It’s only 11 a.m. on a Friday morning, but Jacek Zebrowski’s Pizza Pizza franchise in Etobicoke, Ont., is already welcoming a steady stream of customers. “I’ll be with you in a moment,” says the busy franchisee with a polite smile, as he carefully tosses grated cheese onto a large pizza crust. Just then, Pat Finelli, chief marketing officer for the Pizza Pizza chain, walks in. As he sits down and prepares to chat, it’s clear he has the casual confidence of someone who really knows his business — and so he should. He’s worked for the Etobicoke, Ont.-based company for nearly 30 years.
When Finelli started with the chain in 1984, it had been in business for nearly 17 years. The first Pizza Pizza location was opened in Toronto in December 1967 by entrepreneur Michael Overs (who helmed the company as CEO until he passed away in 2010). Pizza Pizza franchises soon spread across the city and other parts of Ontario, throughout the 1970s and ’80s. And, during those early growth years, one element that spurred success was the company’s then-innovative use of a central one-phone-number ordering system: no matter where in the city (and later the province) a customer was ordering from, the phone number was always the rhythmic 967-11-11. (It later evolved to have different prefixes depending on the city, but it always ended with that familiar 11-11.) The number was set to a ridiculously catchy ad jingle, featured in frequently played radio and TV commercials, and it wasn’t long before those seven digits became ingrained in the minds of Ontario residents.
Over the decades, that familiar ad jingle remains one reason Pizza Pizza is forefront in the minds of consumers. And, as chief marketing officer, Finelli says, “It’s fun trying to keep the brand top-of-mind for Canadian consumers.” But today, it’s also undoubtedly a constant challenge to keep the brand fresh, vibrant and relevant in the increasingly competitive pizza industry. “You can go into any supermarket right now and not only are they selling frozen pizza, they’re also often making a fresh pizza…. Everyone’s trying to get a piece of that pizza share,” says Finelli. Not only that, but pizza chains now consider themselves to be in competition with everyone in the quick-service and fast-casual arena. “The competition is fierce, because everyone wants to try different types of foods — whether it’s Thai, burgers, sandwiches or pizza. So, in the pizza category we may be number 1, but now we like to say, ‘OK, how do we get that sandwich consumer? How do we get that burger consumer?’”
The Pizza Pizza team has thrived with that can-do attitude. In 2012, system-wide sales totalled $481.5 million (including sales for the Pizza 73 brand, an Alberta chain acquired by Pizza Pizza in 2007). This was a 2.7-per-cent increase in same-store sales over 2011, which builds on the 2.6-per-cent same-store sales growth between 2010 and 2011. And, according to Finelli, the chain is on track to see similar annual growth, between 2.5 and three per cent, by the end of 2013. “We’re very proud to have that sales growth in these tough economic times,” he says.
Although it started as an Ontario-centric chain, the company embarked on an ambitious national expansion program in the mid-2000s. As part of this strategy, the past four years in particular have seen aggressive national expansion for the Pizza Pizza brand, with 17 new restaurants in Quebec (six of which opened in the summer of 2013), eight in Manitoba, three in Saskatchewan and four in Nova Scotia. So now, with the traditional Pizza Pizza locations, the non-traditional locations (which range from sports arenas to seasonal tourist destinations), and the Pizza 73 locations in Western Canada (there are almost 90), the company has more than 700 units across Canada.
So, how, specifically, is Pizza Pizza maintaining success? “We’ve got great franchisees,” says Finelli, just as Zebrowski sits down next to him in the Etobicoke store. Zebrowski nods a vigorous “yes,” and chimes in with his opinion on why he’s been so happy to be a Pizza Pizza franchisee since 1993. “It’s a solid team, solid support,” says Zebrowski. “They help you out, they guide you.” Strong franchisee support and training is invariably a key factor in remaining consistently successful, agrees Finelli. So, all new operators attend the Pizza Pizza Training Centre in Etobicoke, Ont., where they undergo an in-depth 16-week training session.
But, great franchisees aside, the team has also succeeded by continually making it easy for people to choose Pizza Pizza. To that end, the company recently launched an iPhone mobile ordering app — the first of its kind for a Canadian pizza chain — which won a Webby Award. It was followed by similar mobile ordering app launches for the iPad and the Android in 2013. “People expect to be able to order pizza, or anything else, when they’re on the go. These mobile apps help with that,” explains Paul Goddard, Pizza Pizza’s CEO, while chatting on the phone with F&H en route to the airport. “We listen to our customers, and we want to make their experience ordering pizza as enjoyable and convenient as possible, so we’re constantly trying to build and improve the way we provide those different choices to people.” According to the company, approximately one-third of orders processed at Pizza Pizza are online or via the iPhone.
Menu diversification has also played a major role in keeping Pizza Pizza fresh, modern and appealing to today’s consumer. “Menu innovation is very important to us,” says Goddard. While pizza is still the company’s bread and butter, the menu options have been expanded in recent years. Since 2011, for instance, Pizza Pizza has introduced four new Italian sandwiches on oven-toasted artisanal buns — Meatball Marinara, Italian Veal, Spicy Italian Sausage and Italian Chicken ($3.99 to $5.99); they’ve added potato wedges, chili, and the ever-trendy poutine to the menu; and they’ve launched healthy new salads such as Asian Grilled Chicken or Arugula salad ($3.99 to $6.99). Last year they added a line of “fresco” pizzas: whole grain, thin-crust pizzas featuring high-quality toppings such as arugula, cipolline (balsamic onions), asparagus, sliced potato, tuna, a variety of cheeses, mushrooms and more, with 12 enticing pre-prepared pizza options, including the Chicken Bruschetta, the Pesto Amore and the Sweet Chili Thai, priced as low as $4.99 for an individual serving-sized pizza. Notably, Pizza Pizza was also one of the first major pizza chains in Canada to introduce a gluten-free crust option five years ago, responding to the growing demand for gluten-free options. This option has been becoming increasingly popular since it was first introduced.
It’s all part of the company strategy to reach “everybody,” which means becoming ingrained in communities. Pizza Pizza is the official pie of the Toronto Maple Leafs, Toronto Raptors, Toronto Blue Jays, Ottawa Senators, Montreal Canadiens and Calgary Flames; and, on a smaller scale, the chain sponsors hundreds of community initiatives throughout the country, including local sports events, the arts, cultural activities and civic groups. They work closely with more than 1,900 elementary schools and organizations each year to help volunteers raise money for local causes.
And, in an effort to encourage environmental responsibility, the chain celebrates Earth Month each April with its “Cells-for-Slices” campaign. Customers can drop off used cellphones and handheld devices at participating Pizza Pizza locations in exchange for a free slice of pizza; the company then ensures the devices are recycled and diverted from landfills, while proceeds generated from the recycling and refurbishing of the used devices benefit Food Banks Canada. Pizza Pizza also created the Slices for Smiles Foundation in 2007 to commemorate the company’s 40th anniversary. This foundation raises money to help children’s charities, such as the Children’s Miracle Network. Since the foundation’s inception, it has raised nearly $1.5 million. “We want kids to have a great life, and whatever way we can help, we will,” says Finelli.
“We value our role in the community, so in the next little while, we hope to become even more involved,” adds Goddard. “We’ll continue to build that up: sponsoring local sports teams, recreational events, fundraising for charity, Slices for Smiles, raising money for hospitals … that also helps build the brand across Canada.”
Goddard continues on to excitedly outline the company’s ambitious plans for growth: “[The chain] started in Toronto and expanded across Ontario, so that’s still a focus … but we really are going to aggressively continue our national expansion strategy,” he says. “As we grow into new [geographic areas] within Canada, we often find building into non-traditional venues — like movie theatres, institutions — is a good way to establish our brand, and then we can build upon that with more traditional bricks-and-mortar stores. So, that whole expansion strategy is key.” And, as the chain grows and moves into new territories, he says, “We’ll continue to prioritize the customer experience: the idea that we’re going to make the food hot and fresh, just for you, stick to our core values and continue to be an innovation leader.”
photo by Margaret Mulligan
