Pizza Nova culativates a strong franchise bond by listening, rewarding and supporting its network of operators.
As Pizza Nova management and employees prepare to celebrate the chain’s 50th birthday next year, the words its president, Domenic Primucci, uses to describe the Ontario-based company remain true to the founding principles instituted by his uncles and father, Sam. “We’re a family,” he says. “It’s in the DNA of our organization. We work together, we’re fair with each other, and we support each other.”
That family concept is going strong, with 126 stores, 97 franchisees and one corporate store (and counting), and promising sales numbers. In fact, the company’s sales grew to $89.5 million from $84 million as industry sales dipped in 2010 over 2011, with $93 million estimated for 2012. Quarterly meetings and a huge annual gathering at a Muskoka, Ont., resort help cement the business. It’s an opportunity to do what families do — play together.
To play with this family, potential franchisees need between $295,000 and $315,000 for a new turnkey operation, depending on the restaurant size, which ranges from 1,000 sq. ft. to 1,500 sq. ft. An additional $15,000 to $20,000 is necessary for opening and inventory costs. Ingredients are purchased centrally to ensure quality control and consistency across the chain. The dough is centrally made and distributed fresh daily to each store. Pizza Nova offers white and whole-wheat crusts, and the recent introduction of a gluten-free multigrain crust, along with the fact that all their locations are nut-free, has won praise from Anaphylaxis Canada.
This family takes the business of pizza very seriously. “Pizza has become almost a commodity,” acknowledges Domenic. “You can get it everywhere, even the supermarket. We have to stay ahead of the game, so we use only the best ingredients, and we’re always looking for ways to improve and change.”
From the outset, Sam and his brothers insisted on quality. In the early days, pizza toppings included green peppers, mushrooms and pepperoni. But Sam wasn’t happy with the inconsistent quality of the pepperoni he received from his suppliers, so he worked with the now-defunct Swift Foods to create a product that met his standards.
Pepperoni remains the brand’s number-1 topping, but it’s now complemented by such gourmet options as portobello mushrooms, roasted garlic and artichoke hearts. There’s even a bruschetta topping made with fresh tomatoes. And herein lies the willingness to improve and change. Many of these additions are the result of customer requests.
Indeed, the company execs are always open to new ideas from inside and outside the organization. On a trip to Italy, Sam was impressed with the Roman version of pizza, so Romana – Pizza al Taglio (Italian for “by the slice”) was born. But these aren’t your usual pizza slices. Baked in custom rectangular trays imported from Italy, and cut into squares, the Romana is topped with ingredients such as baby arugula, fresh grape tomatoes, potatoes, eggplant, ricotta cheese and balsamic glaze.
And, this year, the Focaccia Barese, or oven-baked Italian flat bread, which is similar to pizza, was introduced. A famous dish in Bari, Italy, it’s a Protected Geographical Indication (PGI), a protected recipe, and Pizza Nova is the only Canadian company granted special permission to reproduce it in Canada. To do this, it imports Pachino-style tomatoes, special oven-roasted black olives and olive oil from Bari. The trees that grow the olives are surrounded by fruit trees and artichokes, contributing to the aroma and flavour of the olives.
The special care given to the food extends to franchise growth, which has deliberately been slow, with less than 10 new sites per year. “Many of our franchisees come through the existing system because they’re happy with us and want to take on more responsibility,” explains Frank Macri, franchise director for Pizza Nova. “But we’re very careful to choose people who have a passion for the food industry. We’re looking for qualities like business sense, friendliness, an ability to interact with people, problem solving, people-management skills and pride in their work.” It doesn’t hurt if they’re hardworking, too. “The first couple of years, I worked 70-hour weeks,” says Domenic Caputo, whose Pizza Nova in Woodbridge, Ont., boasts the largest sales volume in the chain, with more than $1.5 million annually. The 10-year veteran “couldn’t be happier” with his decision to become a Pizza Nova franchisee and grow within the business. “Sam asked us to be the flagship store for the new branding six years ago,” he says. “I was worried about the finances, but he helped me make it happen. Sam’s an honest guy. What he says, he does.”
The re-branding, which included updating everything, from the logo to the interior design, was a significant undertaking. “Everyone was against it except Domenic and me,” recalls Sam. “But it was the best thing we ever did. Sometimes you get stuck in what you’re doing. Our customer has changed, so we try to keep up with what they want.” But new branding didn’t mean a change in operational methods. “Every franchisee has my cell number,” he adds. “[I’m] available 24/7.”
That franchisee support continues on varying levels, with general advertising and promotions managed through the marketing department and a single call centre handling orders. What’s more, training is done on an individual basis and can run several weeks. “We also have district managers who are responsible for overseeing 15 to 20 stores,” explains Macri. “They are there to offer help and advice if needed, and they also make spot checks to ensure the location is living up to our standards of cleanliness and customer service.”
According to the Canadian Franchise Association (CFA), the chain is hitting the mark. This year the CFA Awards of Excellence in Franchising program recognized Pizza Nova, presenting it with the top award. “The CFA Awards of Excellence in Franchising truly set a benchmark for franchises throughout Canada,” says Lorraine McLachlan, CFA president and CEO. “A solid relationship between franchisor and franchisee is vital to the system’s success, and this company’s results show that they offer outstanding support to their franchisees.”
To wit, Pizza Nova has a psychologist available three days a week to assist staff and franchisees who need help coping with the stress of the business. “It’s seven days a week and long hours,” says Domenic. “It can be hard, especially at the beginning, and we want to help them as much as we can.”
Caputo returns the favour, by helping his staff and taking pleasure in his work. “We have low staff turnover, because we have fun at work,” says Caputo. “This morning I was here at 7 a.m., and we stretched 90 party-sized pizzas for schools.” The school program is one reason for the franchisee’s winning sales figures. Caputo approached one school to create a pizza program, which quickly expanded to nine more.
And, when Caputo is approached by the community for donations to special events, he always makes a donation, from coupons for free slices to 20 party-sized pizzas for a recent Terry Fox Run. “The community has been good to me,” he says. “Besides, it brings so much goodwill for the store; it comes back tenfold.”
Caputo emulates Pizza Nova’s corporate example. Each year, the chain holds a pizza day to support Variety Village – The Children’s Charity. For that day, $1 from a $4.99 medium pepperoni pizza benefits charity. The chain may not make much on pizza sales that day, says the younger Primucci, but the low price encourages customers to come in, so sales are generally huge. Since 1999, they have raised more than $1 million.
So, can Pizza Nova maintain this level of franchise support as they continue to grow? “We have to continue to evolve and change,” says Macri. “So we have to find solutions as these issues come up.” For Domenic, the answer is simple: “Even if we have 500 locations, we’ll find ways to work together. We’ll always be a family.”
photo courtesy of Christopher Dew
