRUST YOU HAVE My first bit of advice is to start with what you have, and use less of it. For example if you use 12 ounces of dough for your 12 inch pizza, use six or seven ounces of dough, that is rolled out thinly. The result: 40-50 percent less fat, calories and carbohydrates without changing a thing in your dough formulation. The crust will come out thin and very crispy, and will enjoy a big following with those that tend to leave their crust ends on the plate. (For a six to eight-inch personal thin and crisp pie, use four to five ounces of dough). www.pmq.com — PMQ 65

The lightest, lowest in calories and fats option is good old plain chopped or crushed tomatoes in juice or puree. Prepared tomato sauces have sugar, oil and other flavorings in them that contribute significantly to their fat and caloric content.

NON-FAT CRISPY DOUGH Formulate a dough recipe using only flour, (try to make it unbleached and organic) water, yeast and sea salt. Avoid using any kind of sugar (honey is still sugar) fats or chemical additives. HIGH FIBER MULTI GRAIN DOUGH Here’s a high fiber, whole grain, deliciously chewy and flavorful crust. This is a fantastic crust, but it is not low calorie. The addition of the wheat berries, rolled oats, sunflower seeds and bran create textural interest. Flour: White unbleached flour 80 ounces (5#) 20% Whole Grain Wheat Flour 300 ounces (18.75#) 75% Sea salt 4 ounces (.25#) 1% Sprouted Wheat Berries 4 ounces (.25#) 1% Rolled Oats 4 ounces (.25#) 1% Sunflower Seeds 4 ounces (.25#) 1% Bran 4 ounces (.25#) 1% __________ 25 pounds = 100% ADY Liquids: Unfiltered honey Pure olive oil Water

Total yield:

4 ounces (.25#)

6.60 ounces (.42#) 10 ounces (.63#) 130 ounces (8.13#) __________ 13.75 pounds =

3% 5% 47% 55%

approximately: 38.75 pounds

MIXES There are lots of whole grain dough and sour dough mixes available that make formulating your special crust a snap. Do try mixing in some sunflower seeds, bran, rolled oats or sprouted wheat berries to add additional fiber and texture. SPECIALTY FROZEN AND PAR-BAKED CRUSTS Other alternatives to making or mixing your own dough are frozen doughs based on non-gluten grasses and grains like spelt, soy flour, chickpea flour, rice flour and cornmeal. Low-carb crust options are also pretty commonly available too. 66 PMQ — The Pizza Industry’s Business Magazine

READY-MADE CRUST OPTIONS Corn, flour or whole wheat tortillas make excellent thin crust substitutes—especially for Latino light pizzas. Lavash is another great quick, thin crust option. DECISIONS, DECISIONS Whether you choose to make a from-scratch dough, or to bring in a separate frozen dough, or to use ready-made crust substitutes, there is plenty of choice. SUPER SAUCES Tomato Power The lightest, lowest in calories and fats option is good old plain chopped or crushed tomatoes in juice or puree. Prepared tomato sauces have sugar, oil and other flavorings in them that contribute significantly to their fat and caloric content. If you want to season the crushed tomatoes, add a bit of black pepper, oregano and chopped fresh basil—leave out the salt, they already have plenty. Add chopped fresh garlic directly onto the empty pie skin before saucing. This type of “sauce” has an extremely bright-fresh flavor that is sure to spill out to your general customers. I call it, Italian Style Crushed Tomato Sauce. Oven Roasted Tomato Sauce This has a wonderful intensity to it and a rustic look and taste. Halve fresh ripe roma tomatoes onto a sheet pan and sprinkle with salt, pepper, fresh garlic slivers, and fresh basil. Drizzle very lightly with olive oil—or don’t use any oil. Place in a 400˚F oven until the tomatoes are just tender. Remove from the oven and allow to cool. Remove the tomato skins and reserve the tomatoes, seasonings and all of the accumulated juices. These tomatoes can be used as is on pizza, or coarsely chopped as a sauce. Light Pesto Pick two packed cups of fresh basil leaves and place in a food processor with 1/4 cup olive oil and 1/2 cup of non-fat chicken broth and process until smooth. This pesto puree is ready to flavor all kinds of sauces or to spread on pizza. For a low-fat creamy pesto sauce, mix 1 tablespoon of pesto with 1/4 cup of low fat mayonnaise and 1/2 teaspoon of chopped fresh garlic. Use this as a base, spread over an empty pizza shell.

Formaggio Bianco Base Per one pint of low-fat or non-fat ricotta, mix in one tablespoon grated Parmesan and one tablespoon of grated Romano, a generous grating of fresh nutmeg and fresh ground black pepper. Use this cheese base for a creamy low-fat alternative. THE CHEESE DEPARTMENT Mozzarella I prefer to use a very full flavored part-skim milk mozzarella that’s been very finely shredded, because it will impart the best flavor with just a small amount. I tend to stay away from non-fat cheeses because it often takes too much product to taste like anything and their melting capabilities are often pretty poor. Smoked mozzarella has a lot of flavor, and again, you tend to use less. Provolone This tangy cheese is a wonderful option, it is very full bodied and a little goes a long way, and, it melts into great strings.

68 PMQ — The Pizza Industry’s Business Magazine

Cheddar Shredded 2 percent fat works best, it has good flavor and still melts nicely Parmesan Shred it rather than grating, for a bigger flavor punch Romano Grated or shredded, Romano has plenty of flavor bang for not a lot of calories. Asiago This is another full-flavored cheese that benefits being shredded—especially after the pie comes out of the oven Goat Cheese Mild, tangy and very low in fat and calories, goat cheese is a great healthy cheese Feta Similar to goat cheese, Feta is saltier and has a bit more tang to it. Feta delivers excellent flavor with little fat.

When it comes to meat, forget pork sausage, pepperoni or chopped beef. Bring on the Canadian Bacon, smoked ham, chicken breast, chicken sausages, turkey bacon, turkey pepperoni, turkey salami and turkey sausage. Most seafood is naturally low in calories, so pile on the shrimp, clams, mussels, scallops, smoked salmon, smoked tuna, smoked oysters and domestic fish caviars. Gorgonzola or Blue Cheese While these cheeses do tend toward higher fat and caloric content, a little goes a very long way. They are excellent crumbled over a pie as it comes out of the oven. Ricotta Low-fat or non-fat ricotta creates and excellent, low fat creamy, almost custard effect. Ricotta is a must-have low fat ingredient. Say Cheese I prefer to use low fat versions of cheese instead of the non-fat because they have so much more flavor and better texture, that I find I am satisfied with a lot less product on the pie. Stronger flavored cheeses are pretty important to satisfying those cravings. Another trick I use, is to coarsely shred cheese over the top of the pie as it comes out of the oven—which gives a great cheese hit—without a lot of cheese. I also love to crumble Feta or Blue Cheese over the pie after it bakes, so that I get the most out of their flavors. MEAT, POULTRY AND SEAFOOD TOPPINGS When it comes to meat, forget pork sausage, pepperoni or chopped beef. However, bring on the Canadian Bacon, smoked ham, chicken breast, chicken sausages, turkey bacon, turkey pepperoni, turkey salami and turkey sausage. Most seafood is naturally low in calories, so pile on the shrimp, clams, mussels, scallops, smoked salmon, smoked tuna, smoked oysters and domestic fish caviars. Sausage My hands down favorite pizza is made with home-made Italian style pork sausage—and I do indulge in this delicacy every few months, but when I want to eat a pizza with sausage on it the rest of the time, I use an excellent Italian style turkey sausage or Turkey pepperoni to flavor the rest of the topping—a little goes a long way. Bacon and Ham Low-fat ham is great on pizza as is Canadian bacon, but once again, turkey steals the show with excellent, meaty, turkey bacon, turkey ham and turkey salami. Chicken Chicken breast is perhaps the most popular healthy meat topping option for pizza—it can be grilled, diced, shredded or sliced. Chicken is so versatile and so good for you. Seafood Traditional seafood toppings star on smart pies. Seafood is the best entrée into upscale toppings—who can turn down a shrimp pizza? 70 PMQ — The Pizza Industry’s Business Magazine

VEGETABLES Here lies the heart and soul of healthy pizza. Eating your vegetables never tasted so good. Try to roast most of your cooked vegetables, as this process brings out their natural flavors and sugars without the added fat of sauté. Greens Leafy greens like spinach, kale, chard, broccoli di rape, broccoli and escarole are traditional Italian toppings that are loaded with nutrients, tasty and low in fat and calories. Tomatoes Fresh tomatoes: heirlooms, cherry tomatoes, sweet 100’s, yellow, golden and green tomatoes are made for pizza. They are low in calories and high in flavor. The Rest of the Crew Peppers, onions and mushrooms form the happy healthy veggie trio of pizza. Other Top Contenders Eggplant has a rich flavor and meaty texture, Zucchini is light and satisfying, and of course, pizza wouldn’t be pizza without garlic. Try it chopped fresh or roasted. The Salad Bowl Salad topped pizzas are not only good for you, they are also hugely popular in the main stream. Toss mixed spring greens, or baby Romaine or Arugula. CONDIMENTS AND TOPPERS Flavor Accents Capers, olives and anchovies may not be for everyone, but they work miracles in adding bolts of flavor to pizza. Chopped fresh herbs like parsley, basil and chives are important flavoring agents. Turn up the Heat Heat and spice are extremely popular trends that add kick without guilt. There are hundreds of hot sauces, hot pepper condiments and salsas out there to choose from. As you can see, smart pie palette is quite broad; there is no reason why someone would have to suffer through a healthier pizza option. In fact, this segment stands ready to become a major player on menus and will be coming to your pizzeria soon. - PMQ -

FEATURE

CASCARINO’S:

A PERFECT PITCH B Y J I M D E E S • P M Q S TA F F

n the crowded world of New York pizza, making a name for yourself is such a challenge that it led Rob Cascarino to serve his pizza on a diamond – a baseball diamond. “Cascarino’s is the official pizza of the New York Mets,” this Queens, N.Y. native says proudly. “After 900 phone calls I finally convinced them they needed family-owned, old style pizza at their games throughout the stadium. This year will be our fifth year.” Having your pizza brand name emblazoned on huge billboards throughout Shea Stadium certainly cuts down on an advertising budget. Rob says as a result of the exposure in the stadium, he has no need to advertise. “No advertising. Our advertising is in Shea Stadium with billboards and such. Then there’s the Kiss Cam. Once a game they find people next to each other and they ask them to kiss and they say “from Cascarinos.” We get a lot of exposure from that Kiss Cam.”

LEARNIN’ THE BIZ Rob started Cascarino’s in 1989 in College Point, N.Y. with his brother Anthony and their mother, Mama Delia Cascarino. He learned the pizza business the old-fashioned way: from the bottom up. “I started when I was 11 years old as a dishwasher,” he recalls. “I worked up to a counter, to a pizza man, to a chef and now I’m in upper management.” Rob says he got his start as a small business owner out of the generosity of a friend. “The guy I started with came down sick and offered to sell me the business for no money. I started small and took my time and built up a nice business 72 PMQ — The Pizza Industry’s Business Magazine

and was able to pay him back in three years. We started with one little 500 square foot pizzeria, now we have seven locations, including Shea Stadium,” he adds with pride. To go from one store and grow into seven franchises is what Rob says is the result of “a lot of hard work by a lot of people and putting out a good product.” “The hardest thing about running my business is trying to keep everything fresh and consistent everyday and keep the prices reasonable,” Rob says. “One area where we’ve been fortunate is in low employee turnover. I’ve had some of my employees working with me 18 years. They’re very happy gentlemen, and they keep the business going. It takes 18 to 20 employees to run a store now.” Rob is also proud of another mainstay at his College Point store – his mother. “Mama still makes the meatballs,” he says with a laugh. WHAT’S ON THE MENU? Rob says he not only doesn’t advertise, he doesn’t believe in giving out coupons. In order to keep customers happy, Rob says his POS system allows him to track what’s selling. “We really don’t believe in coupons, we like to put a good product out and maybe give away a free soda now and then. The POS system is great for upselling and also for keeping track of what’s selling well and what maybe needs to be rotated off the menu.” Casacarino’s has a very extensive menu, with over a dozen entrée items, including seafood, steaks, salads and sides. “My biggest selling pizza is my Cascarino’s Grandma Sicilian pizza which is based on a recipe from my mother’s

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“Cascarino’s is the official pizza of the New York Mets. After 900 phone calls I finally convinced them they needed family-owned, old style pizza at their games throughout the stadium. This year will be our fifth year.” - Rob Cascarino grandma,” he says. “She was from Colobrea, Italy. Our best selling non-pizza dish is pasta and our signature chicken dish, Chicken Siena. That’s pan-fried chicken on veal sautéed with mushrooms, slightly thin prosciutto, fresh mozzarella, red wine marsella.” Rob says watching the market place closely for almost 20 years has taught him several lessons. One of the most important things an operator can do he says, is to pay attention. “You’ve got to care about your customers if you want them to care about you. I watch what people eat. The biggest change over the years in this business is people’s eating habits, people eating more healthily. I’ve had to adapt, going to more lower fat ingredients and dishes.” Cascarino’s now offers a “healthy menu” with dishes that accommodate dieters. Among the dozen or so offerings are Roasted Chicken and a Chicken Broccoli Rabe. “We have whole wheat pasta, whole wheat pizza. We do low-fat wraps and pizza.” Rob swears by his brick ovens and has wood burning stoves in two of his locations. “We use cherry, oak and pine, we get a cord of wood in every month,” he says. “I just think it cooks a pizza the way they were meant to be cooked. If wood was good enough for my ancestors in Italy, it’s good enough for me.” TAKE ME OUT TO THE PIZZERIA Rob says he is gearing up to serve his famous pizza at all eightythree New York Met home games this year. It’s a bruising schedule that takes a crew of 40 arriving at the stadium eight hours before the first pitch, to pull off. “We do all the pizzas right there at the stadium,” Rob says. “We have a pizzeria behind home plate then we have 2,000 square foot warehouse in the stadium which is like a satellite warehouse so we can send pizzas all over the stadium, upper deck, mezzanine. Our game day average is in the neighborhood of up to 2,000 slices a game.” Rather than have a vendor walk through the crowd hawking pizza, Rob said he increased the number of pizzerias throughout the stadium. “We have one behind home plate, one in left field and Cascarino’s uses this specially-made delivery truck to ensure that their customers get the freshest, hottest pizzas possible.

74 PMQ — The Pizza Industry’s Business Magazine

Cascarino’s even has their own brand of bottled water that they sell at the store and at the Mets games.

one in right field,” he says. “We have three in the mezzanine, three in loge, and two in the upper deck. We feel like it’s better to have the customers come to us rather than walk through the crowd. The pizza stays hotter this way.” Rob says he serves several varieties at each game: Regular Sicilian, Chicken Parm, Vegetable, Sausage and Pepperoni. “We make our own homemade sauce from California tomatoes everyday. We use Grande cheese, which is the best.” Rob says that despite the long hours and hard work, being the official pizza of the New York Mets is worth it. “We love every minute of it and would like to continue doing it even when they move into their new stadium.” DRIVE-THROUGH Rob says his next project might be one he’s been toying with for a couple of years: a drive-through pizzeria. “All the big burger chains have them, so do convenience stores,” he notes. “I’ll just have to see if I can secure the right location. You know the cliché; location, location, location? Well it’s so true. You’ve got to have a busy corner with lots of traffic and also parking. When we were franchising our stores the first thing I looked at was parking.” As he decides on his drive-through business, Rob currently offers free delivery at all his stores. “We have ovens and refrigeration in all our delivery trucks” he says. “They’re called the Hot Shot trucks. When our pizza gets to your house, it’s still piping hot.” Among other projects, Rob says he is working with a company in New York that will assist deaf people with ordering pizza online. “Basically, they’ll have it set up where a deaf person can call this company with their order and the company calls me. We’re working out the details but I think it’s a great idea.” In the meantime, Rob stays busy running his stores and getting ready to feed thousands of hungry baseball fans. “We’re constantly checking quality control so you can never let your guard down,” he says. “When you’re doing about 20 different types of pizzas, 15 different types of rolls, salads, pasta, steaks, seafood, all of it - you have to constantly be on the lookout for mistakes or problems. We consider ourselves a full course restaurant.” In an ever-changing marketplace, it’s nice to know some things are constant. Ask Rob Cascarino what that constant is for him, and he is quick with an answer. “Mama still makes the meatballs.” - PMQ -

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POKER NIGHT IS PIZZA NIGHT

average. This means higher profits for you and higher tips for your drivers. • Most poker games take place regularly as we are creatures of habit. Set a new habit and turn the weekly ‘Poker Night’ into a ‘Poker & Pizza Night’. You are increasing the frequency of your orders and your customer’s loyalty. • Each deck comes with two additional cards that can advertise your specials and act as coupons. CASE STUDY A test with a local chain of 60 stores with combined large city and small town locations has recently mailed out 600,000 flyers and gave away 40,000 decks in 30 days. Their deliveries increased by 15 percent. These are impressive numbers and should not be over looked. You too can have similar results if your Poker Promotion is executed correctly and is supported with amazing printed flyers, box toppers and inserts. Once again, My Pizza Promo Inc. has taken the lead and made this easy. Don’t miss this opportunity to increase your sales and bottom line. Increase customer counts, increase guest check average, increase loyalty and customer consistency. When you have the above three, you have a winning formula. Please call us at 1-866-889-8745 or visit our website www. mypizzapromo.com to view the different options to market and communicate your ‘Poker Special’ campaign.

PMQ’S IDEA FORUM #197

proven way to earn 10 Percent Return on Investment. What used to be a weekly “poker night with the boys” has become a modern day trend nationwide. Poker today has lost its ‘bad boy’ image and has gained tremendous respectability. We even watch the games on television! Whether it’s a stag, frat party, family get-together or just friends hanging out, no matter the demographic, everyone is playing poker. Let’s face it, Texas hold’em got’em. Nothing compliments a Poker night better than a fresh, hot pizza delivered to their door. Here’s your opportunity to ensure it’s going to be you that they call. Imagine four or five people sitting around a table for hours playing with your deck of cards. As they intensely study their opponents’ every twitch and subtle movement, your logo and your phone number is staring them in the face! I’d say it’s not a bad way to get your name and brand recognition stamped on the minds of a bunch of captive hungry players. Following are some benefits to run a Poker Promotion this fall. • First and most important is the timing. Poker is not a passing fad, it is a trend that is here to stay. Now is the perfect time to plan your poker campaign for the fall…before your competition does. • Poker players love opening and playing with new decks of cards. Every week while playing with your cards and knowing that with every “Poker Special” they’ll get a brand new deck, you are assured that when they order, it will be from you. This will ensure more frequency purchases from same customers. • Feeding a group at a time is sure to raise your guest check

www.pmq.com — PMQ 75

PMQ’S IDEA FORUM

BUSINESS LOANS MADE EASY uppose you’d like to expand your business, maybe add equipment or install outdoor seating or hire more personnel. A bank loan would take months and require mountains of paper work. A growing national service provides a more convenient way.Willis Financial Innovations, Inc. in Itasca, Il., can provide sub-prime business loans usually in less than a week “It’s fast because there’s less paperwork,” says President Walt Willis. “We don’t require appraisals, or inventory collateralized, or tax returns or financials.” Willis Financial only requires proof of annualized revenues and the loan is then made based on a percentage of that amount. The other four criteria for the loans are: the type of business, the amount of time the loanee has been in that business, loanee’s credit score and whether or not the loanee owns a home. Up to 9 percent of a company’s annuals sales can be loaned. (If sales were a million, Willis and his lending partners could loan up to $90,000). Once the loan amount is determined, these criteria will also determine the amount of the weekly payment. The pay back period is six to 12 months, and the weekly installments work to the operator’s benefit Walt says. “The benefit of weekly payments is it allows you to budget more accurately months down the road.” A quick infusion of cash can save an operator from having to take on an unwanted partner, or sell off assets or take out a loan using their home as collateral. Such tough decisions are particularly evident in the food industry. Restaurants traditionally have trouble borrowing money. Lenders are leery of the industry’s turnover rate

PMQ’S IDEA FORUM #198

76 PMQ — The Pizza Industry’s Business Magazine

and high number of first year closings. Willis Financial represents licensed lenders. The funding comes from one of six different banks. All money is on a wire transfer from a bank directly into a loanee’s bank account. “Our customers aren’t getting loans from the Sopranos” Walt chuckles. “This money is coming from legitimate banks through legitimate sources.” The finance program has been in business for five years and is licensed in all fifty states. The partnership with the banks provides a timely and orderly loan process. There is no need to change existing credit card processors, and thus no complicated reconciliations to perform. Operators can also avoid what’s known as “Double Dipping.” The lending arrangement doesn’t rely on a registered card platform or credit card transactions for re-payment. Therefore, operators can implement any marketing program they desire to drive sales without the risk of double dipping. It also prevents other companies from converting your existing customers into discount diners. If your business is growing, why pay back a cash advance with a percentage of those precious credit card sales? As a successful businessperson why undermine your business’ operating health by giving away your new increased sales? Willis Financial Innovations application process is simple, and ensures a lending decision and fund delivery that can be accomplished in as little as five business days. For more information contact Walt Willis at Willis Financial Innovations, Inc. 138 Bay Drive, Itasca, Il. 60143. Phone 847-971-9258 Email: waltwillis@msn.com

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HOW TO SAVE MONEY WITH TWO-COLOR PRINTING WHY USE TWO-COLOR PRINTING? Two-color printing is very cost effective and when designed and printed correctly, it will give your restaurant a professional look. We’ve all seen those high gloss, full color, fancy pizza menus and box toppers with tons of photos and lots of flashy color. These pieces are very attractive and eye catching, but they are also pricey and do not always get better results. If you want a marketing piece, whether it is a takeout menu, box topper, mailer or flyer that you can give away without feeling it in your wallet, consider a two-color printing job from Takeout Printing. If you are a new restaurant, make your first menu a two-color menu. You can find out what items work and which do not. A low cost, two-color menu printed on quality paper can be reprinted in small batches and will not hurt your marketing budget. Once you get

it right, then you can upgrade to a full color marketing piece. If you already have a full color takeout menu that you are happy with, then two-color box toppers, flyers, mailers and coupons will save you money and compliment your marketing plan.

TWO-COLOR COUPON AND BOX TOPPER MARKETING. Coupons and box toppers can be all shapes and sizes. This is a low cost way to get your offers to your existing customers. You can put special offers, holiday announcements and coupons to promote your restaurant on pizza boxes, to-go tins and takeout bags. A good idea is to have Monday and Tuesday night specials and discounts placed in all orders and takeout bags that go out on your busiest nights, which boosts order numbers on your slow nights. If every night of the week has a special offer you will never have a slow night again. All your coupons should be “clipless” and/or have a number. You do not want a bunch of clipped coupons all over your restaurant. When customers order they can say, “I’ll take the Monday night special,” or “Give me coupon #36.” Two-color printing, when done by professionals who know the restaurant business, can get coupons and offers out to your customers and save you big on your annual marketing budget. To get started on your marketing plan and get great coupon ideas, contact: Takeout Printing, a leader in the restaurant and printing industry for over 22 years. Visit their website at www.takeoutprinting.com or call them at (212)-252-3846.

PMQ’S IDEA FORUM #199

our-color printing is great if done correctly, but could get very expensive on your marketing budget. Two-color printing is great for low cost takeout menus, mailers, box toppers, flyers and coupons, and some of the busiest restaurants and pizzerias in the U.S. use two-color printing. You can get your message out to the masses cheaper and faster with two-color printing. If you are on a limited marketing budget, a startup or just tired of printing your takeout menus and fliers one at a time from your office or home computer, then two-color printing is for you. You do not need all the bells and whistles of full color printing to get your message out.

www.pmq.com — PMQ 77

OPERATIONS

LOOK FOR JOHN AT THE PIZZA INDUSTRY INFORMATION CENTER!

OPEN IT RIGHT, OR NOT AT ALL A 14-STEP GUIDE TO OPENING YOUR FIRST PIZZERIA B Y J O H N C O R R E L L • C O R R E L L C O N S U LT I N G

o you have that irresistible ‘pizzeria itch’ and you’ve decided that the time has come to give it a really good scratching. Here’s a 14-step guide that might improve your chances of success.

STEP 1 – KEEP THREE FACTS IN MIND. Before doing anything, know this. First, the world does NOT need another run-of-the-mill pizza or pizzeria. They are everywhere. Second, many pizza-eaters will support a new pizza and pizzeria if it is (a) different and (b) better. If you won’t or can’t be different and better, do not scratch that itch! Third, if opening a pizzeria and having it fail would amount to a personal financial disaster for you, think twice about opening a pizza business. STEP 2 – FIND OUT FIRST-HAND WHAT IT’S ABOUT. If you already have pizzeria operations experience, you can skip this. But if you’ve never worked in a pizzeria, before doing anything else get a part-time evening or weekend job in a pizzeria and work it for at least one month – as a pizza cook, server, dishwasher, delivery driver, whatever. If possible, hire into a place that most resembles the type of pizzeria that you would like to have. While at this job, make notes of what’s right and wrong about it. In other words, use the experience to gain insight into what you will do when you create that “place of your own.” 78 PMQ — The Pizza Industry’s Business Magazine

STEP 3 – SELECT A GREAT LOCATION. Given a choice between a higher cost “Grade A” location and a lower cost “Grade B” location, the “Grade A” will likely be the wisest choice. A “Grade B” location is one that has one or more drawbacks that can result in less-than-optimum sales. A “Grade B” location is a parasite that will suck blood forever. A “Grade A” location is a site that (a) is highly visible, (b) is readily accessible, (c) has a dense pizza-buyer population within a one-mile radius, and (d) is located on a commonly traveled route used daily by local residents, which often translates into being adjacent a major local draw. How do you find a site? First, get a detailed map of the area. Second, spend a day or more driving around. Record all “for rent” info, to call later. Plus, take note of where people live and shop. This is best done with two persons: One driving, the other writing and navigating. Third, contact the city and get the traffic counts of the major streets. Fourth, check the newspaper classifieds and also contact local business realtors for “space for rent.” Fifth, check the census data (at a library or city hall) to get the demographics on the various neighborhoods. Note the population density per square mile. However, “houses” do not automatically mean “buyers.” So also note average family size, age, and income. You want to be located within an area that contains a high number of pizza-eaters. Generally, such areas will be high-density neighborhoods packed with families of medium-to-large

To be compelling, your concept must offer something to pizza-buyers that is different from and better than what the competition offers. If that’s not possible to do, think twice about opening a pizzeria.

size, with school-age kids, and average to slightly-less-than-average income. Generally, try to avoid locations that are on low-traffic count roads, invisible to motorists, difficult for motorists (including delivery drivers) to easily access, and that are located adjacent to large expanses of vacant or industrial land. STEP 4 – CALCULATE YOUR PROJECTED MONTHLY PROFIT. Before closing on a site, do a projected (or pro forma) monthly profit and loss statement. If you have problems with this, get help from a local CPA. The key number here is estimated sales. To derive this figure, first estimate the number of customer transactions that you expect to receive per week. Bear in mind that typically 40 to 50 percent of pizzeria business comes on Friday and Saturday. If you’re clueless as to what the weekly customer transaction count might be, park down the street from the most popular pizzeria in town from 5 to 8 p.m. on Friday and Saturday and count the number of carry-out and delivery transactions. Then convert your projected weekly transaction count number into a weekly sales number. This can be done by multiplying the transaction count number by an estimated average transaction amount ($). Then multiply the weekly sales number by 4.3 to derive your estimated monthly sales. Finally, subtract from your estimated monthly sales figure your estimated monthly expenses. This will give you your estimated monthly profit. Be sure to include all expenses. The two largest expenses are payroll cost and food cost (a.k.a. product cost). Derive these numbers as a percent of sales. Additional expenses will likely include rent, property taxes, advertising and promotion, gas, water, electric, insurance, telephone, cleaning and office supplies, building maintenance, cleaning services, trash removal, uniforms and laundry, delivery expenses or mileage paid to drivers, accounting, legal, equipment lease payments, and debt service payments. Also, when creating a projected profit and loss statement (a.k.a. P&L or income statement), it can sometimes help to create multiple scenarios – including a best-case-sales scenario, a reasonFor additional resources, go to the Manager’s Toolbox located at www.pmq.com/pizza_managers_toolbox.shtml and review the “Check List for New Build-out Construction” and “Pre-Construction Starting List” for tips and starters for opening your first pizzeria.

ably-expected-sales scenario, and a worst-case-sales scenario. A spreadsheet (e.g., Microsoft Excel) is an excellent tool for this. Use one column per scenario. NOTE: If you can’t show a decent projected monthly profit based on the reasonably-expected-sales scenario, you probably should not open a business in that particular location. Further, if the worstcase-sales scenario shows a loss so large that it would be disastrous to you, “think twice” before opening a pizzeria there. STEP 5 – DEVISE A COMPELLING PIZZERIA CONCEPT. Once you’ve located a “Grade A” site, come up with a total-package concept that will be more compelling to pizza-buyers than what the area competition provides. To be compelling, the concept must offer something to pizza-buyers that is different from and better than what the competition offers. If that’s not possible to do, think twice about opening a pizzeria. This total-package concept is comprised of everything that a customer encounters about your business. That includes the pizzeria’s name, slogan, signage, décor, service offering, menu offering, pricing-promotional scheme, and pizza type and quality. Additionally, it helps greatly to have a compelling point of difference that can be used to differentiate your pizzeria from all others within the mind of the pizza-buying public. Books by Jack Trout – such as Differentiate or Die – can offer help. Also, you can find a couple articles on the topic at www.correllconcepts.com (in the “Correll Comment” section). STEP 6 – FORMULATE EXCELLENT PIZZA RECIPES AND METHODS. Simply put, to maximize sales, the look and taste of your pizza must be more appealing than that of your competition. If it’s not, you will never optimize your success. Here’s how to go about this. First, experience the pizza of every pizzeria in town. Note each one’s strengths and weaknesses. Then pick out the best and use it as a benchmark for your pizza design process. Finally, through smallbatch trial-and-error testing, create some great sauce and dough recipes, pick out the optimal brands of ingredients for those recipes, and determine ingredient portions for each pizza. In so doing, make sure you come up with a different and better pizza design. If you need help with recipe ideas, go to the free Encyclopizza which is located at www.correllconcepts.com. In addition to recipes and ingredients, other factors that affect pizza character include doughhandling method, dough-flattening method, pizza-baking method, and type of ovens. www.pmq.com — PMQ 79

A good idea for those planning on opening a pizzeria is to draw up a detailed equipment list, comprised of everything the store must have to open, including small wares and office supplies. Pizza trade shows are a good resource of information for the aspiring pizzaiolo.

STEP 7 – CREATE AN EFFICIENT STORE LAYOUT. Once you have a site, obtain some 24 x 36-inch paper (or preferably mylar sheets) with a one-quarter or one-eighth inch blue fadeout grid. This can be found in an office supply or art store. Then take precise measurements of the interior space, noting the location of doors, windows, posts, utilities, bathrooms, and other “fixed” items. Then create scale drawings (example, one-quarter inch = one foot) of multiple layout scenarios. Finally, boil it down to an ideal layout. Naturally, the layout and type of equipment that you select for your pizzeria should be based on your pizzeria concept and pizza prep methodologies. Other factors to consider in creating the layout are: Maximum hourly transaction volume (or number of pizzas produced during the peak hour), product flow, worker flow, storage requirements, security measures, manageability, and visibility by and impact on customers. In terms of worker flow, an ideal layout is one that minimizes travel distance during both high-volume, full-staff hours and also during low-volume, minimum-staff hours. A common predicament is that the “perfect location” may turn out to be one that’s a little tight on space. In this situation, one tactic is to convert 36-inch aisles into 54-inch aisles and then line the aisles with 18-inch storage racks, thereby eliminating need for a dedicated storeroom. Another tactic is to install an outside walkin cooler (accessible from the store interior, of course). A further tactic is to convert the mop closet into a combination “janitor closet/manager’s office.” Managers really love this one. Other tactics include a unisex bathroom in place of two bathrooms, shortened pizza make-lines, smaller ovens, stacking goods above the ceiling, and so forth. Finally, be aware that local construction and health codes affect restaurant layouts and equipment. They have, among other things, requirements for bathrooms, sinks, drains, electrical boxes, storage, and so forth. So obtain that information from the local health department and city building department before planning your layout. STEP 8 – DRAW UP A COMPLETE EQUIPMENT LIST. First, create a complete list of everything that the store must have in it to open, including small wares and office supplies. Then conduct research to determine the optimal model or manufacturer for the various items on the list. Attending pizza expositions can be helpful here. Also, visiting restaurant equipment supply places can be informative, particularly if you connect with a knowledgeable sales rep. Be wary about purchasing a new or untested piece of 80 PMQ — The Pizza Industry’s Business Magazine

major equipment (i.e., oven, mixer, or POS system). If a product has not been out for at least five years, it could be helpful to obtain from the manufacturer a list of names and phone numbers of current users of the product. Then call several of these people and ask “How’s it working out?” and “Would you buy it again for another pizzeria?” When it comes to new products, there can be a huge gap between what the seller says it will do and how it will actually perform. STEP 9 – SELECT AN EQUIPMENT SUPPLY COMPANY. Take your equipment list to one or more equipment supply companies and ask them to quote you a total price on it, including installation cost. Along the way, get a read on the service ethic and knowledge of the company. Price is one factor to consider in selecting a supplier, service attitude and knowledge are the other. Select the supplier that you feel will do the best job for you, everything considered. STEP 10 – ESTABLISH A BUSINESS ENTITY. In conjunction with your attorney, establish a business entity that best fits your needs. Most likely your lawyer will advise against a sole proprietorship. Probably s/he will recommend a limited liability company (LLC) or, perhaps, a sub-chapter S corporation. If you have investors with special needs, s/he might suggest a limited partnership. The attorney should file for government permits and tax numbers. Once the business entity is established, you then should open a business checking account. STEP 11 – PUT YOUR FINANCING IN ORDER. This, of course, is something that you should begin as early in the process as possible. However, it often can’t be finalized until you’ve done steps 3-10 above. The first decision is whether to (a) borrow the money from a bank or rich relative (debt financing) or (b) take on an investor or co-owner (equity financing). With debt financing you maintain ownership of the business but acquire monthly debt service payments. With an investor you have smaller debt payments but give up a portion of the ownership and, thereby, relinquish a portion of future profits. Sometimes a “mix” can work well. For a bank to cooperate, you’ll need unencumbered salable assets at least equal in fair-market value to the amount of the loan that you’re seeking. If you don’t have this, that’s where taking on an investor comes into play. If you don’t have sufficient available assets to support a bank loan and can’t attract an investor, then

MARCH 2006

Draw up a list of pre-opening activities that you must execute prior to that date, along with a completion date for each item. Among other things the list should include (a) designing your opening advertising and (b) hiring and training staff.

you can attempt to finance the project through such schemes as multiple credit card loans (which is a tenuous approach at best and something that we do not recommend). You can also explore the “used equipment, sweat-equity do-it-yourself construction” angle as a way to reduce start-up cost. Finally, sometimes it’s possible to obtain a loan from a government agency such as the Small Business Administration (SBA loan). However, this can be a complex, lengthy process not open to everyone. Regardless of who you approach – lender or investor – they will likely want to know (a) your intended location, (b) the concept going into it, (c) your projected monthly sales and profit (P&L statement), and (d) what the business will have or do – that your competition doesn’t – that will make you successful. This should be presented in a written document, the prettier the better. Also, if possible provide a pizza sampling. Odd as it might sound, if the would-be lender/investor finds your pizza to be “the best I’ve ever had,” it greases the funding wheels. Finally of course, you will need to tell the potential funding source the total investment cost of the project. This figure should include every cost involved in getting the store open and operating successfully. Naturally, this would include all construction, leasehold improvement, and equipment and supply costs. It also should include funding for all start-up or pre-opening expenses, which typically involve opening food inventory, first month’s payroll, pre-opening professional services (architect, attorney, CPA), pre-opening advertising, grand opening expenses, licenses, security deposits, and the like. STEP 12 – APPLY FOR CONSTRUCTION AND HEALTH PERMITS. Sometimes a city’s building department will accept accurate detailed drawings done by you. However, more commonly they require drawings done by a certified architect. This is a “cover your butt” move. So, be prepared to have an architect convert your layout to “blueprints.” To do this, s/he will need to have the electrical/mechanical specs for all your power equipment. You can find most of this in product literature and/or obtain it from your chosen equipment supply company. Also, some equipment suppliers have a design/drafting person who can create blue prints in lieu of an architect, or at a lower fee. Once you have final drawings, apply for building permits. Also, take a set of drawings to the health authority that inspects food service establishments and apply for their permit. 82 PMQ — The Pizza Industry’s Business Magazine

STEP 13 – DRAW UP A DETAILED PRE-OPENING/GRAND OPENING PLAN. First, sit down with your contractor(s) and establish a completion date and work timeline. Second, establish your projected opening day date. Third, draw up a list of pre-opening activities that you must execute prior to that date, along with a completion date for each item. Among other things the list should include (a) designing your opening advertising and (b) hiring and training staff. Fifth, conceptualize your grand opening. However, do not schedule it for when you actually open. A successful grand opening can “blow away” a new staff, resulting in a disastrous outcome to the business. Plan for the grand opening to occur after the initial (or soft) opening advertising has lost effect, such as, say, 60 days after opening. Also, consider doing your opening advertising in “stages” to, again, avoid overwhelming a new staff. For example, if your advertising involves mailers, you might divide your market area into sections and mail to one section per week. STEP 14 – KEEP A POSITIVE ATTITUDE. Opening a business of any kind can be a daunting endeavor with numerous daily challenges to surmount. Holding a positive attitude – that is, firmly believing that the future will ultimately turn out the way you want it to – is an essential ingredient to new-business success. Indeed, it may well be THE essential ingredient of the successful start-up entrepreneur. - PMQ John Correll’s pizza career began in 1967 as the first hourly employee in the sixth Domino’s Pizza to open — and his consulting began in 1973 upon the start-up of Correll Consulting, the original pizza industry consulting company. He has authored a hundred-plus articles, published numerous books, presented seminars, instructed college courses, and serviced clients large and small. He holds over 35 patents and specializes in new-product development, operational systems enhancement, custom packaging design, and strategic differentiation. He has innovated many firsts, including pioneering conveyor baking as the first person in the restaurant and pizza industry to successfully use a conveyor oven, creating the first personal-size pizza, creating Domino’s Pizza’s first manager training program and writing its first Store Operations Manual.

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FEATURE

ATOURING TASTE OF ITALY: WITH THE U.S. PIZZA TEAM erfect weather, pizza and planning…those were the comments heard from the more than 47 member American entourage traveling to Salsomaggiore, Italy, this year as part of the U.S. Pizza Team (USPT). Once again the Americans invaded Italy to show off their pizza skills and in the process, learn more about the culture, food and country where pizza originated. This year’s USPT was the largest group yet to attend the annual event in Italy and through the assistance of Perillo Tours, the trip was flawless. The USPT participated in team and individual acrobatic dough tossing, largest dough stretch, fastest pizza and culinary events. Brynne Humphries from Avalanche Pizza in Ohio scored highest of all the culinary members. Juan Hermisillo just missed third place in individual acrobatic dough tossing by a small two points. The team acrobatics squad placed fourth overall (having only three days to perfect their routine) and have plans to retain the members and recruit additional talent for next year. If you think you have the talent it takes to be part

84 PMQ — The Pizza Industry’s Business Magazine

of the 2007 U.S. Pizza Team, consider trying out at the official USPT acrobatic tryouts at PMQ’s Orlando Pizza Show (September 8-10, 2006 at the Orange County Convention Center in Orlando, Florida. For more info, contact Caroline Felker at 662-234-5481 ext. 125 or email caroline@pmq.com). In addition to the competition, this year’s Italy tour included day tours of the Duomo in Milan, Pisa and the Leaning Tower and tours of the Barilla factory (the largest pasta facility in the world) and a Parmigiano-Reggiano factory in Parma to see and learn how cheese is made in the very area where Parmesan was invented. “This trip was more than I imagined,” said Jeff Fraley, USPT largest dough stretch member. “Everything was perfect with the planning.” Also traveling with the 2006 USPT were USPT sponsor representatives Joe Ferrara (Marsal&Sons Ovens) and Pam Colletta (Roma Foods). “This was my first trip to Italy and really I enjoyed everyone on the trip,” Ferrara said. “PMQ did a great job of bringing in top competitors from across the U.S.

Team members were treated to a tour of the Barilla plant, the largest pasta manufactory in the world.

The team also visited Parma, where they were shown the process behind the making of Parmagiano-Reggiano cheese.

The acrobatic team made a strong showing, with Jerry Neumann (below) throwing an impressive urban-dance routine.

Michael Amheiserâ&#x20AC;&#x2122;s local high school mascot tagged along with him to Italy and put on a show.

People were lined up to grab some of the great pizza offered at the closing dinner.

Some huge sizes were thrown in the Largest Dough Stretch competition. Shown here is USPT member Jef Fraley, of Macon, Georgia.

A HUGE thanks goes out to our 2006 U.S. Pizza Team sponsors! Thank you to our Gold Sponsors (at right) as well as our Silver Sponsors (below). You are the people that make the U.S. Pizza Team possible!

www.pmq.com â&#x20AC;&#x201D; PMQ 85

2005 Winner of Best Pizza in North America Tim Duffey returned to Italy along with DeFelice Bros. owner Dominic DeFelice.

Chef Bruno walks his entry to the judges, accompanied by Joe Ferrara of Marsal & Sons Ovens.

Dough-tossing prodigy Juan Hermosillo barely missed third place when a pair of Italian brothers took the top spots.

Native Texan Eric Lippman wowed the judges with a fantastic BBQ Chicken Pizza.

Brian Edler, World Record-holder for Fastest Pizza Making, brought his son Khodie back to Italy for some enthusiastic support.

and planning the trip. I really enjoyed the tour of the cheese factory and learned a lot about the process of making Parmesan that you can only understand by actually seeing it happen. Stressa (located about 45 minutes north of Milan) was beautiful and my only regret is that we didn’t have two days to spend there…it was beautiful.” The 2006 USPT consisted of: Jerry Neumann (The Pizza Machine, Freestyle dough tossing/Team acrobatics), Juan Hermosillo (La Cocina de Isabel, Freestyle dough tossing/Team acrobatics), Jef Fraley (Ingleside Village Pizza, Largest dough stretch), Roger McColly (Dominos Pizza, Largest dough stretch/Fastest pizza maker), Jason Samosky (Samosky’s Homestyle Pizzeria, Pizza Classica), Keith Yonkers (Casa Restaurant Group, Pizza Classica), Gus Nassar (Rome’s Pizza, Pizza Classica, Eric Lippman (EJ’s Neighborhood Pizzeria, Pizza Classica), Michael Amheiser (Pizza Dock, Pizza Clas-

The USPT participated in team and individual acrobatic dough tossing, largest dough stretch, fastest pizza and culinary events. 86 PMQ — The Pizza Industry’s Business Magazine

sica/Largest dough stretch), Don Schmitt (Bexley Pizza Plus, Pizza Classica), Brian Edler (Domino’s Pizza, Largest dough strech/Fastest pizza maker), Brynne Humphries (Avalanche Pizza, Pizza Clasica), John Gutekanst (Avalanche Pizza, Pizza Classica), Tim Duffy (DeFelice Pizza, Pizza Classica), Chef Bruno (USPT Culinary coach), Chris Green (USPT Acrobatic coach/Team acrobatics), Dino Ciccone (USPT interpreter). We would like to send a special thanks to all of the 2006 USPT sponsors for their continued support in promoting the pizza industry and the team. Without them, none of this would be possible. Gold Sponsors: Bellissimo Foods, California Milk Advisory Board, La Nova, Revenetion, Throw Dough. Silver Sponsors: Bag Solutions, Fontanini, KB Pizza, Marsal&Sons Ovens, Paradise Tomato Kitchens, Roma, and PizzaTools.com. To learn more about how you can become part of the 2007 USPT, call Caroline Felker at 662-234-5481 ext 125 or send her an email to caroline@pmq.com. - PMQ -

Itâ&#x20AC;&#x2122;s Coming. Presented by:

March 4-6, 2007

THE NAME IN

PIZZA PEELS For the Best ask your dealer for Lillsun peels.

Proudly made in the U.S.A. since 1951.

P. O. Box 767 Huntington, Indiana 46750 Call 260-356-6514 or FAX 260-356-8337

www.lillsun.com

FEATURE

PASQUALE’S RISTORANTE AND PIZZERIA:

A WINNIPEG STAPLE B Y L U C A S L E I G H • P M Q S TA F F

Winnipeg staple since 1977, Pasquale’s Ristorante and Pizzeria has taken numerous steps in rebuilding their brand with a change in owners and a fresh approach to marketing and entertainment. Current owners Joe and Sandro Loschiavo purchased the failing restaurant in 1990 and says there were a number of things he had to do in order to restore the clientele base. “We were in rough shape. The restaurant sales had decreased rapidly over the last couple of years, so our main goal was focusing on getting the confidence level back from the clients and to put the highest quality Italian meal on the table,” Joe said. “We worked very aggressively at changing the menu, developing recipes that reflected our traditional Italian roots, and just getting the food quality back to where it should be in order to get our confidence level back with the customers.”

CHANGE OR NO CHANGE? Joe said that straight out of school he worked at a local restaurant in his hometown of St. Andrews, Manitoba. “I was able to gain a lot of experience from my mother who ran an Italian pasta factory called Alfonso Foods,” he added, “Plus, I come from a huge family of 9 children, so I had a knack for feeding large groups.” Pizza is about half of the sales at Pasquale’s with just about 500 sold each week. The pizza is a traditional thin crust made from 100 percent olive oil and whole-wheat flour, dough made fresh daily, and cooked in a deck oven. They offer three types of sauces: tomato sauce, pesto sauce, and a Parmesan white sauce. Although the restaurant was in shambles when Joe purchased it, he said he decided to stick with the name because of his heritage. “The name 88 PMQ — The Pizza Industry’s Business Magazine

of Pasquale’s has been in Winnipeg for a long time. It was known as the number one restaurant in Winnipeg back in the 70’s and did really well, but just fell off with sales because of poor management,” Joe said. “It took us about five years to regain the customer confidence, but we managed to do that through several tough times, such as the 1992 recession and when the Canadian GST (Goods and Services Tax) was introduced in ’91,” he said. “It really took a toll on me at a young age, but it also made us stronger to know that we can succeed through the hard times.” MARKETING Joe says that marketing aggressively and having presence in the restaurant (not leaving it for managers to run) contributes to most of their success now. “We’re here all the time,” he said. “We’re aggressive in everything, and although we realized word-of-mouth is the best marketing

“It took us about five years to regain the customer confidence, but we managed to do that through several tough times, such as the 1992 recession and when the Canadian GST (Goods and Services Tax) was introduced in ’91,” Joe said.

tool, we’ve done everything we could to get the customer back to try the food.” Joe said once the customers started coming in, and then repeat customers, who are a huge part of their clientele, “We offer them in-house promotions and discounts to get the customer into the restaurant and let the food do the talking for us.” Joe said they have a 65 percent regular customer base that he sees not just once a month, but two and three times a month because of the VIP card. “It’s a thing we do for the regular clientele that come in on a standard basis. We give a 20 percent discount every time they come in,” Joe said. “It’s just to show our appreciation for their dedication and their support over the years.” Joe said he gets people signed up by having everyone that comes in fill out a card with their names, phone numbers, and address. “Every card has a number, so each time a guest comes in with one, we mark down their number and we are able to track that information. We’ve seen a great increase of people coming in just because they have the card,” he said. “We just recently teamed up with the Safe Way in town to have our specials printed on the backs of the receipts,” Joe said, “But we’ve found that you cannot coupon and discount yourself to death all the time. It’s good in the beginning for getting people in, but there are so many different avenues.” Joe said they use comment cards in the restaurant because they mainly want to find out how customers have heard about them. He says lots of times people say, “I’ve been driving by here for a while, so we finally stopped in”, which he owes to the fact that Pasquale’s is located in a main area of the city where there’s plenty of traffic. Taking advantage of their busy location, Joe says they use sandwich boards near the streets where they post their daily specials. “This especially works well during lunch hours and rush hour,” Joe said.

Although the restaurant was in shambles when Joe purchased it, he said he decided to stick with the name because of his heritage. “The name of Pasquale’s has been in Winnipeg for a long time. It was known as the number one restaurant in Winnipeg back in the 70’s and did really well, but just fell off with sales because of poor management,”

COMMUNITY Pasquale’s sponsors several functions in the community of St. Boniface, where the restaurant is located in Winnipeg, including the Summer Concert Series, a celebrity boxing tournament, and a Spaghetti-eating contest which helps Cancer Care Manitoba. “I’m involved in the business association in our local area here, and I network with the other businesses in the area and always try to get involved in the community,” Joe said. The Summer Concert Series is within a couple blocks of Pasquale’s, and there, according to Joe, they are able to assertively network and advertise with giveaways since it takes place every Friday during the summer. “Because we’re getting anywhere from 500 to 1,000 residents in the area to come out and listen to our entertainment, we’re seeing a lot of these people afterwards in the restaurant,” he said. Joe also explained how Pasquale’s personally hosted a boxing tournament in Winnipeg with celebrity boxer and heavyweight contender Butterbean. “We had a local boxing match where he appeared. Afterwards, we teamed up with the local football team, our local bombers, and Butterbean to host a spaghetti-eating contest. It helped us raise money for cancer research, and really helped generate positive buzz about Pasquale’s.” The spaghetti-eating contest consisted of 10 contestants eating as much spaghetti as possible. “For each bowl they ate, we donated two dollars, and at the end, we threw in a little extra and donated about 800 dollars to the hospital.” Joe said because of their involvement in these events, they were featured on local sporting news, newspapers, and later, on the radio. “It was unusual,” Joe said, “But it worked out well.” Joe said they have plans of making that charity an annual event. STAYING AHEAD OF THE GAME “We just had a local chain move into the area right down the road from us, and they’re big. They do the blitz and they’re hitting the area hard with flyers and direct mail and all that.” Joe said, in response to the larger chain’s efforts, his reply is nothing—“We just do what we do. We have great customers, and some are going to try that more affordable pizza, but they’re always going to come back because we have the quality, the tradition, and the personality that our true clientele love so much.” Joe said if they try to compete, and blast the city with coupons and special offers, that ruins the loyalty of the customer base. “You just stay focused on what you’re doing, stay consistent, and you’re going to come out a winner because loyalty goes a long way—especially in Winnipeg and Manitoba,” he said. - PMQ www.pmq.com — PMQ 89

INDUSTRY

DOUBLE PIZZA SPONSORS MAJOR

HEALTHY PIZZA EVENT I

B Y T O M B O Y L E S • P M Q S TA F F

n this issue you have read about how to create healthy pizza and why it is important. You and many other operators may be asking yourself the question of why should healthy eating be your concern? This is the same question the owners of Montreal’s largest pizza chain, Double Pizza, asked themselves. “Double Pizza wants to show not only the pizza industry, but everyone that to teach kids how to eat healthy, you have to start at an early age,” said Laurie Amir, marketing director for Double Pizza. “This is why we started out by first creating a healthy pizza recipe and secondly, taking nutritionists and trainers into the schools to teach kids eating healthy can be fun and taste good. All of this lead to us putting our money where our mouth is and launching Fitness Party: The Festival in Montreal.”

FITNESSPARTY: THE FESTIVAL Fitness Party: the Festival is a major entertainment/educational festival that will take place in Montreal on August 19th, 2006. “We want to show society that the pizza industry wants to launch healthy menu choices and show our commitment to the kids and schools and show that this effort is from the top level down,” Laurie said. “We want to put the message out there that our industry is aware of the problem and make the industry a little more recognized as having a goal to not only be healthy, but promote and teach healthy eating.” Double Pizza is not only talking the talk, but they are walking the walk. They have invested a very large amount of money to put on this one-day festival along with the assistance of Saputo Cheese and Canadian food distributor Conan. At press time they had some major entertainers scheduled to perform at the event and speak to kids about eating healthy. While Laurie said the lineup is subject to change, they do have pop music stars Pink and Ashlee Simpson scheduled to perform and French/Canadian pop stars Les Respectables and Marie Chantal Toupin. In addition to performances, there will be food vendors and a healthy pizza contest, which PMQ has become involved in and will produce. 90 PMQ — The Pizza Industry’s Business Magazine

“A SLICE OF THE ACTION” HEALTHY PIZZA CONTEST At the event, PMQ will produce “A Slice of the Action” Pizza Contest to see which pizza maker can create not only just a tasty pizza, but also a healthy one. Submitted recipes will determine participants who will be invited to compete at the event in Montreal. If you would like to enter, please submit your healthy pizza recipe to PMQ accompanied by a photo of the pizza along with your name, address, phone number, pizzeria’s name, email address and most importantly, your justification on why your pizza qualifies as healthy. Recipes must be received by no later than July 7, 2006. Recipes/entries must be sent to Caroline Felker, 904 N. Lamar Blvd. Suite 2, Oxford, MS 38655 or emailed to caroline@pmq.com. The highest placing Canadian contestant will be invited to represent Canada in the America’s Plate competition in New York City and the highest placing American will be invited to participate in the American Pizza Championships in Orlando, Florida. This contest is a calling to all pizza industry members, including individuals, corporate researchers and nutritionists. BE PART OF THE FESTIVAL Double Pizza isn’t just creating this festival to promote their brand. Laurie says that any and all pizzerias and chains, no matter what the size, are invited to participate and get involved. “We want this to be something we as an industry can do together,” Laurie said. “We want chains and industry leaders from the distributor level to the manufacturer level to get on board and help our industry be seen as a leader in promoting healthy eating, and especially in the education of healthy eating choices to our children and in our schools.” If you are interested in becoming involved as a chain or as a sponsor of Fitness Party: The Festival, Laurie encourages you to call and discuss ideas with her at 514-963-576. - PMQ -

T H E F E S T I VA L • AU G U S T 1 9 , 2 0 0 6 Fitness Party: the Festival is a major entertainment/educational festival that will take place in Montreal on August 19th, 2006. PMQ will produce “A Slice of the Action” Pizza Contest to see which pizza maker can create not only just a tasty pizza, but also a healthy one.

BRING YOUR BEST HEALTHY PIZZA

AND GET “A SLICE OF THE ACTION” Submit your healthy pizza recipe to PMQ accompanied by a photo of the pizza along with your name, address, phone number, pizzeria’s name, email address and most importantly, your justification on why your pizza qualifies as healthy. Recipes must be received by no later than July 7, 2006. Recipes/entries must be sent to Caroline Felker, 904 N. Lamar Blvd. Suite 2, Oxford, MS 38655 or emailed to caroline@pmq.com. The highest placing Canadian contestant will be invited to represent Canada in the America’s Plate competition in New York City. The highest placing American will be invited to participate in the American Pizza Championships in Orlando, Florida. This contest is a calling to all pizza industry members, including individuals, corporate researchers and nutritionists.

This contest brought to you by: www.pmq.com — PMQ 91

OPERATIONS

DRIVING COMPONENTS IN

PRIME VENDOR AGREEMENTS

B Y E R I C H A H N • R E S TA U R A N T E D G E . C O M

eciding whether a “prime vendor contract” is a wise choice in your purchasing process is something that confronts many operators today. By definition, a “prime vendor contract” is a pricing mechanism that distributors offer to operators for the items they frequently buy. Generally, the distributor seeks to obtain a high percentage of the operator’s purchasing power, in exchange for better or preferred pricing for key menu items. Like any contract, a prime vendor contract is a mutual agreement that is intended to benefit both parties.

92 PMQ — The Pizza Industry’s Business Magazine

Prime vendor contract pricing is formulated on the following criteria: • Cost-Plus pricing – (also called “fixed price”) which is cost of the product plus a flat markup for items that tend to be market stable such as canned, frozen and dry goods for the duration of the contract. • Cost-Percentage pricing – which is cost of the product plus a percentage used for high volume products that are prone to volatile market conditions such as produce, dairy, meat and seafood.

Deciding whether a prime vendor agreement is the right choice for your establishment will depend on the nature of your restaurant, the menu, and the purchasing habits of the decision-maker. If your operation is small, seasonal, or ethnic (i.e. Mexican, Italian, Greek or Chinese), a prime vendor agreement may be something to reconsider. • Cost Pricing – which is when the distributor is willing to sell you items at cost. • Market Pricing – Used on items that tend to fluctuate heavily throughout the year, such as produce, seafood, meats, and dairy When negotiating a prime vendor contract, an operator needs to be aware of the conditions that apply to the distributor in order to get the product to the establishment. Distributors face challenges in delivering product that are out of their control, such as weather, fuel costs, road conditions and routing changes. Any part of these components can affect the costs of the products, delivery dates or times, or possibly the amount of product that can be delivered. On the other hand, distributors should always have a good understanding of the nature of the establishments they serve. Restaurateurs are always concerned about quality, freshness, prices and availability of their products, but most importantly distributors should always understand that service is paramount to retaining their customers’ satisfaction. Negotiating a prime vendor agreement should be based upon the service aspects of the agreement. The most important elements of the service component are: • Terms of payment and / or credit lines • Ability to communicate with sales representative and when • Understanding of unit weights and measures of the products being ordered • Ability to resolve errors in the orders Deciding whether a prime vendor agreement is the right choice for your establishment will depend on the nature of your restaurant, the menu, and the purchasing habits of the decision-maker. If your operation is small, seasonal, or ethnic (i.e. Mexican, Italian, Greek or Chinese), a prime vendor agreement may be something to reconsider. Operations of these types often use small quantities of product, or they need larger amounts of specialty foods to meet their menu demands. Because prime vendor contracts are typically offered by larger, broadline distributors such as Sysco or U.S. Foods, specialty food items may be special order items and not ordinarily stocked in their warehousing facilities.

If you decide on a prime vendor contract for your establishment, determine whether or not the following conditions apply with the distributor you choose to do business with: Financial rewards or “kickbacks” to the person in charge of purchasing: If the person placing the orders is getting financial rewards for buying key items, rather than expected items, your prime costs may increase. Degree of labor and time investment shopping for products: Always communicate and interact with the sales representative. Eliminating affective communication in lieu of saving time placing orders can be a big mistake. Operators have a right to be analytical and carefully audit their invoices – utilize this option in your contract! Length of the contract: Always pay attention to the costs of items over time. If cost + plus pricing is prominently negotiated in the

contract, those items should not change in price over the duration of the contract. If cost + percentage or market pricing is prominently negotiated in your contract, always ask the distributor when these prices are most vulnerable during the year, and plan your menu accordingly. In summary, the prime vendor agreement is intended to be an equitable arrangement between the operator and the vendor. With great emphasis, the relationship between the vendor and the operator must be mutually respectful and expected to benefit both parties over a length of time. Like any marriage, both sides have a job to do, and both seek profitable results over the length of the contract. Weighing all the options pointed out in this article will allow you to make wise and informed decisions on your purchasing habits. - PMQ -

Eric Hahn is the Founder and Research Developer for RestaurantEdge.com. Hahn is a 25year industry veteran with a diverse background in the restaurant business and skilled legal research development. RestaurantEdge.com produces a free monthly newsletter that provides insight to changes in the restaurant industry.

www.pmq.com — PMQ 93

OPERATIONS

COST OF

GOODS SOLD UNLOCKING THE SECRETS B Y D AV I D S C O T T P E T E R S • S M I L E B U T T O N E N T E R P R I S E S

can remember when, as an assistant manager of a brewpub and café that served “The World’s Best Spent Grain Pizza,” I was taught how to complete the standard Cost of Goods Sold calculation; Beginning inventory + purchases = total available. Total available - ending inventory = total product used. Total product used divided by sales = cost of good sold percentage. See figure #1. As I reached an operations role, my kitchen managers were creating good numbers on paper, but our bank account did not reflect those positive numbers. I learned quickly that profits on paper do not pay the bills, CASH PAYS THE BILLS. I later learned to look deeper into the Cost of Goods Sold calculations to take back control of the checking account and improve the bottom line.

THE BASIC CALCULATION What does Cost of Goods Sold refer to? In basic terms, Cost of Goods Sold refers to “what the cost of the product used was to generate sales.” On the item sales level, Cost of Goods Sold is the cost of all the ingredients that go into a recipe. The Cost of Goods Sold divided by selling price gives the cost of goods sold percentage. For example, a pepperoni pizza has 10 ounces of dough, three ounces of sauce, six ounces 94 PMQ — The Pizza Industry’s Business Magazine

of cheese and six ounces of pepperoni; total cost: $2.44. It sells for $12.99. So, $2.44 divided by the sale price of $12.99 gives a Cost of Goods Sold percentage of 18.8 percent. The Cost of Goods Sold calculation is used to calculate a Cost of Goods Sold percentage for a given accounting period as shown below in figure #1 and can be different from restaurant to restaurant. In most cases, an accounting period refers to a calendar month. Some restaurants have found a 13 period calendar year to be extremely effective, where the year is broken into even four-week periods. An accounting period may also be a day or a week if a restaurant is trying to correct a problem right away. For the purpose of this article, an accounting period will be a calendar month. The Cost of Goods Sold calculation is also most valuable when it is broken down by categories, i.e. food, liquor, bottle beer, draft beer and wine. This is more effective when broken into categories because if the pour costs are high, you can determine where the problem is. You can react by examining your draft system for problems due to foaming issues, because your draft numbers are high. Otherwise, if liquor pour costs had all categories lumped in one figure, you would not know where to look for the problem without redoing all of your work.

Standard Cost of Goods Sold Calculation A.

Beginning Inventory

[equals ending inventory for the last period]

Purchases

[equals total purchases made for a given period]

Total Available

[equals the total product available to be sold]

Ending Inventory

[equals total dollar value of the inventory counted at the end of a given period]

Product Used

[equals the dollar value Cost of Goods Sold or the actual product taken from the shelves]

Sales

[equals the total sales for given period]

Cost of Good Sold percent

[represents how many pennies in product used to generate a dollar in sales] Figure1

THE DETAILS TO THE STANDARD CALCULATION A. Beginning Inventory refers to the total dollar value of all of the inventoried items, from the end of the last period, on the shelves, i.e. all food items for the food cost calculation. B. Purchases are any and all invoices for items that came into the building during that period, paid for or not. It’s imperative that you follow an accrual accounting format when logging in purchases. Then you show an accurate accounting of what product actually entered the building during that period. Since you carry inventory, the IRS will require your tax returns to be done in an accrual basis even if you run your books on a cash accounting basis, so there is no benefit to doing your books on a cash basis. A simple way to look at accrual accounting is earn, owe and use. 1) If you earn it (sales) you are required to account for it. 2) If you owe for it (all invoices, by category, whether you paid for it or not). 3) And if you use it (product that leaves the shelves) an inventory adjustment up or down in the expense account for that category is made (i.e. if you used $500 more in food than you purchase for that period, than you would reduce the inventory figure on the balance sheet and increase the expense on the profit and loss statement, which increases your Cost of Goods Sold for that period). C. Total Available refers to the total amount of product by category that you could have sold in a given period, beginning inventory plus purchases. For example, if there was $5,000 of product on the shelves when you opened on the first day of the period and you took $10,000 in deliveries though the last day of the period, but did not open your doors at all that period, you would have $15,000 of product on your shelves you could have sold. D. Ending Inventory refers to the total dollar value of all the inventoried items after the close of the last day in that period or before you open for the first day of the next period. E. Product Used represents the dollar amount of the entire amount of product used in any given period; Total Available minus Ending Inventory. Use literally refers to product used and can be categorized in four ways.

1) Waste or Spoilage – If food gets thrown away, if giving a larger portion than the recipe calls for, or your refrigeration unit goes down and nobody caught it. You had to throw away product so it is still considered use. Most all waste is avoidable and is a direct result of a lack of management and training. 2) Theft – If your staff takes food home, if they give friends free food or drinks, this too is considered use. 3) Comps – This strictly refers to all comps that are not rung up on the POS or cash registers. This might be an owner taking steaks home for a barbeque. This is Use because product has been used even though no sale has been rung up. 4) Sales – The reason you hope your entire inventory of product gets used is because it means the only reason products left your shelves was to bring in money. F. Sales are, as described earlier, to be shown by category for a given period. Again sales represent the dollars brought in for the entire product that left your shelves for that period. G. Cost of Goods Sold percent. Cost of Goods Sold percentage, Use divided by Sales; represent a penny of product for every dollar you brought in in sales. For example, a 32 percent food cost means for every dollar in food sales you brought in, 32 cents of product left your shelves. FOUR CALCULATIONS YOU CAN TAKE TO THE BANK This is where most management stops with the calculation. When we were rewarding managers for achieving numbers, there is more analysis to be done. Let’s look at four additional equations that allow you to drill down deeper. They are: Average Inventory, Inventory Turns, Change in Inventory and Budget Variance. A. Average Inventory is calculated by adding the beginning inventory to the ending inventory and dividing that number by two [(Beginning Inventory + Ending Inventory) ÷ 2]. This equation will show the average dollar value in inventory you carry any day during a given period. The number this produces is vital to measuring how efficient you managers are with product and your bank account. The equation for inventory turns will shed some light on why. B. Inventory Turns are calculated by dividing use by average inventory [Use ÷ Average Inventory]. This will show you how many times the dry storage and walk-in shelves were stripped clear of product and then re-stocked. The benefit: this number measures how efficient a store is with its cash and inventory. For example, in most cases the kitchen of a full service restaurant wants to achieve four to eight inventory turns a month. If the inventory is turned four times in a month, in theory that means they will sell all of their product on the shelves and re-stock them four times and they will be placing a food order only once a week. In the real world this does not happen exactly that way. Think about spices. How long has that large bucket of salt been sitting in your dry storage? What about perishables? Don’t you take delivery of milk and cottage cheese twice a week, so they don’t spoil? So you can see, that some items turn more often than other items. So when we refer to an inventory turn, we are really referring to the number of times the dollar value on the shelves turn. What are some of the benefits to turning your inventory so often? 1) You will reduce your risk of theft because you can immediately see when items are missing. Everything has its place. 2) You will operate a cleaner restaurant. 3) With less inventory on the shelves you will have more cash in the bank to pay bills. Why? Ask yourself what exactly is inventory? It represents cash that cannot be used to pay your bills with. www.pmq.com — PMQ 95

Beginning Inv.

$3,580.21

Purchases

$22,522.33

Purchases

Sub-Total

$26,102.54

Total Available

Ending Inv.

$6,803.01

Ending Inv.

Used

$19,299.53

Used (COGS)

Sales

$63,045.48

Sales

F.C. percent

30.61percent

F.C. percent

Last F.C. percent

29.78percent

+ / - percent

0.83percent

$5,191.61

Average Inventory

Beg. Inv. + End. Inv. / 2

3.72

Inventory Turns

Used / Avg. Inv.

$3,222.80

Change in Inventory

$18,913.64

Budgeted

$19,299.53 $(385.89)

Beginning Inv.

End. Inv. - Beg. Inv.

30.00 percent

Sales x Budget percent

Actual

30.61 percent

Actual Use

Budget Variance

-0.61 percent

Budgeted – Actual Figure2

C. Change in Inventory is calculated by subtracting the Ending Inventory by the Beginning Inventory [Ending Inventory – Beginning Inventory]. This calculation shows how efficiently you store has been ordering product. This number is important, just as inventory turns are, because it clearly represents how much cash you have either freed up or tied up on your shelves. For instance, if my food inventory was $4,000 at the beginning of the month and my ending inventory was $5,000, I just took $1,000 out of my bank account and placed it on the shelves where it can be stolen, wasted and not used to pay bills. Note that an increase in inventory may have no negative impact on you overall Cost of Goods Sold calculation, because Use is the key number to determining the Cost of Goods Sold percentage. An increase in inventory, however, can be devastating to an operation that is tight on cash. D. Budget Variance first makes the assumption that as an operator you have a budgeted Cost of Goods Sold percentage as a target. With this assumption in mind, the calculation is both the Target Use minus the Actual Use and the target Cost of Goods Sold percentage minus the actual Cost of Goods Sold percentage [Target Use – Actual Use and Target Use percent - Actual Use percent]. These numbers show how close your store came to achieving its goals. Without a target you will be unable to quantify performance. These numbers let you better interpret how your store performed in a given period. For instance, if you have a target Food Cost of 30 percent and your Food Cost percentage came in at 34 percent on $100,000 in food sales, you would have used $34,000 in food product vs. the $30,000 that was budgeted. That means you would have wasted $4,000, most likely due to poor management. It is the equivalent of a kitchen manager taking $4,000 and placing it in front of their general manager, and then setting it on fire. In figure #2, above, I will show you how all of these calculations can come together to see how you are doing. Then you can eliminate circumstances where you can be taken advantage of and recognize opportunities to put cash back into the bank. The Food Cost calculation is, as discussed earlier, beginning inventory + purchases = total available. Total available - ending inventory = total product used. Total product used divided by sales = cost of good sold percentage. But as you can see the four additional 96 PMQ — The Pizza Industry’s Business Magazine

While the Food Cost percentage was close to our target and is very close to last months food cost percentage, our inventory turns are not hitting the minimum four turns desired. We have too much food on our shelves. Our change in inventory shows we added $3,222.80 in product to our shelves. That might mean the difference in making payroll.

calculations have been added to bring new facts to light. These facts will demonstrate how at first glance we might think that the kitchen manager (KM) is doing a great job and entitled to a bonus, but looking deeper shows that the KM has just made it difficult to make payroll and should not receive that bonus. We can see from the standard calculation that the KM has come pretty close hitting the targeted food cost percentage budgeted for. He has achieved a 30.61 percent vs. the budgeted 30 percent. The KM might even say, “I’m only .61 percent off budget.” And at first you might say, “You’re right, it’s not a big deal.” Let’s look at the numbers deeper. While the Food Cost percentage was close to our target and is very close to last months food cost percentage, our inventory turns are not hitting the minimum four turns desired. We have too much food on our shelves. Our change in inventory shows we added $3,222.80 in product to our shelves. That might mean the difference in making payroll. Remember when I said that cash pays the bills, profits don’t. Then we look at that .61 percent means that we wasted $385.89 worth of product. So due to poor management of our restaurant and this controllable expense, we had a negative impact of $3,608.77 in our bank account. And without looking at the Cost of Goods Sold calculation with the additional equations, as simple as they may be, we might have rewarded our KM for making his numbers, when he really didn’t at all. THE LIGHT BULB You should have learned that the standard Cost of Goods Sold calculation alone, while important, can get you into trouble. A light bulb should have gone off. You should no longer stop with the standard calculation. From here, you know what to look for and will be able to take steps to not only make your numbers, but increase your operating efficiency to create a larger bank account, from which you can pay your bills or maybe even yourself. If you would like to learn more strategies and easy to implement system on this topic, you can find more information at http://www. smilebutton.com/cogstraining. - PMQ -

MARKETING

YOUR FIRST SUCCESSFUL

TAKEOUT MENU B Y M I C H A E L D ` A G O S T I N O • TA K E O U T P R I N T I N G

any restaurant owners wait until the last minute to get their takeout menus designed, setup and printed before opening a new establishment. Your takeout menu needs care, understanding and the respect they deserve. New customers will look at a menu and make a decision to try your restaurant or not for three seconds or less. Your menu is your first real low cost advertisement to the public and you only have one chance to make a good first impression. Don’t blow it. The following tips will guide you to your first successful low cost takeout menu.

PUT VITAL INFO ON YOUR MENU COVER The cover is the most neglected area on takeout menus. Always add all your vital information on the cover. Many times owners neglect to do this. You should have your full business name, address with city, state and zip code, phone and fax numbers with area codes, website address written as www.yourcompany.com (no need for “http” ), your hours of operation, delivery, pick-up, eat in or takeout. If you have room, add a small local map. Do not limit your establishment to one zip code. People will travel far if they like your food, 98 PMQ — The Pizza Industry’s Business Magazine

so make it easy for them to find you. With today’s advances in technology you must be prepared. Have this contact information on the cover of your takeout menu so it is available to your existing and potential customers. LUNCH, DINNER, CATERING ON ONE MENU. Yes, one large takeout menu should have everything you offer on it. Having three separate menus confuses customers and costs you a lot more. Think about it, your customer that comes for lunch everyday might not know that you offer catering. Your Saturday dinner customers might not know that you offer a Monday lunch special. It is much cheaper to print an 11x17 size menu with everything on it than three smaller separate menus. For example your menu can be setup as follows: Lunch Dinner 1/2 tray Full tray Eggplant $4.95 $6.95 $18.95 $29.95 Chicken Cutlet $5.95 $7.95 $19.95 $39.95 Veal Cutlet $6.95 $8.95 $22.95 $49.95 By putting all options in front of your customers your sales will increase.

It’s about new. It’s about you.

September 8-10, 2006

The Florida Restaurant Show has grown and is now the Florida Restaurant & Lodging Show!

It’s about time. SEPTEMBER 8-10, 2006

ORANGE COUNTY CONVENTION CENTER

ORLANDO, FL

There’s only one foodservice and hospitality event in the Southeast where you can find all the latest business-enhancing solutions. The 2006 Florida Restaurant & Lodging Show. In three days you can do a year’s worth of comparing and sourcing to outline winning strategies for your business. Over 550 leading exhibitors with never before tasted foods and the latest beverages, equipment, services – it’s all here.