Operating in the Late-Night Hours

At Mikey’s Late Night Slice, it’s literally in the name.

While the Columbus, Ohio-based pizzeria appeals to families and business workers at lunch and then more families, friends and couples during the dinner hours, the late-night crowd is where Mikey’s really shines.

With closing hours extending well past midnight – and up to 3:00 a.m. at most of its nine locations – Mikey’s has crafted an undeniable niche with late-night diners, from the bar crowd to those working third shifts. In fact, more than half of the 15-year-old company’s revenue comes after 10:00 p.m., co-founder Jason Biundo reports.

While many pizzerias shun late-night hours, Mikey’s and many others thrive as the clock approaches and then passes midnight.

“If you create the right opportunity and deliver a strong product and experience, you can certainly make late night worth your while,” says Danny Bendas of Synergy Restaurant Consultants, an agency that helps chain and independent restaurants optimize operations and drive revenue.

Slices and simplicity.

The counter at New York Pizza Depot (NYPD), a 27-year-old establishment in Ann Arbor, Michigan, features up to 18 different pizzas, all of them available by the slice. While whole pies are available until the pizzeria’s 3:00 a.m. close, its in-store diners pack the restaurant for slices.

“Slices are more practical and quicker to serve to the late-night crowd,” says Domenico Telemaco, who founded the eatery with his brothers Mauro and Giovanni. “Slices allow you to keep the line moving and fulfill the hunger of different customers.”

Speed sells.

Like NYPD, Mikey’s relies on slices. Though the restaurant has added items over the years like breadsticks and desserts supplied by a local bakery, pizza slices remain its go-to item. For Biundo, it’s all about speed.

“If the line’s not moving, people will step away, and that slow experience will stick with them,” he says.

Toss in some entertainment value.

Though Mikey’s customers might not be waiting long in line, leadership has nevertheless focused on creating an engaging, memorable queue experience. Early on, Mikey’s projected movies on a wall. Now, they play 1980s music videos on televisions and decorate their restaurants with off-color items designed to generate attention – and a laugh.

“We want to make it a fun, comfortable experience for people,” Biundo says. “It’s worth doing what you can to stand out.”

Late night doesn’t mean undisciplined.

For a new pizzeria or one only beginning to offer late-night hours, it will likely take time to build traffic. As such, management and staff might tackle other tasks to ensure productivity, such as doing prep work for the next day. But when traffic accelerates, staff need to be geared up to deliver a great product and experience.

“Orders are always the focus,” Bendas reminds.

Mikey’s, for instance, has established a training schedule as well as protocols to keep late-night operations safe and smooth.

“As great as it is to get many customers at night, you need to be on your toes,” Biundo says.

Staff to succeed.

While labor challenges persist and it can be particularly tricky for operators to corral employees willing to work beyond midnight, pizzerias holding late-night hours cannot run undermanned teams.

At NYPD, up to 15 staff members work into the late hours after a home University of Michigan football game. This includes multiple individuals making pizzas, more staff serving pies and up to three individuals collecting payment.

Safe and secure.

As the old saying goes, “Nothing good happens after midnight.” It’s true people can get silly in the wee hours of the morning. Bendas, in fact, remembers one inebriated crew trying to steal a couch from a restaurant. As such, it’s important to have safety and security measures in place, such as alarms or panic buttons to alert police of trouble.

“Security has to be top of mind to protect staff and guests,” Bendas reminds.

Keep it fresh.

Even for a place like Mikey’s with its well-earned reputation for late-night bites, company leadership doesn’t take anything for granted. They continue evolving and seeking ways to improve operations and increase traffic. To wit, Mikey’s regularly touts a “Pizza of the Week,” so it always has something to market. The company also collaborates with local restaurants like Ray Ray’s Hog Pit on limited-edition pies.

“The collabs allow us to crosspollinate with our partner’s following, too,” Biundo says.

Bendas, meanwhile, has seen some restaurants drive revenue with late-night happy hours – for food, not alcohol – and others develop a following by catering to staff from other local businesses – area restaurants, a theater or hospital, for instance – after those employees clock out for the night.

Be the reliable go-to.

It’s tough to be “half in” with late-night hours, Biundo says. If operating hours wax and wane and customers don’t know what to expect, then they’re likely to drop the restaurant from their consideration set.

“From our start in 2009, we never closed early and we always focused on the experience of people coming in, keeping the lines moving and providing a good product,” Biundo says. “Do that consistently and you can build loyalty.”

Evaluating the late-night opportunity

Location, location, location is a maxim in real estate and might as well be for pizzerias eager to capture late-night business as well.

In growing Mikey’s Late Night Slice to nine locations, leadership has carefully selected locations in or adjacent to entertainment districts and late-night action. In fact, co-founder Jason Biundo is betting a recently opened shop on the Ohio State University campus will be its highest performing restaurant yet.

“We want to be where there’s foot traffic and people up late,” Biundo says.

But even for pizzerias not located in heavily trafficked areas, late-night operations can still produce results. For instance, Bendas says pizzerias can create a unique niche in their market if there’s no other late-night dining option around.

“If there’s a market you feel you can capture because there’s a current void in your area, then staying open late night might be worth investigating,” he says. “The idea is to study your market before you commit because you don’t want to hurt yourself financially.”

DANIEL P. SMITH Chicago-based writer has covered business issues and best practices for a variety of trade publications, newspapers, and magazines.