Issuu

Volume 19 Issue 4 June 2013

12 Delivering Dine-in

There’s a lot to consider if you’re thinking of expanding your business to include a sit-down restaurant.

18 Managing The Menu

Learn how Rick Nixon is keeping things fresh to stand apart from the crowd.

20 DigesTible Dough

Here are secrets from an Italian pizzaiolo on making fabulous, and digestible, dough.

25 geTTing The aDvice 12

you really neeD Setting up an advisory board just makes sense.

DEPARTMENTS 6

editor’s desk

pizza bites

canadian pizza online

the pizza chef

making dough

Guest column: The Lease Coach

marketing insights

pizza on fire

www.canadianpizzamag.com

JUNE 2013 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 June, vol. 19, no. 4

Cheese relief our cheese costs are about to go down, and this is not a prank from a miserly writer after a long winter. I am buoyant as a sailboat in spring about this most excellent news. After well over a decade of lobbying, the Canadian Restaurant and Foodservices Association (CRFA) finally nudged the Canadian Dairy Commission (CDC) to make a move on the unfair disparity in price between fresh and frozen pizza retailers. The CDC created a new milk classification for mozzarella cheese headed for fresh pizzas, which means operators will now save about five to 10 per cent on their mozzarella costs depending on cheese composition and volume discounts, shared the CRFA. There will be an application process to access the new 3(d) classification, and hopefully the system runs in a smooth and timely manner. While there is still work to be done, this is still something to pop a cork about. The news comes on the heels of a rather intriguing case of cheese classification debate at Canadian International Trade Tribunal (CITT) that’s been gurgling up from a secretive surface and finally spilling over in the recent Globe and Mail article “Cheese battle a big threat to Canada’s cloistered dairy market” by Barrie McKenna. McKenna reported that the case started with Pizza Pizza figuring out how to buy imported, less expensive American product through prepackaged pepperoni and mozzarella kits that came in duty free as “food preparation” rather than facing the 245.5 per cent tariff on cheese. This is understandably upsetting to independents who have been affected by pizza price wars, unable to figure out how some players are selling their pies for such a low price. Well, one cat is out of the bag. Being outraged at perceived or actual injustice is natural (I phrase it this way only because, in a case like this, the sense of justice often depends on who you are in the

6 pizza JUNE 2013

story). However, consider this: the timing of the news from the CDC is interesting and this isn’t the first case of a pizza company trying to get around exorbitant food costs. Let’s not forget last year’s large-scale cheese smuggling ring operating via the Niagara border crossing. When things are priced past what the market can reasonably bear, loopholes and illegalities will occur. Change is forced when the weaknesses of a system are exposed. It is a little wild that we’re not talking about illegal drugs, weapons or tobacco here. Cheese is not inherently illegal and if people are willing to get this creative about how they are obtaining it, the CDC must rectify itself or choose to compete with the cracks in the system. In this case, it has taken a step towards a remedy. The protected dairy industry in Canada comes under enough fire that I need not add to it here. Protectionism is unfavourable to most economists: bad for innovation, and most importantly, consumers. It seems other players on the world stage tend to have some industry they seek to protect. America protects its farmers with multibillion dollar subsidies, Japan has a history of protectionist policies over its rice industry, and Canada…well, Canada puts a fence up around its milk and poultry. I guess the question left is, does the dairy industry need protectionism or subsidies to survive? Are they the only options? Would our milk thrive on a free market? I don’t know, but I imagine there are people who can put strong arguments forward for both sides. Transparency and fairness in pricing is a minimal request under the circumstances, whether it’s domestic or foreign trade. Changes are in the wind for Canada’s dairy industry, and that is a good thing. While you can’t change the road travelled, you can reap the benefits of this positive change. • @CdnPizzaMag

editor Laura Aiken laiken@annexweb.com 416-522-1595 assistant editor Stefanie Wallace swallace@annexweb.com 888-599-2228 ext. 277 Publisher Christine Livingstone clivingstone@annexweb.com 519-429-5173 888-599-2228 ext. 239 sales assistant Jarah Stefek jstefek@annexweb.com 888-599-2228, ext. 219 Media Designer Gerry Wiebe 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: subscribe@canadianpizzamag.com Published seven times per year (Jan/Feb, Apr/May, Jun, Jul/Aug, Sept/Oct, Nov, Dec), by Annex Publishing & Printing Inc. Printed in Canada ISSN 1203-6838 circulation e-mail: subscribe@canadianpizzamag.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 $ 19.00 (+ applicable tax) Best pricing (Can/uSA/foreign) available online at www.canadianpizzamag.com 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. ©2013 Annex Publishing and 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 New milk class for mozza T

he Canadian Dairy Commission (CDC) has announced the creation of a milk class for mozzarella cheese to be used on fresh pizzas. The new 3(d) class was approved by the Canadian Milk Supply Management Committee (CMSMC) and will take effect June 1. This new class will lower costs for restaurants that prepare and cook pizzas on site and help grow the market segment for mozzarella cheese in Canada. “Today’s announcement is good news for Canadian dairy farmers, processors and our restaurant industry,” said Agriculture Minister Gerry Ritz. “This is a good example of how greater collaboration between the whole value chain can help grow markets for our farmers while keeping Canada’s restaurant industry competitive.” This new class covers standardized mozzarella cheeses to be used strictly on fresh pizzas by establishments registered with the CDC under terms and conditions approved by the CMSMC. This new class will favour the development of the market for mozzarella in the restaurant sector and benefit farmers, processors and restaurants. “The Dairy Farmers of Canada and the Canadian Restaurant and Foodservices Association (CRFA) have been collaborating with the CMSMC on finalizing this proposal for a few months now,” said Wally Smith, president of Dairy Farmers of Canada. “It is the farmers’ sincerest hope that this class will bring growth in sales of cheese in the restaurant pizza category.” The CRFA has launched a website, www.crfa.ca/cheapercheese to provide user-friendly information on the program.

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Pizza Pizza launches iPad app izza Pizza recently launched its first mobile ordering app for the iPad platform, a followup to its iPhone app. The new iPad app includes a pizza builder, a visual tool that allows viewers to see dynamic representations of their pizza creations. The app also features “Spin-to-Win”, a game that appears at the end of the ordering process granting users two chances to spin and win a free menu item that can be added to a customer’s next order. The iPad app is the latest in Pizza Pizza’s digital changes, including a redesigned website with more interactive features and the addition of debit-toyour-door payment technology, a computerized order-taking system and a central telephone centre.

The Pizza Pizza iPad app features: • Pizza Builder, which allows customers to customize their pizza and have it made virtually right before their eyes • “Spin-to-Win,” a game that appears at the end of all orders, giving customers the opportunity to win free sides with their next order • favourite order feature, which allows one-click ordering and saves up to five orders • restaurant locator by location/GPS • synchronization with other webprofiles, including the option of using a Facebook login • A variety of payment options, including university student meal cards • a complete interactive menu

pizzabites

CRFA launches specialized insurance he Canadian Restaurant and Foodservices Association (CRFA) is launching a new insurance program for restaurants, bars and other hospitality establishments. The CRFA says Restaurant Protect is a new insurance program underwritten by The Dominion of Canada General Insurance Company and Totten Insurance Group. The new program offers competitive pricing to all CRFA members and specialized coverage to meet the needs of Canada’s restaurants, pubs, nightclubs and bars. The CRFA says coverage is designed specifically for the hospitality industry and includes legal expense insurance, restaurant recovery coverage, food borne illness, forcible ejection and special wine valuation. There is no need to switch brokers to access the program. The Dominion will underwrite family restaurants and fine dining establishments, while Totten will underwrite businesses with generally higher liquor sales, such as nightclubs, pubs and bars. Risk mitigation and loss prevention education will be available for all CRFA members, allowing Canadian restaurateurs to benefit from the expertise of both providers.

reaD These sTories anD More aT www.canaDianPizzaMag.coM

news highlighTs •

RANDoM AcTS of PizzA foR BoSToN MARAThoN SuRvivoRS

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chEESE BATTlE A ThREAT To cANADA’S DAiRy MARkET

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fRozEN PizzA AND SNAckS REcAllED iN E. coli ouTBREAk

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SEARchiNg foR ThE PlANET’S hoTTEST PEPPER

For exPanDeD inDusTry news anD Daily uPDaTes, visiT www. canaDianPizzaMag.coM.

XlT ovENS DiSPlAyS vERSioN D SERiES The Version D series features a sandwich door design, allowing for the addition of an extended front panel option. DigiTAl MAgAziNE Visit www.canadianpizzamag.com to sign up for your free trial of Canadian Pizza magazine – the digital version.

Do you have an idea for Canadian Pizza? We’re looking to fill our pages with stuff we know you’ll want to read and with ideas that need to be shared. If there’s something you’d like to know, let us know and we’ll work on finding answers for you. this is the place where Canada’s pizza industry can come together. Contact us laiken@annexweb.com or 416-522-1595 and tell us about it.

JUNE 2013 pizza 9

the pizza chef

Diana Coutu he greatest challenge for any independent pizzeria is marketing, or getting the word out. It’s common to think that as long as the pizza is great and the service is friendly, customers will come back again and again, and tell their friends and families. But that’s not a marketing plan – that’s a company mission statement.

youR MARkETiNg PlAN A marketing plan consists of new customer acquisition, lost customer reactivation and customer retention strategies. Independent and chain pizzeria owners can be unsure about how to attract a customer in the first place and how to keep them all coming back. We put all the responsibility on the customer to come back to see us. Many independents will copy the chains and send out thousands of glossy flyers with coupons and hope that sales will follow. The best-case scenario for unaddressed ad mail is a three to four per cent response rate, with 96 to 97 per cent waste. That’s not exactly what I’d call an efficient sales strategy. It’s more like a lot of wasted money. youR uSP As an independent pizzeria owner, it’s your job to make sure your customers remember you, and with busy family and work schedules, it is very easy for customers to forget about you. Customers have lots of options to choose where to eat and where to spend their money. Why should they choose you over the next pizzeria? That’s the big money question. Why are you special, and what can you offer your customers that other pizzerias can’t or are unwilling to? Your unique selling proposition, or USP, is the answer. If you are unable to answer that question, then your

10 pizza JUNE 2013

Winning the marketing game customer really has no compelling reason complaints is another marketing strategy. to spend their money at your establish- Mistakes happen, and it takes just one ment over another. After all, if you, the upset customer who isn’t well taken care owner, don’t know what sets you apart, of to tell hundreds or thousands of others about it through social media and damage then why should they? Give customers several reasons to visit your otherwise stellar reputation. In this you. Do you make your dough on site and business, everything you do is marketing. prepare everything fresh? If so, it’s important to let your customers know that, ThE coST of A cuSToMER especially if your competition is mostly New customer acquisition strategies and large chains that prepare very little prod- lost customer campaigns are important, uct on site. Do you offer a gluten-free but customer retention can make or break you. It costs much more or vegan option on your to attract a new customer menu? Are you open for The best-case than it does to reactivate a lunch or late at night? Do scenario for lost customer. In compariyou offer catering? Do you son, it costs very little to have a take-and-bake opunaddressed keep your existing customtion? Is your chicken whole ad mail is ers coming back again and muscle, while others are again. Marketing isn’t just using chopped and formed a three to one or two different things; chicken? Do you make and four per cent marketing is everything blend your marinara youryou and your staff do in self while your competition response rate, your shop and how you inuses sauce from a can? Do with 96 to 97 teract with each customer. you use 100 per cent dairy It’s a daily battle that you cheese while the other guy per cent waste. must win if you want to uses imitation cheese? Is survive in this industry. As your mozzarella low fat? long as you give your cusTell your customers why tomers valid and compelling reasons to you’re different from the competition. continue to order from you, and you make things right in the event that someone did ThE STRATEgy iS iN ThE DETAilS, drop the ball, you’re certain to stay on the Big AND SMAll Everything inside your store is also a po- winning side.• tential marketing strategy: even simple things, like having a uniform for your staff Diana Coutu is a two-time Canadian Pizza magazine chef of the year champion, internationally recognized and maintaining a spotless restaurant. gourmet pizzaiolo, co-owner of Diana’s Gourmet Pizzeria Your level of customer service is vi- in Winnipeg, Man., and a board of director for the CRFA. tally important as well. Do you treat each In addition to creating award-winning recipes, Diana is also a consultant to other pizzeria owner/operators in and every customer as you would like to menu development, creating systems to run a pizzeria on be treated? Better yet, does your staff? All autopilot, along with marketing and positioning to help it takes is one bad employee to sabotage operators grow their business effectively and strategically. She is available for consulting on a limited basis. For your business and cost you thousands of more information, contact her at Diana@dianasgourmetdollars in future sales. How you handle pizzeria.ca.

feature

Delivering dine-in Things to consider if you’re thinking about expanding your operation to include sit-down service BY LAurA AIkeN

hen it comes to expanding your pizzeria, doing more can turn into making less. The trick is getting on the flip side of that equation. If you’re considering taking your operation from a take-out/delivery shop to a dine-in experience, read on for the road map to success. Cory Medd is a two-time Canadian Pizza magazine Chef of the Year and owner of Two Guys and a Pizza Place in Lethbridge, Alta. He was doing a swinging take-out/delivery business when he decided to make the leap from renting to owning a building. The new digs were much larger than the restaurant’s former home, and in need of a renovation to carry out Medd’s vision. First, he crunched some cash flow statements to ensure the business could handle the move. In an e-mail to Canadian Pizza magazine, he shared that his forecasting came down to contemplating the pessimistic future (one of no increase in sales), the realistic picture (an estimate of how much business the dining room would do), and the optimistic view (a massive increase in business). Then, it was time to bring the new location to life. “When I started designing the place, I started with the kitchen, knowing that 75 per cent of my business will be delivery and take-out, and I wanted to make sure we continue to push that part of our business. With deliveries, you throw it in a box, give

12 pizza JUNE 2013

it to a driver, and gone. No dishes, no server, no cups, no mess. The customer even pays the delivery fee. It’s beautiful! So, I was completely fine with a smaller dining room.” In the end, Medd decided on 12 tables to seat 45 people and a bar area to seat 16. Most importantly, he said, the delivery and take-out sales haven’t decreased. Rather than convert the business, the dining room has added to it. “With the smaller dining room, I believe it develops a bit of a demand. Even on a slow Monday with seven tables, it looks busy, and people are have a good time.” Medd had more in his favour than just an existing popular brand. He says he was the first to introduce craft beer to the Lethbridge market and knew that would be a hook that worked. The beer has become very popular. The markup on beer and wine has also been good for his Cost of Goods Sold (COGS). Unavoidably, labour costs do go up in a bigger building with expanded service and menu. One thing Medd has done to manage labour expenses is cross-train his servers to also answer phones, handle pick-up orders, fold boxes, etc. For Medd, the expansion has proven to be an exciting and profitable journey. His hunch about his market was right.

What do you need to add to your menu to deliver

dine-in?

ThE MANy fAcToRS If you’ve got the good gut instinct, then you’re ready for the myriad of new considerations that come with creating a great dining experience for your guests. To gather some more advice, Canadian Pizza magazine interviewed Bob Butterill, owner of Sage Advice restaurant consulting and an instructor at George Brown College’s Chef School in Toronto. Butterill spent 25 years in banking and commercial real estate before switching gears and heading enrolling at Niagara Culinary Institute. He has been with the George Brown culinary faculty for five years, sharing his wisdom in their business management courses. One of the major costs, as Medd discovered, is your increase in labour. The number of servers you employ will depend on the standard of service you want to have, says Butterill. If you have a simple menu, one server may be able to take care of eight to 10 tables. However, author Lora Arduser writes in a Food Service Professional Guide series called Waiter & Waitress Training, that four or five tables is the maximum per server to provide excellent service. The number really comes down to your particular menu and circumstances. One way to figure out what’s right for you is to consider how many trips your server will likely make to the table depending on how complicated your menu is, says Butterill. Server experience also makes a difference. In addition, you will also need to decide on whether or not you would like a greeter. If the kitchen is open and staff can see guests coming, then you may choose not to hire someone to do only that. The atmosphere of your operation is another factor: in a casual place you may not want a formal greeter, whereas in a more formal place you may want to have that as part of the experience. “You need a pretty big restaurant to have somebody doing just that,” says Butterill. “A server can do that and you just need to decide how tables are allocated to servers and their sections.” Fine details such as your billing policy can affect how many staff you need on shift to execute your desired level of service. For example, if you allow big parties to have separate bills, that will take more of your servers’ time, says Butterill. Also, when you

have a larger menu you need to plan for more staff in the front and more experience in the back. How you decide to adjust your menu, if at all, will again all depend on your market. Once you’ve got your menu established, and decided whether or not to offer alcohol (and it seems it is mostly to be expected for any dining experience, while not expected at eat-in places with counter service), you can capitalize on customer face time. “It’s easier to upsell in person than on the Internet or phone,” says Butterill. There is, of course, one relentless cost against the upsell opportunities and beverage markups: space. Butterill suggests developing a model for what you think the usage will be, as Medd did, and considering possibilities such as seasonality and what percentage of your customers may convert to dine-in, albeit with higher cheque averages. It’s not an easy task to take a hard look at the math. “People are afraid to put the numbers down because they are afraid of what it will tell them,” says Butterill. He suggests incorporating the costs of furnishing the space, décor, extra storage space for more food and alcohol, possibly draught kegs and all other miscellaneous details into your overall plan. Then, of course, have a good idea of how to build awareness of your new location and/or services. “People don’t like to sit in an empty restaurant. People lined up sends a message,” says Butterill. Medd used a blog at http://www.twoguysandapizzaplace.blogspot.ca/ to update customers on renovations, with pictures and notes on the progress, and maintained active Facebook and Twitter accounts to keep customers abreast well before the open date. The opportunity for higher guest cheque averages and decent margins on beverages are tempting reasons to expand your brand with a dine-in location. There’s also the chance to spend more face time with customers. If you’re gut says your market is ripe for it, perhaps it’s time to let the adventure begin!• for more on staffing, visit www.canadianpizzamag.com

JUNE 2013 pizza 13

making dough with Diane

Farmer’s market pizzas Diane Chiasson

Here are eight great ways to market a farm-fresh pizza 6. gRill uP ThE vEggiES AND SAuSAgES Set up a grill outside your pizza operation and grill corn, onions, zucchini, fennel, eggplant, peppers, sausages and other ideal pizza toppings. The smell of grilled food will attract customers to your operation and drive them to purchase a pizza piled with the freshly grilled ingredients.

ake use of summer’s freshest produce by introducing a line of farmer’s market pizzas at your operation. Be sure to merchandise your operation properly to sell your farmer’s market pizzas by displaying crates of fresh tomatoes and peppers, boxes of mushrooms, braids of garlic and pots of fresh herbs, and by giving out samples of your creations for customers to try. Here are eight yummy ideas that you can easily add to your pizza menu:

1. TAkE ADvANTAgE of ThE fRESh ToMAToES There is nothing better than a fresh tomato grown in the summertime. Feature colourful heritage or heirloom tomatoes sprinkled with sea salt and freshly ground pepper on your pizzas with a few basil leaves and some fresh mozzarella, and you have yourself a winning farmer’s market pizza. 2. MAkE hoMEMADE SAucES Try cooking chopped fresh tomatoes with onions, garlic and fresh herbs, blend it all together in a food processor and place in large sterile jars to use all season long. You can also create new sauces using roasted peppers, or make a pesto sauce with the abundance of fresh basil. 3. uSE MoRE fRESh hERBS Fresh herbs like oregano, basil, parsley, arugula, dill, sorrel and rosemary are plentiful in the summer, and can easily be grown in your own yard or windowsill. Paired with garlic, they make a great addition to pizza. Since fresh herbs give off such an intense flavour, you can cut down on the amount of cheese used, making your pizzas much more cost-effective as well.

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4. fEATuRE A SEASoNAl MuShRooM PizzA A wide variety of delicious mushrooms are sold at farmer’s markets, but many are still considered a delicacy. Create a gourmet mushroom pizza using varieties like matsutake, pine, chanterelles, morels and whatever else you see at the market. Roast the mushrooms and put them on top of a white pizza base with some fresh thyme, garlic, goat cheese and a drizzle of olive oil. 5. cREATE A fARMER’S MARkET PizzA SAlAD Add a pizza salad to your menu. Use the pizza dough as a base, and dress the top of the pizza with a fresh spinach or arugula salad that complements the toppings on the pizza. For example, a pizza with a caramelized onion and apple base could be topped with an arugula salad with toasted walnuts and goat cheese, all drizzled with a light vinaigrette. There are several different fresh and delicious ideas that you can create to attract a crowd looking for something lighter and fresher to eat during the summertime.

7. DoN’T foRgET ABouT ThE fRuiT Cheese and fruit have always paired well together, so consider adding fresh summer fruits as pizza toppings: including grilled peaches, apricots and pineapples, fresh figs, or lemon slices and zest. You can also sell a dessert pizza featuring fresh berries. 8. SEll youR PizzA AT ThE fARMER’S MARkET Promote your pizza operation by setting up a stand at your local farmer’s market. Even if you are unable to set up an oven, sell premade pizzas that customers can take home to heat up. Or sell jars of your fresh tomato sauce and bags of your pizza dough for customers to make their own pizzas with the fresh produce they have just bought. Hand out recipe cards for different combinations of pizza using different types of fresh produce. Make sure you include your brand, restaurant information, menu or even a coupon on your recipe card. • Diane Chiasson, FCSI, president of Chiasson Consultants Inc., has been helping restaurant, foodservice, hospitality and retail operators increase sales for over 25 years. Her company provides innovative and revenue-increasing foodservice and retail merchandising programs, interior design, branding, menu engineering, marketing and promotional campaigns, and much more. Contact her at 416-926-1338, toll-free at 1-888-926-6655 or chiasson@ chiassonconsultants.com, or visit www.chiassonconsultants.com.

Contact your local repesentative to arrange a demonstration British Columbia Castle Agencies North Vancouver, BC, Canada Tel/Cell: (604) 904-7681 Contact: David Terretta Email: king@castleagencies.ca

Alberta MAC Sales & Marketing Calgary, AB, Canada Phone: 403-281-8540 Contact: Steve MacKell Email: mackell@telusplanet.net

Manitoba/Saskatchewan Dennis Braun Agencies Winnipeg, MB Canada Tel: 204-663-8077 Cell: 204-229-4613 Email: denbraun@mts.net

Ontario Distex M.&M. Inc. Mississauga, Ont Tel: 905 565-5990 Toll Free: 1 888 645-7324 Email:info@distex.ca

www.wowoven.com

Quebec Distex M.&M. Inc. St-Laurent (Quebec) Tel.: (514) 382-3620 Toll free : 1-800-567-3620 Web: www.distex.ca

Atlantic Provinces/Maritimes Flanagan Agencies Inc Moncton, New Brunswick Tel: (506) 387-8757 Contact Mike Flanagan Email: mike@fai.ca

guest column

Dale Willerton

egotiating a commercial lease for many pizzeria owners is very challenging. I was reminded of this fact when speaking at the recent International Restaurant & Foodservice Show of New York, as well as restaurant shows in California and Florida. Tenants may go through the leasing process once or twice in their entire lifetime, yet they have to negotiate against seasoned professionals who negotiate leases every day for a living. In addition, the agent or broker is largely commission-driven – he or she will earn his or her paycheque for each tenant signed. Whether you are negotiating a lease renewal or leasing a new location for the first time for your pizzeria, these are some tips for tenants: Negotiate to win: All too frequently, tenants enter into lease negotiations unprepared and don’t even try winning the negotiations. If you are not even negotiating to win, you won’t. With big commissions at stake, you can be sure the landlord’s agent, on the other hand, is negotiating fiercely to win. Tenants should remember that it is OK to negotiate assertively. Be prepared to walk away: Try to set aside your emotions and make objective decisions. Whoever most needs to make a lease deal will give up the most concessions. A good pizzeria in a poor location will become a poor business. Ask the right questions: Gathering information about what other tenants are paying for rent and what incentives they received will position you to get a better deal. Consider that your landlord and his agent know what every other tenant in the property is paying in rent, so you must do your homework too.

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How to negotiate your lease Brokers … friends or foes?: Real estate tenant’s deposit to be refunded when signagents and brokers typically work for the ing a lease renewal (and no deposit on new landlord who is paying their commission. leases). Measure your space: Tenants frequently It is not normally the agent’s role to get the tenant the best deal. It is their job to get the pay for phantom space. Most tenants are landlord the highest rent, the biggest de- paying their rent per square foot, but often posit, etc. The higher the rent you pay, the they are not receiving as much space as the more commission the agent earns. If you lease agreement says. Negotiate, negotiate: The leasing proare researching multiple properties, try to deal directly with the listing agent for each cess is just that – a process, not an event. The more time you, the property, rather than letting tenant, have to put the one agent show you around deal together and make or show you another agent’s Don’t be counter-offers, the better listing. Your tenancy is afraid of the chance you have of getmore desirable to the listting what you really want. ing agent if he can avoid hearing “no” Too often, tenants mistakcommission-splitting with from the enly try to hammer out the other agents. deal in a two- or three-hour Never accept the first landlord. marathon session. It is more offer: Even if the first offer productive to negotiate in seems reasonable, or you stages over time. have no idea of what to neEducate yourself and gotiate for, never accept the leasing agent’s first offer. In the real estate get help: Unless you have money to throw industry, most things are negotiable and away, it pays to educate yourself. Taking the landlord fully expects you to counter- the time to read about the subject or listen in on a leasing webinar will make a offer (even repeatedly). Ask for more than you want: If you difference. And, don’t forget to have your want three months’ free rent, then ask (ne- lease documents professionally reviewed gotiate) for five months. No one ever gets before you sign them. With hundreds of more than they ask for. Be prepared for thousands of dollars in rent at stake, perthe landlord to counter-offer and negotiate sonal guarantees and other risks, you can’t with you as well. Don’t be afraid of hearing afford to gamble. In leasing, tenants don’t “no” from the landlord. Counter-offers are get what they deserve, they get what they negotiate. • all part of the game. Negotiate the deposit: Large deposits are not legally required in a real estate lease Dale Willerton, The Lease Coach, is a commercial lease agreement. Deposits are negotiable and, consultant who works exclusively for tenants. Dale is a professional speaker and author of Negotiating Commore so than anything else, often serve to mercial Leases & Renewals For Dummies (spring 2013 offset the real estate commissions the land- release). Got a leasing question? Need help with your lord will be paying out to the agent/bro- new lease or renewal? Call Dale at 1-800-738-9202, email DaleWillerton@TheLeaseCoach.com or visit www. ker. The Lease Coach company has been TheLeaseCoach.com. E-mail Dale for a free leasing CD frequently successful in negotiating for the entitled Leasing Do’s & Don’ts for Pizzeria Tenants.

THE 2013 CANADIAN PIZZA SHOW

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OCTOBER 29, 2013 • INTERNATIONAL CENTRE, TORONTO PLATINUM

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HERE’S WHAT SOME OF OUR ATTENDEES HAD TO SAY ABOUT OUR 1ST EVER PIZZA SHOW IN 2012: “Great event very informative, awesome speakers, lots of great food, I met some very nice people and can’t wait to attend next year!” Sukh – Pizza Depot, Guelph

“It was very informative, inspiring and confirmed other pizzeria owners have the same ideas as us. Lots of what we learned we have thought of, just now we know we need to ACT. The experience was just overall great!” Josh & Rhonda Schlueter – Lotamecheese Pizzeria, Cambridge

SHO

“Thank you for all your hard work and we will most definitely attend another ‘Canadian Pizza show’ again.” Sue and Dave Lanktree – Pizza Junction, Kitchener

feature

Rick Nixon checks his pizza over before serving it to the judges of the international Pizza competition at Pizza Expo in las vegas.

Managing the menu In a saturated market, Itza Pizzeria and Ristorante keeps things fresh to stand out from the crowd BY SteFANIe WALLACe

aying the town of Nelson, B.C., has lots of dining options is an understatement. With a population of approximately 10,000 people, Nelson has a restaurant for every 250 people, giving diners lots of choices. Beyond this, on any given day, there are 13 places to eat pizza in the town. So for Rick Nixon, chef and co-owner of Itza Ristorante and Pizzeria, finding a way to stand out in a saturated market is challenging but necessary. Nixon recently made a name for himself as the runner-up in our Chef of the Year contest, sponsored by Saputo Foodservice and Moretti Forni (distributed by Euro-Milan). In between competing in the traditional finals at the International Pizza Competition and circling the show floor at Pizza Expo in Las Vegas in March, Nixon sat down to chat with Canadian Pizza about how his pizza, sources of inspiration and menu development strategies set him apart. Rick, youR PizzA cRuST iS AMERicAN STylE. Why DiD you chooSE To STick WiTh ThiS? I have always wanted to try to cook wood-fired pizza, but we don’t have the space for it right now in our kitchen. But for me, the crust is definitely the best part of the pizza. That’s

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where the texture begins and ends. When you take a bite of a pizza, the first thing that touches your tongue is the crust. If you don’t have that flavour or texture right away, you’ll already have a sour impression. The feel of it is important too. We eat with our eyes, nose and mouth, but with a piece of pizza, you’re eating it out of your hands first. What’s the feel of it? Is it sloppy and greasy on my hands? Can I hold it all together, or do I have to fold it? The crust is the most important part. you coMPETED iN ThE TRADiTioNAl cATEgoRy of ThE iNTERNATioNAl PizzA chAllENgE, AND oNly TWo ToPPiNgS coulD BE uSED. WhAT DiD you chooSE To ToP youR PizzA WiTh? I used our traditional crust and sauce, and I went with a sausage and pepper pizza. The cheese blend is a garlic-infused Italian mascarpone, partly skim mozzarella, full-fat edam, and I shaved Grana Padano on top. I did sausage two ways: a buffalo apple and rosemary sausage and a veal and red wine sausage. The peppers were done four ways: fresh green bells, roasted reds, roasted poblanos and pickled bananas. I made a little mélange out of the peppers and poured it over top.

Do you PREfER WoRkiNg ThiS WAy, WiTh oNly A fEW ToPPiNgS oN A PizzA, oR Do you uSuAlly loAD youR PizzAS uP WiTh SEvERAl ToPPiNgS? For the most part, the simple, two- or three-topping pizzas are what everybody loves at the restaurant. Personally, I’m a cheese pizza fan – I love just plain cheese pizza! I rarely ever eat a loaded pizza. Too many toppings can be too much – it almost turns into a stir-fry when there are too many things going on! But the Harvest Pizza is the exception to that rule as it has lots of toppings. The Harvest Pizza is the pie that won you second place in our Chef of the Year contest, and is topped with basil and walnut pesto, sundried tomatoes, baby spinach, royal gala apples, smoked gruyere cheese, slow roasted red peppers and pickled capers. Where did you come up with that combination? We make our own pastas by hand, and one of our prep cooks had all of the fillings of a spinach tortellini left. Instead of making a whole new batch of dough, we decided to put it on a pizza and it tasted really good! I took that and went with it. I added spinach and capers and tried a couple different combinations. We all tried it and we knew it was the one. iS iT A REgulAR iTEM oN youR MENu, oR SoMEThiNg you cREATED foR ThE coNTEST? It’s a feature on our menu because we redo our menus every fall, and this happened just after we changed the menu. We have everything prepped for it all the time because everybody in town knows about it now, and lately it’s been the most popular pizza on our menu. Without any advertising, we still get a few orders for it daily. The locals love it. They’re surprised to have apples and capers on pizza! REvAMPiNg youR MENu EvERy fAll MuST BE quiTE AN uNDERTAkiNg! WhAT’S iNvolvED iN ThE PRocESS? We try to keep things as simple as possible. Half our menu is pizza and calzones, and the other half is pasta, soups and salads, starters and a select few secondos. We also add features all the time. Each fall, after the busy summer season, I look through our sales and pick out what menu item isn’t selling, or selling the way I wanted it to. I also look for items where the costs are too high for the amount that we’re selling. I go through the lunch menu, the dinner menu, the dessert menu and the drink menu and remove the bottom sellers from each section. Things that we’re having technical difficulties with – something that logistically doesn’t make sense or is too timely – are also removed. We try features all through the year, and our best-selling feature in each section gets added to take the place of what we’ve removed. It’s a lot of work in the kitchen. There’s always a dish that, for some reason, just doesn’t work. I get constant feedback from my servers and lots of customer feedback too. Something might be selling, but if its popularity isn’t consistent I take that into consideration. Any criticism is good criticism. Sometimes it’s tough to take, but it makes us better because you can’t take a bite out of every single dish every time it’s served.

So iT WAS A lucky EXPERiMENT! WhERE Do you DRAW iNSPiRATioN fRoM foR oThER PizzAS AND DiShES? It’s all experimentation and taste testing. I can look at four or five different items and know exactly how they taste just by looking at them. That takes a lot of work out of it – I’m already half-done by the time I am plating things. From there, we just adjust the flavours where necessary. WhEN you AREN’T EATiNg PizzA, WhAT Do you NoSh oN? Everything else that goes on pizza! Just kidding. I love salads and sandwiches. I’ve been cooking for about 20 years and I’ve cooked all types of cuisines, and honestly a good ham and cheese sandwich and a nice, fresh salad, is great. But pizza’s the ultimate food. It’s something you can hold in your hands to enjoy. It’s so versatile: it can have all the food groups, it can be healthy, it can be greasy, and it can be indulgent. You can have it any way you want it. • Editor’s note: This interview has been edited and condensed.

for more on the prep table, visit www.canadianpizzamag.com

he taste of

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JUNE 2013 pizza 19

feature

Digestible dough Here are the secrets to my traditional Italian dough designed to be easily digestible for your customers BY NAtANeAL GAMMArOtA great-tasting and easily digestible dough should have a golden crust with caramelized dots produced by a proper cooking time and a fair dose of salt. This is how dough is supposed to look. The inside of the crust’s rise shows that the dough has been well leavened. A thin and even level in the middle arises from a good stretch by hand that is unlike a machine, which can crush the alveoli created by a leavening time of 48 to 72 hours. This allows the heat of the oven to pass through and dehydrates the dough, leaving the exterior crisp but not dry or hard like a cookie. The middle should not be rubbery or elevated. It should be soft because it ought to contrast the crispy crust, and you should be able to see that in every bite. The tomato base and the other different types of base sauces should be distributed with balance. Toppings should also be balanced: neither sticky nor soggy. These are the qualities of a good pizza. I believe that when it comes to a great pizza, 30 per cent is determined by the ingredients, 15 per cent by the ability of the pizza maker and their oven, and more than 50 per cent by the dough. The dough establishes the category of your pizzeria: classic, authentic or gourmet. It creates the style of pizza that you want to do create: Napolitan, Roman, NY, etc. It determines the speed of the process from the formation of the dough portions

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to the stretching and baking. Most importantly, it is the dough that determines if your customers come back more than once in a week, once a month, or in worst-case scenario, not at all. In my pizzeria, Natalino’s Pizza in Ottawa, there are customers that come every day, sometimes twice a day. That happens because we make highly digestible dough. In traditional dough, we find less water, lots of flour, lots of yeast, lots of salt, lots of oil, warm water and little time to rise. In Canada, we have all the ingredients – strong flour, water in abundance and cold weather – to make an adjustment to the traditional dough and promote highly digestible dough for our customers. In order for the dough to be digestible, it should be perfectly leavened so that it won’t keep leavening once it is in the stomach. The more time you leaven, the less yeast is necessary to make the dough rise. When selecting the industrial yeast, there’s the op-

tion of buying it fresh or dry. I always recommend you buy it dry because its strength is more concentrated than the fresh. If you use three grams of fresh yeast, with the dry you will use only one gram. This way, you also have more control over its activation with a process using cold water, a walk-in fridge and 48 to 72 hours of maturation. The long dough maturation gives it more aroma and improves digestibility due to prolongation of the enzymes obtaining a better dough characterized by its little bubbles, or alveoli. This is good news for all those who, after eating a piece of pizza, must bear a bloated stomach, heartburn and fatigue. The concept of digestible dough also bodes well in an industry that is growing its search of healthier choices. To make a highly digestible pizza, we need to create dough with the capacity to resist turning acidic after long hours of leavening. Like yeast, flour selection is an

important part of the process and very often neglected. It should be a mix of flours with a high protein content and strong with a W more than 300. Higher protein content and better quality of the flours provide better leavening results. The protein in the flour not only has a nutritive value, but also is an important element in the transformation of the dough. Some proteins dissolve with water, while gluten stays solid to help form the elasticity of the dough. Strong flour with a high protein content will give gluten of a higher quality and thus we can use more water, because it will absorb up to 90 per cent of its weight. Adding more water helps us eliminate the fat by using less oil (I only use a minimum percentage of extra virgin olive oil), which makes it easy to digest and adds fewer calories. Water also conserves the product and prevents the pizza from drying in the display. Another important element is the salt.

Like water, salt is good for more than one purpose. It works together with the proteins in the flour, helping to form the gluten, giving more compactness and elasticity to the pizza. For example, the acrobatic pizza makers triple the salt quantity in the dough to create a fantastic show without ripping the dough. Finally the salt gives flavour and helps to give the crust colour. Dough without salt will turn out sticky with a very light colour, the flavour of the pizza will be insipid and its crust will be white. In highly digestible dough, you carefully select the flour and the yeast, you change the warm water to cold water, and you allow the yeast to activate in a period of 48 to 72 hours. You don’t add a “secret ingredient.” It’s simply about using less salt and a minimum quantity of extra virgin olive oil. Once the dough is finished, the gluten is completely elastic. Then it’s put into specific hygienic containers, closed and put into a walk-in fridge with a controlled tem-

perature. It’s important not to contaminate the dough and use it before the maturation cycle finishes (72 hours) or the product will become acid. It’s very important that the yeast doesn’t come in direct contact with the salt and that the extra virgin olive oil will be the last ingredient to be put into the dough. That way it helps to finish the formation of the gluten and cover the gas, distributing the carbon dioxide inside the dough. It also gives more perfume and softness to the dough. If you add some fresh basil leaves and buffalo mozzarella after baking, you will surely have an authentic and highly digestible pizza! • Nathan Gammarota is the owner of Natalino’s Pizza in Ottawa, which has brought Pizza in Teglia style Italia pies to the nation’s capital. Gammarota is a former head pizza chef instructor in Italy, and is trained in pizza acrobatics.

for more on the prep table, visit www.canadianpizzamag.com

BP opens 350th location

oston Pizza International got a little larger this week with the opening of its 350th location. The restaurant, located in Devon, Alta., marks the second grand opening in 2013, demonstrating the brand’s continued focus on growth and expansion across Canada. According to Ken Otto, chief operating Officer for Boston Pizza International, the chain expects to see sustained growth throughout the next year with additional restaurants slated for opening in the coming months, including stores in Ellerslie, Alta, Emerald Park, Sask., and Ontario locations in Toronto and Waterloo. “This is a tremendous milestone for Boston Pizza, further positioning us as Canada’s largest casual dining brand,” said Otto in a news release. “Our focus on franchising through a multi-channel strategy is driving the continued growth of the Boston Pizza brand and bringing our great food and inrestaurant experience to Canadians from coast-to-coast.”

Late last year Boston Pizza unveiled new store design concepts, which are currently rolling out across the country as part of the company’s renovation program which requires stores to renovate and incorporate the latest store design features every seven years. Most recently, Boston Pizza in Laval, Que., has been renovated to incorporate many of the brand’s new design elements. “From our diverse menu offerings to

our store’s look and design, we are always striving to give our guests a new and exciting dining experience,” continued Otto. “We have improved the overall interior layout of our restaurants by maximizing the sports bar experience with more TVs and better sightlines while also further enhancing our family-friendly dining room by creating a more intimate dining experience with lowered ceilings, better lighting and upgraded seating.” •

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marketing insights

A taxing issue Get your tax facts straight or risk an audit Michelle Brisebois

veryone realizes that restaurant wait staff will often get much – if not most – of their income from their tips. Traditionally, tips have been left as cash for servers to take home at the end of the night in their pocket. In the past, declaring these tips as income was based largely on the honour system. The taxman had neither the time nor the resources to trace what was untraceable – cash on the barrel. Then along came electronic payments. Debit cards and credit cards meant that gratuities could be more easily traced and therefore accurately taxed. The Canada Revenue Agency (CRA) has estimated that untaxed gratuities represent a massive financial resource for them to tap and it’s starting to go after it. Anyone who thinks the government isn’t serious about wrapping its arms around lost tax revenue can wake up and smell the audit. Government coffers have run dry. The public’s willingness to pay more tax has hit a threshold. The obvious solution is to root out those who are avoiding their tax obligation. Although the entire underground economy and the many wealthy Canadians hiding money offshore are on CRA’s hit list too, gratuities earned and undeclared as income are of great interest. In 2012, CRA decided to test the waters to see if going after undeclared gratuities would be worth its while. It proved to be a much larger gold mine than even the government had guessed it to be. CRA piloted a test project involving a handful of Ontario restaurants. Its estimates that servers were only declaring 50 per cent of their tips proved incorrect – according to CRA, the project indicated servers were declaring only zero to 10 per cent. To CRA’s surprise, the $750 million of undeclared income from tips across the country it had estimated was on

22 pizza JUNE 2013

Electronic payments are traceable and have helped changed the game in terms of how gratuities are tracked.

the table was actually between $2.7 and $6 billion. CRA concluded its pilot project was a resounding success, which means the restaurant industry can expect more scrutiny. Audits and surprise tax bills are bitter pills for serving staff to swallow if they’ve been underreporting their income from tips. Furthermore, restaurants can find themselves owing the employer portion of Employment Insurance (EI) and Canada Pension Plan (CPP) for tips that CRA deems to be “controlled” by the restaurant. If your establishment is dictating to the patron how much to tip (as is often done with autograts for groups of people), it’s considered to be controlled and you must pay the employer’s portion of EI and CPP on those tips. If your establishment dictates how tips are pooled and shared

among the staff, then tips are also considered to be controlled. To have a direct tipping system, it’s best to allow the patron to decided how much to tip, let the staff decide how to pool and share the tips and get those gratuities into the hands of the employees as soon as possible after their shift. According to the Canadian Restaurant and Foodservices Association, “Direct tips do not form part of earnings from employment and are not subject to source deductions or payroll taxes (including EI and CPP). However, employees are still required to report these tips as income when they file their personal income taxes. If servers are required to pool some of their tips, servers would declare the tips they collect from customers minus the amount that they pay into the pool.” Once a tip is considered direct, the onus is on the

Five ways to meet Canada Revenue Agency audit requirements 1. Keep adequate electronic and paper records and make them available to the auditor along with supporting documentation. You are required by law to keep your records in a readable form for at least six years. 2. Don’t be tempted to use a zapper to delete or modify sales transactions, because eventually you will get caught. Once the vendor who sold you the zapper, or the consultant who services the zapper is caught, the tax authorities will quickly gain access to the vendor’s customer lists and you will be subjected to a comprehensive audit.Auditors will do an analysis of your business using a variety of metrics (for example, margin percentages on food and alcohol, percentage of cash sales, labour and supply costs in relation to sales comparisons with industry standards) to determine whether your numbers make sense. 3. Make sure you account for all cash sales. Cash should be deposited as soon as possible into a bank account after receipt, and cash not deposited should be accounted for with proper disbursement records and receipts. Paying staff in cash instead of going through your payroll system,

or paying vendors in cash without receipts, creates accomplices, which will increase your chances of getting caught. 4. Ensure that every paper receipt you issue can be matched to a guest cheque in your POS system. Auditors have been known to visit restaurants that they plan to audit and pay for their meal in cash. If they cannot find an identical POS receipt to match their guest cheque when they do their audit, they will have evidence of tax evasion. 5. Treat tips that you control as wages. CRA defines two kinds of tips: those controlled by employers and direct tips that go right to employees. Direct tips are considered income, not wages, and no source deductions are made. Controlled tips (service charges added to the bill or when servers are required to contribute a portion of their tips to an employer-run pool) form part of earnings from employment. You are required to make source deductions for income tax, Employment Insurance and Canada Pension Plan purposes, and this income must be included on employees’ T4 forms. Source: Canadian Restaurant and Foodservices Association

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marketing insights employee to declare an appropriate amount. What employees consider to be appropriate however, is an important point to discuss. Your new recruits will often come to you with little or no experience concerning financial management. As Garth Whyte, president of the CRFA, points out, “The restaurant industry is the number 1 first employer.” More experienced employees will advise the new staff on everything from how to set a table to how much of their tips to declare. Servers often believe it’s OK to declare only 10 per cent of their tips on their tax returns. I recall asking a friend who worked as a waitress years ago what she would say if CRA ever questioned how little she made in tips, according to her tax return. “I’ll just tell them I’m a lousy waitress,” isn’t something the CRA will accept anymore: the proof is in the paper trail. The first thing your employees need to understand is that all income is taxable and tips are income. They are required by law to report all of it. If it’s assumed that CRA can’t determine what someone’s really making, understand that CRA has many tools at its disposal to gauge what’s really going on. If someone declares that they make $25,000 per year, yet own two properties and drive a new sports car, CRA can conduct a lifestyle audit to see if everything adds up.

24 pizza JUNE 2013

The penalties of not reporting are pretty stiff. They start at 10 per cent of the amount that was not reported, plus interest. A “repeated failure to report income” penalty, totalling 20 per cent of the amount not reported, can also be handed out if one doesn’t report income twice or more within a four-year period. If the charge is giving a false statement, the offender can receive a penalty of up to 50 per cent of the understatement of tax. Most serious of all, tax evasion is an offence that could incur prison time. The restaurant industry is one based on fun, warmth and delightful sensory experiences. A messy tangle with CRA can be devastating to team morale. Keep your business and your employees safe from financial stress by understanding and clarifying the rules of engagement, for as Benjamin Franklin said in 1789, “In this world nothing can be said to be certain, except death and taxes.” • Michelle Brisebois is a marketing professional with experience in the food, pharmaceutical, financial services and wine industries. She specializes in retail brand strategies.

for more on the prep table, visit www.canadianpizzamag.com

feature

Getting the advice you really need Why setting up an advisory board makes business sense BY BeCkIe SCArrOW, DIreCtOr SMe uNDerWrItING, rSA

ntrepreneurs and owners of small to mid-sized businesses value their independence. It’s the reason so many people set off on their own to begin with. Although this independence is exciting and empowering, it doesn’t mean small businesses should always “go it alone.” In fact, this approach can actually be detrimental. A joint study by RSA, a small business insurer, and Queen’s School of Business reveals that many small businesses are missing out on valuable and strategic counsel. Such strategic counsel can come in the form of an advisory board. Contrary to what many business owners may think, creating an advisory board doesn’t have to be a formal and time-consuming process. It can be as simple as meeting with your top suppliers every quarter to “talk shop.”

Chances are, your suppliers are also in touch with your competitors and can inform you of what key trends are emerging in the pizza industry. You can also plan a coffee date with your lawyer or insurance advisor to find out what options are available to you as your business grows or changes; this will also help you stay updated on trends and gain competitive intelligence. An informal advisory board is a cost-effective way to gain insight and is as easy as tapping into the often underutilized resources your already have access to. A conversation with a trusted insurance advisor, for instance, can alleviate some of the stress and worry running a business causes from time to time, and can even prevent major headaches down the road. For example, a general property policy

covers only damage to machinery by an insured peril; however, every business is in danger of having its work interrupted by a breakdown of its critical equipment. If one or more of your pizza ovens breaks down, it usually means a loss of profits. Anytime a business operates very specific and expensive equipment such as dough mixers, sheeters, rollers or wrapping/ packaging machines, it should consider having equipment breakdown insurance (EBI). This policy provides coverage for the cost to repair/replace objects such as refrigeration units (fridges, freezers) and production machinery damaged by a sudden and accidental failure, the loss of business income, and the extra expense incurred to resume business. The potential impact of a major loss to an operation’s equipment could be more far-reaching than one might expect – it could impact

JUNE 2013 pizza 25

feature a company’s ability to retain current and future customers. When looking for an advisor in any field, small business owners should keep the following in mind: • Qualifications: Ensure your advisor has the appropriate qualifications. This could include an insurance broker licence, a lawyer’s or accountant’s professional degree, a university degree in the area of expertise, or some other professional training relative to the area of work. • References from other small business owners/managers: Talking to others will help you understand an advisor’s approach and style to make sure they fit with yours. • Expertise: Factors such as the degree of expertise, the number of years’ experience as an advisor, and the percentage of time spent practising in that area are critically important. In addition to advisors, below are some

26 pizza JUNE 2013

other important considerations for small businesses to help mitigate risk: Commercial general liability: Make sure you consider what amount of liability coverage you need for both your business and your operations. If, for example, a customer suffers a serious injury on your property and sues, and you don’t have enough coverage, you could end up paying out of pocket. In some cases this could result in a significant financial loss and risk to your business. Business interruption: This coverage is designed to provide protection for loss of earnings and necessary continuing operating expenses following material damages from events such as a fire or water damage from a pipe burst. In other words, it will provide you with support when your business is temporarily unable to operate as it normally does. Property coverage: It’s extremely important that small business owners have coverage in place to protect their stock

and equipment, and the building itself if they own it. Loss control benefits: Taking proactive steps to protect your property is one of the most important things you can do to mitigate risk. For example, if you install an alarm system, you may prevent or significantly reduce the financial impact of a fire or a burglary. Installing an alarm may also reduce the cost of your insurance as you may qualify for an alarm discount – this discount may offset the cost of installing the alarm system. Protecting your business means investing in future growth. Finding the right advisor and leveraging that person’s expertise can help you develop strategies for growth while identifying and minimizing risk to the business you work so hard to build. Beckie Scarrow is the director, SME Underwriting, for RSA. • for more on the prep table, visit www.canadianpizzamag.com

Restaurant top mobile search: study

ccording to the latest study from ExoLevel and research firm Intouch Media, restaurants are the most searched industry by consumers through both mobile applications and browsers. The American study, compiled through the feedback from 3,823 consumers who own a smartphone, found that 82 per cent of consumers have searched for a restaurant on a mobile app and 91 per cent through a web browser in the last six months, outperforming other highly searched industries, such as entertainment, retail outlets, hotels, and personal services. Further, 75 per cent say they often choose a restaurant to dine at based on those search results. “The results of this survey clearly indicate the need for restaurants to ensure that their menu information is up to date

across all online platforms,” said Tom Bell, vice president of SEO Search Engine Optimization for ExoLevel in a news release. Key findings include: 1. 81 per cent of consumers have searched for a restaurant on a mobile app in the last 6 months 2. 92 per cent of consumers have searched for a restaurant on a web browser in the last 6 months 3. 75 per cent of consumers often choose a restaurant to dine at based on search results 4. iPhone owners are more likely to search for a restaurant than other smart phone owners 5. 80 per cent of consumers think it’s important to see a menu before they dine at a restaurant 6. 84 per cent of consumers are likely to

Put Your

look at more than one restaurant before choosing where to dine 7. 70 per cent of consumers think it is important to be able to read the menu of a restaurant on a mobile device 8. 62 per cent of consumers are less likely to choose a restaurant if they can’t read the menu on a mobile device 9. Less then 20 per cent of restaurant websites are optimized to take full advantage of mobile and search engine traffic. “Eighty-five per cent of smartphone owners look at more than one online menu when they are making a dining decision. Moreover, 61 per cent are less likely to choose a restaurant if they can’t read the menu on their mobile device,” said Joe Chives, vice president of marketing for Intouch Media in a news release. •

2012 Winner Wayne Rempel

on our cover ARE YOU MAKING A DIFFERENCE IN YOUR COMMUNITY? Nominate your pizzeria for the Pizza with Purpose Award sponsored by Saputo Foodservice and share the spirit of generosity with your fellow pizzaiolos. We want to hear about your fundraising, sponsorship, participation in community events and creative contributions. Activities can be local or national in scope. The winner won’t be determined just on an amount of money raised, but on all the ways, big and small, that your pizzeria is touching lives.

The Pizza with Purpose award sponsored by

Pizza_Purpose_Saputo june 13.indd 1

Enter online at www.canadianpizzamag.com or e-mail: laiken@annexweb.com

JUNE 2013 pizza 27 13-05-10 11:56 AM

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Annex Bookstore ................................................................... 29 Burke Corporation ................................................................. 11 Canadian Pizza Show ............................................................ 17 Canadian Restaurant and Foodservices Association .......... 26 Check Corporation/Hot Bag .................................................. 29 Diana’s Gourmet Pizzeria ...................................................... 29 Dutchess Bakers Machines................................................... 28 G. Schafer .............................................................................. 28 JL International ...................................................................... 29 Middleby/Escan Distribution.................................................. 15 On Trend Brand Strategies .................................................... 28 Pizza Chef Contest .................................................................. 7 Pizza with A Purpose............................................................. 27 Ricco Food Distributor ........................................................... 24 Salerno Cheese ..................................................................... 19 Saputo Dairy Products .......................................................... 32 Speedline Solutions ............................................................... 28 Springer Meats....................................................................... 24 Stanislaus ..........................................................................4 & 5 Thunderbird............................................................................ 23 Viau .......................................................................................... 2 Xlt Ovens................................................................................ 31

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28 pizza JUNE 2013

MARKETING

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JUNE 201313-05-01 pizza9:50 29 AM

pizza on fire

Securing your store Take precautionary measures to keep your pizzeria safe Tom Stankiewicz

s business owners, we hope that we never have to deal with robbery or vandalism at our pizzerias. Unfortunately, the problem does exist and different media outlets frequently report it. Recently, my pizzeria experienced an unfortunate incident of vandalism, so I thought it would be a good idea to review what a successful security system should incorporate. In my case, a few of the store’s front windows were broken. I can definitely understand why those who have been faced with this feel angry and frustrated. Right away, the first question that comes to mind is, “Why did this happen?” You wonder if the attack of vandalism was random, or if it was deliberate. Naturally, you review every negative customer interaction you had over the last few weeks, thinking that maybe it’s somehow related. Fortunately for us, this was quickly ruled out, as the business next to us also had windows broken. On one hand, I felt a sense of relief in that the robbery wasn’t personal, but it didn’t change the fact that this incident created a great inconvenience for us. The visible damage to the windows prompted customers to ask about what had happened. As a business owner, you don’t want customers to associate your pizzeria with anything negative. You want them to feel safe and comfortable every time they come in to pick up their order. The explanations and conversations with the customers were part of this process until the fix was completed. This incident added unexpected costs to our monthly expenses. Once our insurance company was notified about this situation, we realized that it would be less costly for us to pay for the repairs ourselves than to submit an insurance claim. Our insurance

30 pizza JUNE 2013

Broken windows cost more to replace than our insurance deductible.

deductibles are $1,000, but the windows cost $1,400 to replace. It also triggered a careful reassessment of our existing security system and I recognized that a few improvements needed to be made right away. Upon review of our security cameras, it became clear that the individual who vandalized our store came when the visibility around the building was very low. Consequently, we reprogrammed the timers for the outside lights and the parking lot lights to shut off automatically at dawn. This ensures that the area around the pizzeria has proper lighting for a longer period of time and, in turn, deters potential vandalism. We made a second adjustment to the alarm system itself. Our windows have two layers of glass, and the vandal was able to break through only the first layer. We adjusted the alarm sensors, so the alarm will go off as soon as the first layer of glass is broken. This is definitely something that we didn’t pay much attention to when the alarm was first installed. I would recommend double-checking the setup of your alarm systems to make certain they will work properly if needed. Additionally, we changed slightly the angle of the cameras to allow for a better view

of the person’s face. Initially, we thought we had it set up perfectly, but when we looked at it closely, the images were too blurry and dark to identify anybody. As a test, you might want to examine images from your recordings at various times during the day. This would give you a good idea of the quality of images your current setup would produce. Video cameras are a useful part of the security system, but they should be used in combination with other measures. One way of increasing your security would be to ensure there are no dense bushes or trees near your business. Trim them often so the visibility increases, making it more difficult for somebody to hide behind them. For extra security, it can also be a good idea to ask others to park their vehicles around your pizza store at night. This suggestion might work well for taxi drivers or even police officers, who, at some point, will need to stop to complete their paperwork. After a serious incident like this, it is really important to review the security or robbery prevention procedures with your employees. I would recommend a refresher course to ensure everyone understands what to do if an incident happens during their shift. It is also a perfect time to remind the closing staff to pay attention to their surroundings at all times. They should feel comfortable reporting any suspicious activity, people or vehicles. Your security system is only as good as you make it. It is your responsibility to make sure it works properly and provides you with the necessary details to help identify the criminals. •

Tom Stankiewicz has been in the pizza business for more than 15 years. He has been the proprietor of Bondi’s Pizza in London, Ont., since 2000, and is president of the Canadian Pizza Team.

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