April 13, 2009
Industry Headlines
Indianapolis-based Noble Roman's, Inc. has announced that for the second consecutive year, Noble Roman's Pizza was named the 2009 recipient of the "Consumers' Choice Award for Business Excellence" in the pizza category for the greater Indianapolis metropolitan area. Noble Roman's also received the award in 2008. The "Consumers' Choice Award" is an initiative of the Consumers' Choice Institute to identify and promote business excellence, and is based on independent consumer research.
Noble Roman's Pizza was founded in 1972, and has been franchising stand-alone quick service pizza restaurants ever since. In 1997 it also began franchising locations inside facilities such as hospitals, bowling centers, convenience stores, entertainment facilities and other non-traditional venues.
Noble Roman's, Inc. is the franchisor of two restaurant concepts, Noble Roman's Pizza and Tuscano's Italian Style Subs, and has locations in 45 states across the country, and serves our GIs on select military bases overseas.
In 1994 Joey Todaro started La Nova Wings, Inc. He introduced wings to the pizza business, and in just a few years, we are the NUMBER ONE seller of Authentic Buffalo Wings; and Buffalo Wing are now the top selling appetizer in the pizzeria industry! Our products have now expanded from our heat and serve wings to an array of high quality appetizers and dipping sauces. Learn more about La Nova at www.lanova.com
Current Energy, a Dallas-based provider of energy efficiency solutions for commercial and residential customers, will install its Energy and Operational Management System (EOMS) in all future Boston’s The Gourmet Pizza restaurant locations throughout the United States.
Through the implementation of Current Energy’s EOMS, Current Energy will provide Boston’s Restaurant and Sports Bar live customer support to optimize energy and operational efficiency for lighting, HVAC, and refrigeration systems in new restaurant locations this year, starting with eight franchise locations scheduled to open in 2009.
“Boston’s is committed to achieving our long-term sustainability goals by maximizing energy efficiency in our corporate and franchise locations,” said Doug MacDonald, president of Boston’s The Gourmet Pizza. “We have chosen to implement Current Energy’s EOMS because of the company’s comprehensive, service-oriented approach to energy savings. Specifically, their advanced software applications and customizable algorithms will allow us greater savings. We are confident that through the use of this system, our goals of reducing overhead and improving energy efficiency will be met.”
Current Energy’s EOMS includes live monitoring by its Network Operating Center which provides real-time notifications around the clock to Boston’s facility managers when systems need maintenance and/or replacement. This minimizes the need for repairs and equipment replacements, maintains efficiency in restaurant operations and conserves energy used when equipment fails or runs inefficiently.
Moving forward, Boston’s will incorporate Current Energy’s EOMS into its franchise package offered to new Boston’s locations. Together, Boston’s Restaurant and Sports Bar and Current Energy are exploring the opportunity to retrofit all of Boston’s existing locations.
Boston’s The Gourmet Pizza operates more than 330 restaurant locations in Canada, 54 in the United States, and two in Mexico with plans for continued expansion.
Ft. Lauderdale-based Pizza Fusion has announced that a master franchise development agreement has been completed for Saudi Arabia between Pizza Fusion Holdings, Inc. and Samir Food Co., Ltd., a Samir Group company.
The development agreement provides for new locations throughout Saudi Arabia, with the first restaurant scheduled to open in Jeddah in late June and additional locations planned for Jeddah, Riyadh City, and Kingdom wide.
"We've received many inquiries to expand outside the U.S., but have been very particular about who we select with regard for the core values Pizza Fusion was founded upon," Randy Romano, executive vice president of sales, states. "After much evaluation, Samir Food has shown to be a solid candidate with demonstrated business expertise and a socially conscious mindset we find necessary for building the Pizza Fusion brand. We're excited to welcome them into the Pizza Fusion family."
Samir Group has a proven track record of successful franchising, which began over 55 years ago with Kodak. Today, Samir Group distributes and represents over 60 multinational companies worldwide. Pizza Fusion's agreement with Saudi Arabia represents its first international expansion. Pizza Fusion is currently considering additional international candidates with demonstrated expertise with growing brands in new markets.
Pizza Factory rolls out $5 Value Menu
Both new and loyal customers of “We Toss’em, They’re Awesome” Pizza Factory restaurants throughout the western U.S. have the opportunity to save money through its new $5 Value Menu that rolled out franchise-wide in April.
A marketing team of corporate staff and franchisees carefully considered each of the $5 Value Menu items. The offers needed to be cost effective for the franchisees and add value to Pizza Factory customers. The $5 Value Menu advertising pieces included outside banners, posters, table top inserts and box toppers.
The special offer includes (1) a Mini 1 Topping Pizza; (2) Antipasto Salad; (3) Spaghetti; (4) Deli Sandwich; (5) Individual Calzone — all for $5.00 each. The Value Menu that is being offered is an unprecedented move from the corporate office to help franchisees attract new customers and bring quality items at a lower price to the existing customer base.
This is the third franchise-wide marketing campaign that has been implemented by the franchise. In September, 2008, a $5 Mini Pizza was offered with results far exceeding expectations. The 2nd campaign was “Any 12” Pizza for $12.”These two campaigns demonstrated that customers appreciated not only the savings but being able to order whatever toppings they wanted on both the $5 Mini Pizza and the 12-inch Pizza.
Pizza Factory Inc. has been franchising since 1985 and currently has 125 restaurants in the western United States.
Backjack Pizza has selection Revention as its new point-of-sale provider.
“My decision was based on my desire to pursue the most advanced and complete point-of-sale system that does much more than just take orders,” said owner Mike Gaston in a press release, adding that he has seen a reduction of more than .6 percent in credit card processing fees since choosing Revention.
Blackjack Pizza was founded in 1983 by Vince Schmuhl. Today, the company operates 45 stores in operation in four states.
Revention is a developer of complete, customizable restaurant management solutions designed to streamline the way restaurants do business.
As another tax season draws to a close, Papa John’s once again provides last-minute filers, or “pro-crust-inators,” a “1040” online deal. Now through midnight on April 15th, consumers can cash in on this tax break by entering “1040” as a promotional code at www.papajohns.com for a large, original crust pizza with up to three toppings for just $10.40.
Last year, more than 86 million individuals filed their tax returns online, up more than 12 percent from the previous year, according to the Internal Revenue Service. “As more filers use the e-file option, it only makes sense to remind customers that Papa John’s also has an online system in place,” said Jim Ensign, vice president of marketing communications for Papa John’s. “Last year more than 85,000 people across the country redeemed our ‘1040’ online offer, and experienced a slice of tax relief from Papa John’s.”
For those who prefer the traditional way of submitting their taxes, Papa John’s restaurants across the country will be delivering hot pizzas on April 15 to overextended postal workers and weary filers who “pro-crust-inated” this tax season.
“While our customers may not look forward to filing their taxes each year,” said Ensign, “they do look forward to our 1040 special.”
Headquartered in Louisville, Kentucky, Papa John's International, Inc. is the world's third largest pizza company.
Restaurant industry performance remained soft in February, as the National Restaurant Association’s comprehensive index of restaurant activity stood below 100 for the 16th consecutive month. The Association’s Restaurant Performance Index (RPI) – a monthly composite index that tracks the health of and outlook for the U.S. restaurant industry – stood at 97.5 in February, up 0.1 percent from its January level.
“Although the index registered its second consecutive monthly gain, each of the RPI’s eight indicators stood below 100 in February, which signifies continued contraction,” said Hudson Riehle, senior vice president of Research and Information Services for the Association. “A majority of restaurant operators reported negative same-store sales and customer traffic levels in February, and their outlook for sales growth in the months ahead remains uncertain.”
The Restaurant Performance Index is based on the responses to the National Restaurant Association’s Restaurant Industry Tracking Survey, which is fielded monthly among restaurant operators nationwide on a variety of indicators including sales, traffic, labor and capital expenditures. The RPI consists of two components – the Current Situation Index and the Expectations Index.
Restaurant operators reported negative same-store sales for the ninth consecutive month in February. Twenty-nine percent of restaurant operators reported a same-store sales gain between February 2008 and February 2009, down from 31 percent who reported a sales gain in January. Fifty-six percent of operators reported a same-store sales decline in February, up slightly from 55 who reported negative sales in January.
Restaurant operators also reported negative customer traffic levels in February, with results on par with the January performance. Twenty-two percent of restaurant operators reported an increase in customer traffic between February 2008 and February 2009, matching the proportion who reported similarly in January. Fifty-nine percent of operators reported a traffic decline in February, also unchanged from January.
Capital spending activity in the restaurant industry also slowed along with sales and traffic in recent months. Thirty-five percent of operators said they made a capital expenditure for equipment, expansion or remodeling during the last three months, compared to the 34 percent levels reported by operators in the previous two months.
Restaurant operators remain uncertain about sales growth in coming months. Twenty-five percent of restaurant operators expect to have higher sales in six months (compared to the same period in the previous year), down slightly from 26 percent who reported similarly last month. Forty-one percent of restaurant operators expect their sales volume in six months to be lower than it was during the same period in the previous year, compared to 42 percent who reported similarly last month.
Restaurant operators are slightly more optimistic about the direction of the economy, though pessimists still outnumber optimists. Twenty-two percent of operators expect economic conditions to improve in six months, up from 18 percent who reported similarly last month and the highest level in six months. However, 36 percent of operators said they expect economic conditions to worsen in six months, up from 34 percent who reported similarly last month.
Restaurant operators are still somewhat reticent to make plans for additional capital spending. Forty-one percent of restaurant operators plan to make a capital expenditure for equipment, expansion or remodeling in the next six months, matching the proportion who reported similarly last month.