Pizza Pizza
Cover story
Author :
Client
As a restaurant, pizza maker, employer, business partner and caring company, Pizza Pizza delivers. The Pizza Pizza network including Pizza73 is composed of more than 600 traditional and non traditional restaurants coast to coast with over 3,000 employees. We provide a flavourful, varied and high-quality menu to Canadians of all ages and tastes. As a result, our organization has become a leader in the quick service segment of the Canadian foodservice industry and one of the top pizza restaurant chains in the country.
Always the best food, made especially for you
Our pledge - "Always the best food, made especially for you" - is paramount in everything we do. It’s our assurance to our customer that we value the quality of the service, product and experience we offer, in addition to the freshness of our ingredients.
With a growing menu selection and restaurant network, Pizza Pizza continues to serve Canadians on the go who are not willing to sacrifice taste for quality and balanced options. In the last year alone, Pizza Pizza has fulfilled more than 28 million orders and participated in events attended by more than 15 million people.
Overview
Pizza Pizza Limited (referred to as the “Company”, “Pizza Pizza”, “PPL”, or in the first person notations of “we,” “us” and “our”), founded in Toronto in 1967, has grown to become Ontario’s number one pizza restaurant chain, fulfilling over 28 million customer orders annually. On July 24, 2007 Pizza Pizza purchased 100% of the outstanding shares of Pizza 73 Inc, and as a result, added 48 new Pizza 73 restaurants to the company. See "Acquisition of Pizza 73" for details of the transaction. At September 30, 2008, Pizza Pizza had 637 restaurants in its system, comprised of 432 traditional format restaurants and 205 non-traditional format restaurants located across Canada. Over its 40 year history, Pizza Pizza has established a strong brand name and reputation as the leader in Ontario in the pizza component of the quick service restaurant (‘‘QSR’’) segment. Recently Pizza Pizza has adopted strategies to reposition itself as a ‘‘restaurant with delivery’’, highlighting its food quality, menu choices and eat-in dining opportunities. Consistent with these strategies, Pizza Pizza’s sales mix, measured by revenue, has evolved from 90% delivery and 10% take-out in the mid-1980s to the current mix of 60% delivery and 40% eat-in and take-out. For the 52 weeks ended December 30, 2007, System Sales were in excess of $380 million. (System sales of 52 weeks are reported for comparability).
Pizza Pizza is a franchise-driven restaurant company. Of the 637 restaurants, 567 are Pizza Pizza branded and 70 are Pizza 73 branded restaurants. The Pizza Pizza restaurants are comprised of 369 traditional and 198 non-traditional restaurants. Pizza Pizza provides a high level of services and operational support to its franchisees, including turn-key restaurants, a central food distribution centre (the ‘‘Commissary’’) which provides all food and non-food items used in restaurant operations, and monitoring systems intended to ensure high product and service quality and operational consistency across the chain. Pizza Pizza has a modern restaurant system, with approximately 99% of our restaurants either new or substantially renovated in the past five years. Our centrally managed renovation or re-imaging program, funded by our franchisees, has added significantly to same restaurant sales growth capacity and allows for the continuous renewal of the Pizza Pizza concept.
Pizza Pizza has an established track record of innovation in the QSR segment and has adopted new technologies to support its take-out and delivery business. Pizza Pizza enjoys strong brand awareness in the QSR market with a memorable phone number (967-11-11 in the Greater Toronto Area) and accompanying jingle, featured prominently in our marketing campaigns. We were the first take-out and delivery restaurant chain in Canada to develop a one-number ordering system and computerize our call centres; we now offer internet ordering capabilities. Pizza Pizza is also a menu innovator, focusing on food quality and responding to consumer trends with product offerings such as multi-grain and trans fat-free dough.
The focus of the Pizza Pizza business continues to be our traditional format restaurants, which represented approximately 90% of System Sales for the 52 weeks ended December 30, 2007. Traditional restaurants are typically located in high traffic and high visibility areas and offer the full Pizza Pizza menu. The majority of renovated traditional restaurants provide seating for, on average, approximately 25 customers. Pizza Pizza also licenses non-traditional restaurants that serve a more limited menu and are targeted to ‘‘captured traffic’’ locations such as sports arenas and entertainment venues, food courts, universities and other institutional settings — including Paramount Canada’s Wonderland, the Air Canada Centre and cafeterias at the University of Alberta, the University of British Columbia and Dalhousie University. Non-traditional restaurants complement Pizza Pizza’s market penetration strategy, by building brand awareness and exposure while generating additional sales.
Sources of revenue
Pizza Pizza derives revenues from the following sources:
• Franchise Fees. Pizza Pizza collects an ongoing franchise fee from each Pizza Pizza franchisee. For traditional restaurants, the franchise fee varies depending upon the level of sales and is typically 6.0% of net sales, paid on a weekly basis. For non-traditional restaurants, the franchise fee averages approximately 5.1% of net sales. The weighted average franchise fee, including both traditional and non-traditional restaurants, was approximately 5.7% in fiscal 2007.
• Sales of Goods and Supplies. Pizza Pizza franchisees are required to purchase from Pizza Pizza all of the raw materials and supplies used and sold in their restaurants. These materials and supplies are sold by Pizza Pizza through the Commissary and Pizza Pizza is entitled to mark-up such sales by up to 18% of its costs. For the 52 weeks ended December 30, 2007, the mark-up averaged less than 18%. Pizza Pizza also earns revenue on company store sales.
• Initial and Renewal Franchise Fees. Pizza Pizza charges an initial franchise fee at the commencement of the initial term of the franchise agreement, and upon the renewal of such an agreement (typically after five years). The initial franchise fee is $30,000 per Pizza Pizza franchise and is payable in full at the commencement of the agreement. The renewal fee charged by Pizza Pizza to franchisees upon renewal of their franchise agreement is currently $7,500 (25% of the then-current initial franchise fee).
• Other Fees. Pizza Pizza charges franchisees fees for the transfer of a franchise, a 3% administration fee to Pizza 73 restaurants and providing plans and specifications for restaurant design and renovation.
Our competitive strengths
We believe that the success of the Pizza Pizza concept, and the consistent increases in same restaurant sales and System Sales over the past ten years, are driven by the following factors:
• Strong brand recognition. Pizza Pizza is a well known brand in its principal markets due in part to our memorable phone number (967-11-11 in the Greater Toronto Area) and accompanying jingle.
• Number one market position in Ontario. In 2008, Pizza Pizza announced market share grown reaching new heights in Ontario topping 50%. From a dollar standpoint and 52% in total traffic; well ahead of US-based companies and other competitors"
• An extensive and modern restaurant system. Approximately 98% of the traditional Pizza Pizza restaurants are either new or substantially renovated in the past five years. Pizza Pizza franchisees are obligated to renovate their restaurants and to contribute on an ongoing basis to a renovation fund.
• A proven track record of innovation. Since its inception, Pizza Pizza has adopted many innovative concepts including the one-number telephone ordering system, networked call centres, delivery guarantees, the monitoring of restaurants through a live web-feed.
• Centralized management and controls. Management oversees key aspects of the Pizza Pizza restaurant business allowing franchisees to focus on revenue-generating activities. Pizza Pizza also devotes substantial resources to franchisee support, training programs, product supply and quality initiatives.
• A strong committed management team. The seven members of senior management have an average of 20 years’ experience with Pizza Pizza.
• A history of stability of the franchise system. Pizza Pizza maintains a low closure rate throughout its restaurant chain; as of December 30, 2007, 14 traditional and 29 non-traditional restaurants had been permanently closed since 2000, whereas total restaurants increased from 413 to 559 during that same period.
Our business strategy
Growth
Pizza Pizza is well positioned to continue to build presence in the Canadian pizza QSR segment. Consistent with our experience over the past decade, future growth is expected to come from a combination of same restaurant sales growth and new restaurant growth. The necessary conditions, such as system capacity and customer demand, exist to continue the level of growth achieved over recent years. We also believe that Pizza Pizza’s brand recognition, combined with the strength of the franchise system, will provide additional opportunities for growth in new markets across Canada. This growth strategy, if successfully realized, will have a positive effect on System Sales.
Pizza Pizza’s renovation/image campaign
Pizza Pizza franchisees are obligated to renovate or re-image their restaurants and to contribute on an ongoing basis to a renovation fund. We have implemented a re-imaging campaign aimed at increasing retail sales and market share through improved brand visibility. This campaign involves relocating selected restaurants, upgrading restaurants’ interiors, adding cooking capacity, adding new signs to draw attention to the restaurants and providing more contemporary uniforms for restaurant employees. If a restaurant is already in a desirable location, the signs and interiors are updated as needed. As of December 30, 2007, approximately 98% of our restaurants had been re-imaged or relocated as part of this campaign. We plan to complete this campaign in 2008.
Marketing operations
Pizza Pizza’s innovative marketing programs are supported by franchisee and operator contributions to a marketing fund that is administered by Pizza Pizza. In accordance with their franchise agreements or unanimous shareholder agreement each traditional Pizza Pizza restaurant contributes approximately 6% of net sales (in addition to the base royalty and other franchise fees) and each Pizza 73 restaurant contributes 8% of net sales. The marketing fund is used to pay for the production of advertising and promotional material and media purchases. Pizza Pizza seeks to develop and execute marketing programs that appeal to its customers by differentiating Pizza Pizza from its competitors, thereby attracting new customers, building customer loyalty and increasing frequency of visits. With a substantial restaurant presence in Ontario, we support the Pizza Pizza brand primarily with radio and print advertising such as flyers, as well as billboards at major venues such as Toronto’s Air Canada Centre and Ottawa's Scotia Bank Place. For the 52 weeks ended December 30, 2007, Pizza Pizza spent approximately $30 million on its promotional and advertising programs. Advertising funds are also directed towards the development of other materials, such as point of purchase promotions and coupons. Sales promotions and contests, coupons and special discounts, cross promotions with strategic partners and limited-time menu offerings are also used to stimulate purchases and introduce new products. In addition, the marketing fund supports local hockey teams, special events, public service programs and over 1,000 charitable fundraising events in local markets.
To Consumers
“Always the best food, made especially for you.”
Pizza Pizza offers consumers a variety of food choices with absolutely no compromise when it comes to quality, freshness and taste.
Pizza Pizza Training Center – a state-of-the-art training facility unique in Canada – a team of culinary experts, nutritionists and product developers work with partners in the development of recipes and innovations to ensure customers enjoy the best possible product.
• Variety of classic to exotic signature pizzas.
• Trans fat-free traditional crust to whole wheat multigrain dough.
• Menu variety from the choicest chicken to the freshest salads, the Pizza Pizza menu offers a sensible, nutritious choice for any meal.
• Gluten free dough now offered chain wide.
To Franchise Partners
“Our Goal is Your Success!”
Pizza Pizza is committed to the entrepreneurial spirit.
Entrepreneurs interested in joining our winning team are supported by quality programs and a brand that is reputable and highly recognizable.
With Pizza Pizza, rest assured the infrastructure is well in place to help you succeed.
For more information, read franchising.
To Investors
“Working Together to Make More Dough”
In July 2005, Canadian investors were invited to join the Pizza Pizza team through the introduction of the Pizza Pizza Royalty Fund, an income trust publicly traded on the Toronto Stock Exchange under the symbol PZA.UN.
In July 2007, Pizza Pizza Royalty Income Fund issued an additional 2.6 million units to fund the acquisition of the Pizza 73 Rights and Marks.
For more information, visit Pizza Pizza Royalty Income Fund at www.pizzapizza.ca
CULTURE
The base of Pizza Pizza’s success rests on a foundation of shared attitudes, beliefs, values and goals among its talented network of employees.
Thanks to a culture that is open, respectful, compassionate, performance-driven and socially responsible, the Pizza Pizza family continues to grow, satisfying more and more Canadians every day.
History of the enterprise
Who Invented the Pizza?
For centuries cultures throughout the world have been serving a variety of ingredients on flat buns, pies or the like.
Thanks to numerous developments, cultural and social trends, the pizza has become a beloved and indispensable part of our popular culture, transcending borders, tastes and budgets.
The North American pizza market is relatively young. It was established by pioneers such as Gennaro Lombardi, who is commonly credited with having established the first licensed pizzeria in 1905 in New York City.
Pizza Pizza's story begins on December 1967, in a 300 square foot restaurant owned and operated by founder Michael Overs and supported by a small team of pizza lovers.
In 40 years, the world has drastically changed. What hasn't changed is Pizza Pizza's ability to meet changing customer needs.
Pizza Pizza Through the Years
Year Pizza Pizza
2008 Pizza Pizza introduces 10" Panzerotti and Bone In Chicken to the Menu
2007 Pizza Pizza launches the Slices for Smiles Fund
2007 Pizza Pizza acquires the successful Alberta based Pizza chain Pizza 73.
2005 Pizza Pizza launches Pizza Pizza Royalty Income Fund (PZA.UN; TSX:)
2005 Pizza Pizza introduces twin chain Chicken Chicken restaurants
2004/05 Pizza Pizza becomes one of the first QSR operators to eliminate trans fats from its pizza dough, fries and hot apple pies
2000 Pizza Pizza introduces a bright new look to its restaurants and expands seating
1980 Pizza Pizza grows its restaurant network through Ontario and into Quebec
1979 Pizza Pizza designs first computerized order taking system and central phone centre
1978 Pizza Pizza sets its rhythmic telephone number to a catchy jingle
1975 Introduction of famous 11-11 phone number
1967 Pizza Pizza introduces the one number system
1967 Pizza Pizza works with a car upholsterer to create the world's first insulated pizza delivery bag
1967 First restaurant opens to Canadian customers
FRANCHISING
Are you looking for a chance to operate your own business while enjoying the security of an established brand and product? Pizza Pizza offers you the best of both worlds and the financial security to build your future and success. We have over 500 locations across Canada, operated by professionals who share the same core values that have made Pizza Pizza one of the most successful pizza chains in the country.
Pizza Pizza Opportunities
Consider What Canada's Most Successful Pizza Chain Has To Offer You:
The opportunity to operate your own business under the umbrella of Canada's most dynamic pizza company.
• An investment in your future
• One number ordering centre
• Highly developed retail marketing plans
• Effective and coordinated advertising: most recognized jingles and phone numbers
• Streamlined central supply source
• Comprehensive training program: theoretical, practical and on-site
• Knowledgeable field support team
• Site selection and lease negotiation.
Location & Design
• Seasoned professionals source, secure and manage the best possible locations for your restaurant
• Award-winning exterior designs and family-friendly interiors ensure a pleasant experience for customers and staff alike.
Training at Pizza Pizza Training Center
• Pizza Pizza Training Center is an industry leader in entrepreneurial training and restaurant management
• Includes theoretical classroom lectures on financial management, customer service and practical experience in the cooking skills necessary to prepare all of the menu items
• Modern facility with large classrooms and working kitchen
• Ongoing professional development seminars
• Trains more than 3,000 students every year
Operational Support
• District Sales Managers partner with you to help achieve maximum sales and profitability
• Assistance in maintaining the high standards of quality, service, cleanliness and value that have been established at Pizza Pizza
Distribution Centre
• State-of-the-art distribution centre ships over 1,000 tons of product each week
• One stop shopping means everything you need to operate your business is readily available
• Regularly-scheduled deliveries per week ensures a fresh supply of products
Marketing & Promotions
• Unique marketing and promotion campaigns drive customers to restaurants, encourage trial of new products and increasing overall sales
• Marketing and promotion through traditional (print, radio, billboards, flyers) and non-traditional outlets (phone books, parking receipts, cell phone messaging) ensuring targeted message to specific groups
Product Development
• Ongoing research and development of new products such as our Healthy Lifestyles lighter options menus
• Dedicated chefs, nutritionists and other experts constantly respond to changing consumer tastes
Technology
• Call Centres equipped with computerized phone and order processing systems
• One number order desk through live agent, online or Interactive Voice Response
• Point-of-sale systems minimize administrative functions while providing detailed sales tracking and data analysis
FAQ (Frequently Asked Questions (FAQs)
We hope that the information provided on this site provides you valuable guidance to help make the important decision to become a Pizza Pizza Franchise Partner. Below are some of our most Frequently Asked Questions.
1. I have no restaurant industry experience. Does Pizza Pizza provide training?
We offer a comprehensive training program at our highly-acclaimed Pizza Pizza Training Center. The curriculum includes entrepreneurial training, general management and operation of your restaurant, customer service, financial management and the cooking skills necessary to prepare all of our menu items. Your most important asset is to be flexible and able to align with the organizational, operational and marketing direction of Pizza Pizza. Prior restaurant experience is not necessary.
2. I've done some research regarding franchise fees and what you get for your money. Support services are very important. How much is the Pizza Pizza Franchise Fee and what does the fee buy?
Our franchise fee is $30,000. The franchise fee secures the right to own and operate a Pizza Pizza franchise in a given territory and the use of the Pizza Pizza trademarks, trade name, recipes and retail marketing plan. Pizza Pizza also provides:
• Site selection, lease negotiation
• Assistance from franchise operations experts both before and after the opening of your restaurant
• State-of-the-art distribution centre
• Administrative systems
• Comprehensive training program consisting of classroom instruction and practical restaurant experience
• Operational support
• Financing assistance is available to qualified purchasers
3. The Franchise Fee buys a lot and the support services are great. How much money is required to open a Pizza Pizza franchise?
In order to obtain financing from a chartered bank or trust company, you must have at least 25 to 30% of the purchase price as an unencumbered cash down payment.
4. I would feel more confident if I could enter the business with a partner. Does Pizza Pizza allow partnerships?
Yes, two or more people may join forces to purchase a Pizza Pizza franchise. The operating partner, however, must retain at least 25% equity.
5. Pizza Pizza has worked diligently to build Canada's strongest pizza brand. I understand that the royalty fee is for the brand. How much is the royalty fee?
The royalty fee is 6% of sales, payable to Pizza Pizza on a weekly basis.
6. What is the advertising fee?
The advertising fee is 6% of sales payable to Pizza Pizza on a weekly basis.
7. The new Pizza Pizza restaurants that I have seen are larger, friendlier and have more seating. What is the average size of a Pizza Pizza restaurant?
The typical size of a Pizza Pizza restaurant averages 1,800 sq. ft. and seating for 10 - 20.
8. Whenever I've been to a Pizza Pizza restaurant, everyone seems so nice, the restaurant is clean and the food is great. What does Pizza Pizza look for in their Franchise Partners in order to ensure the restaurants maintain this image?
We look for individuals with a strong work ethic, who are able to work well with their staff, show leadership, manage cash, have a friendly attitude, possess excellent communication skills, and are able and willing to commit to the long hours and service excellence necessary to successfully operate their own business. A strong entrepreneurial spirit and an understanding of the importance of community involvement are a must.
9. I'm very interested! What are the next steps involved in obtaining a Pizza Pizza Franchise?
===============================================================
If you are interested in becoming a franchisee, please call 1-800-263-5556 or 1-514-294-3983 in Quebec to set up an appointment with a Franchising representative.
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Always the best food, made especially for you
Our pledge - "Always the best food, made especially for you" - is paramount in everything we do. It’s our assurance to our customer that we value the quality of the service, product and experience we offer, in addition to the freshness of our ingredients.
With a growing menu selection and restaurant network, Pizza Pizza continues to serve Canadians on the go who are not willing to sacrifice taste for quality and balanced options. In the last year alone, Pizza Pizza has fulfilled more than 28 million orders and participated in events attended by more than 15 million people.
Overview
Pizza Pizza Limited (referred to as the “Company”, “Pizza Pizza”, “PPL”, or in the first person notations of “we,” “us” and “our”), founded in Toronto in 1967, has grown to become Ontario’s number one pizza restaurant chain, fulfilling over 28 million customer orders annually. On July 24, 2007 Pizza Pizza purchased 100% of the outstanding shares of Pizza 73 Inc, and as a result, added 48 new Pizza 73 restaurants to the company. See "Acquisition of Pizza 73" for details of the transaction. At September 30, 2008, Pizza Pizza had 637 restaurants in its system, comprised of 432 traditional format restaurants and 205 non-traditional format restaurants located across Canada. Over its 40 year history, Pizza Pizza has established a strong brand name and reputation as the leader in Ontario in the pizza component of the quick service restaurant (‘‘QSR’’) segment. Recently Pizza Pizza has adopted strategies to reposition itself as a ‘‘restaurant with delivery’’, highlighting its food quality, menu choices and eat-in dining opportunities. Consistent with these strategies, Pizza Pizza’s sales mix, measured by revenue, has evolved from 90% delivery and 10% take-out in the mid-1980s to the current mix of 60% delivery and 40% eat-in and take-out. For the 52 weeks ended December 30, 2007, System Sales were in excess of $380 million. (System sales of 52 weeks are reported for comparability).
Pizza Pizza is a franchise-driven restaurant company. Of the 637 restaurants, 567 are Pizza Pizza branded and 70 are Pizza 73 branded restaurants. The Pizza Pizza restaurants are comprised of 369 traditional and 198 non-traditional restaurants. Pizza Pizza provides a high level of services and operational support to its franchisees, including turn-key restaurants, a central food distribution centre (the ‘‘Commissary’’) which provides all food and non-food items used in restaurant operations, and monitoring systems intended to ensure high product and service quality and operational consistency across the chain. Pizza Pizza has a modern restaurant system, with approximately 99% of our restaurants either new or substantially renovated in the past five years. Our centrally managed renovation or re-imaging program, funded by our franchisees, has added significantly to same restaurant sales growth capacity and allows for the continuous renewal of the Pizza Pizza concept.
Pizza Pizza has an established track record of innovation in the QSR segment and has adopted new technologies to support its take-out and delivery business. Pizza Pizza enjoys strong brand awareness in the QSR market with a memorable phone number (967-11-11 in the Greater Toronto Area) and accompanying jingle, featured prominently in our marketing campaigns. We were the first take-out and delivery restaurant chain in Canada to develop a one-number ordering system and computerize our call centres; we now offer internet ordering capabilities. Pizza Pizza is also a menu innovator, focusing on food quality and responding to consumer trends with product offerings such as multi-grain and trans fat-free dough.
The focus of the Pizza Pizza business continues to be our traditional format restaurants, which represented approximately 90% of System Sales for the 52 weeks ended December 30, 2007. Traditional restaurants are typically located in high traffic and high visibility areas and offer the full Pizza Pizza menu. The majority of renovated traditional restaurants provide seating for, on average, approximately 25 customers. Pizza Pizza also licenses non-traditional restaurants that serve a more limited menu and are targeted to ‘‘captured traffic’’ locations such as sports arenas and entertainment venues, food courts, universities and other institutional settings — including Paramount Canada’s Wonderland, the Air Canada Centre and cafeterias at the University of Alberta, the University of British Columbia and Dalhousie University. Non-traditional restaurants complement Pizza Pizza’s market penetration strategy, by building brand awareness and exposure while generating additional sales.
Sources of revenue
Pizza Pizza derives revenues from the following sources:
• Franchise Fees. Pizza Pizza collects an ongoing franchise fee from each Pizza Pizza franchisee. For traditional restaurants, the franchise fee varies depending upon the level of sales and is typically 6.0% of net sales, paid on a weekly basis. For non-traditional restaurants, the franchise fee averages approximately 5.1% of net sales. The weighted average franchise fee, including both traditional and non-traditional restaurants, was approximately 5.7% in fiscal 2007.
• Sales of Goods and Supplies. Pizza Pizza franchisees are required to purchase from Pizza Pizza all of the raw materials and supplies used and sold in their restaurants. These materials and supplies are sold by Pizza Pizza through the Commissary and Pizza Pizza is entitled to mark-up such sales by up to 18% of its costs. For the 52 weeks ended December 30, 2007, the mark-up averaged less than 18%. Pizza Pizza also earns revenue on company store sales.
• Initial and Renewal Franchise Fees. Pizza Pizza charges an initial franchise fee at the commencement of the initial term of the franchise agreement, and upon the renewal of such an agreement (typically after five years). The initial franchise fee is $30,000 per Pizza Pizza franchise and is payable in full at the commencement of the agreement. The renewal fee charged by Pizza Pizza to franchisees upon renewal of their franchise agreement is currently $7,500 (25% of the then-current initial franchise fee).
• Other Fees. Pizza Pizza charges franchisees fees for the transfer of a franchise, a 3% administration fee to Pizza 73 restaurants and providing plans and specifications for restaurant design and renovation.
Our competitive strengths
We believe that the success of the Pizza Pizza concept, and the consistent increases in same restaurant sales and System Sales over the past ten years, are driven by the following factors:
• Strong brand recognition. Pizza Pizza is a well known brand in its principal markets due in part to our memorable phone number (967-11-11 in the Greater Toronto Area) and accompanying jingle.
• Number one market position in Ontario. In 2008, Pizza Pizza announced market share grown reaching new heights in Ontario topping 50%. From a dollar standpoint and 52% in total traffic; well ahead of US-based companies and other competitors"
• An extensive and modern restaurant system. Approximately 98% of the traditional Pizza Pizza restaurants are either new or substantially renovated in the past five years. Pizza Pizza franchisees are obligated to renovate their restaurants and to contribute on an ongoing basis to a renovation fund.
• A proven track record of innovation. Since its inception, Pizza Pizza has adopted many innovative concepts including the one-number telephone ordering system, networked call centres, delivery guarantees, the monitoring of restaurants through a live web-feed.
• Centralized management and controls. Management oversees key aspects of the Pizza Pizza restaurant business allowing franchisees to focus on revenue-generating activities. Pizza Pizza also devotes substantial resources to franchisee support, training programs, product supply and quality initiatives.
• A strong committed management team. The seven members of senior management have an average of 20 years’ experience with Pizza Pizza.
• A history of stability of the franchise system. Pizza Pizza maintains a low closure rate throughout its restaurant chain; as of December 30, 2007, 14 traditional and 29 non-traditional restaurants had been permanently closed since 2000, whereas total restaurants increased from 413 to 559 during that same period.
Our business strategy
Growth
Pizza Pizza is well positioned to continue to build presence in the Canadian pizza QSR segment. Consistent with our experience over the past decade, future growth is expected to come from a combination of same restaurant sales growth and new restaurant growth. The necessary conditions, such as system capacity and customer demand, exist to continue the level of growth achieved over recent years. We also believe that Pizza Pizza’s brand recognition, combined with the strength of the franchise system, will provide additional opportunities for growth in new markets across Canada. This growth strategy, if successfully realized, will have a positive effect on System Sales.
Pizza Pizza’s renovation/image campaign
Pizza Pizza franchisees are obligated to renovate or re-image their restaurants and to contribute on an ongoing basis to a renovation fund. We have implemented a re-imaging campaign aimed at increasing retail sales and market share through improved brand visibility. This campaign involves relocating selected restaurants, upgrading restaurants’ interiors, adding cooking capacity, adding new signs to draw attention to the restaurants and providing more contemporary uniforms for restaurant employees. If a restaurant is already in a desirable location, the signs and interiors are updated as needed. As of December 30, 2007, approximately 98% of our restaurants had been re-imaged or relocated as part of this campaign. We plan to complete this campaign in 2008.
Marketing operations
Pizza Pizza’s innovative marketing programs are supported by franchisee and operator contributions to a marketing fund that is administered by Pizza Pizza. In accordance with their franchise agreements or unanimous shareholder agreement each traditional Pizza Pizza restaurant contributes approximately 6% of net sales (in addition to the base royalty and other franchise fees) and each Pizza 73 restaurant contributes 8% of net sales. The marketing fund is used to pay for the production of advertising and promotional material and media purchases. Pizza Pizza seeks to develop and execute marketing programs that appeal to its customers by differentiating Pizza Pizza from its competitors, thereby attracting new customers, building customer loyalty and increasing frequency of visits. With a substantial restaurant presence in Ontario, we support the Pizza Pizza brand primarily with radio and print advertising such as flyers, as well as billboards at major venues such as Toronto’s Air Canada Centre and Ottawa's Scotia Bank Place. For the 52 weeks ended December 30, 2007, Pizza Pizza spent approximately $30 million on its promotional and advertising programs. Advertising funds are also directed towards the development of other materials, such as point of purchase promotions and coupons. Sales promotions and contests, coupons and special discounts, cross promotions with strategic partners and limited-time menu offerings are also used to stimulate purchases and introduce new products. In addition, the marketing fund supports local hockey teams, special events, public service programs and over 1,000 charitable fundraising events in local markets.
To Consumers
“Always the best food, made especially for you.”
Pizza Pizza offers consumers a variety of food choices with absolutely no compromise when it comes to quality, freshness and taste.
Pizza Pizza Training Center – a state-of-the-art training facility unique in Canada – a team of culinary experts, nutritionists and product developers work with partners in the development of recipes and innovations to ensure customers enjoy the best possible product.
• Variety of classic to exotic signature pizzas.
• Trans fat-free traditional crust to whole wheat multigrain dough.
• Menu variety from the choicest chicken to the freshest salads, the Pizza Pizza menu offers a sensible, nutritious choice for any meal.
• Gluten free dough now offered chain wide.
To Franchise Partners
“Our Goal is Your Success!”
Pizza Pizza is committed to the entrepreneurial spirit.
Entrepreneurs interested in joining our winning team are supported by quality programs and a brand that is reputable and highly recognizable.
With Pizza Pizza, rest assured the infrastructure is well in place to help you succeed.
For more information, read franchising.
To Investors
“Working Together to Make More Dough”
In July 2005, Canadian investors were invited to join the Pizza Pizza team through the introduction of the Pizza Pizza Royalty Fund, an income trust publicly traded on the Toronto Stock Exchange under the symbol PZA.UN.
In July 2007, Pizza Pizza Royalty Income Fund issued an additional 2.6 million units to fund the acquisition of the Pizza 73 Rights and Marks.
For more information, visit Pizza Pizza Royalty Income Fund at www.pizzapizza.ca
CULTURE
The base of Pizza Pizza’s success rests on a foundation of shared attitudes, beliefs, values and goals among its talented network of employees.
Thanks to a culture that is open, respectful, compassionate, performance-driven and socially responsible, the Pizza Pizza family continues to grow, satisfying more and more Canadians every day.
History of the enterprise
Who Invented the Pizza?
For centuries cultures throughout the world have been serving a variety of ingredients on flat buns, pies or the like.
Thanks to numerous developments, cultural and social trends, the pizza has become a beloved and indispensable part of our popular culture, transcending borders, tastes and budgets.
The North American pizza market is relatively young. It was established by pioneers such as Gennaro Lombardi, who is commonly credited with having established the first licensed pizzeria in 1905 in New York City.
Pizza Pizza's story begins on December 1967, in a 300 square foot restaurant owned and operated by founder Michael Overs and supported by a small team of pizza lovers.
In 40 years, the world has drastically changed. What hasn't changed is Pizza Pizza's ability to meet changing customer needs.
Pizza Pizza Through the Years
Year Pizza Pizza
2008 Pizza Pizza introduces 10" Panzerotti and Bone In Chicken to the Menu
2007 Pizza Pizza launches the Slices for Smiles Fund
2007 Pizza Pizza acquires the successful Alberta based Pizza chain Pizza 73.
2005 Pizza Pizza launches Pizza Pizza Royalty Income Fund (PZA.UN; TSX:)
2005 Pizza Pizza introduces twin chain Chicken Chicken restaurants
2004/05 Pizza Pizza becomes one of the first QSR operators to eliminate trans fats from its pizza dough, fries and hot apple pies
2000 Pizza Pizza introduces a bright new look to its restaurants and expands seating
1980 Pizza Pizza grows its restaurant network through Ontario and into Quebec
1979 Pizza Pizza designs first computerized order taking system and central phone centre
1978 Pizza Pizza sets its rhythmic telephone number to a catchy jingle
1975 Introduction of famous 11-11 phone number
1967 Pizza Pizza introduces the one number system
1967 Pizza Pizza works with a car upholsterer to create the world's first insulated pizza delivery bag
1967 First restaurant opens to Canadian customers
FRANCHISING
Are you looking for a chance to operate your own business while enjoying the security of an established brand and product? Pizza Pizza offers you the best of both worlds and the financial security to build your future and success. We have over 500 locations across Canada, operated by professionals who share the same core values that have made Pizza Pizza one of the most successful pizza chains in the country.
Pizza Pizza Opportunities
Consider What Canada's Most Successful Pizza Chain Has To Offer You:
The opportunity to operate your own business under the umbrella of Canada's most dynamic pizza company.
• An investment in your future
• One number ordering centre
• Highly developed retail marketing plans
• Effective and coordinated advertising: most recognized jingles and phone numbers
• Streamlined central supply source
• Comprehensive training program: theoretical, practical and on-site
• Knowledgeable field support team
• Site selection and lease negotiation.
Location & Design
• Seasoned professionals source, secure and manage the best possible locations for your restaurant
• Award-winning exterior designs and family-friendly interiors ensure a pleasant experience for customers and staff alike.
Training at Pizza Pizza Training Center
• Pizza Pizza Training Center is an industry leader in entrepreneurial training and restaurant management
• Includes theoretical classroom lectures on financial management, customer service and practical experience in the cooking skills necessary to prepare all of the menu items
• Modern facility with large classrooms and working kitchen
• Ongoing professional development seminars
• Trains more than 3,000 students every year
Operational Support
• District Sales Managers partner with you to help achieve maximum sales and profitability
• Assistance in maintaining the high standards of quality, service, cleanliness and value that have been established at Pizza Pizza
Distribution Centre
• State-of-the-art distribution centre ships over 1,000 tons of product each week
• One stop shopping means everything you need to operate your business is readily available
• Regularly-scheduled deliveries per week ensures a fresh supply of products
Marketing & Promotions
• Unique marketing and promotion campaigns drive customers to restaurants, encourage trial of new products and increasing overall sales
• Marketing and promotion through traditional (print, radio, billboards, flyers) and non-traditional outlets (phone books, parking receipts, cell phone messaging) ensuring targeted message to specific groups
Product Development
• Ongoing research and development of new products such as our Healthy Lifestyles lighter options menus
• Dedicated chefs, nutritionists and other experts constantly respond to changing consumer tastes
Technology
• Call Centres equipped with computerized phone and order processing systems
• One number order desk through live agent, online or Interactive Voice Response
• Point-of-sale systems minimize administrative functions while providing detailed sales tracking and data analysis
FAQ (Frequently Asked Questions (FAQs)
We hope that the information provided on this site provides you valuable guidance to help make the important decision to become a Pizza Pizza Franchise Partner. Below are some of our most Frequently Asked Questions.
1. I have no restaurant industry experience. Does Pizza Pizza provide training?
We offer a comprehensive training program at our highly-acclaimed Pizza Pizza Training Center. The curriculum includes entrepreneurial training, general management and operation of your restaurant, customer service, financial management and the cooking skills necessary to prepare all of our menu items. Your most important asset is to be flexible and able to align with the organizational, operational and marketing direction of Pizza Pizza. Prior restaurant experience is not necessary.
2. I've done some research regarding franchise fees and what you get for your money. Support services are very important. How much is the Pizza Pizza Franchise Fee and what does the fee buy?
Our franchise fee is $30,000. The franchise fee secures the right to own and operate a Pizza Pizza franchise in a given territory and the use of the Pizza Pizza trademarks, trade name, recipes and retail marketing plan. Pizza Pizza also provides:
• Site selection, lease negotiation
• Assistance from franchise operations experts both before and after the opening of your restaurant
• State-of-the-art distribution centre
• Administrative systems
• Comprehensive training program consisting of classroom instruction and practical restaurant experience
• Operational support
• Financing assistance is available to qualified purchasers
3. The Franchise Fee buys a lot and the support services are great. How much money is required to open a Pizza Pizza franchise?
In order to obtain financing from a chartered bank or trust company, you must have at least 25 to 30% of the purchase price as an unencumbered cash down payment.
4. I would feel more confident if I could enter the business with a partner. Does Pizza Pizza allow partnerships?
Yes, two or more people may join forces to purchase a Pizza Pizza franchise. The operating partner, however, must retain at least 25% equity.
5. Pizza Pizza has worked diligently to build Canada's strongest pizza brand. I understand that the royalty fee is for the brand. How much is the royalty fee?
The royalty fee is 6% of sales, payable to Pizza Pizza on a weekly basis.
6. What is the advertising fee?
The advertising fee is 6% of sales payable to Pizza Pizza on a weekly basis.
7. The new Pizza Pizza restaurants that I have seen are larger, friendlier and have more seating. What is the average size of a Pizza Pizza restaurant?
The typical size of a Pizza Pizza restaurant averages 1,800 sq. ft. and seating for 10 - 20.
8. Whenever I've been to a Pizza Pizza restaurant, everyone seems so nice, the restaurant is clean and the food is great. What does Pizza Pizza look for in their Franchise Partners in order to ensure the restaurants maintain this image?
We look for individuals with a strong work ethic, who are able to work well with their staff, show leadership, manage cash, have a friendly attitude, possess excellent communication skills, and are able and willing to commit to the long hours and service excellence necessary to successfully operate their own business. A strong entrepreneurial spirit and an understanding of the importance of community involvement are a must.
9. I'm very interested! What are the next steps involved in obtaining a Pizza Pizza Franchise?
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If you are interested in becoming a franchisee, please call 1-800-263-5556 or 1-514-294-3983 in Quebec to set up an appointment with a Franchising representative.
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