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Volume 16 Issue 8 December 2010

12 HigHer prices and Happy customers

Raising prices can feel like a dicey move. It can also feel like the only way to survive. Here’s how to approach pricing your menu.

16 put some tang in your crust

Original pizza crust can taste great with a “sour’” twist from something called the mother dough. Find out how to grow your own.

22 pizza from Hell lands in VancouVer Vancouverites are indulging in Hell Pizza, a new chain that may soon be tempting customers in other Canadian cities.

24 turn customer

retention into profit Keep customers by discovering your Value Producing Opportunities.

www.canadianpizzamag.com

DEPARTMENTS 6

editor’s desk

pizza bites

canadian pizza online

the pizza chef

making dough

marketing insights

pizza on fire DECEMBER 2010 pizza 3

“Packed from Fresh Tomatoes, Not from Concentrate”...

President Tom Cortopassi (kneeling) and “Coach” Dino Cortopassi (standing) in one of our

Since 1942, our Restaurateur customers’ success has depended on the superior taste of the food they serve and of our products. As a family-owned business, it feels good knowing that so many of our customers have relied on our “Packed From Fresh Tomato” products from generation to generation.

Whether your restaurant has a long family history, or whether you’re the founder, you can depend on our family making the best “Real Italian” tomato products...always Packed From Fresh Tomatoes, Never From Concentrate...generation after generation!

Tom Cortopassi President/Owner

Dino Cortopassi Coach/Owner

Generation after Generation.

tomato fields in Stanislaus County, California

THE

StaniSlauS E

O F

Q U

The “Real Italian” Tomato Company 1202 “D” Street

from the editor’s desk december 2010, Vol. 16, no. 8

Your waking customer is the season to rake in the pizza orders and give those busy baking, entertaining, holiday crazymaking folks a break from their kitchens. I hope it’s a prosperous kitchen rush for all – one that sets a positive tone as we clink champagne glasses on Dec. 31. Which begs the question: What’s ahead (besides a likely hike in cheese prices)? The world of food and how people relate to it is changing, sometimes in contradictory ways. On one hand we hear calls for simple authenticity, the finest ingredients and a local story behind our ingredients. Less sodium, less fat and more veggies please, shout the masses. But wait – we also want more convenience, the comforting tastes we’re addicted to and the opportunity to eat our emotions when warranted. To say people’s relationships with food are complex is an understatement at best. I attended a food innovation event hosted by the Guelph Food Technology Centre and Maple Leaf Foods, where Chef Michael Smith of the Food Network gave the keynote address. He mostly aptly described the current situation: “The food industry is facing the highest expectations in history.” Smith, who has travelled to 37 countries in the past five years, mentioned repeatedly that customers are savvier than ever before, as he spoke of the trends he sees happening around the world. “Consumers are waking up,” he warned. “Take them for granted at your peril.” For pizzerias, the toughest challenge is to address some of these ongoing issues, like reducing sodium, without upsetting a loyal customer base that wants your unique pie. It’s tough to figure out what

‘

these savvy customers are waking up and wanting. The media shouts healthier food but I bet the sales reports are indicating meat lovers pizzas are top sellers. Poor pizza – it gets such a bum rap in the general press: always the first to be named as an example of junk food, it seems. But it’s an individualist’s food if ever there were one and people choose extra cheese, bacon and sausage at their own risk. This may be the case, but the case is also that people are changing; they just won’t change overnight. To stay competitive for the long haul, you will need to develop healthier pies and working with a dietitian is a great way to formulate. Smith brought up some interesting points from his world travels. Pizza is steeped in tradition but also the ideal food for creativity, so if you’re looking to experiment and have a client base hungry for innovation, it’s a real “anything goes” culture of combinations. Smith identified contrasting flavours, such as cayenne and cherry, as an area of growth, as well as vegetal flavours like the vegetable yogurt seen in Europe. Flower flavours in food are growing, as are destination/vacation inspired flavours. If you’ve been itching to create a rose petal topped pizza drizzled in a vegetable glaze, your time has come. But whatever you do in your mission to stay competitive, don’t drop the quality of your food. If anything is clear in the shifting marketplace it’s that this isn’t the time to be cutting corners. That’s why we’ve decided to focus on adding value and pricing in our December issue. Trends may come and go, but making a profit is still the bottom line. •

editor Laura Aiken laiken@annexweb.com 416-522-1595 assistant editor Brandi Cowen bcowen@annexweb.com 888-599-2228 ext. 278 publisher Christine Livingstone clivingstone@annexweb.com 519-429-5173 888-599-2228 ext. 239 sales assistant Kristin Hawkeswood khawkeswood@annexweb.com 519-429-5183 888-599-2228 ext. 219 production artist Emily Sun group publisher Martin McAnulty mmcanulty@annexweb.com president Mike Fredericks mfredericks@annexweb.com mailing address P.O. Box 530, 105 Donly Dr. S., Simcoe, ON N3Y 4N5 PuBLICAtION MAIL AgrEEMENt #40065710 rEturN uNDELIVErABLE CANADIAN ADDrESS tO CIrCuLAtION DEPArtMENt, P.O. Box 530, Simcoe, ON N3Y 4N5 e-mail: cnowe@annexweb.com Published eight times per year (Jan/Feb, Mar, Apr/May, Jun, Jul/Aug, Sept/Oct, Nov, Dec), by Annex Publishing & Printing Inc. Printed in Canada ISSN 1203-6838 circulation e-mail: cnowe@annexweb.com tel: 866-790-6070 ext. 207 Fax: 877-624-1940 Mail: P.O. Box 530, Simcoe, ON N3Y 4N5 subscription rates Canada – 1 Year $ 18.90 (includes gSt - #867172652rt0001) $ 20.34 (includes QSt/HSt) uSA – 1 Year $ 40.00 Occasionally, Canadian Pizza Magazine will mail information on behalf of industry-related groups whose products and services we believe may be of interest to you. If you prefer not to receive this information, please contact our circulation department in any of the four ways listed above.. No part of the editorial content of this publication may be reprinted without the publisher’s written permission. ©2010 Annex Publishing & Printing Inc. All rights reserved. Opinions expressed in this magazine are not necessarily those of the editor or the publisher. No liability is assumed for errors or omissions. All advertising is subject to the publisher’s approval. Such approval does not imply any endorsement of the products or services advertised. Publisher reserves the right to refuse advertising that does not meet the standards of the publication. www.canadianpizzamag.com

6 pizza DECEMBER 2010

pizzabites Gabriel Pizza keeps growing

A growing number of Canadians think the recession is over, but many are still being cautious in their spending, according to Nielsen’s Consumer Confidence Index. For the third quarter of 2010, the Index shows that 54 per cent of Canadians think the country is out of recession, compared to 56 per cent last quarter, and 65 percent in the first quarter. However, fewer Canadians plan to spend their spare cash on holidays and vacations (24 per cent versus 26 per cent last quarter) or out of home entertainment (18 per cent versus 26 per cent in the second quarter). In fact, four in 10 (40 per cent) plan to use their spare cash to pay off debts, credit cards and loans. that represents a sixpoint increase over last quarter. “In Canada, despite the increase in consumer confidence over the past year, Canadians remain cautious when it comes to opening their wallets,” said Carman Allison, Nielsen’s director of industry insights. “Consumers are still very much focused on value, continuing to shop at discount retailers and buying on promotion at record levels. After a year of rising prices, we now see a levelling of consumer packaged goods inflation as retailers continue to use price and promotions to win over the consumer. Nielsen found that although consumer confidence in Canada dipped slightly (to 101 from 102 last quarter), Canadians are much more confident than their neighbours to the south. In the u.S., consumer confidence dropped six points, from 87 in the second quarter to 81 this quarter. A consumer confidence level of 100 is considered average. the global Consumer Confidence Index tracks consumer confidence, major concerns and spending intentions among thousands of Internet users in 53 countries, including almost 500 Internet users in Canada.

8 pizza DECEMBER 2010

Photo Credit: Gabriel Pizza

Confidence up, but with caution

The Hanna family: from left to right, Eli, John, Mike (CEO), Joe, George and Nick.

abriel Pizza has come a long way since 1977, when Michael Hanna and his five brothers opened their first store in Orleans, Ont. But for all that’s changed in the last three decades, a lot has stayed the same. Gabriel is still very much a family business. Michael Hanna is CEO of the chain. Michael’s son George, now president, owns one store and has partial ownership in two others. The other five founding Hanna brothers – Joe, George, Nick, John and Eli – still own or operate five of the 24 locations. Three other stores are owned and operated by close relatives. The Gabriel Deluxe, a six topping pie loaded with pepperoni, mushrooms, green peppers, onions, olives and thickcut smoked bacon strips, is still the chain’s top seller more than 30 years after it was introduced at the first location. Now, with the newest location in Brockville, Ont., open for business and more locations planned, Gabriel Pizza is looking to bring the Gabriel Deluxe to a whole new clientele. “We currently have plans for additional locations in Barrhaven, Rockland and Riverside South,” Cory Boast, director of

marketing for Gabriel Pizza Franchise Corporation, told Canadian Pizza by e-mail. “We begin construction of our 25th location in the community of Findlay Creek just south of Ottawa in spring 2011, but with the successful launch of Gabriel Pizza in Brockville, we may have locations in Cornwall and Kingston underway in early 2011.” At the moment, Gabriel stores are located mainly in and around Ottawa, including three locations just across the Ontario-Quebec border in Gatineau, Aylmer and Hull. But with the successful launch of the Brockville location, Boast says work on new locations farther out, including in Cornwall and Kingston, may be underway as early as next year. “We are always looking at opportunities for growth wherever they may present themselves,” said Boast. He added that at this time, there are no immediate plans to expand outside of Ontario and Quebec. According to Boast, the secret to Gabriel Pizza’s success is simple. “Quality of ingredients is the number one factor. We don’t cut corners when it comes to the ingredients we put on our pizzas. Our prices may be slightly higher than the national leaders but we have a loyal legion of followers who can taste the difference.”

pizzabites

New pizza cone holder developed izza Cono manufacturer Cono Italiano and Carte Blanche, the manufacturer of Crossfilm Cooking products, have teamed up to develop a new method for cooking pizza cones. The duo has developed a cooking apparatus and cone holder to prepare Cono Italiano’s drip-free, cone shaped pizzas in high-speed efficiency ovens. The cooking apparatus is made from a Polytetrafluoroethylene (PFTE) composite designed specifically for food contact. As the surface of the food zone wears down, it is designed to expose a new PFTE surface in order to extend the life of the cooking apparatus. For more information, visit www.conoitaliano.com.

Mintel highlights 2011 trends estaurant-goers value menu transparency, but still want the occasional indulgent dining experience, according to new research from Mintel Menu Insights. The firm has identified five foodservice trends for 2011.

Healthy by association Sixty-two per cent of consumers say they plan to eat healthier in the upcoming year, but many complain that healthier food doesn’t taste as good without the added sugar, sodium and fat. Restaurants will address this problem by using healthier ingredients in popular dishes and positioning them as better-for-you options. Consumers enjoy visiting restaurants that are perceived as healthy because these venues make them feel good about themselves and their meal choices. Consumers might opt to visit the “healthy” restaurant, but be wooed by the not-so-healthy limited time offers these places make available. Automated menus Convenience and technology will form the perfect union this year, as restaurant-goers will see an increase in automated menus at their favourite establishments. These electronic order-takers will provide customers with the opportunity to order food to their specifications in do-it-yourself style, reducing the restaurant’s reliance on front-of-house staff and full-time employees. Automated menus, in addition to mobile applications, will allow restaurants to reach a younger, more mobile consumer. Transparency Consumers want to know what they’re eating, and the recently passed American healthcare bill mandates such disclosure.

Restaurants with 20 or more units are, in America, now required to list calorie counts on their menus. Consumers seem happy with the impending disclosure, with 61 per cent agreeing that restaurants should post nutritional information, like calorie counts and fat grams, on menus. More cities will start forcing restaurants to visibly display their grades from local health departments, further increasing menu transparency. Indigenous ingredients While the local food movement continues to grow, the push toward indigenous ingredients takes that trend a step further. In 2011, we will see restaurants incorporating more traditional or authentic ingredients to their ethnic or globally positioned entrees. The ingredient-marketing claim “local” has grown by 15 per cent between the second quarter of 2009 and the second quarter of 2010. Mintel predicts that this figure will increase in the coming year. Exemptions to the rule A vast majority of American restaurants will have to disclose calorie counts on their menus, but that rule doesn’t apply to limited time offers. Operators will take advantage of this loophole by offering lessthan-healthy novelty or seasonal menu items, allowing customers to indulge in a guilty treat, without feeling pressured to make a healthier menu choice. As it stands, 43 per cent of consumers say they’re likely to change what they order when calorie counts are listed on the menu. Limited time offers allow consumers the occasional opportunity to indulge in a meal out.

Industry’s payroll taxes to increase in 2011 lthough restaurant operators will face an estimated $100-million increase in payroll taxes next year, the news isn’t as bad as some in the industry were bracing for. In October, federal Finance Minister Jim Flaherty announced that the 2011 increase in employment insurance would be limited to five cents per $100 of insurable earnings, and to 10 cents for subsequent years. This is lower than the 15cent increase Flaherty was expected to announce, which some experts warned could cost the Canadian economy well over $1 billion. “The Minister has heard us and we’re pleased he is taking steps to bring the runaway EI premium train under control,” said Garth Whyte, president and CEO of the Canadian Restaurant and Foodservices Association.

DECEMBER 2010 pizza 9

pizzabites

Domino’s Pizza Tracker now has sound omino’s is banking on the interactive power of sound with its latest incarnation of online ordering. Customers ordering online are now able to see and hear their order being made, thanks to the introduction of sound to the Pizza Tracker tool. Once their order is placed, users can customize how they track their order, choosing from six different themes. Each theme gives the Pizza Tracker interface a different look and voice. Depending on the theme, the Pizza Tracker will sing, cheer or even sweet talk the status of a customer’s orders from the moment it is prepared to the second it is out the door or ready for pickup.

Beanstalk and Xpient’s loyalty program eanstalk Data and Xpient Solutions have partnered to offer a new customer loyalty program for the quick service and fast casual markets. Beanstalk Loyalty, powered by Xpient, combines Beanstalk’s marketing automation with Xpient’s IRIS and Rewards applications to offer a new loyalty program that gives customers traditional point-based rewards, and gives restaurants real-time behavioural marketing and professional reporting.

read tHese stories and more at www.canadianpizzamag.com

news HigHligHts •

BOSTON PIZZA RAISING DOUGH fOR kIDS

•

TRUE HAPPINESS MAy BE A SLICE Of PIZZA

•

ITALIANS CREATE ‘SUPER TOMATO’

•

PIZZAIOLOS INSPIRE BRONZE SCULPTURE

•

PIZZAExPRESS PUTS IPODS ON THE TABLE

read tHese stories and more at www.canadianpizzamag.com

10 pizza DECEMBER 2010

NEW PRODUCTS Burke Corporation has launched its new fully cooked Buffalo-Style Chicken Breast Strips. POLL Are you planning to add a new snack item to your menu this fall? DIGITAL MAGAZINE Visit www.canadianpizzamag.com to sign up for your free trial of Canadian Pizza magazine – the digital version.

feature

Higher prices and happy customers BY LAurA AIKEN

erhaps no area is more intricate, or less understood, than selling price when it comes to managing your pizzeria. A myriad of factors determine what the end consumer will pay. Consider the competitive landscape, service levels, atmosphere, quality, portion, service level, type of guest and sales mix. All of these play a role in what you charge for your food. Inevitably, prices are due to rise to reflect inflation or changes in the commodities market, labour expenses or even other impacting costs such as rent and electricity. To stay afloat, you must continue to turn that profit. The cost on the menu is just one factor to examine in the profit game. You can raise your prices, cut your costs or do some combination of both, but food quality or service levels mustn’t suffer. Recently, Molson increased its net income by nine per cent in the third quarter through a combination of raising prices and cutting costs even though it sold less beer, reported Metro News on Nov. 4. Interestingly, the newspaper reported that the company increased prices despite the slow economy to protect its brands from being perceived as too “cheap”. In this economy, raising prices can feel like a dicey move. It can also feel like the only way to survive. And for some companies, like Molson, it’s a way to sustain an image. Let’s look at price increases, alternatives and how to approach them in a way that protects your customer base. PRICE INCREASES AND ALTERNATIvES Before looking at raising menu prices, do an analysis of your menu and your inventory.

12 pizza DECEMBER 2010

Raising prices is just one aspect of overall menu engineering, the term that describes how to tailor your menu to highlight and sell your greatest gross profit margin items. Geoff Wilson, president of the Torontobased foodservice consulting firm fsStrategy, says restaurants “bank dollars, not food cost percentages,” and menu engineering can add three to five points to your margin. Every six months, if not quarterly, he advises doing an analysis of the menu’s performance. You need an accurate picture of the cost of food sold to evaluate the decision, this being the actual dollar value of all food expense except for staff meals. The handbook Food and Beverage Cost Control by Lea R. Dopson, David K. Hayes and Jack E. Miller makes several suggestions for analysis. Aside from doing a complete physical inventory at the beginning and end of the month (although this is really once a month, as your ending inventory number becomes your beginning number), it’s important to do the actual math for employee meals – not an estimate – for better cost control. “It is most often a truism that as prices increase, the number of items sold will generally decrease. For this reason, price increases must be evaluated based on their impact on total revenue and not price alone,” write the authors. “Experienced foodservice managers know that increasing prices without giving added value can result in higher prices but, frequently, lower revenue because of reduced guest counts.” Bear in mind that you can always sell a

lower quality product for less but people associate higher prices with higher quality. At the end of the day, if you are doing regular enough analysis, your price increases should be incremental and small enough that customers will barely notice, says Wilson. You never want to leave your increases to the last minute and then thump your customers with them. A rebellion would be expected. A “nickel here and a nickel there” can go unnoticed by customers on a pizza because the overall cost is high enough to bury it, he adds. How big the increase is, as perceived by the customer, depends on the cost of the product. Over a month, those small increases will add up on the books and your customers are less likely to notice. Hugh Johnston of the Toronto-based firm Strategic and Financial Architecture says that first and foremost you need to know what price your competitors are selling the same items at as well as their promotional prices and, definitely, what grocery is doing. The grocery store is the biggest competitive threat to pizza today, he says. Make your customers aware of what you offer that frozen pizzas in the grocery store isles don’t, from quality to unique toppings and personal service. Most people believe they get what they pay for, with exceptional circumstances going either way. Keeping in mind the goal of exceeding customer expectations, there are alternatives to price increases that are part of assessing the overall menu performance. You can take underperforming items and reformulate, repackage or bundle

Serve up some more profit in your pizzeria.

things to create higher margins, says Wilson. Sometimes you can take a product and cut back slightly on a more expensive ingredient, ensuring the change in taste is not too noticeable, and raise the price just a little bit to create a better return. Also, you can rename and relaunch products in conjunction with changes in price and/or formulation. Before raising prices, Johnston suggests taking a hard look at your menu to see whether you can cut costs there. “Ask yourself if french fries travel well and if you’re really making any money off them.” Then, if you are going to raise menu prices, he says to raise prices on items you are not being paid enough for in light of what you are giving. ADDING vALUE Increasing the perception of value in your food is part of profit strategy. However, you are only adding value if what you are providing is something that your customers do indeed value, says Johnston. Free

pop is of no value to the pop-free family. He advises adding something to the pizza itself that makes it extra awesome, rather than giving away free sides that may be irrelevant to your customers. The free pop may be valuable to some, but you know the pizza is relevant to all. You particularly want to add value for your heavy-use customers, he adds. “There are no new customers. It’s a market share game.” A perception of higher value may be attained through premium quality ingredients such as traditionally raised chickens, Angus beef, and house-made ingredients such as sausage. Adding pizzazz to basics, such as a special sauce drizzled on top, can give the dish a higher perceived value as well. How you approach the value question depends by and large on who your customers are. This is where it is useful to know the price sensitivity of your clientele and what they value. For some pizzerias, it’s primarily about the end ticket for their customers. For others, it’s not as much of

an issue if they see that the quality and the price match. “Independents are way better off putting money on the plate, getting known in the community and getting people loyal to you,” says Johnston, when it comes to competing with the big chains. Considering the importance of this loyalty, it’s wise to decide whether or not you want to, and how you want to, communicate a price increase to your customers. When Starbucks raised the price of some of their premium beverages, they made a formal announcement with an explanation. But that’s Starbucks, an enormous chain, and drawing attention to your increase may not bode best for you, particularly in this economy. One note can be taken from Starbucks though. While they raised the cost of premium beverages, they held the cost of basic core items. This is part of their menu engineering, and a similar analysis of your menu would yield

Continued on page 27 DECEMBER 2010 pizza 13

the pizza chef

Getting along with Groupon Diana Coutu

hances are you’ve heard some of the hoopla about a new marketing media company called Groupon. If you haven’t, you must come out from under that rock you’ve been living under. Since Groupon’s launch, there have been several other copycat businesses trying to jump on the bandwagon. As with many new resources, some people have a love-hate relationship with it. Some restaurateurs call it a sham, while others find real value in its services. I think that many restaurateurs aren’t using the service properly and are therefore frustrated with the results. Here’s how it works. Groupon, an online marketing media company, will offer a deep discount for your product or services that is valid for no more than 24 hours. Typically the discount is 50 per cent off your regular prices. For instance a $30 gift certificate will be sold online for $15, and the revenue will be split evenly between Groupon and your company. Customers can buy as many gift certificates as they like within the 24-hour period. The limited time offer is a key factor in the Groupon concepts’ success, since people cannot take long to decide whether or not to buy. Groupon processes the payment, issues the gift certificates and then sends you a cheque. All you have to do is honour the gift certificates when customers bring them in. Groupon will also send you the list of buyers of your gift certificates. Take note, people, because this is where the greatest value lies. Some restaurateurs who have used Groupon’s services are upset because they’ve barely covered food costs on the transaction. In some cases, restaurateurs have even lost money. But these restaurateurs are overlooking the value of the customer list.

14 pizza DECEMBER 2010

The money is in the follow up. Of course, indeed reap the rewards of repeat patronthere will be some customers who are sim- age. Some studies show that people need ply looking for the bargain to see your advertising basement deal. But there seven to 10 times before if you do a good they will choose to do busiwill also be customers who are looking for a compeljob taking care ness with you. Bringing in ling reason to sample the new business can cost a of these new fare at your establishment. lot of dough. There are a If you do a good job taking customers, they myriad of methods to adcare of these new customvertise and countless ways can become ers, they can become reguto bundle and promote, the lar patrons, or even lifetime regular patrons, important step always becustomers. ing how you turn that new or even lifetime customer into a lifer. A A lifetime customer has great value to a restaurant. If company like Groupon can customers. you have a regular customer help you attract those new who orders once a week at customers at a fraction of an average of $20 per order, the cost. Yes, you will lose that customer’s business money on the initial transis worth $1,040.00 per year. Given that action; however, if you follow up with the restaurants have an average lifetime of list, you will quickly recoup those costs. • five years, that customer is worth $5,200 over the life of an average restaurant. Now, Diana Coutu is a two-time Canadian Pizza Magazine consider how many regular customers chef of the year champion, internationally recognized gourmet pizzaiolo, co-owner of Diana’s Gourmet Pizzeria you want. in Winnipeg, Man. and a member of the CRFA board of These days just taking good care of directors. In addition to creating award-winning recipes, new customers isn’t enough to bring them Diana is also a consultant to other pizzeria owner/operators in menu development, creating systems to run a back. You need to send them an invitation pizzeria on autopilot, along with marketing and positionto come back again and again and again. ing to help operators grow their business effectively and Make no mistake: savvy restaurateurs who strategically. She is available for consulting on a limited basis. For more information contact her at Diana@ regularly mail their customer lists will dianasgourmetpizzeria.ca.

feature

Put some tang in your crust JuLIE FItz-gErALD

ssst, did you hear? Original pizza crust can taste great with a “sour” twist. This crust vying for oven space has a history all its own. It comes from something known as the “mother” dough and applies one of the world’s most ancient forms of bread-making to pizza crust. I’m referring to sourdough crust, and while it’s definitely not a new invention, it’s a treasured technique among pizzaiolos across the country. Sourdough crust varies from pizzeria to pizzeria, each with its own unique sour taste as a result of every starter having different acidities and PH levels. The mother is nurtured by its owners, being fed and watered at exactly the right times, kept at precisely the optimum temperature, and never left to die. Portions are gently removed from the starter to create mouth-watering sourdough crusts and then replenished in the same delicate manner. The tangy taste and

16 pizza DECEMBER 2010

chewy texture of each slice is definite and one bite proves that this is not your regular pizza crust. There are two types of starters to consider when creating your initial dough. For those short on time, there are commercially available starters that cut down significantly on the fermentation time. But for those who really want to experience the satisfaction of growing their own culture, there’s the old-fashioned way. Creating a sourdough starter is as simple as combining flour and water. Try starting with one cup of each. The mixture will attract naturally occurring yeasts in the air and will begin to ferment. As the flour and water interact, naturally occurring bacteria known as Lactobacillus sanfranciscensis (named after San Francisco, where it was discovered) exist symbiotically with naturally occurring yeasts and the fermentation process begins.

The mother then needs to be fed regularly with flour and water and monitored closely. Spiros Drossos, co-owner and head chef of Chicago Pizza Kitchen in Vaughan, Ont., is creating a buzz among restaurantgoers for his unique sourdough crust used for his Chicago-style deep dish pies and thin crust pizzas. He says: “I feed it about once a week, with unbleached, untreated flour and unchlorinated water.” Once you have a thriving starter, you can incorporate portions into your pizza dough. Drossos’ dough has a specific process that has to be followed in order to achieve that tangy, chewy crust that his customers rave about. “I have to age the dough for at least a day and a half. Every dough ball that I use for a pizza is kept in its own environment, with a little bit of oil. It’s refrigerated and we rotate them, so the fresh dough goes in on the left and the older dough that’s

START MAKING PLANS NOW FOR

INTERNATIONAL

pizza expo

III March 1-3, 2011 III

International Pizza Expo® 2011 Las Vegas Convention Center

Registration is open: www.PizzaExpo.com or call 800-489-8324

If you’ve heard of International Pizza Expo® but never attended, then this is the year to see first-hand what the buzz is all about. If you’re one of our faithful attendees, wait until you see how we plan to top the incredible 2010 show! On a show floor the size of 4 1⁄2 football fields, you’ll find 1,000 booths represented by over 450 exhibiting companies — companies that have one thing in common — they’re all pizza and they’re all for you. Knowledge is a powerful business tool, and to help you stay ahead in this uncertain economy, we’re offering more than 80 business-boosting seminars, workshops, demonstrations and networking events (that’s 10 more than we’ve ever offered before!) Think you might make the best Traditional Pizza in the world? Or maybe you think your Non-Traditional Pizza is the best? Gotcha covered on both fronts. Our International Pizza Challenge™ offers the most prize money in the industry and is just the place for you to go head-to-head with other world-class pizza makers. Both contests will offer a $10,000 grand prize, plus the opportunity to add another five grand in our third annual Blind Box competition to determine who will be the 2011 “World Champion” Pizza Maker. Are you pretty good at tossing dough? Ever tried tossing dough blindfolded? How fast can you make a crust? Our World Pizza Games® are an unbelievable demonstration of all these skills and more. OK, so you’re excited and thinking about attending, THIS should get you to register TODAY— enter our MEGA BUCKS Giveaway™ and you could walk away with $20,000 in cold, hard cash! Pick up your phone or get that mouse moving and register TODAY for the hottest pizza show on the planet, International Pizza Expo 2011.

sponsored by

NOMINATE your

Are you giving bAck to your community or cAuses thAt mAtter to you? Are you an independent owner or franchisee? Nominate yourself for the Pizza with Purpose Award sponsored by Saputo. We are looking for fundraising activity, sponsorships, participation in community events and creative contributions. Think out-of-the-box. Contributions can be local or national in scope, or both. The winner won’t be determined solely by the amount of money raised but by a culmination of activity over the whole year. Everything you do counts. Your entry will be evaluated by a panel of industry experts. saputo will award $2,500 to the winning pizzeria.

2010 Winner Naheed Shariff

To nominate your business, please complete the application below. Track your efforts right up until April 1, 2011, and feel free to let us know how it’s going! Since everything you do this year counts, take until June 1, 2011, to submit your final application to us detailing your year of giving back. The winner will be announced in August 2011 and featured in the September/October 2011 issue of Canadian Pizza magazine. The final day to submit yourself as a candidate is April 1, 2011. NAmE(S) _______________________________________________________________________________________________________ COmPANY NAmE ________________________________________________________________________________________________ AddrESS _______________________________________________________________________________________________________ PhONE _________________________________________________________________________________________________________ E-mAil _________________________________________________________________________________________________________

Please provide us with a brief description (100 words) highlighting your charitable efforts. __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ __________________________________________________________________________________________________________ Submit this form to canadian Pizza magazine Pizza with Purpose Award mAiL Annex Publishing & Printing inc. PO Box 530, 105 donly dr. South, Simcoe, Ontario, N3Y 4N5 fAx 1-888-404-1129 e-mAiL laiken@annexweb.com

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ready to use comes out on the right, so it’s sourdough breads are broken down more a continuous clockwise rotation with the slowly in the digestive system, releasing dough. There’s a lot of science to this, ac- glucose more slowly into the bloodstream. This is of particular interest to those with tually,” he explains. You can also customize the flavour of diabetes. New research is also being done with a sourdough crust by extending the rest time before cooking. An extended rest sourdough and gluten-free grains. John time will create higher levels of lactic acid, Michaelides, director of Research & Techwhich breaks down the sugars in the flour, nology at Guelph Food Technology Cenresulting in a stronger sour taste. The taste tre, explains that “this is an opportunity is also controlled by the proportions of for people that suffer from celiac disease starter added to the dough. If you’re look- to eat sourdough bread. The bacteria that ing for a pronounced sour taste when the are present from those grains are slightly crust touches your palette, you should use different from the ones that you find in a higher ratio of sour starter to dough. If rye.” He adds that they are still in the you’re looking for a mild sour flavour, then research stage. With the continuing research and you lower the ratio, using less of the sour starter. Drossos describes his sourdough development for new sourdough applicacrust as “crispy on the bottom and softer tions, the future of this ancient art looks promising. There are a on top, just like bread that few important tips to recomes out of a wood burning oven and was baked on Bakers and chefs member when baking with sourdough. Always use a stone. The bottom of the alike travel the unbleached, unbromated bread where it was baked is slightly harder, it has world to find the flour, as it contains more micro-organisms, allowing slightly a bitter, sour taste perfect starter. for increased fermentation for the bottom of the crust and growth. Never use hot and it’s soft in the middle water when replenishing with lots of air holes. The the starter, as this will effecair holes are made by the tively kill the living culture. gas in the dough.” With the nurturing and dedication Always use cold, filtered water for best rethat goes into the mother and resulting sults. Do not let the dough get too warm. dough, it’s no wonder they are so dear to Drossos advises that sourdough is extheir owners. Bakers and chefs alike travel tremely sensitive to climate, so you should the world to find the perfect starter. They always be aware of your room temperature know that it could be used for generations, and be monitoring the temperature of the just as it has been in some of the oldest dough. One last tip to remember is to be bakeries in San Francisco. Drossos uses a consistent with feeding the starter. These tips will keep your sourdough 30-year-old starter that he sourced from a mother thriving, allowing you to craft a bakery in the San Francisco Bay area. Apart from the unique and unrivalled one-of-a-kind pizza crust that’s unique to taste, there is another reason for food- your pizzeria. “One of the most important things in ies to fall in love with this trendy crust. A study conducted by the University making a proper pizza is the crust, the of Guelph and published in the British bread,” says Drossos. “If the crust is not Journal of Nutrition has found there are good, then no matter what you put on health benefits as well. The study found that pizza, it’s not going to taste right. The that sourdough breads containing lactic crust is what complements everything else acid lowered glycaemia (the presence of that goes on top.” Having your own sourdough starter glucose in the blood) when compared to whole wheat bread. The overall glucose can be likened to having a relationship. response to sourdough bread was signifi- If you nurture your starter, giving it the cantly lower than both white and whole time and effort it deserves, you will be rewheat breads, meaning carbohydrates in warded with a pizza crust all your own. •

At the CRFA Show, don’t miss Chef Mark McEwan (North 44, Bymark, ONE, Fabbrica and McEwan)

DECEMBER 2010 pizza 19

making dough with Diane

Eight ideas for marketing healthy pies Tips to bust the myth that pizza is always bad for you

Diane Chiasson

he end of 2010 is fast approaching. People want to get a fresh start in the new year, and many make resolutions to do such things as start a diet, lose weight or eat more healthy foods. You can take advantage of this New Year’s trend by marketing your menu as a healthy choice for people trying to stick to their resolutions. Pizza is a comfort food that can also be nourishing. It’s important for you to be a source of education for your customers. Here are eight tips to get people think-

ing of pizza as healthy fare and not junk food. With a few clever marketing strategies, you can have people feasting on pizza as their go-to diet food!

tomato! Tomatoes also contain beta-carotene and vitamin C. Overall, tomatoes are a powerful food that provides many health benefits.

LyCOPENES Tomato sauce is chock full of lycopene, a nutrient that is found in tomatoes. Lycopenes have great antioxidant benefits and unlike many other nutrients, lycopene does not dissipate during the cooking process. In fact, pizza sauce has a more concentrated value of lycopene than a raw

ANTIOxIDANTS Garlic and onions both contain a variety of natural antioxidants that can help fight infections, diseases and illnesses, and heal the human body. Garlic is also widely believed to help prevent colds and flu. During the winter months, create an immune-building pizza with extra garlic and onions, and market it as a cold and flu busting pie.

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20 pizza DECEMBER 2010

COMPLEx CARBS Many people believe that in order to lose weight, they must eliminate all types of carbohydrates from their diets and subsist on a diet of protein, dairy, fruits and vegetables. This is a myth. In fact, many complex carbohydrates will help the body shed weight faster. Market your special whole-wheat crust as a complex carbohydrate, and print out POS materials that tell your customers the benefits of eating whole-grain products. RAW fOOD Raw vegetables – especially leafy green vegetables – are extremely rich in minerals, vitamins, trace elements, enzymes and natural sugars, and are good for your body. Create a pizza that is topped with a mixture of raw leafy greens like baby spinach, wild arugula or a mesclun mix. Sprinkle on a confetti of diced raw tomatoes, green, yellow and red peppers, and you have yourself one very nutritious and delicious pizza.

fAT-fREE CHEESE THE 300-CALORIE PIZZA Many people think of pizza as a fattening food, mainly because Work with a nutritionist to develop a pizza that has 300 calories of the cheese. But cheese is a great source of protein, calcium and or less. This offers customers who are counting calories somephosphorus. So, how can we sell our cheese pizza as a healthy thing delicious and filling that won’t exceed their calorie count food item? By cutting down the amount of cheese for the day. It also makes it much simpler and on the pizza and using different cheeses that have more convenient for your customers if you have instead of a lower fat content. Instead of using cheese as a already counted the calories for them. central ingredient, use it to accent your pizza. Try using cheese aged cheeses that are more flavourful, like extrafRESH INGREDIENTS as a central sharp cheddar, Gorgonzola, Parmesan or Asiago. Impress with the eyes. Use the freshest produce Low-fat cheeses are also widely available, like available to merchandise in your storefront winingredient, use part-skimmed mozzarella, farmer’s cheese, low-fat dow or countertop, and stress the abundance of it to accent your healthful items found in your pizza. If customers feta or fat-free ricotta. Goat cheese can also have a lower fat content and fewer calories than cheeses see that you are using lots of fresh vegetables, it pizza. made from cow’s milk. will make them feel good about eating it! Make the most of your customers’ commitment LOWER-fAT MEATS to a healthier lifestyle in the new year. Educate While pepperoni, sausage and bacon are perennial them about your more nutritious pizzas and focus favourite pizza toppings, offer your customers the choice of less on the health benefits your pies can deliver. • fatty meats like turkey bacon and pepperoni, chicken sausage or chicken breast. Create a delicious meat-lovers’ pizza featuring Diane Chiasson, FCSI, president of Chiasson Consultants Inc., has been helping foodsermore healthful and nutritious meats, and sell it as a meat lover’s vice, hospitality and retail operators increase sales for more than 25 years. She provides innovative food and retail merchandising programs, interior design, marketing and prowith half the fat pizza. motional campaigns, and much more. Contact her at 416-926-1338, toll-free at 1-888926-6655 or chiasson@chiassonconsultants.com, or visit www.chiassonconsultants.com.

DECEMBER 2010 pizza 21

feature

Pizza from Hell lands in Vancouver rOSIE LOMBArDI

A MEMORABLE MENU As befits the theme, the menu is based around the Seven Deadly Sins. But Hell Pizza actually offers healthy, high-quality and alternative fare: whole wheat and gluten-free crusts, minimal oils and saturated fats, and specialty meats and sauces. Menu selections include unique combinations such as Pandemonium, made with chicken, camembert and cranberry sauce; Limbo, with mushrooms, blue cheese, and caramelized onions; and the vegan Sinister, made with refried beans, avocado, peppers and jalapenos. “Some people look at our Grimm pizza and say ‘Whoa, I’m not sure about that’ – but when they try it, they love it,” says

22 pizza DECEMBER 2010

Photo Credit: Hell Pizza

ancouverites are enjoying wickedly good pizza that may soon be tempting new customers in other Canadian cities. Hell Pizza, a franchise launched in New Zealand 13 years ago, finally arrived on North American shores last December with the opening of its first outlet in Vancouver. The chain already has almost 70 outlets scattered across New Zealand, Australia, Britain and Ireland, not to mention a global cult following. Now Hell Pizza hopes its flagship North American store in Vancouver will be the springboard for future expansion across the continent. Hell Pizza plays with a variety of devilish themes in its marketing and decor, but it’s all good clean fun. The restaurants feature custom wallpaper, lava lights, gothic benches, and creepy chandeliers. Deliveries are made in coffin-shaped pizza boxes with the message, “For your remains,” and in New Zealand, the restaurants’ automated phone message says “Go to Hell.”

Hell Pizza, a New Zealand-based franchise, finally arrived on North American shores last December with the opening of its first outlet in vancouver.

Steve Willis, a transplanted Kiwi and the franchise rights owner for Canada. “It has chicken, which we roast in-store, cream cheese, pine nuts and special apricot sauce that we import from New Zealand.” Willis says he has his sights set on a second location in downtown Vancouver and possibly another in Calgary, but for now he is focused on growing the initial store. “We just started our expansion, and we’re working through product changes and getting a feel for the Canadian market. It’s been an interesting first nine months, as we had to deal with the new HST tax and the Olympics.” Despite the estimated 300,000 tourists they drew to Vancouver, the Games failed to bump up Hell Pizza’s business. Like many businesses in the city’s north end, the restaurant’s Lonsdale Avenue address placed it too far from the heart of Olympic action to make it a hot tourist spot. Despite these challenges, Willis says he has been seeing about 20 new customers each week as word spreads about Hell’s sinfully good pizza. He expects that number

will grow in the coming months. “We’re waiting for winter to really kick off growth, as that’s pizza time, and kids are back from summer holidays.” CULTURE SHOCk The menu at the Vancouver restaurant is mostly the same as what you’ll find at other Hell Pizza stores, although Willis did have to make a few minor changes to accommodate the Canadian palate. One such change was to add a basic cheese and pepperoni pie to the chain’s repertoire. At the time, nothing like this was offered on the chain’s menu, which emphasizes weird and wonderful combinations. “A lot of customers were asking for it, but we don’t really have that combination back home in New Zealand because it’s not popular,” Willis explains. “So we had a pepperoni specially made for us and added it to our menu.” There are also some differences in the combinations that are most popular in Canada as compared to those most popular in New Zealand, Willis says.

“In Canada, the top two are Mordor, made with smokey barbecue sauce, pepperoni, bacon, chicken, and green peppers, and Brimstone, which is Cajun chicken, avocado, salsa, sour cream and onions. But back home, it’s Lust, the meat-lovers’ option, and Pandemonium.” The key aspects of the brand are emphasis on the quality of the product and customer service levels that are much higher than other pizza franchises, he says. And, of course, the devilish ambiance. “It’s a lot more interesting to go to a shop that’s not like ordinary pizza joints… People are intrigued by Hell’s craft and service, not just the decor.” In New Zealand, the Hell franchise has got into trouble with Christian groups for its irreverent humour. Complaints were lodged with the national Advertising Standards Authority over use of the expression “Sell your soul” in Hell Pizza’s advertising, and over a campaign to promote its Lust pizza with branded condoms. Willis says negative reactions in Canada have been on a smaller scale. “An 80-year-old lady slapped me for being a ‘devil-worshiper,’ and a priest told me he loved our pizzas but hated our brand.” He says one of the key reasons Hell Pizza set up shop in Canada instead of the United States is its less polarized religious environment. “We’re testing the waters for North America. Some people may not understand that it’s just a marketing gimmick and

we don’t actually worship devils. We’re just having a bit of a laugh at the lighter side of life. It’s about not taking things too seriously and having good food.” According to Willis, the company is undaunted by complaints and is in fact planning to capitalize on them. “We quite enjoy complaints, and in New Zealand, they’re working to release a book of complaints so customers can have a read.” The parent company has also faced challenges on the technology front. In July this year, a hacker broke into its customer database and stole customer phone numbers, home addresses, pizza orders and passwords. But the data did not include credit card or payment information. To prevent future mishaps, the company is investing in upgrading its technology. “That old system doesn’t exist anymore, and I’m using a different system in Canada,” Willis explains. “New Zealand is doing a lot of development work with new features, but it’s not been released yet, so I can’t talk about it. Right now, we’re working on getting this new system to talk to ours.” He says there are definitely big opportunities in Canada for Hell’s offerings. “We’ve been getting inquiries from Saskatoon and Montreal. We even did a special courier to a couple in Quebec City. There’s definitely nothing like us in Canada – we’re probably the opposite of what a pizza franchise should be. Our brand is hard to copy. There’s only one Hell.” •

DECEMBER 2010 pizza 23

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24 pizza DECEMBER 2010

1210PZ

Turn customer retention into profit BY VIVIAN HAIrStON BLADE

or years, Jason has been an avid exerciser. Running and weight lifting frequent his routine. With such an active exercise regimen, energizing music is definitely required. A few years back, those clunky, skip-prone CD walkmans were the newest craze, but just didn’t cut it for exercise! Finally, the iPod Shuffle came along. “Wow! All my music on this little stick! This is great!” Jason thought. “But, hmmm…. I’d like more flexibility.” He knew he would upgrade to the newest iPod. Soon, it was time to replace his PC. “I was ‘pulling my hair out’ dealing with the viruses that had plagued our poor computer! My co-worker had been excitedly telling me all about his iMac. I had to check it out. What did I find? More features, free training, free support and better quality than I had expected. More value for my money than anything else I had compared.” Now, Jason owns not only one, but two Macs and an iPhone. Yes, Jason has become a loyal Apple fan. But, they’ve earned his loyalty! fOLLOW THE 5/75 RULE Research finds that a modest increase in customer retention can turn into big profits. Successful companies say a retention rate of five per cent can pay back as much as 75 per cent in profits over the life of the relationship. How does that work? Over time, loyal customers will continue to buy and even spend more across your product lines, just

like Jason. Meanwhile, the cost to serve and retain those loyal customers decreases. As a result, profits and overall customer lifetime value increase exponentially. How do companies achieve results like these? How do successful companies extend the customer lifetime value of their retention investments? Successful companies have a clear understanding of how they add VALUE to create strong, loyal customer relationships. TURNING RETENTION INTO PROfITS Understanding how to add real value to customer relationships begins with seeking meaningful customer insights, allowing you to set the right priorities that return significant payback. Value relates directly to what customers care most about. And, what customers care most about is directly related to what they need from you. For consumers, value often means providing products and services that “make my life easier.”Ultimately, your customers’ experiences will determine your ability to retain the relationship and grow lifetime profitability. Let’s look at a simple example. Are you a coffee lover? If so, you may frequent Starbucks or your favourite local coffee shop. Coffee lovers demand high quality flavour and freshness, a mouthwatering aroma, and want their coffee served piping hot. But, convenience, without sacrificing the quality of each cup of coffee, is also important. These are fundamental requirements for coffee lovers. What would make you pay a premium

price for a cup of coffee and return again 7. What are your significant value and again? First, Starbucks knows it must producing gaps? nail these fundamental requirements every Answers to these questions are funtime. But, Starbucks also knows they must damental to the future potential of your take these customer requirements a step company. These insights will reveal your further, giving you something more that VPOs. Use these insights to determine will keep you coming back. where to focus your resources for potenTo hook you, Starbucks has created a tially groundbreaking growth. powerfully unique multi-dimensional cusAs you identify your VPO gaps and focus tomer experience. You know that ‘this cup your improvement efforts, make sure you: of coffee was made for me just the way I • Prioritize your VPOs by picking like it”. And, you’re served in a friendly, two priorities to focus on. respectful and ‘glad you are • Select the right project here’ environment. Starteam and assign senior leadsuccessful bucks takes each Value Proers as champions. ducing Opportunity (VPO) • Establish project discompanies say and delivers them consisa retention rate cipline and accountability tently across each critical guidelines. of five per cent dimension. When focus is • Keep your eye on the on “customer first”, strong can pay back as target. Follow the 5/ 75 rule business results follow. and follow these simple remuch as 75 per minders to turn your retenStarbucks is the model of service and loyalty for not tion efforts into big profits. cent in profits only coffee shops, but for • Be a valuable resource. over the many other companies and Stay focused on what cusindustries worldwide. tomers need from you and life of the be relentless in exceeding relationship. WHAT ARE yOUR their expectations. vPOs? • Be easy to do business What can you do to add with. Don’t make custom“real value” and move cusers jump through hoops. tomers along the continuum from “en• Ensure your business processes gagement” to “satisfaction” to “loyalty”? are simple and high quality. Start with a seven point assessment to • Be timely. Don’t make customers help pinpoint your loyalty and Value Prowait. Prevent long lines. Be on time ducing Opportunities (VPOs). You probfor scheduled deliveries and service ably don’t have the answers readily availcalls. Schedule appointments at able. Assemble the right team of leaders to times convenient for customers. champion this self-assessment. Customer Your customers are your most valuable interviews and an honest self-examination assets. Your most efficient way to grow is will be key to your process. to keep the ones you have. Customers vote 1. How are satisfaction and loyalty with their feet…. they take their pocketdefined or characterized by your books where they get the greatest “value” customers? for their money. Make sure they continue 2. What does value mean to your to vote with you! • customers? 3. What are customers’ expectations Vivian Hairston Blade is president and CEO of Experts in Growth Leadership Consulting, LLC (EiGL). Her of you? professional certifications include GE Certified Lean Six 4. How does your actual perfor- Sigma Master Black Belt, Black Belt, and Green Belt, and mance compare to customer ex- Certified Net Promoter Associate. Through a combination of coaching and training, EiGL Consulting helps Fortune pectations? 1000 companies execute value-based strategies by build5. What are the factors that contribute ing high performance, high quality, and high service-level to your current performance levels? organizations. For more information, please visit www. 6. How do you compare to the compe- eiglconsulting.com or contact vivian.blade@eiglconsulting.com. For a copy of a VPO assessment, visit http:// tition in the eyes of your customers? eiglconsulting.com/?page_id=41.

At the CRFA Show, don’t miss Vikram Vij, Executive Chef at Vij’s in Vancouver

DECEMBER 2010 pizza 25

marketing insights

Michelle Brisebois

he pizza industry is so well known for its propensity to discount that some chains have literally made their names from the practice. As some companies kept offering deeper and deeper discounts (like 2-4-1 being upped by 3-4-1), others joined in the fray and consumers came to expect it as business as usual. Here’s the rub: Every time you discount your products, you’re paying for it out of your profits. It’s called “buying the business” and it can become quite addictive. It can also be quite dangerous. Bloomberg Business Week’s August 2009 article on food industry discounting highlights the importance of leveraging a price promotion to your advantage. The piece advises that discounting and low price promotions appeal to value seekers and are designed to bring customers through the door. The article warns: “In a recent Marketplace interview, psychology and business professor Kit Yarrow of Golden Gate University asserts that consumers have reached a point in which discount strategies are now so typical that they are no longer bringing in more customers. Worse yet, she says consumers are expecting the lowered prices to remain.” Herein lies the key to pricing as a promotional tool. It can’t simply reward consumers for what they would have done anyway. Instead, it should change their behaviour in some way that benefits your business.

Discounting other options

CUSTOMER DATA ACqUISITION View the discount given as an advertising expense. You could calculate how much each lead is worth to your business. If you ask customers to return the coupon to get the discount and then capture their postal codes when redeemed, you’ll know what geographic area you’re pulling from. You

26 pizza DECEMBER 2010

can also ask them to sign up for your enewsletter or Facebook page. You’ll then have instant access to a large opt-in database of confirmed buyers. Just make sure you cover operating costs and offer the best deal possible. DRIvE BUSINESS INTO SLOWER PERIODS If business is slower earlier in the week, a price reduction just for these days might encourage customers to order a pizza instead of cooking at home. One savvy pizzeria managed to shift some volume into an earlier day part by offering a descending discount that started at several dollars off for 4 p.m. sales and levelled off at regular price by 6 p.m.

MAkE THE CUSTOMER STICky Value pricing tends to appeal to bargain hunters who will choose whichever brand is on sale. In this instance you aren’t acquiring customers; you’re simply renting

them and eroding your margin in the process. Instead, try leveraging your pricing strategy to encourage repeat visits. With a loyalty program, you can reward customers for frequency of purchase. The first visit gets $1 off the pizza. The second visit gets $1.50 off (if the visit is made within a week or two of the first visit) and the third visit gets $2 off and a free order of fries. If a loyalty program gets customers to visit you more frequently, you may become part of their routine and gain a share of their wallets. ADD vALUE Customers want more than a deal. They want value. Nowhere is it written that you have to go bankrupt to give it to them. Many large chains have tweaked their menus to allow customers the flexibility to have a cost-effective meal. California Pizza Kitchen introduced its small cravings menu, with items in the $3 to $6 range. Qdoba expanded its kids’ meal offerings in the past year and the new Craft 2 menu

lets people pick two smaller items for the price of one entrée. Pizza Hut heavily advertised its simplified menu pricing, and the Cheesecake Factory in the U.S. added more small plate offerings to its lineup. Discounting your selling price may hurt your business more than you know. A 1992 McKinsey study of more than 2,400 companies illustrated the impact that various decisions have on your bottom line. A one per cent reduction in fixed costs improves profitability by 2.3 per cent, a one per cent increase in volume will result in a 3.3 per cent increase in profit, and a one per cent reduction in variable costs will prompt a 7.8 per cent rise in profit, but a one per cent hike in pricing can boost profitability by 11 per cent. In the book Value-Added Selling, Tom Reilly states that one in six customers are motivated solely by price. On the other end of the spectrum, one in six shoppers are motivated by value-added features. For the remaining two-thirds of customers, price is an issue but not the issue. Therefore, 83 per cent of consumers are open to a value-added offer in place of a straight discount. Promotional pricing is just one club in your golf bag. If you want to win the game, be sure to use the whole set. • Michelle Brisebois is a marketing professional with experience in the food, pharmaceutical, financial services and wine industries. She specializes in retail brand strategies.

HigHer prices and Happy customers Continued from page 13 the best conclusions as to where price or product changes should occur. Joe LeRoux, proprietor of Amadio’s Pizza in Mississauga, Ont., recently raised the price of all his pizzas by $1, saying he received few complaints and most customers were unsurprised. LeRoux pointed to minimum wage increases as a driver, explaining that “pizza is very labour intensive to do it right.” Customers are also becoming increasingly aware of the cost of cheese. It’s visible to them in the grocery store and in the media. The Canadian Restaurant and Foodservice Association (CRFA) has made great efforts to shed light on the disparity between cheese prices for fresh and frozen pizza makers and the issue gets play in articles such as a recent Financial Post story titled “Dairy farmers still milking all of us” by George Fleischmann and Joe D’Cruz, faculty members at the Rotman School of Management of the University of Toronto. If you do raise your prices be prepared with a good reason, should customers ask, and time the increase carefully. Increasing prices is just one part of overall menu strategy, most smoothly done one “nickel” at a time. •

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Burke Meats ........................................................................IBC Canadian Restaurant and Foodservices Association......19, 25 Crown Custom Metal Spinning Inc. .......................................15 Dutchess Bakers Machinery..................................................20 JL International ......................................................................27 Middleby-Marshall .................................................................11 Pizza Today ...........................................................................17 Ricco Foods ..........................................................................21 Salerno Foods .......................................................................27 Saputo ...........................................................................7, OBC Springer’s Meats ...................................................................21 Stanislaus Food Products ................................................ 4 & 5 Thunderbird Machinery .........................................................23 VIAU Foods .........................................................................IFC Use these advertiser contact numbers to find out more about a product advertised in this issue or to place an order. This index is provided as a service. Canadian Pizza Magazine is not liable for errors or omissions.

28 pizza DECEMBER 2010

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DECEMBER 2010 pizza 29

pizza on fire

The state of sodium Tom Stankiewicz think it’s pretty safe to say that we all know people who have to watch their consumption of sodium. The sad fact is, for many people it isn’t a choice but a necessity for health reasons. No matter how hard you try, you can’t escape this topic. It’s mentioned often in newspapers or television. When you read all of the information out there, there is only one conclusion: we consume too much sodium and it’s not good for us. On Sept. 1, 2011, the new School Food and Beverage Policy created by the Ministry of Education in Ontario will come into effect. If your province doesn’t have a similar policy yet, chances are it will. The goal of this policy is to ensure that schools have the necessary tools to create a healthier learning environment for kids. The food and beverages that will be allowed for sale at schools have been divided into three categories: sell most, sell less, and not permitted for sale. Based on these new guidelines, products in the first category must make up at least 80 per cent of food available for sale. As pizza happens to be a very popular choice at schools, it definitely made its way to the main chart of the document. There are three sections that apply to our industry, specifically in relation to sodium: pizza sauce must have less than 480 milligrams of sodium, pizza dough less than 240 milligrams, and the entire pizza less than 960 milligrams. If you need more details, please visit www. edu.gov.on.ca/eng/healthyschools/. You can see why it is very important for us as independent pizza owners to understand how this change will affect our businesses. If we decide to stick to our old ways and not move with the change, it could have a huge financial impact for us. For those of us who depend on school contracts to generate more sales, this

30 pizza DECEMBER 2010

means it’s time to put your creative hat are becoming more conscious about back on. Start by adjusting your existing their health. pizza recipes and see if the difference in You can’t eliminate salt totally but it’s taste is minimal. It might not be a bad idea possible to look at other available spices to prepare one of your existing pizza reci- and try using them instead. We make our pes based on the new food guidelines and own roasted red pepper and roasted porask customers to taste it. From my experi- tobello mushrooms, which are part of our ence, this generates the most honest feed- gourmet toppings. For the longest time, back. If customers say they like it, then we sprinkled them with salt before putyou don’t have too much to ting them in the oven. I exworry about. If they say that perimented a bit with this it needs improvement, then simple recipe, substituting you need to make some i experimented fresh ground pepper for changes. It could be as simsalt. It totally eliminated a bit with this ple as adding one new topsalt on those two gourmet ping to improve the pizza items but the awesome simple recipe, taste. Most importantly, the taste is still there. This is substituting new rules for sodium limits what you can control yourtranslate into healthier and self. On the other hand, fresh ground more nutritious food for supplies such as pepperoni, pepper for salt. canned tomato sauce and our kids. In the next few years olives will require a differpeople will simply expect ent approach. I know that all pizzerias to comply with I will be asking my supplisome sort of healthy food ers for a list of items that I guidelines. I see it as our chance to show order each week and comparing products everyone that pizza doesn’t have to be un- with lower sodium levels. For my existing healthy, and can even come to be seen as suppliers this might mean they will have a healthy dish. to re-evaluate what they have available for When I heard about the new sodium order. For us, this could increase the cost rules I started to investigate them in more of our supplies, as we won’t be selecting detail. It seems likely that over the next the cheapest product on the list but rather few years most, if not all, businesses that one that meets our strict criteria for soproduce food that’s ready to eat will have dium content. to disclose the sodium content in their In summary, whether we like it or not, products. In my opinion, that is good, big changes are coming our way. I believe because I believe people should know we need to embrace them and keep imwhat they are eating. For our indepen- proving our pizzas, not simply because our dent pizza businesses this would mean customers will expect it, but because it will hiring someone who could evaluate and mean healthier choices for everyone. • calculate the nutritional value of our pizzas. Even if this doesn’t become manda- Tom Stankiewicz has been in the pizza business for more than 15 years. He has been the proprietor of Bondi’s tory, I can see a lot of customers asking Pizza in London, Ont., since 2000 and is president of the for this information because a lot of people Canadian Pizza Team.

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