Franchise Discovery Day Manager, 7UP, a 1.8 billion dollar brand and successfully introduced the "No...
Transcript of Franchise Discovery Day Manager, 7UP, a 1.8 billion dollar brand and successfully introduced the "No...
Discovery Day Agenda
• Concept History & The Mazzio’s Team
• Concept Overview
• Industry Overview
• Franchise Program Overview
• Visit Mazzio’s Units: tour restaurants, sample menu, observe shift & unit level management systems
History
• Founded in 1961 as The Pizza Parlor
– Schoolteacher / Entrepreneur Ken Selby opened his first pizza restaurant in Tulsa, Oklahoma
• 1979 – Selby launches Mazzio’s
– In ten years, the Mazzio's chain grew to over 150 locations
• Today
– Presently, the concept features 172 restaurants in nine states, comprised of both franchised and corporately owned locations.
– Aggressive expansion underway
50 Years!
• 2011 – Mazzio’s 50th Anniversary!
• In 1961, Ken Selby created a concept that
changed pizza forever – a 15" thin crust with a
crave-able, spicy sauce.
• Special Anniversary Limited Time Offer Promotion – Ken’s Pizza
Ken Selby – Chairman & Founder
Ken Selby
Chairman & FounderKen Selby graduated from Northeastern State University in 1958 and attended the University of Tulsa Graduate school in 1960 and 1961. While employed as a teacher in 1961 for the Tulsa Public Schools he established a small pizza restaurant in Tulsa. In 1965 he resigned his teaching position and began to establish additional pizza restaurants. These original restaurants, known as Ken's Pizza were the foundation for future concepts, including Mazzio's Italian Eatery and Oliveto Italian Bistro..
Headquartered in Tulsa, Mazzio's Corporation is privately held with Chairman Ken Selby its sole shareholder.
Greg Lippert – President & CEO
Greg LippertPresident & CEOGreg was appointed President and CEO of Tulsa based Mazzio's Corporation in August 2005. Prior to this appointment, he was Chief Operating Officer of Fazoli's, a restaurant chain of 400 Italian restaurants. Greg started his career with Cincinnati's package good marketer Procter and Gamble Company and went on to Philip Morris' Seven Up Company where he became Brand Manager, 7UP, a 1.8 billion dollar brand and successfully introduced the "No Caffeine, Never Had Never Will" plan that increased brand profits by $31.2 million in a single year.
Greg has served on National Restaurant Association's Board of Directors(MEG) and has been a featured speaker at various foodservice industry conferences ( COEX and MUFSO).
Sonja Wilson – CFO & Senior VP
Sonja WilsonCFO & Senior Vice PresidentSonja Wilson graduated from the University of Tulsa with a B.S. in Business Administration (Accounting) and with a Masters of Science in Accounting. Sonja became a Certified Public Accountant in 1983 and was awarded the Gold Medal by the Oklahoma Society of Certified Public Accountants. She served in public accounting at Coopers & Lybrand and, from there, moved into financial management positions with Tulsa companies Reading and Bates, Inc. and Hilti, Inc. Ms. Wilson joined Mazzio's Corporation in July of 2000 as the Director of Finance and Accounting, was promoted to Vice President of Corporate Development & Finance in December of 2001 and to Senior Vice President/Chief Financial Officer in January of 2006.Sonja, is active in the National Restaurant Association -- Financial Executive Study Group,
Brad Williams –
Senior VP & General Counsel
Bradford J. Williams, Jr.
Senior Vice President /
General CounselBrad Williams graduated from the University of Oklahoma with a B.A. in Economics in 1966. In 1969, Brad received his Juris Doctorate from the University of Tulsa. Upon leaving the University of Tulsa, Brad was an Assistant District Attorney for Tulsa County for three years. He then worked for Hall Estill law firm for six years. Brad joined Mazzio's Corporation as a Vice President and General Counsel in 1979. He is currently the Senior Vice President / General Counsel for Mazzio's Corporation.
David Roth –
Senior VP, Marketing & R&D
David R. Poth
Senior Vice President,
Marketing & R&DDave Poth graduated from St. Louis University with a B.S. in Marketing and a Masters in Business Administration. Prior to Mazzio’s, Dave worked with the Alton Box Board Company, Lemco Engineers, The Seven-Up Company, and Ralston Purina. Dave joined Mazzio's Corporation in July, 1986, as the Manager of Concept Development. Since that time, he has held the position of Director --Advertising and Promotion and is currently the Senior Vice President of Marketing and Research & Development. Dave was awarded a Tulsa Addy award in 1991 and is a member of the National Restaurant Association Marketing Executive Group. Dave has also served as an Adjunct Professor of Marketing and Management for many years at the University of Tulsa, Tulsa Community College and Northeastern State University.
David Chambers –
Vice President of Operations
David Chambers
Vice President of OperationsDavid began his career with Mazzio's Corporation on October 20, 1982, when he was hired at a Ken's Pizza (now Mazzio's Italian Eatery) in Muskogee, Oklahoma. David was soon promoted to General Manager in 1983 and then worked in several different locations until being promoted to Area General Manager in 1987. In 1995 he was appointed to the Director of Operations for Mazzio’s Italian Eatery and held that position until being promoted to his current position in May of 2007. David has shown great leadership in improving Mazzio's customer loyalty index as well as significant improvement in restaurant overhead at about 16 percent. Recently Mazzio's was recognized nationally by Chain Leader magazine as "Best Places to Work" in 2007 where David's impact has been noted.
Concept Overview
• Fast Casual Italian chain offering award-winning pizzas, made-to-order pastas, hot toasted sandwiches, and fresh specialty salads and appetizers for dine-in, carryout, delivery or catering.
• Focus on Quality, Variety and High Perceived
Value in an inviting atmosphere
• 50 Years of Operational Excellence
• Experienced Management Team
• Commitment to Community
A Pioneer in Product Mixing - No Menu Fatigue
Mazzio’s has developed a culinary edge with our
diverse product mix.
• Wide demographic appeal
• High quality Italian dining experience at an affordable price point
• Mazzio’s has full time culinary employees focused on new product development
Social Responsibility
• United Way
Mazzio's Corporation was the first restaurant
company (beginning 1987) in the United States to enroll employees into a payroll deduction plan!
• Day of Caring
Each year, Corporate Staff members work alongside restaurant employees in spending a day of "manual labor" in providing for the needs of one of the many United Way-funded agencies.
Social Responsibility
In 2007, Mazzio's Corporation was the Oklahoma winner of the National Restaurant Association's
Restaurant Neighbor Award
honoring restaurant companies that have gone above and beyond in giving back to their communities.
– Mazzio's Corporation has led the Tulsa restaurant industry in giving to the United Way
– Mazzio's has pledged $1,472,534 to the United Way!
Social Responsibility
Mazzio’s was ranked in Chain Leader Magazine’s annual “Best Places to Work” due to:
– Low General Manager turnover rate
– Depth of employee benefits programs
What people are sayingA
Top Chef All Stars: A talk with
hometown finalist, Tiffany Derry
Derry may live in Dallas, but her heart -- and her family, the inspiration for her cooking -- still reside on the Gulf Coast. When she returns home several times a year, she may go out for a meal at Suga's Deep South Cuisine
and Jazz Bar, Casual Entrees
or Mazzio's PizzaN
- Houston Chronicle Blog
What people are sayingA
Tour InterviewQ: While you're in Tulsa, what are some of the fast-food joints or
restaurants that you can't wait to eat at again?
A: Is Zio's still there? They have this Oreo dessert. It's ice cream and cookies. And I want Braum's. I like the butter-pecan mix. I like sweets. I'm sure I should be naming actual food, but (she giggled.) Gosh, I haven't had Mazzio's pizza in forever. - Tulsa World
American Idol’s Melinda Doolittle, a Tulsa native
Awards
• Mazzio’s Italian Eatery was recognized in Technomic’sannual list of the Top 45 Pizza Chains by Average Store Sales
• Annual Rankings on Pizza Marketing Quarterly Magazine’s Top 200 Pizza Chains in the United States, ranked by units
• “Best Pizza” awards throughout primary markets
• Industry-leading “Customer Loyalty Index for Overall Satisfaction” from SMG
Pizza Industry
The average American eats pizza or pasta two to three times a month. Just over a third of the U.S. population eat pizza or pasta once a week. (source: National Eating Trends)
2011 Restaurant Industry
NRA 2011 Forecast: Restaurant industry sales are
expected to reach a record $604 billion and post positive growth in 2011 after a three-year period of negative real sales growth, according to the National Restaurant Association 2011 Restaurant Industry Forecast. Sales are projected to advance 3.6 percent over 2010 sales, which equals 1.1 percent in real (inflation-adjusted) terms.
2011 Quick Service Growth
NRA 2011 Forecast: Quickservice restaurants are projected to post sales of $167.7 billion this year, a gain of 3.3 percent over 2010.
Foodservice industry forecast revised upward
Market research firm Technomic Inc. revised upward its 2011 forecast for the foodservice industry, citing improved macroeconomic data and increased sales momentum among many restaurants in the fourth quarter.
Revised Jan. 28, 2011
Real Sales Growth for 2011
• "As the national economy is slowly improving, the restaurant industry is climbing out of its most challenging period in decades to post positive real sales growth in 2011. As in 2010, restaurant industry job growth is expected to outpace the national economy this year, emphasizing the importance of industry to the nation's economy.
• "The U.S. restaurant industry is an economic juggernaut whose annual sales are larger than 90 percent of the world's economies—if it were a country, it would rank as the 18th largest economy in the world. While pockets of challenges remain, we are lookingforward to a brighter future in 2011."
— Hudson Riehle, Senior VP of the Research & Knowledge Group for the
National Restaurant Association
Restaurants —
An Essential Part of Daily Life
2011 Facts at a Glance:• Sales: $604 billion
• Locations: 960,000
• Employees: 12.8 million — one of the largest private-sector employers
• Restaurant-industry share of the food dollar: 49%
• 80 percent of restaurant owners started their industry careers at entry-level positions
• 46 percent of restaurant employees say they would like to own their own restaurant some day
• 88 percent of adults say they enjoy going to restaurants
Franchise Program
Mazzio’s offers an exceptional multi-unit model:
172 Restaurants in 9 States
– 107 Franchise Owned Locations
– 14 Multiunit Franchisees
– 65 Corporate Owned: We’re not just the
franchisor... We are operators too!
Flexible Footprint
Mazzio’s offers a flexible format that has proven successful in major metro
markets as well as suburban and rural
real estate locations:
• Flexible prototype
• Amazing conversion opportunities
• Exceptional real estate flexibility
Marketing Programs
Point of Sale Systems
POS Help Desk
Signage
Business Advisory
Food/Beverage
Training
Operations Systems
Real Estate
Construction
Design
Purchasing & Distribution
Equipment
Franchisee Support
Market Planning
• Market Analysis
– Market Penetration
– Competition
– Trade Area Strength
• Territory Description
– Typically along county lines or major traffic arteries
– Radius Protection: Suburban vs. Urban
Franchisee Support
• Call Center
• Online Ordering
– Relieves your staff from taking orders
– Better ordering accuracy
Franchisee Training
Comprehensive Franchisee Training • Confidential Manuals - Operations, Training and
"Countdown to Opening"
• Comprehensive 8-week Training Program for Restaurant Management Team - Combining "In-Restaurant" and Classroom Training
• 2-week Training Program for Owners
• Pre-opening "On-Site" Training Support and Post-opening Assistance
• Regional Training Seminars for Franchise Owners and Restaurant Managers Covering Critical Operational Topics
Purchasing
• Centralized, collective franchisee buying power
• Long-time and reliable suppliers for equipment and supplies
• In-House Purchasing Team
Marketing Programs
• Grand Opening Support
• Local Store Marketing Programs
�Traffic
�Return Frequency
�Party Size
�Check Average
• Four Walls Marketing
• Promotions & LTOs
Public Relations
Waller & Company PR
Based in Tulsa, Oklahoma, Waller & Company Public Relations provides strategic marketing and PR services to clients in the restaurant, hotel, healthcare, nonprofit, education, professional services, manufacturing and technology fields.
Financing
Financing may be available via third party lenders. Mazzio’s is approved by the SBA Franchise Registry. The SBA Franchise Registry has streamlined eligibility guidelines and operating procedures that will reduce costs and processing time, making the SBA loan application process as fast and easy as possible.
FDD Review
FDD Includes:• Company History• Management Experience• Litigation• Trademarks & Patents• Financial Statements• List of Franchisees and Restaurants• Fees and Initial Investment• Franchisor and Franchisee Obligations• Restaurant Earnings Claims• Forms of Franchise and Development Agreements
Development Schedule
For franchisees that want to develop
and manage a multi unit business:
• Exclusive development territory
• Number of restaurants to be developed in the territory
• Development schedule and opening dates for each restaurant
FDD Item 19
Average Sales & Profit:
We do not furnish or authorize our salespersons
to disclose any oral or written information concerning the actual or potential sales, costs, income or profits of a restaurant except as statedin the FDD. Actual results vary from restaurant to restaurant and upon restaurant ownership we cannot estimate the results of any particular franchisee.
Item 19 Financial Performance Representations are available in the Mazzio’s FDD.
Next Steps
1. Headquarter meeting and all parties decide to move forward
2. Letter of intent (LOI) is signed by franchisee and franchisor outlining deal terms
3. Draft executable contracts sent to prospects4. Franchisees fully execute agreements and send to
Mazzio’s with franchise fees5. Franchisor executes and send copies back to
franchisee6. Access to Mazzio’s franchisee resources7. Real estate process begins – local brokers, market &
site analysis