Franchise Discovery Day

Franchise Discovery Day
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 & Founder
Ken 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 Lippert
President & CEO
Greg 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 Wilson
CFO & Senior Vice President
Sonja 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 Counsel
Brad 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&D
Dave 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 Operations
David 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 awardwinning 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
Locations
172 Restaurants in 9 States
– 107 Franchisee Owned
– 65 Corporate Owned
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
American Idol’s Melinda Doolittle, a
Tulsa native
Tour Interview
Q: 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
Awards
• Mazzio’s Italian Eatery was recognized in Technomic’s
annual 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)
Top US Pizza Chains
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.
Franchise Business Outlook 2011
Franchise Business Outlook 2011
Restaurant Sales Growth 2011
Jan. 11, 2011
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
Upswing in Consumer Confidence
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 looking
forward 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
Franchisee Support
Marketing Programs
Point of Sale Systems
POS Help Desk
Signage
Real Estate
Construction
Design
Business Advisory
Purchasing & Distribution
Food/Beverage
Equipment
Training
Operations Systems
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 "InRestaurant" and Classroom Training
• 2-week Training Program for Owners
• Pre-opening "On-Site" Training Support and Postopening 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
Online Ordering
E-Mail Marketing
E-Mail Marketing
Social Media / Fan Interaction
Social Media
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 stated
in 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 prospects
4. Franchisees fully execute agreements and send to
Mazzio’s with franchise fees
5. Franchisor executes and send copies back to
franchisee
6. Access to Mazzio’s franchisee resources
7. Real estate process begins – local brokers, market &
site analysis