DENTON Texas —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
The pizza-buffet concept, which celebrated its 50th anniversary this fall, recently introduced a smaller, lower-cost prototype and said it would launch monthly conference calls during which franchisees could discuss challenges as well as a “Back-to-Basics” educational program. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
All of the initiatives are intended to help grow franchisees’ bottom lines despite the challenging economic environment, said Charlie Morrison, Pizza Inn president and chief executive. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
“Successful franchisees are reimaging their older restaurants to make them more efficient and attractive with the new buffet layout that Pizza Inn recently unveiled,” Morrison said. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
Pointing out that Pizza Inn also has an ongoing remodeling program, he added, “Through the Pizza Inn remodeling program, existing franchisees are seeing a marked increase in customer traffic and sales. Nearly 100 buffet units have been remodeled over the last two years or are currently under construction.” —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
Pizza Inn unveiled the new prototype in September in Denton. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
Calling the prototype nostalgic, Morrison said: “The restaurant showcases Pizza Inn’s unique points of difference—a tradition of quality product, hospitality and variety—with an all new look and feel. It also creates a viable economic model for further domestic and international expansion.” —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
In creating the prototype, costs to franchisees were a chief consideration, he said. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
“The prototype is designed to be less expensive to build due to its smaller size and a more efficient kitchen design,” Morrison said. “It is even more energy-efficient, which makes us ‘greener.’” —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
New ovens produce some of the energy savings. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
“The new prototype utilizes new oven technology that cycles the oven on and off when it’s not in use,” Morrison said. “It also bakes the pizzas faster, which can amount to as much as a 30-percent savings on energy consumption. In addition, it offers less expensive, yet attractive fixtures and build out, tankless water heaters and energy-efficient lighting.” —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
With funding and credit sources reduced to a trickle, franchisees say the more cost-effective prototype gives them some leverage. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
“Our funding has been a real task lately,” said franchisee Keith Vaughn of RSV Enterprises Inc. of Booneville, Miss. “The economy has taken a blow, and we will have to get more creative than ever. Having said that, this new concept we are focusing on in 2009 and subsequent years, we have a model that is cost-friendly. Pizza Inn has one of the best programs out there, and with royalties and advertising around 5 percent combined, it makes your [profit-and-loss] numbers look really good. [Given] our strong belief in this brand and in this…buffet concept, we have not hesitated to use some of our cash reserves for development.” —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
Given the lock on credit, franchisees have no choice but to fund their own growth, Morrison said. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
“Most franchisees historically turned to the local banking system for their financing,” he said. “However, in this economy, credit is more difficult to obtain and many that are investing are utilizing their own cash to make the investments or relying on the performance of their existing restaurants to support their financing objectives with the banks. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
“Our franchisees are telling us that it is extremely difficult to obtain access to the revolving credit lines and loans that they may need from banks to make investments, reimage or reinvest in new restaurants as they might want to. The upside is that we’ve seen commodity costs come down substantially, so fuel charges and groceries do not cost what they did only a few months ago.” —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
Morrison said Pizza Inn is in a good position to weather recessionary pressure. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
“The economy seems to be well-suited for buffet-style restaurants like ours,” he said. “A family can come and eat all the pizza, pasta, salad and dessert they want for typically $5.99 per adult and $3.49 per child, plus drinks. That’s a great value.” —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
But Morrison said the company still must be especially diligent in precarious economic times. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
“One approach that we are beginning to take at Pizza Inn is to further open the lines of communication between franchisees and our support center,” he said. “We will be launching monthly conference calls with all franchisees to spend more time on the challenges and issues they face, but also to hear about best practices and what is working in the field. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
“Pizza Inn has also renewed its restaurant operating culture through its ‘Back to Basics’ program, designed to create uniformity in brand standards, store-level execution, training support and customer satisfaction,” he continued. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
Morrison said Pizza Inn is collaborating with franchisee leadership, including area developers and single- and multi-unit operators of successful Pizza Inn restaurants, to assist with several business issues. Those areas include product development, training, marketing and advertising initiatives, he said. “This has resulted in increased buy-in and expanded support of brand standards,” Morrison said. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
That open dialogue is important, franchisee Vaughn said. “In these busy times, [Morrison] has made a point to get out and visit us and ask for our input. He and I have been in the restaurant business a long time and have been in the pizza segment a number of years. Respecting that and having open dialogue, I believe will take our brand way into the future. … We need to be sure we execute that product well in this competitive environment. I believe we are doing that now.” —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
In addition to pushing the new prototype, the company is looking toward its vendors and suppliers for ideas. —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.
“Many are ahead of our current operating culture,” Morrison said, “but by working with them early, we are able to get ahead of new technologies and work hard to stay in front of our competition.” —When times get tough, franchisees need options, communication and education, according to officials at Pizza Inn, a 325-unit chain based here.