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Volume 15 Issue 1 January/February 2009
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10 THE 80/20 RULE=RECIPE FOR $$$ The 80/20 principle is a business rule of thumb that prioritizes your time and money on the aspects of your business that are really earning you the dough. 14
14 NEW IN TOWN? For pizzeria owners new to their communities, following a few simple steps in order to become part of local networks will reap rewards in the short term and for years to come.
18 SETTING UP SHOP
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IN A HOTEL Operating a pizzeria in a hotel can be a winning combination. Read part 1 on the upsides of setting up shop in a hotel and look for the downsides in part 2 in March.
20 BITONDO’S SUCCESS IN SIMPLICITY Bitondo’s has become a local institution by keeping things simple and always served with a personal touch. 24
DEPARTMENTS 4
editor’s desk
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pizza bites
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canadian pizza online
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the pizza chef
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making dough
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marketing insights
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pizza on fire
www.canadianpizzamag.com JANUARY/FEBRUARY 2009 pizza 3
from the editor’s desk January/February 2009, Vol. 15, No. 1
To cheese, or not to cheese rom its unscheduled two per cent increase in September to its second hike of one per cent in 2009, cheese has been on a one-way ticket to the land of luxury goods. At this pace, pizzerias may as well top their pies with Beluga caviar, add a side of foie gras dipping sauce, and serve them in half-a-bite size portions to the sliver-sized elite market. Except pizza is, if nothing else, a food of the masses. Columnist Diana Coutu’s remarks in this edition of Canadian Pizza warn the dairy industry that dairy substitutes are being and will continue to be sought. This is an unfortunate juxtaposition to columnist Diane Chiasson’s research that shows consumers are looking for more locally produced organic goods. It seems the buyers are ripe for artisanal homegrown cheese, and the makers are colluding to keep them overpaying for mass-produced mozzarella. To salt the wound, the Canadian Dairy Commission has favoured the frozen pie-maker and targeted the fresh pizzeria in its increases. This is beyond business sense when the restaurateur represents 75 per cent of the dairy buying power in Canada, as noted by Coutu. I’m sure restaurant owners don’t want to shrink their profit margins, let alone sell a product at a deficit. The CDC likely has the same agenda, and Randy Williamson, chairman, justified its recent decision in a news release: “Our data shows that Canadian dairy producers’ revenues are lagging behind the increases that we saw in the cost of feed, fuel and fertilizers for most of 2008.” However, faltering economic conditions make a persuasive argument that pizza should fare well for the Canadian palate
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in 2009, being an economical and highly integrated aspect of the Canadian diet. Shouldn’t the CDC view it as the perfect time to work with pizzerias to increase consumption across the country? A CDC news release says the price increase should mean a one per cent increase in revenue for dairy farmers, but is that figure based on a similar consumption rate in 2009 as 2008? It will be tough to maintain those levels if pizzerias find a substitute that sells. Kraft, Parmalat and Saputo are up in arms over a new regulation that forces them to use more full-fat milk and fewer milk solids. While the federal regulation would increase revenue for dairy farmers, the companies say the gains would be shortsighted as the higher price transferred to consumers would discourage consumption. That regulation is scheduled to take effect Dec. 14. During the peak of the gas crisis, economists pointed out that consumers will adjust their spending for the long haul when they know an increase is permanent. This ideology suggests it is better to get consumers used to a new high price and adjust their budgets, rather than have them hold off spending in a sale mentality where they are waiting week to week for the price to drop before they consume. If overpaying for cheese is here to stay, then consumers will adjust their spending and buy, but buy less. Dairy is so widely consumed, that if the CDC were to obey the laws of a capital market where supply and demand – not producers – dictate the stable price, the power would be in the hands of the buyers and pizzeria operators would likely get their rollback. One can only wonder if a cartel mentality will survive with a product as widely consumed as cheese is…for now.
Editor Laura Aiken laiken@annexweb.com 416-522-1595 National Advertising Manager Christine Livingstone clivingstone@annexweb.com 888-599-2228 ext. 239 Sales Assistant Laura Price lprice@annexweb.com 888-599-2228 ext. 219 Production Artist Emily Sun Editorial Director Drew McCarthy dmccarthy@annexweb.com VP/Group Publisher Diane Kleer dkleer@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 Periodicals postage paid at Buffalo, NY. USPS 014-059, ISSN 1203-6838. Published eight times per year (Jan/Feb, Mar, Apr/May, Jun, Jul/Aug, Sept/Oct, Nov, Dec), by Annex Publishing & Printing Inc. U.S. Office of publication c/o DDM Direct.com, 1223 William St., Buffalo, NY 14240. U.S. Postmaster send address change to P.O. Box 1042, Niagara Falls, NY 14304 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 $ 19.26 (includes GST - #867172652RT0001) USA – 1 Year $ 40.00 From time to time, we at Canadian Pizza Magazine make our subscription list available to reputable companies and organizations whose products and services we believe may be of interest to you. If you do not want your name to be made available, 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. ©2009 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
pizzabites mama rosa Hello everyone! Mama Rosa here. What a smart bunch of pizzaiolos we have in Canada! I sure hope you are staying cool in those steaming hot kitchens. So, I hope you’re ready for this month’s trivia contest question. Remember, it’s easy – I’ll ask the question and you find the answer somewhere in this month’s issue of Canadian Pizza magazine. Then fax, mail or e-mail your answer to me. If I pick your name from the answer bag, you win!
Canadians will keep overpaying for dairy in 2009 C
onsumers and restaurant owners will continue to be grossly overcharged for Canadian dairy products in 2009, says the Canadian Restaurant and Foodservices Association in a news release. The Canadian Dairy Commission will increase the price of industrial milk on Feb. 1. Industrial milk is used to make products such as cheese, yogurt and ice cream. “Dairy is pricing itself off the menu of Canadian restaurants,” says Ron Reaman, vice-president, federal for the CRFA. “Today’s decision sends a clear message to restaurant owners that the dairy industry This monthʼs trivia question: is not interested in working with us to Are you ready? grow demand for their products. What are three 80/20 This month’s trivia “Given the unjustified, year-over-year questions you can ask question is: What increases in the price of industrial milk, yourself today? are three 80/20 as well as the bleak economic outlook, we questions you can ask expected a price decrease. We want to work yourself today? with the dairy industry, but today’s decision Deadline is February 13, 2009 e-mail: pizza@annexweb.com Fax: 519-429-3094, Attn: Mama Rosa Mail: Mama Rosa, Canadian Pizza Magazine, P.O Box 530 105 Donly Drive South Simcoe, ON N3Y 4N5
did you know?
The social networking site Facebook has over 500 groups related to pizza.
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leaves restaurant owners with little choice but to further rationalize their use of cheese and other dairy products.” The latest numbers from the CDC show that the cost to produce industrial milk fell by 2.3 per cent in 2007, but the price went up by 1.06 per cent last February and by another 2 per cent in September. Consumers continue to be overcharged. The price will go up by another 1 per cent next year. To make matters worse, new regulations around compositional standards for cheese that take effect Dec. 14 will further drive up prices and force consumers and restaurant operators to seek out dairy alternatives. In the last 14 years, the price of industrial milk has skyrocketed 57 per cent, or nearly twice the rate of inflation, while the cost to produce the milk has risen by a mere 6 per cent.
Panago introduces personal warming bags or a limited time, Panago will offer its customers a reusable bag to keep their pizzas hot on their route home. The reusable thermal bag, which customers can use to keep a wide range of foods warm, is available at Panago from Dec. 1, 2008, to March 1, 2009, for $2. The uniquely designed bag is exclusive to Panago. “As people become increasingly stretched for time, it is evident they are turning to better quality takeout options for their families,” says Alex Green, VP Marketing. “The insulated pick-up bag is
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a reusable tool that will allow our pick-up customers the opportunity to maintain the fresh, high quality of Panago products from our ovens to their tables during the commute home,” he states. Pick-up orders represent a large portion of business for Panago. Locations such as the downtown Toronto store have 45 per cent of customers opting to pick up their orders. “With high gas prices affecting delivery charges across the board, the pick-up segment is becoming an increasingly important part of our business,” finishes Green.
Toronto bans bottled water!
Domino’s teams up with Taleo online recruiting
oronto City Council voted yesterday to ban the sale and provision of bottled water in city facilities and ensure access to public tap water in all city facilities. Toronto is now the largest municipality in the world to ban bottled water. “Toronto’s decision to ban the bottle and turn on the tap sends a clear message that bottled water’s 15 minutes are up, the marketing scam is out of the closet, and it’s time to go back to the tap,” says Joe Cressy, Campaigns Coordinator for the Polaris Institute.
omino’s Pizza has selected Taleo Recruiting as the single sourcing, hiring and onboarding solution for all of its corporate-owned stores and across more than 5,000 of its franchise-owned stores. The corporation selected Taleo for its online recruiting solution to allow Domino’s to more quickly and cost-effectively attract, assess, hire and onboard the majority of its hourly based employees worldwide. “We recently embarked on a progressive initiative to completely reorganize our hourly workforce recruiting strategy around the Internet and were looking for an advanced recruiting solution to form the foundation,” said Joseph Abraham, vice-president of compensation, benefits and shared services for Domino’s Pizza. “Recruiting for hourly workers requires unique knowledge, processes and practices which Taleo has acquired over the years. Taleo was best equipped to be our guide and partner during this transition and beyond.” “Companies that employ hourly workers face a unique set of challenges, including turnover that can be four times higher than salaried workers,” said Mike Gregoire, president and CEO of Taleo. “Given that the ‘Helped Wanted’ sign is almost always on the door, we’ve put in place best practices to ensure that the application, hiring and onboarding process happens very quickly but in a way that engages the candidate with the company throughout the process.”
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SoMo 650 mobilizes staff, maximizes service quality and guest experience ocket Mobile, Inc., provider of mobile productivity solutions, formed a partnership with Amadeus, a technology and distribution solutions company, to pair the Socket Mobile SoMo 650 handheld computer with its mobile Point of Sale (POS) system for restaurants to create an expandable solution to help wait staff take and process guest orders more quickly and efficiently. The SoMo 650 handheld computer with 128 MB of storage and 624 MHz of processing speed combines with the Amadeus Restaurant Management System software and stationary POS system. With the mobile solution, a waiter can place the entire order directly from the table, and with one click wirelessly transmit it to the stationary POS system, making the order immediately accessible for the kitchen staff. Amadeus also employs the InfoGenesis software from Agilysys in the POS solution. The software displays the information on the stationary terminal, where the staff can close orders and manage the payment. Peripherals for the SoMo 650, including bar code scanners and RFID or magnetic card swipe readers, expand the device’s flexibility for applications within the hospitality sector. This allows companies to grow with the mobile solution, instead of finding a new device for each application. The solution is also Wi-Fi enabled and comes with software allowing easy WLAN installation. “In a challenging economic environment, it is more important than ever for the hospitality industry to offer compelling services in order to maintain and grow the customer base on a long-term basis,” said Bob Zink, senior vice-president of worldwide sales and marketing for Socket Mobile. “The SoMo 650 is an affordable, durable solution and its flexibility allows restaurants and hotels to expand the solution for other areas without switching to a new device and software. Bundled with our warranty program, it is a solution that lasts for years, assuring a high return on investment.”
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Artisan spirits, culinary cocktails and organic wine among hot menu trends for 2009 lcohol is an important part of the culinary arts and experience, and new research from the National Restaurant Association in the U.S. reveals which alcohol trends will be the hottest on restaurant menus in 2009. A survey of more than 1,600 American Culinary Federation members ranks micro-distilled/artisan liquor, culinary cocktails and organic wine in the top 20 culinary trends. Also high on the list of trends for the coming year are food-alcohol pairings, craft beer, specialty beer, organic cocktails, muddled cocktails and wine or beer flights. “As Americans are growing more and more interested in the culinary arts and the ‘foodie’ movement, that interest and sophistication is also extending to alcohol and cocktails,” says Dawn Sweeney, president and CEO of the association. “According to our chef survey, mixologists will be taking on leading roles in the coming year and, much like chefs in the kitchen, showcase their creativity behind the bar. In addition, chefs will continue to highlight various types of alcohol in their recipes and to complement their culinary creations through pairings and samplers.” The culinary cocktail is an emerging concept that will become more visible on restaurant menus in 2009, with professional bartenders approaching drink-making as a chef does a food recipe. These cocktails, which are often signature drinks, are made using a wider variety of ingredients and more precise techniques than simpler concoctions. They often contain savory ingredients and items previously only used in kitchens, and tailor flavors to complement specific food items or dishes. The chefs surveyed were also asked what the hottest beverage alcohol trend in restaurants will be in 2009. Thirty-three percent said mixologists and signature cocktails will be the number-one trend. Twenty-six per cent believe functional cocktails will be the most popular (cocktails created with health and nutrition aspects in mind, by using, for example, super fruits). Another 23 per cent said food-alcohol pairings will rule the alcohol scene next year.
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NDP Group says majority of Canadians will dine out less ccording to the latest Eating Patterns In Canada (EPIC) report from The NPD Group, 88 per cent of respondents revealed their intentions to decrease the amount of time spent dining out in restaurants. A majority of Canadians (59 per cent) are also more conscious about the nutritional value of what is eaten than they were three years ago with a full 67 per cent of respondents noting that nutrition is an important attribute in the preparation of their evening meal. “There has been a hard shift back to traditional dining and in this respect, home and hearth are the natural choices for today’s consumer,” says Marion Chan, The NPD Group. “Although the main motivation behind this trend is nutrition and health and wellness, we can anticipate the weakening economy to accelerate the shift back to the family dinner table.” Given consumers are now closely scrutinizing the nutritional values of their grocery items, certain products have become the items of choice for the discerning buyer. Whole grain, trans-fatfree and low-fat items led the charge in terms of products that were eaten by Canadian consumers on a weekly basis with a growing trend towards organic products continuing into 2009. Further, the continued efforts toward healthy eating are directly related to the decline of certain products being eaten by consumers. On this list include, carbonated soft drinks, pork chops and hot dogs, all of which fell in favour since 2006. On the heels of the health-related eating patterns revealed in the study, baby boomers were found to be the demographic that drove change in the food arenas the most. With this demographic retiring later, with more disposable income and a renewed focus on health, this group will continue to forge the trend towards healthier eating. “Clearly, Canadians’ food choices are shifting and will continue to change as consumers become more educated about nutrition, health and well-being. As well, the economy will play a large role in defining how the family dollar is spent when it comes to food. Both those in the food service industry as well as manufacturers can take heed of these results in order to make the best decisions for their respective businesses moving forward,” says Chan.
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CRFA applauds changes to minimum age oday’s announcement that Saskatchewan will modify the minimum working age for the foodservice sector comes as welcome news to the province’s 2,100 restaurant owners. Until now, employees under the age of 16 have been permitted to work in retail establishments, but not in restaurants, hotels, educational institutions, hospitals or nursing homes. Under the new regulation, 15-year-olds will be permitted to work a maximum
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of 16 hours per week in any of these sectors. The minimum working age in all other sectors will remain at 14. “The decision announced today by Minister Norris is an important first step towards a level playing field for all employers,” says Courtney Donovan, the CRFA’s vice president for ManitobaSaskatchewan. More than 32,000 people work in Saskatchewan’s foodservice industry, and 51 per cent are under the age of 25.
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The 80/20 Rule =Recipe for $$$ BY LAURA AIKEN
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f time is money, then the best investments are in a carefully spent clock. The 80/20 principle is a business rule of thumb that prioritizes your time and money on the aspects of your business that are really earning you the dough. The 80/20 concept means 80 per cent of your sales/activity/problems are coming from 20 per cent of your customers/employees/efforts/defects. This means that cause and effect are not in a 50/50 relationship, but skewed so that a minority of something always produces the majority of something else. Generally, people spend the bulk of their time doing things that are the smallest contributors to their bottom line. Observations of a very imbalanced distribution in the world have existed for more than a century. Richard Koch outlines its early history in his book The 80/20 Principle: The Secret to Success by Achieving More with Less. In 1897, Italian economist Vilfredo Pareto noted that 80 per cent of the income in Italy went to 20 per cent of the population. Pareto took this observation, applied it to data in other countries and concluded that this imbalance was predictable across the board. Two pioneers took Pareto’s thoughts to the next level, dubbing it the Pareto Principle. In 1949, Harvard professor George K. Zipf discovered The Principle of Least Effort that showed resources tend to arrange themselves to minimize work so that 20 to 30 per cent of any resource accounted for 70 to 80 per cent of the activity resulting from that resource. In 1951, Joseph Juran, the guru behind the quality revolution of 1950-60, used the 80/20 disparity in conjunction with other statistical methods to assert that the majority of product
Pizza Pizza carries an enormous amount of choice on its menu. What works for Pizza Pizza may not work for you. Use the 80/20 rule to help determine what the right number of items is for your menu.
defects come from a minority of causes. In 1992, the UN Development Program reported that the richest 20 per cent of the world controlled 82.7 per cent of the income; showing little has changed since Pareto’s earliest observations. There are innumerable societal and corporate examples of the 80/20 principle at work, but what is most important is how it has practical applications for your business. GETTING DOWN TO BUSINESS David Simpson, a professor at the Richard Ivey School of Business at the University of Western and executive director of their Business Families Centre, says it is easy for many small business entrepreneurs to get sidetracked from the fundamentals of their business. The 80/20 rule can help them focus on what’s really important in
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the long run and day to day. “With small businesses, typically they got into it because they have a passion… a person likes to make cakes, someone suggests they should open a bakery, so the person has an entrepreneurial seizure and opens a business because they like baking when business is about debits and credits and a marketing plan.” Simpson warns there is always something going on to take your eye off the ball of the 20 per cent of activities you really need to be focusing on because you will be drawn to making time for the things you like to do best. Typically, small businesses owners like to go on tangents with trying new things they find exciting, but this can be costly. Instead, businesses should focus their time and investment on their key customers and products.
WHO ARE THE 20 PER CENT OF YOUR CUSTOMERS GIVING YOU 80 PER CENT OF YOUR SALES? Surveying isn’t just for big companies, says Simpson. Small businesses can reap huge benefits from mining customer data. Find out if your customers are coming in for lunch from an office, a school or the other side of town and you’ll learn who your key group is. “Let’s hug those 20 per cent of people and find out everything about them,” he says. Simpson suggests tracking your customers’ answers for six months and refocusing your business plan to the core group supporting the majority of your sales. A city-wide advertising campaign is pointless if the bulk of your bodies are coming from the local school. In that scenario, sponsoring their volleyball team, for example, would reap huge rewards in the Facebook marketing the youths will do for you. “When you take a look every six months, you’re also asking yourself if you’ve defined the customer base that is giving you a good return and watching what is happening to that customer base. Know that group; read the articles that affect that group,” says Simpson. “What if your core is a loyal group of Ford employees that all got laid off? Renew, re-energize, expand and revise on a conservative basis. Don’t kill the golden goose. Every six months see what the next six months will look like and if that same group can still sustain your business.” WHICH 20 PER CENT OF YOUR PRODUCTS ARE PRODUCING 80 PER CENT OF YOUR REVENUES? If you have just opened your business, it may be difficult to forecast which minority of your menu is going to be the nuts and bolts of your profits. “You should be religious about pruning the tree in the first few months,” says Simpson. “You might have a broad menu because you want to cater to a fair amount of clients, but the market will tell you what you need to be doing. You need to track day to day all those sales, and then find the 20 per cent of your products that is producing most of your
results. Strategically you may need a few other things to broaden your range, but take the time, even as a small business, to track that. You need to quantify – don’t keep going on a hunch.” Simplifying your menu so that the majority of your time and expense is funnelled into your signature item(s) is an important step to applying the 80/20 rule to run your business more profitably because you are going to eliminate the overhead of products that do not produce a return on your time or dime. Koch wrote that “the road to hell is paved with the pursuit of volume. Volume leads to marginal products, marginal customers, and greatly increased managerial complexity. Since complexity is both interesting and rewarding to managers, it is often tolerated or encouraged until it can no longer be afforded.” DISSENT The 80/20 rule is an important tool for prioritizing your business activities, but it is not without criticism. Carmine Coyote, founder of the Slow Leadership organization in the U.S. and a former CEO, published a blog titled “How Useful is the Pareto Principle?” that questions the practicality of identifying your 20 per cent and how often that 20 per cent will change. Coyote argues the 80/20 rule is only applicable after events have passed and warns against thinking your business may be so simplistic. As Simpson advised, take six months to track both your customers and your business activities to
distill the 20 per cent and review your conclusions in another six months. Another idea to weigh is the belief that without quantity we cannot determine what quality is, and in the same vein, what is useful is defined by what is not useful. In other words, we need a certain amount of useless business to know what is useful. The 80/20 answer would be that once the least useful has been determined, dedicate fewer resources to it. While 80/20 is the number split coined in the rule, it’s not an exact figure nor is there significance in the fact that the percentages equal 100. The data could just as well be 75/15 or 90/20. Don’t get bogged down in the math when the point is to keep in mind is that the majority of your revenue is coming from a very small number of your business activities. Likewise, the rule would be misapplied if you thought you had to completely eliminate the 80 per cent of time and money spent in your least profitable pursuits. Some of these activities, like possibly answering the phone, are required. The point is to be aware of when you are in an 80 per cent activity and spend as little time as possible doing it. If meetings are of little value to your company, make them shorter and have fewer of them. “Business is about managing that niche customer base and getting rid of the dead weight,” says Simpson. The 80/20 principle can maximize your business by cutting down on wasted spending and even worse, wasted time. •
Seven 80/20 questions to ask yourself today 1. Is 20 per cent of my wine or beverage menu giving me 80 per cent of my sales? Determine whether you are carrying the right number of labels or if there is expensive stock not selling that can be removed from the menu. 2. Is a small amount of my staff receiving a large proportion of the wages? If so, are they producing a corresponding value? 3. Are 20 per cent of my staff causing 80 per cent of the staff problems? 4. How am I rewarding my 20 per cent of core customers (gifts, discounts, newsletters, etc.)? 5. Which are the best and worst selling items on my menu? What is the cost of carrying the worst? 6. 80 per cent of my food costs are coming from a small number of items. Are these items critical to the 20 per cent of menu items driving 80 per cent of the profits? 7. Are 80 per cent of service delays coming from 20 per cent of the possible causes?
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NEWS HIGHLIGHTS •
PIZZA PIZZA TOPS $100 000 FOR SICK KIDS IN 2008
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PIZZA MAKERS CHEESED OFF
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FOOD ROOTS PROGRAM MAKES NORTH AMERICAN DEBUT IN TORONTO
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SAPUTO INC. COMPLETES ACQUISITION OF NEILSON DAIRY
READ THESE STORIES AND MORE AT WWW.CANADIANPIZZAMAG.COM
WEB EXCLUSIVES DON’T WAIT UNTIL IT’S TOO LATE! 10 THINGS YOU MUST DO NOW Customers have stopped buying, companies are closing, layoffs are common, banks have stopped lending, consumer confidence is falling, and the list goes on, writes best-selling author and professional speaker George Hedley. As a business owner, manager or leader, your choice is simple. Do what you know you need to do and do it fast, or die a slow death. Most people are afraid to make tough decisions, try new ideas, or do business differently. So they continue to hope their outdated business strategies will keep working as they tread water or sink slowly and wait for something good to happen. Running your company the same way you always have will result in failure. What difficult choices do you need to make right now to grow your business and make a profit? Read Hedley’s 10-step prescription for raising your profits against the odds. For full details, go to www.canadianpizzamag.com
TOP 5 SUPPLY CHAIN MANAGEMENT PRIORITIES FOR 2009 ArrowStream, a provider of supply chain solutions for the foodservice industry, has polled its customers to name the top five priorities in foodservice supply chain management for 2009. They include driving store traffic, enhancing menu selection and building customer satisfaction. These correlate to the economic concerns of casual dining and quick service restaurants that was revealed in ArrowStream’s Market Outlook Survey for the second half of 2008. The continuous rise of commodity costs topped the list of margin pressure concerns among chain operators. The ability to achieve these five priorities and drive revenue can only be achieved by an integrated and synchronized supply chain that delivers optimal communication between trading partners. For full details, go to www.canadianpizzamag.com
READ THESE STORIES AND MORE AT WWW.CANADIANPIZZAMAG.COM
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NEW PRODUCTS For a limited time, Panago is offering customers a reusable bag to keep their pizzas hot on the way home. BOOKSTORE Being equipped with the latest inside pizza-industry information allows you to not only compete, but win in the exciting world of pizza. Go to www.annexbookstore.com to order. DIGITAL MAGAZINE Visit www.canadianpizzamag.com to sign up for a free trial of Canadian Pizza magazine – the digital version. POLL Participate in our monthly polls. How do you use social networking sites (Facebook, MySpace, etc.)? Visit our website to vote on this month’s question. BLOG Have your say on a variety of subjects pertaining to the fresh pizza market in Canada: • price points • recruiting • customer service
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New in town? BY TREENA HEIN
or pizzeria owners new to their communities, following a few simple steps in order to become part of local networks will reap rewards in the short term and for years to come. “Networking gives business owners who just moved to town an opportunity to make contact with individuals in the network to establish clients on an ongoing basis,” says Michael Hughes, also known as The Networking Guru. Hughes is the owner of the Ottawa-based consulting firm Networking for Results
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(www.networkingforresults.com).The first thing to find out in your new geographic area is what networks already exist. “There are several different types of networks,” he says. “There are business and professional networks, such as tourism associations, Chambers of Commerce, BNI [Business Networking International], BIAs [business improvement associations] and economic development groups. There are also community networks such as school associations, service clubs [Kinettes, Rotary, Lions], charities and community centre committees.” Social
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networks include sports leagues and associations, playgroups, seniors’ clubs and church groups. Once you have a list of networks, Hughes advises to pick the critical ones. “These are the ones that will provide the best ongoing return.” Secondly, he says, “Leverage them to maximize the network’s benefit to your business. Find out the big annual and community events that networks are involved with. For example, if it’s a big hockey community, there are definitely community centre associations and hockey clubs.”
The next step is to brainstorm what Chambers also hold a large number communication methods would work of networking opportunities every year. best to make contact with members of the For example, the 40 events held by the network through one of the organization’s Ottawa Chamber include an annual leaders. “For example, you might contact business awards ceremony, a Christmas the organizer of a sports league by phone charity event hosted in conjunction with and then have a meeting in order to get other organizations, and their monthly coupons out to each team,” Hughes says. Eggs N’ Icons speaker-breakfasts. Bob Rae Research the communication vehicles and Mark Cohon, commissioner of the local networks use (newsletters, e-mail Canadian Football League, are a couple blasts, regular meetings) to educate the examples of recent speakers. market about your new pizza location or Beyond the networking benefits of promote a special offer. attending these events, Actively participating you can also sponsor in one or more networks them and raise your “Networking is also an effective way to community profile. “The secure ongoing business. Chamber is cited as the gives business “If people see you taking most credible business owners who just source in our city,” states initiative, in a committee or leadership position, the Ottawa Chamber of moved to town they will trust you with Commerce website, “and an opportunity their business,” he says. aligning your business Mehran Abadan opened to make contact with a Chamber event Canadian Pizza House in portrays your company with individuals as a business leader and Uxbridge, Ont., about five years ago. Abadan suggests in the network to community partner. Your that a reputation for good brand is seen by execuestablish clients tives, managers and other food and responding to requests is the key to influential decision makers on an ongoing keeping customers coming who regularly attend basis,” says through the door when Chamber events.” Chamyou start a new business. Michael Hughes. bers also provide their “Local people know members with discounts me and so when visiting on business expenses sports teams come to such as newspaper ads, town, they ask where the office supplies, insurance, best pizza is, get my number and call banking services and gasoline. me. I have been asked to help [sports Although you’re very busy with staffteams] for occasions when they have a ing, orders, advertising and the million big order and want a discount, and I do other details that come with opening or that for them.” moving a business to a new community, ensure networking is a valued part of BENEFITS OF JOINING BUSINESS your ongoing marketing plan. NETWORKS “Relationships are a cornerstone of Becoming a paid member of a business success,” Hughes states. “Creating, group such as your local Chamber of nurturing and renewing relationships Commerce can provide new business are critical success factors in today’s owners with many benefits. Members of busy, competitive professional environthe Ottawa Chamber of Commerce, for ment. Yet few people have invested in example, are offered free opportunities to becoming more aware of the principles access its 900 members through a listing that drive relationships, developing in Business Connects (an annual members their skills in this area or designing a directory and networking guide) and an strategy to build better relationships as online listing on the Chamber website. a foundation for the future.” •
Community Connections A combination of professional associations and community involvement can be the ticket to your success. Here are some resources to help you find out how different organizations work and where to find the chapters at a local level: The Canadian Chamber of Commerce Ottawa Headquarters 360 Albert St., Ste. 420 Ottawa, Ont., K1R 7X7 Phone: 613-238-4000 Fax: 613-238-7643 E-mail: info@chamber.ca www.chamber.ca The Toronto Board of Trade 1 First Canadian Pl., Box 60 Toronto, Ont., M5X 1C1 Phone: 416-366-6811 Fax: 416-366-8406 www.bot.com BNI Canada 1131A Leslie St., Suite 403 Toronto, Ont., M3C 3L8 Phone: 800-365-2276 Fax: 888-798-9377 E-mail: info@bnicanada.ca www.bnicanada.ca Lions Clubs International www.lionsclubs.org Rotary International www.rotary.org Kin Canada Association of Kinsmen and Kinettes Kin Canada National Offices 1920 Hal Rogers Dr., Box KIN Cambridge, Ont., N3H 5C6 Phone: 800-742-5546 Fax: 519-650-1091 E-mail: kinhq@kincanada.ca www.kincanada.ca Women with Vision 156 Brophy’s Ln, Box 3016 Collingwood, Ont., L9Y 3Z2 Phone: 866-306-6021 Fax: 705-445-7153 E-mail: womenwithvision@rogers.com www.womenwithvision.ca The Canadian Federation of Business and Professional Women’s Clubs BPW Canada 85 Brydges Moncton, N.B., E1C 2E9 Phone: 506-877-2343 Fax: 506-977-1912 www.bpwcanada.com
JANUARY/FEBRUARY 2009 pizza 15
the pizza chef
The dairy cheese stands alone Diana Coutu
n a snowy day in late November I had the opportunity to travel to Ottawa and speak to the Canadian Dairy Commission on behalf of all independent pizzeria owners about the high cost of dairy cheeses. I was invited by Ron Reaman, vice-president, federal, of the Canadian Restaurant and Food Association, to make a case for the average independent pizzeria owner. I joined approximately 20 other people from larger pizza and restaurant chains, as well as a few suppliers. Together we represented about 75 per cent of the buying power for all dairy in Canada. In the face of a proposed 7.3 per cent increase, our delegation made an impassioned and aggressive pitch for price relief, demanding a 4 per cent rollback in the price of industrial milk for 2009. This was the first year independents had a voice at this meeting, and I had high hopes that my brief presentation might make an impact on the commissioners. As independents, we are the front lines of the industry. We are typically the first to feel the rising input costs. The general consensus around the table was that dairy cheese is the one item that never fluctuates and only increases. One delegate pointed out that the emergency rate increase this past September was approved by the CDC because of the record high fuel costs. He then noted that since this emergency increase was approved, fuel costs have come down to rates equal to the summer of 2007. He demanded an emergency price relief on dairy to reflect this significant change in the economy. Each of the delegates spoke about the shift in their companies over this past year, from using 100 per cent dairy cheeses and dairy products to sourcing non-dairy substitutions and even creating entirely new menu items without any dairy whatsoever. Many delegates came with hard data about the actual tonnage of dairy cheese they eliminated from their menus. We all agreed this was backwards. Fresh pizzerias make up the majority of dairy purchases in Canada. If anything, shouldn’t we work together with the dairy industry to increase, not decrease, consumption? When it was my turn to speak I began talking about how average Canadians have made pizza a staple of their diet. Take a poll in any office or even a busy coffee shop and ask when the last time they ate pizza was. The answers, on average, will be between seven and 21 days. Pizza is one of those meals that every Canadian family has on a traditional day. For many it’s Friday after the long work week; for others it’s while watching
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16 pizza JANUARY/FEBRUARY 2009
Recent figures from the CDC show that the cost to produce industrial milk fell by 2.3 per cent in 2007, but the price went up by 1.06 per cent last February and by another 2 per cent in September, reports the CRFA.
their favourite sports teams. I went on to say: “The dairy farmers have all but abandoned the pizzeria owners. The CDC has turned their backs and a deaf ear on us. We have heard the message ‘not my problem’ and ‘you’re not part of our mandate’ loud and clear. Independent pizzeria owners across this country have thrown up their hands in defeat and, especially this year, have actively looked for substitutions to 100 per cent dairy cheeses. Perhaps you didn’t think the independent pizzeria owners would unite and boycott the dairy industry, and it’s true, we have not banned together. However, independent and chain pizzerias, even restaurants, have been moving away from using 100 per cent dairy cheeses. If nothing else, the presentations at this meeting should confirm this fact. They have reduced their purchases of all dairy and therefore the average Canadian consumer’s consumption of dairy has declined. And other costs have increased due to actual shortages. Earlier this year we saw the cost for our bags of flour quadruple in a matter of weeks and we saw other costs increase due
to rising fuel costs, although those costs have on behalf of all of us. We need to support and come down since production has increased. strengthen it via membership. I encourage each Other commodities have had fluctuating of you to join. For my part, I am grateful for Independent prices to reflect the gas prices. The cheese being chosen to represent independents at this and dairy stands alone in their ever increasing pizzeria owners table and to be given the opportunity for indepencosts. Do not think that pizzeria owners do not dent pizzeria owners to be heard. Even though have thrown notice it’s the only item on their inventory list this increase is relatively small compared to the that only increases in price. It’s time to repair increases we’ve seen in previous years, I stand up their hands the damaged relationship between the dairy by my prediction for 2009: More and more in defeat and, industry and the independent and franchise of you will source dairy alternatives and even pizzeria owner. It’s time to help them grow their eliminate some dairy items from your menus. especially this business while also helping to grow consumpThat is perhaps the most unfortunate result for year, have tion of 100 per cent dairy cheeses. You may the fresh pizza makers, the dairy farmers and not think that it’s as serious as it is. You may for the average Canadian consumer. • actively looked be tempted to think that pizzeria and restaufor substitutions Diana Coutu is a two-time Canadian Pizza Magazine chef of rant owners will always need the dairy industhe year champion, internationally recognized gourmet pizzaiolo try and therefore you can continue to do what to 100 per cent and co-owner of Diana’s Gourmet Pizzeria in Winnipeg, Man. you’ve always done. I’d advise extreme caution In addition to creating award-winning recipes, Diana is also dairy cheeses. with that perception. It is quite likely that you a consultant to other independent pizzeria owner/operators in menu development, creating systems to run a pizzeria on have already seen a decline in sales in the past autopilot, along with marketing and positioning to help operators four years and without reversing course you grow their business effectively and strategically. She is available will continue to see declining sales, regardless for consulting on a limited basis: for more information contact her at Diana@dianasgourmetpizzeria.ca. of increased profits. A shrinking market will eventually dry up. Just look at GM and their dependence on gas guzzling SUVs for the majority of their profits. Their ignorance of ever increasing gas prices left them with a fleet of vehicles no one wants to purchase, regardless of the recent rock-bottom discounts.” I continued by saying average Canadian consumers will very likely continue their tradition of eating pizza on Friday nights and while watching sports on TV in 2009. The question is whether average Canadians will enjoy 100 per cent dairy cheese on those pizzas or be faced with a palatable substitute remains in the hands of the CDC. I asked that they seriously consider this question, because whatever they decide will largely determine what Canadian consumers will find on their pizzas PEPPERONI – sliced, diced, whole in 2009 and beyond. Reaman wrapped up the meeting with a video of nine HAM – cooked, diced independent operators in four major markets – Calgary, SAUSAGE - sliced Toronto, Montreal and Halifax – who shared their unique BACON ENDS – diced perspectives on what the high cost of dairy has meant to their businesses. Now, writing this after such a persuasive call to action, I have been informed of the CDC’s decision of a 1 per Serving the Pizza, Deli, Restaurant, Submarine cent increase effective Feb. 1. On one hand you could call and Foodservice Business across South-Western Ontario it a victory; a small increase in the face of the proposed 7.3 per cent increase. I have to wonder what would have been if QUALITY IS THE OF THIS PRODUCT we hadn’t attended the meeting to lobby for relief from high dairy prices? On the other hand it’s still a ridiculously high price reserved solely for the fresh pizza market. The favouritism 544 Parkdale Ave. N., Hamilton, Ont. L8H 5Y7 Wholesale Dept.: (905) 547-1321 shown to frozen pizza manufacturers at the expense of the Main Office: (905) 544-0782 fresh pizza makers has gone too far for far too long. Fax: (905) 547-3107 This experience taught me the importance of membership E-mail: smi@on.aibn.com in the CRFA. As independents, we already have too much on www.springersmeats.com our plates and the CRFA is an organization that will lobby Also Available From Chase Global Foods 1-800-263-1964
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JANUARY/FEBRUARY 2009 pizza 17
feature
Setting up shop in a hotel What are the upsides? BY LLOYD R. MANNING any smaller to midsize hoteliers view food services as a necessary evil, a high labour, low profit department that causes more problems than all others combined. Often it is there only to sell rooms, bar and beverage facilities, and cater to guest’s needs. To make money, a restaurant manager must be on top of it 24/7. The obvious solution for many is to lease the food services department to an experienced operator. By doing this, the headaches are largely removed and usually the net profit to the hotel is greater than before. However, it is not as simple for the restaurateur as renting space in a commercial building where there is no involvement in the day-to-day operation by the landlord. In a hotel, the restaurant operator is always at the beck and call of the hotel management. With a hotel lease, a restaurateur can often obtain a prime location, a steady stream of customers, and tap into a previously closed market at a relatively low start-up cost. The premises, interior improvements, often the FF&E and sometimes the small wares, are part of the package. The out of pocket expense would be for additional small wares, linens, menus, miscellaneous items, and usually a pizza oven and dough mixer. The well-structured lease where nothing is left to chance, where all terms and conditions are rendered to writing, and where all parties do more than just agree to agree, can be a mutually profitable long-term arrangement. Both can now make money where previously the hotel, and perhaps the pizzeria, probably could not. If a hotel can net five per cent on sales after taxes with a self-operated restaurant it would require 1.2 million per annum in sales to equal $5,000 per month net rent. For the restaurateur, in an independent restaurant operation, if the interior improvements cost $100,000 at 15 per cent combined interest and depreciation, using the same five per cent net, the first $300,000 in annual sales would be required simply to justify this investment. However, like all business arrangements for the restaurateur there are downsides. Look for part 2 of “Setting up shop in a hotel” in the March issue of Canadian Pizza. •
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The Largest Pizza Show in the World Returns to Las Vegas March 10-12, 2009! 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 what we have in store for our 25th Anniversary Show! On a show floor the size of four 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 70 business-boosting seminars, demonstrations and networking events. Think you might make the best Traditional Pizza in the world? 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-tohead with other world-class pizzaiolos. Both contests will offer a $10,000 grand prize, plus the opportunity to add another five grand in our first ever World’s Best Pizzaiolo Blind Box competition. 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 $25,000 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® 2009.
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feature
Bitondo’s success in simplicity BY LAURA AIKEN
itondo’s Pizzeria & Sandwiches has called 11 Clinton St. in Little Italy, Toronto, home for over 40 years. Longevity is the ultimate coveted trait in the restaurant business as it signals the success of your livelihood. Some pizzerias take a Madonna approach and reinvent themselves over the years to keep contemporary. Bitondo’s has made itself a local institution without investing in a pile of renovations or continually updating and changing their menu. “I don’t think change would be good here,” says Vince Prezzano of his fourdecade, family-run business. Prezzano inherited the business from his father. His uncle was the first operator. The restaurant is located on a primarily residential road close to busy College Street. Bitondo’s occupies the lower part of a house and the colourful storefront leaps out on the quiet street. Inside, a handful of small tables encircled by bright orange chairs are intermittently occupied by a flow of customers as it nears the lunch hour. Swirling burgundy patterns on the walls and the presence of a well-worn Pac-Man machine shout pure 60s relic. It’s obvious the interior can’t have changed much, and it’s charming in its throwback to another era, particularly one that stirs the imagination as strongly as the hippie days. And as for the recipes, Prezzano says they are the originals. For this familyrun business, opting to stay the same has worked. It’s certainly earned them a loyal repeat business. Prezzano says 80 per cent of his traffic is repeat customers. He knows many of them by name, and most of them live in the neighbourhood, or used to and moved away but still come back. He says their success has been in the personal touch,
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Vince Prezzano keeps his family-run business ticking by sticking with what’s worked for over 40 years.
which means good employees are crucial. Bitondo’s has seven valued staffers. “Employees are everything. If you don’t have employees, you don’t have a business.” The foreboding economic forecasts are at top of many minds right now, but Prezzano feels Bitondo’s is well positioned for tough times. “The economy is always a concern, but because we’re priced well. I don’t think it will affect us. Everybody’s got to eat, it’s speedy, and ranges from $2.75 for a slice to $5.75 for a sandwich. You’re still under $7 with a drink.” Prezzano stocks what he needs and most of the menu consists of Bitondo’s signature items—pizza, panzerotti and Italian sandwiches. The menu is an exercise in smart simplicity that caters to the strengths of the business. Where
20 pizza JANUARY/FEBRUARY 2009
Pizza Pizza operates with three different kinds of dough, seven sauces, 25 toppings and three cheeses, Bitondo’s carries a manageable inventory for its size of about 12 toppings, four pizza sizes and six different sandwiches. They offer four different pastas as well as a few side items such as olives. The pizza prices range from $7.45 to $16. Even though Bitondo’s has been in business for over 40 years, it’s still a challenge. “It’s not easy,” says Prezzano, who has explored other ventures of his own on the side. “Such a small percentage make it and I was fortunate enough to have it handed down to me already running.” For Prezzano, it seems his future success with Bitondo’s will depend on how well he can keep things running just the way they are. •
“I’ll be there!” Arjen Melis
President, Corporate Development, Cara Operations
BRINGS IT ALL TOGETHER...
March 8 - 10, 2009 Direct Energy Centre • Toronto
The biggest event of the year for Canada’s hospitality industry! Three jam-packed days of new products, celebrity chefs, and seminars to help you build your business.
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making dough with Diane
Eight steps to making a menu that sells Diane Chiasson
or the past 25 years I have worked as a consultant for hundreds of restaurants, cafeterias, grocery stores, and several other types of foodservice operations. I have learned that a well-written and well-designed menu is your most powerful merchandising and marketing tool. Each and every single one of your customers who walks through your door or checks out your website will read your menu. What you put on your menu and
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how you convey your food is absolutely crucial. Here are eight key steps to creating a menu that will get your customers to buy what you want them to: 1. USE COLOURS TO ENHANCE YOUR MENU The colours you select for your printed menus and menu boards should be warm and inviting, and match the branding of your operation. They should also complement your interior design, quality of food
22 pizza JANUARY/FEBRUARY 2009
and price range. Use a maximum of three colours, and make sure the colours are contrasting enough to make your menu stand out. Your menu boards need to be properly lit as well. Some operations may benefit from colour coding, as it would help customers in a hurry make quick decisions. More than any other aspect of the menu, colour has a definite psychological effect that stimulates the appetite and calls attention to particular foods. For example, a green
background sells vegetarian pizzas, while a red background sells meat pizzas. 2. CREATE EASY-TO-READ MENUS Legibility is a top priority in designing your menu. Stick to basic fonts like Arial, Helvetica and Times New Roman with a minimum font size of 12 points for the printed version. As the average age of the population increases, larger, simpler fonts are recommended. People buy more if they can easily read the choices. Although many people believe using all capital letters in their menus attracts attention, the truth of the matter is that it’s a lot harder on the eyes. Your menu should be written in mostly lower case. You can attract the customer’s eye by increasing the size of the words and prices of your most profitable items. Borders and shaded boxes are also a proven way to attract attention to a particularly profitable item. Use no more than three distinct font styles and incor-
porate the three colours you chose to reflect your store brand. When choosing different fonts, you could pair a serif and a sans serif for contrast and style. Headlines, headings and titles are sans serif and usually bolded. Choose simple and legible fonts that reflect the style of the restaurant and fit in well with your branding. For example, if you run a sleek and modern restaurant, don’t use the oldfashioned Times New Roman font.
that locally grown and organic produce ranked right at the top for what consumers look for in a menu. Several foodservice operations are now following this trend by offering beneficial food options for today’s health-conscious society. Bring your wholesome dishes to the forefront. Use icons to highlight your healthy food options. Choose one symbol to indicate all your vegetarian choices and another symbol to indicate low-fat items.
3. FIRST & LAST LINES SELL THE MOST Research has shown that customers tend to order the first and last items on a menu the most, so place your most profitable product as the first item listed on your menu and your second most valued as the last. Everything in between can be in any order.
5. INCLUDE PRODUCT ORIGINS IN MENU DESCRIPTIONS Since consumers are looking for organic and local foods, you should also highlight where your goods come from and how they’re grown or made. Putting this information in your menu adds a lot of value to your dish. For example, a menu description for a pizza could read: Hand-tossed organic wheat flour
4. USE ICONS TO HIGHLIGHT HEALTHY FOODS A recent survey of menu trends showed
Continued on page 26
JANUARY/FEBRUARY 2009 pizza 23
marketing insights
2.0-for-one pizza Michelle Brisebois
eb 2.0 is the term used to describe the Internet’s evolution from data source to party host. We used to surf to gather information, now we surf to gather and interact with friends. Facebook, My Space, blogs, Twitter and Plurk were foreign terms just a few years ago. Today, they describe digital venues for communication, but many of us are still in the dark as to where this technology may or may not fit into our business objectives. Many of the major pizza
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chains are embracing web 2.0. Pizza Hut launched online ordering through Facebook in October. Domino’s Pizza has partnered with TiVo to allow viewers to order by clicking through a Domino’s commercial as it’s viewed. Do these applications actually enhance the marketing strategy or are they just technology’s latest shiny overrated toy? You’ve probably been “friended” by someone on Facebook, which means you’ve been invited via e-mail to join in
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their online conversation. Think of these social networking sites as virtual cocktail parties where everybody knows somebody else. You may start over by the cheese tray chatting with the group debating politics and then at some point mosey over to the group by the kitchen discussing music. Social networking is just a few years old but it’s caught on like wildfire with all age groups. The Entertainment Trends in America study by The NPD Group found that “Social networking sites used by teenagers and young adults are also being adopted by baby boomers (aged 44 to 61). The findings show that 41 per cent of baby boomers have visited social networks, such as MySpace or Facebook. The study, which surveyed 11,600 consumers online, also found that more than 57 per cent of web users overall have stopped at social networking sites in the past three months. Baby boomers stopped an average of eight times in that period.” It is statistics like these that make some of the big name pizza operators sit up and take notice. Pizza Hut’s interface is intended to facilitate online ordering. The idea is that if you and I are chatting online about pizza and we start craving a slice, a simple click or two on the Facebook site will place our order on the spot. Dubbed the Pizza Hut Interface, this application integrates Pizza Hut’s current online ordering system with the social networking site, allowing users to order pizza, pasta and wings for delivery. It even remembers user favourites for the next time they order. Pizza Hut already has traditional online ordering, as well as through mobile web and via text message. The chain recently sold its millionth pizza order online in the U.K. Some digital media journalists have observed that while the ease of ordering is
a benefit, the true value of the social net- to order from Pizza Hut!!!” This notification working site hasn’t been fully embraced does not provide anything to interact with. yet. In the Oct. 15 issue of CNET News, There is no link to Pizza Hut’s Facebook Harrison Hoffman outlines where he app; it is just a blatant advertisement.” believes the initiative could To be fair, the initiative be improved. “The only is very recent and the trail Think of these real function of the app is is being blazed as marketers to order pizzas from inside social networking try various strategies to see of Facebook. There are no what resonates and what sites as virtual additional social features doesn’t. Undoubtedly, Pizza cocktail parties included to enhance the Hut will continue to modify experience. The worst part where everybody the application as they of Pizza Hut’s app, how- knows somebody monitor the results. Hoffever, is not the fact that it man’s comments beg the else offers nothing new in terms question: “If we’re going to of functionality, it’s that it be seen as an interruption spams all of your friends rather than a convenience, with advertisements. When testing out the aren’t we doing more harm than good to application for this post, I went through even consider entering such an arena?” the process of ordering a pizza, to see how The key to success with social netit works. Pizza Hut then felt the need to working is to blend in. Become part of inform my friends, through a notification, the conversation rather than an intrusion. that, “Harrison Hoffman has just logged on If you type the word pizza into the search
box on Facebook, over 500 groups exist related to pizza and various pizza operations. Many of them are small chains that are well known and beloved in their area. This is where social networking is actually at its best – when it’s a spontaneous discussion about the menu, the memories and the experience of the pizzeria. The easiest way for a business to get into the conversation is to first join some of these sites as a user to get comfortable with how they work. Once you see how conversations flow and where the key target groups are gathering, you’ll know where to place your message. The website Addthis.com is a great source for group forums and tools. This site will enable you or your webmaster to easily add buttons at the top of your webpage for visitors to quickly link their site to various social networking spots. It’s a great, low-cost way to dip your toe into the social media pool. It could be a perfect fit. After all, pizza is the most social of all foods. •
JANUARY/FEBRUARY 2009 pizza 25
feature EIGHT STEPS TO MAKING A MENU THAT SELLS Continued from page 23
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crust, with homemade sauce made from locally grown tomatoes, topped with fresh mozzarella from XYZ Dairy. 6. MAKE IT USER-FRIENDLY Ensure that your menu is user-friendly. You end up confusing your customers if you offer too many items and choices. People are often in a rush and do not have the time or the patience to dissect your menu line by line. Offer meal combinations. They’re a good way to upsell extra items and help your customers make quick decisions. Sell your pizza with a familysized salad, garlic bread and chicken wings. Or include drinks and a dessert for a special deal. Keep your menu descriptions short and sweet, and avoid naming your signature pizzas with words that people can’t pronounce. Customers don’t want to embarrass themselves when ordering their meals. 7. INCLUDE A KIDS’ MENU For many families with children, the number one draw to a restaurant is whether or not the eatery offers a kids’ menu. Many parents don’t feel it’s worthwhile to pay full price for a dish that their child might not even take a single bite of. Children usually prefer plain cheese
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26 pizza JANUARY/FEBRUARY 2009
or just pepperoni pizza, while parents are interested in trying more sophisticated toppings, so allowing a child to order his/her own personal pizza is a big draw. Offer a kid’s menu that allows children to build their own pizzas with healthy toppings like broccoli or chicken. Make sure the pizza is sliced into small wedges so it’s easy for tiny hands to handle. Always include a drink and a dessert or treat with the meal. 8. TRAIN YOUR STAFF A good menu is most effective when combined with well-trained and knowledgeable staff. Make sure your staff knows your menu inside and out, and gets the opportunity to taste everything so they can make recommendations to undecided customers. Your staff should also be able to answer any questions a customer might have about the menu. •
For more than 25 years, Diane Chiasson, FCSI, president of Chiasson Consultants Inc., has been working with North America’s leading restaurant, foodservice, hospitality and retail owners and operators to deliver truly unique dining and shopping experiences for all their customers. Diane is recognized as an industry leader in providing innovative and creative foodservice and retail merchandising programs, interior design and marketing concepts. You can call her at 416-926-1338 or 1-888-926-6655, fax her at 416-921-6994, contact her via e-mail at chiasson@chiassonconsultants.com or visit her website at www.chiassonconsultants.com.
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28 pizza JANUARY/FEBRUARY 2009
classifieds REAL PEPPERONI... Never compromise when it comes to your pepperoni toppings. What would your pizza be without great tasting pepperoni? Sila believes in traditional values. These values are supported by quality – quality you can feel, taste and smell. We never compromise on the rich flavour of real pepperoni. For more info, call Viau Foods, Inc. 1-514-321-8260 or fax 1-514-321-8770. ITALIAN SPECIALTY CHEESE... Salerno Dairy Products Ltd. Manufacturers and distributors of great tasting Italian cheeses and food products, invite you to contact their sales professionals. Each representative is motivated to ensure quality dairy products backed by service second to none. For more information and quality products, call 1-800-263-6536 or 1-905-544-6281. FOR ALL YOUR PIZZA NEEDS... Ricco Food Distributor. Your complete pizza supply distributor, serving southwestern Ontario. For further information and pricing details, call Don Windsor at 1-519-245-7081 or fax 1-519245-7126. SPRINGER’S MEATS INC... Processors of quality fresh, smoked and cooked meats. We specialize in pepperoni, ham, back bacon, bacon ends, over 150 items. Serving the food service industry of southwestern Ontario. For details call 1-905-544-0782 or fax 1-905547-3107.
THE OVEN THAT CONSERVES ENERGY... Middleby Marshall’s PS 200 Direct Gas Fired Conveyor Ovens. Middleby’s ovens provide very efficient heat transfer to products. Energy is conserved as air is recycled from heater to product, with minimum flue or vent loss. For details Call Middelby Marshall 1-905-696-8252.
Advertisers' Index Company
Page #
Abaro Group Inc . . . . . . . . . . . . . . . . . .28 Arla Foods . . . . . . . . . . . . . . . . . . . . . . .23 Burke . . . . . . . . . . . . . . . . . . . . . . . . . .IBC CRFA . . . . . . . . . . . . . . . . . . . . . . . . . . .21 Crown Custom Cookware . . . . . . . . . . . .5 Doyon . . . . . . . . . . . . . . . . . . . . . . . . . .28 Dutchess Bakers Machinery . . . . . . . . .24 EZ Foods . . . . . . . . . . . . . . . . . . . . . . . . .9 Hot Bag . . . . . . . . . . . . . . . . . . . . . . . . .27 Middleby-Marshall . . . . . . . . . . . . . . . . .13 Olymel S.E.C . . . . . . . . . . . . . . . . . . . . .27 On Trend . . . . . . . . . . . . . . . . . . . . . . . .27 Pizza Today . . . . . . . . . . . . . . . . . . . . . .19 RJ McDougall . . . . . . . . . . . . . . . . . . . .28 Ricco Foods . . . . . . . . . . . . . . . . . . . . .22 Salerno Dairy. . . . . . . . . . . . . . . . . . . . .22 Saputo . . . . . . . . . . . . . . . . . . . . . . . .OBC Speedline Solutions . . . . . . . . . . . . . . . .27 Springer’s Meats . . . . . . . . . . . . . . . . . .17 Thunderbird Machinery . . . . . . . . . . . . .25 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.
JANUARY/FEBRUARY 2009 pizza 29
pizza on fire
Your location can make it or break it Tom Stankiewicz
ondi’s Pizza opened in the early 1960s with its primary address at 325 Wharncliffe Rd. S. in London, Ont. We operated there for almost four decades, and then an opportunity presented itself a few years ago to move to a different location. It turned out to be a very wise business decision. One of the many wins that came with this move was plenty of parking for our loyal customers. This is a definite plus for everyone and it makes sense that our pick-up orders have increased by a high percentage. This simply proves that convenient access could translate into more sales. It also works very well that there is a Blockbuster video store in the same plaza. It’s a great win for our customers who want to make it a pizza and movie night. Business location plays a huge part in the success of your business. Although we had been successful at the old location we knew that relocating our business could improve it significantly. The old location simply had some key disadvantages that couldn’t be fixed. We couldn’t offer any parking spaces to our walk-in clients as there were none attached to the building. Those who did come in to pick up their pizza were forced to park on the side street. The building is very old, and as hard as we tried to refresh the inside of the store it never had the effect we were hoping for. You could see the age of the building in almost every corner. It was truly a case of not being able to make any improvements that would have significantly fixed the appearance of the store. Since our move, there have been a few attempts by others to open a pizza store at our old location. Unfortunately, all of them turned out to be unsuccessful and lasted no more than a few months. Maybe
B
Sharing a plaza with a movie store helps drive business to your pizzeria.
they thought that since we enjoyed success there for so many years their businesses would prosper as well. The key difference was that we have a base of loyal customers who have been buying pizza from us for many years. Maybe the location didn’t bother them so much and they came in for the quality of the product. It’s easy to forget that it took a long time to establish a great reputation and clientele. It’s different when you try to open a brand new independent pizza store and are hit right away with the disadvantages of our old location. You can’t afford to have no parking spaces for your clients and operate in a building that’s ready to crash. Simply put, that’s just not good advertising for anyone starting a business. You need an easily accessible and presentable location that will draw positive attention to your business. One thing that hopeful pizza owners shouldn’t forget is that they will have to compete with pizzerias that have been in operation for decades. Rent is an important consideration when talking about business location. Most of us would agree that it is a wise business decision to pay a bit more for rent if it returns higher sales. Only a few lucky ones can say they pay cheap rent
30 pizza JANUARY/FEBRUARY 2009
for a prime location. The rest of us must deal with paying a premium, but at the end it should all balance out when you look at your sales in proportion to your rent. That’s a decision that we have made and it has worked in our favour. When choosing a location for your business it’s important to consider who your neighbours will be. It comes as no surprise then that many pizzerias open near movie rental outlets. People seem to associate one with the other and those of us who have such an arrangement can attest to its power. The reason is simply that whether you like it or not, they will have an impact on the traffic flow in the surrounding area. When the right businesses are close by you are automatically getting increased visibility and free advertising for your business. No one can argue with that strategy. On the other hand, if you are surrounded by other businesses that could potentially draw negative attention, it won’t help you grow. There is nothing worse than moving your business in hopes of expansion only to see your sales plunge dramatically. It’s important to carefully consider all the factors in choosing a location that will affect you in the long run. •
Your reputation, and ours, is in every pizza. It’s what keeps your customers coming back. Burke fully cooked meats are the key ingredients for consistent success, flavor, appearance, convenience and safety.
When you make it with Burke, you always make it your best.
®
800-654-1152
WWW.BURKECORP.COM
Eastern Canada Chase Global Foods 905-432-8474
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