Big sausage pizza

2006-02-23T12:39:00.000-08:00

Seventeen years ago Rosario Del Nero abandoned a career in geology to pursue his lifelong love of cooking. An employee of the Italian government on assignment in Massachusetts, he jumped from fields of oil to olive oil when he discovered his dream restaurant. Since then he has written, taught and consulted. Six years ago he made another career change when he joined Bertucci's Inc. As corporate chef for the Wakefield, Mass.-based company, Del Nero oversees the kitchens of the 80-unit Bertucci's Brick Oven Pizzeria chain. More important, he influences a menu he has long enjoyed for its authenticity.

Title: Corporate chef, Bertucci's Brick Oven Pizzeria.

Birth date: June 6, 1954.

Hometown: Morbegno, Italy.

Education: master's degree in geology, University of Milan.

Career highlights: Receiving favorable reviews for "Risotto, A Taste of Milan," Harper & Row, New York, 1988; cooking with Julia Child; making frequent television appearances; introducing new items to Bertucci's menu and receiving positive feedback from customers.

What did you do as a geologist?

I used to do reservoir studies for the Italian government. I would study the structure of a field, a gas field or an oil field and calculate the amount that could be obtained from it. And then I'd recommend where to do more research.

How did you make the move from geology to cooking?

It was never going from geology to cooking. To do that, you would have to leave, and I have cooked all of my life. In Europe the countries are very close, and I used to go to different countries and cook during the summers. I was also the oldest of five children, so I used to help my mother. I got used to good food, and I was determined to obtain it at any cost. In Europe restaurants are very expensive, so to obtain it, you have to cook well or have a lot of money.

I came to this country with the Italian national oil company, and I was stopping by [Boston's] North Shore for vacation when I saw a restaurant for sale. The restaurant was a bargain, and I took a chance. I decided at that moment to change my career.

What sort of restaurant was it?

I wanted to open a restaurant where I could express my love of food, so it was not a traditional Northern Italian restaurant. When I opened it in the early '80s, Italian was not what it is now. I wanted to avoid confusion with spaghetti and meatballs. I wanted to cook things that are now common, like risotto.

What was the restaurant called?

The Apple Orchard. It was in the middle of an apple orchard in Ipswich, [Mass.] My wife and I did that for five years until our first child was born; then I wanted to expand my experience. We wrote a book on risotto published by Harper & Row in New York. That was very helpful with taking my name national. I also wrote articles for Food & Wine, started to teach original Italian cooking at the Cambridge School of Culinary Arts and started to do R&D for food companies.

Where did you work?

Several restaurants, a pasta and sauce company, bakeries, supermarkets. And I would assist owners of restaurants to redo their menus. Then I got an offer to go to the Italian Alps to help with a restaurant in a city I had loved as a child. We spent eight months there, until the restaurant was launched. When I came back, somebody mentioned that Bertucci's needed someone in R&D. I wanted to be part of that experience. I interviewed, and it was love at first sight.

Do you usually speak English or Italian at work?

I am also fluent in Spanish and Portuguese. I like being able to go into a kitchen and speak with the staff and watch the bridges come down. You establish a relationship of equals. I also love to read poetry and literature in the original language. That's something I enjoy. To me Spanish is just beautiful. I learned English 15 years ago. I used to go to the movies and understand 50 percent. But the first book I understood was quite an accomplishment. To know a language, you have a better chance to understand the real cuisine of a country.

What is your biggest challenge as Bertucci's corporate chef?

The biggest challenge for a chef is to strip away personal ambitions and become what is good for the concept. Bertucci's has a vision statement and a mission statement, to have the best pizza and the best value. Bertucci's has boundaries; a chef has no boundaries. The real challenge is to understand the destination of the dishes you are cooking. It's very difficult. You are supposed to be the opposite when you own your own restaurant.

How often are you in your chefs whites?

Ninety percent of the time. I can't stay away from food. I'm not an office person. I like to be in the kitchen, training, designing new dishes, cooking. You have to be hands on. You have to design items that cooks can do in the kitchen that can't be too difficult because of the pressures of every day.

Do you ever miss owning your own restaurant?

I miss some of the good times, but it's a stage in your life. When you are a corporate chef, you have to feel ownership to be successful. There are jobs where your job and life are different. But cooking is too passionate, too involving, too much a part of your life for you to be detached.

What is the most surprising thing you have learned by taking the job at Bertucci's?

Feeling a part of a team, the support. The feeling of being part of a well-lubricated machine was fascinating. There are 5,000 people or more working, so you see how the engine works and say, "Wow!" Even if you fall down or are sick, you can relax. With your own business you worry because there is only one of you.

PHOTO (COLOR): Rosario Del Nero says the biggest challenges as a corporate chef are to "strip away personal ambitions and become what is good for the concept." And "to understand the destination of the dishes you are cooking."

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By Robin Lee Allen

CHEF'S TIPS

• For more thorough baking of breads, pizzas an other products, always keep a pizza stone in the oven.
• To enhance the flavor texture of fish, bake it on planks of cedar or other fruit woods.

CHEFS ON THE MOVE

• Scott Cohen, the former chef of The Stanhope Hotel and Tatou Supper Club in New York City, moved to San Antonio as chef of La Mansion del Rio hotel and its restaurant, Las Canarias.
• Napadol Noopie Khemkhajon was named executive chef of the Sundial Beach Resort on Sanibel Island, Fla. He has worked for South Seas Resorts, the parent company of Sundial, for the last 17 years. Most recently, he was chef of the University Club, Fort Myers, Fla.

Copyright of Nation's Restaurant News is the property of Lebhar - Friedman Inc.

2006-02-23T12:37:00.000-08:00

BOZEMAN, Mont. -- Targeting a niche of the pizza segment that until recently was as wide open as the terrain in Montana, an aggressive young chain has introduced gourmet pie to the Big Sky country.

Despite the cynics who insisted that the region's pizza segment was saturated, MacKenzie River Pizza Co., a chain of five restaurants in Montana, is seizing a corner of the pizza market by offering nontraditional bases and toppings, including a Thai peanut-ginger sauce and boneless buffalo wings.

"We saw that the gourmet niche was wide open," said Steve Shuel, who is directing the chain's growth with the concept's founder, Don MacKenzie.

Created by MacKenzie less than five years ago, the gourmet pizza chain has restaurants around the state with two locations in Missoula and one each in Belgrade, Bozeman and Great Falls. In 1996 average unit sales for each restaurant ranged from $900,000 to $1.3 million, and the five units generated almost $6 million in sales, according to Shuel.

The chain's sixth restaurant is scheduled to open in Kalispell in December, and by early 1998 the seventh unit is expected to open in Billings. The average cost to open a new restaurant is about $500,000, Shuel said.

The core of the menu at MacKenzie River Pizza Co. features gourmet pies. Some have a Western theme, such as the Angler, which is a pesto-based pizza topped with leaf spinach, lightly smoked trout and sliced almonds. Other pies, like the Hot Hawaiian, which is topped with barbecue sauce, chicken, bacon, jalapeno peppers and pineapple, are more eclectic.

Appealing to more conventional tastes, the menu also offers traditional pizzas such as the Three Cheese Basic. "The beauty of it is that even with our most nontypical gourmet concoction, we still offer the Good Ol; Boy, which is our version of a pepperoni pizza," Shuel said.

The crusts for the 12-inch pies are available in sour-dough, light wheat and eight grain, and a deep-dish 13-inch crust is made only from light wheat. Personal-size and create-your-own pizzas are featured on the menu along with salads, soups and sandwiches. The chain's average check is about $7, Shuel said.

MacKenzie River Pizza Co.'s flagship 130-seat restaurant in downtown Bozeman features an open kitchen, floor-to-ceiling storefront windows and a rustic Western decor that emphasizes fly fishing -- a popular sport among both men and women in the region.

"We think we are on somewhat of a leading edge as far as pizza goes," Shuel said. "It opens the door for us to be creative and nontraditional, not only in our product but also in our decor. We are not interested in the red-and-white decor typical of most pizza restaurants."

Enhancing the Wild West motif are such accents as furniture made from lodgepole pine, coat hooks fashioned like the mouth of a trout, murals representing Montana's landscape -- created by MacKenzie's mother, Beth -- and longhorn skull wall sconces. Other design elements in the 3,000-square-foot restaurant include an inverted fishing boat hanging from the ceiling, a line of cowboy boots decorating the windowsill and a life-size wood grizzly bear that stands near the entrance.

The chain's restaurants vary in size, but they share a similar decor and menu. Only three locations -- Bozeman, Great Falls and one in Missoula -- offer beer and wine because liquor licenses in many regions of Montana are scarce and expensive.

The flagship restaurant, which operated with only nonalcoholic beverages for several years, began serving beer and wine in July after purchasing a license for more than $200,000, according to Shuel.

"It is not a great percentage of our sales, but it rounds out the dining experience," Shuel said. "Many people think of a beer as going hand-in-hand with pizza."

In addition to dine-in, takeout and delivery, the chain sells its pizzas through many local retail outlets, such as convenience stores and independent grocers, with a program called Pizza in the Raw. The pizzas are par-baked and shrink-wrapped before being distributed around the area. Sales from Pizza in the Raw generated about $175,000 in 1996, MacKenzie said.

The development of MacKenzie River Pizza Co. began in the early 1990s when MacKenzie -- who formerly owned a company in New Hampshire that designed and imported dinnerware -- moved to Montana to open a pizza restaurant. Although gourmet pizza was already popular in many areas of the country, MacKenzie said the segment had room for improvement.

"I thought there could be a lot more warmth and creativity put into the product," he said.

After researching various destinations, including sites in Durango and Boulder, Colo., MacKenzie chose Bozeman for his first location, which opened in April 1993. Despite Bozeman's limited population of less than 30,000, MacKenzie said the town appealed to him because it was home to Montana State University and its proximity to Yellowstone National Park attracted throngs of tourists.

In 1994 MacKenzie teamed up with current partner Shuel, a native of Indianapolis who moved to Montana in search of a lifestyle change and new business opportunities. Shuel, who had sold his advertising agency in Indianapolis the year before the partnership formed, had purchased a foodservice distribution company when he first moved to Bozeman. Through the business he met MacKenzie.

In the last few years, the duo has positioned MacKenzie River Pizza Co. for growth. While Shuel said he is overseeing future restaurant development in Montana, MacKenzie said he is focusing on expansion outside the state.

MacKenzie said he plans to open about five units in Boise, Idaho, by the end of 1998. He said the locations would range in size from 800 square feet to 2,500 square feet and are expected to generate 65 percent of sales from takeout and delivery -- similar to the Belgrade unit, which is called MacKenzie River Pizza Co./Catch It On The Fly, featuring a full menu and a Western decor package but designed mainly for takeout.

"I feel extremely grateful because in the restaurant business it is easy to fall on your face," MacKenzie said.

He added: "Before I opened the first restaurant, I wanted to create a concept that I could take nationwide. I can see it in New York City. I think it is refreshing. But the trick will be to expand on a bigger level and keep the freshness."

PHOTO (COLOR): Left: Partners Don MacKenzie, not pictured, and Steve Shuel are leading the growth of MacKenzie River Pizza Co.

PHOTO (COLOR): The chain's growth outside of Montana will be characterized by smaller units, called MacKenzie River Pizza Co./ Catch It On The Fly, designed mostly for takeout and delivery.

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By Amy Zuber

Copyright of Nation's Restaurant News is the property of Lebhar - Friedman Inc.

2006-02-23T12:36:00.000-08:00

Omaha World-Herald, Neb.

Feb. 19--ConAgra Inc. said Thursday it has acquired Gilardi Foods Inc., a privately owned maker of frozen pizzas based in Sidney, Ohio.

Details of the stock transaction weren't disclosed. Gilardi makes pizzas and other products under the brand names of Mama Rosa and Gilardi.

The company has more than 900 employees and operates plants in Sidney and Troy, Ohio; Peoria, Ill.; and Oklahoma City. Gilardi will be an independent operating company within ConAgra Frozen Foods.

2006-02-23T12:35:00.000-08:00

Chicago Tribune
The following editorial appeared in the Chicago Tribune on Dec. 7, 1997.

So this is what it's come to for Mikhail Gorbachev. Once one of the world's most powerful people, the former Soviet president is about to star in a TV commercial for Pizza Hut. He'll earn a hefty fee for his endorsement, reportedly close to $1 million. But surely this must be a humiliating comedown for the proud man who once called the shots in the Kremlin.

Not that he'll get much sympathy from his fellow Russians. In the West, Gorbachev is still hailed as a hero who led his country out of the communist wasteland and played a pivotal role in ending the Cold War. But he is about as popular as frostbite in Russia, where people remember him as a vain windbag who droned on about reforming the Soviet system but lacked the smarts and the backbone to carry it off.

When he ran for president last year, bitter Russians really rubbed his nose in it. He won less than 1 percent of the vote. So deeply disliked is he in his native land that the Pizza Hut commercial he just finished filming will not be televised in Russia,just in those countries where he is still held in high esteem.

``I thought that it is a people's matter - food,'' he explained in that pompous way that used to drive Russians nuts. ``This is why if my name works for the benefit of consumers, to hell with it - I can risk it.'' Too bad Gorbachev didn't take that attitude when the shelves in Russian food marts were meagerly stocked, thanks to his half-hearted efforts at reform. If he had, he might still be in charge today.

Instead, Boris Yeltsin runs the place, and he has no plans of appearing in his own TV commercial. But Yeltsin's already the star of the world's weirdest circus sideshow. During last week's trip to Sweden, he confused that country with Norway and mistakenly described Japan as a nuclear superpower. Then he drove his own aides wild by announcing Russia had decided to disarm unilaterally. It wasn't true.

The aides spent the next few days cleaning up the mess. Like the guys in the circus who follow the elephants with brooms.

http://www.chicago.tribune.com/

2006-02-23T12:34:00.001-08:00

COLUMBUS, Ohio -- Casual dinner-house operator Max & Erma's Inc. here said it would test from three-to-five units of a new wood-burning oven, pasta-and-gourmet-pizza dining concept in 1998.

The company expects the test units, estimated at $500,000 each, to produce some $1.25 million in annual sales apiece.

Copyright of Nation's Restaurant News is the property of Lebhar - Friedman Inc.

2006-02-23T12:34:00.000-08:00

The Pueblo Chieftain, Colo.
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By Gail Pitts, The Pueblo Chieftain, Colo.

Mar. 13--Add to Pueblo's array of frozen, baked and delivered pizzas a new entry: Papa Murphy's Take 'N' Bake.

They are freshly made-to-order pizzas ready to pop into your oven.

Just stop by the store at 840 S. Prairie (former home of All Star Video) or call in an order to pick up, say owners Ed and Bev Bretske.

It's the first Papa Murphy's in Pueblo, and one of more than 300 franchises nationwide by the Vancouver, Wash., company.

Papa Murphy's takes its pizza philosophy from two customer-driven perspectives: the desire to have fresh ingredients and an equal wish for simple preparation.

The company was created in 1994 with the merger of Murphy's of Petaluma, Calif., and Papa Aldo's of Portland, Ore.

The concept began in 1984 when Murphy's founder, Bob Graham, rebelled against frozen pizza and set out to build a better pie.

It took him nearly a year, the story goes, to accomplish his task.

First, Graham had to develop a crust recipe that could be baked in a household oven at 425 degrees versus commercial pizza ovens that typically cook at 600 degrees.

Company history says he tried 250 recipes before getting it right.

Today, each Papa Murphy's produces pizza crust fresh daily. The ingredients are blended and stored overnight as crust-sized balls to rise. The crusts are stretched for the day's expected business.

Pizzas are produced to a customer's request from basic cheese to build-your-own, with 20 extra toppings available, or a vairiety of combinations in three sizes.

The take-home-to-bake concept also extends to calzones, vegetarian, Italian, chicken Florentine or combination, and to lasagna complete with marinara sauce.

The Bretskes picked Pueblo to invest about $160,000 to buy the building next to the Colorado State Fairgrounds, and remodel and equip it.

Their migration here from northern California began at Christmas 1996. Their daughter Lisa, worked in a Papa Murphy's while she was in school. Now a resident of Anchorage, Alaska, she was home for holiday and was bemoaning the fact that there was no PapaMurphy's in Anchorage.

"That planted the seed," Mrs. Bretske said Thursday.

The couple began thinking about a complete change of lifestyle. Bretske was a licensed contractor and she had been a secretary before quiting to raise a family.

They began exploring the opportunities for a Papa Murphy's franchise, but knew they didn't want to go to Alaska; it's too cold.

So was Fargo, N.D.

Then the company suggested Pueblo.

"We came here and we liked it," she said.

That was a year ago. They moved to Pueblo last July and bought the building in September.

"We were driving around looking for a State Farm insurance agent sign" to switch their auto insurance.

The agent they found was Craig Law, who owned the building and wanted to sell it.

Now, Papa Murphy's is open from noon to 9 p.m. seven days a week. Phone orders may be made at 561-3999.

http://www.chieftain.com/

2006-02-23T12:32:00.000-08:00

Go ahead and have a slice. Experts now say it can cut risk of cancer

I moved to New York City from a small town and immediately fell in love with someone who promised to teach me to become a sophisticated urbanite. He taught me the basics of city life: when to transfer for the express train, how to hail a cab, and what to order at a sushi restaurant. Most important, he taught me to always, always, always drop a napkin onto a slice of pizza before you eat it. Wait a moment, then lift off the napkin and inspect the grease spot before taking a bite.

Why would anyone do such a thing? On the one hand, it's practical. You keep the oil off your blouse. On the other hand, it's pizza lovers' lore, a gesture acknowledging that the slice before you might have a little too much fat--but you'll eat it anyway.

Blessedly, that whole fretful scenario is proving pointless. This year the average American will eat 46 slices, or 23 pounds, of pizza. And while it gains on the hamburger as the nation's favorite fast meal, many nutritionists are cheering. The typical cheese pizza these days gets around 30 percent of its calories from fat, far below a tuna sandwich (43 percent), a chicken burrito (36), or even a garden salad with vinaigrette (45). What's more, the cheese delivers calcium and potassium, the crust complex carbohydrates. Your basic pizza, diet experts concede, just might be the perfect square meal.

Even more important, American pizzas are gen erously slathered with tomato sauce. And ripe tomatoes, especially when cooked and pureed, are starting to look like one of the best things you can eat. The word from nutrition labs is that tomatoes are packed with cancer-fighting compounds--the very chemicals that make them such a luscious red.

The king of these compounds is Iycopene, a close cousin of the beta-carotene that puts the bright orange in carrots, cantaloupes, and sweet potatoes. Beta-carotene and Iycopene are both antioxidants, chemicals that snap up hyperreactive oxygen molecules in your body before they can trigger the genetic mutations that sometimes lead to cancer. Recent research shows Iycopene has twice the antioxidant power of beta-carotene. It may turn out to be the most potent antioxidant of all.

In a study of 48,000 male health professionals, Edward Giovannucci and his colleagues at Harvard Medical School found significantly lower rates of prostate cancer among the men who ate pizza or other foods with tomato sauce at least twice a week. Men who never ate tomato sauce were 21 to 34 percent more apt to develop the disease.

A tomato-rich diet appears to benefit women, too. In a study published in 1997, researchers measured the levels of Iycopene and other carotenoids in the breast tissue of 109 Boston women. Those with higher concentrations were less likely than others to have breast cancer. Meanwhile researchers in Italy showed that men and women who ate at least seven servings of tomatoes a week ran lower risks for cancers of the stomach, colon, and rectum than those who had just two weekly servings.

Though the healthy Italians ate their tomatoes raw, there's strong evidence that the Iycopene in uncooked-tomatoes is less accessible to the body's cells--less bioavailable, as nueritionists say--than what comes on a typical pizza.

"Tomatoes need to be cooked so the cell walls break down and the Iycopene is released," says Harvardis Giovannucci. "Then, for the Iycopene to be absorbed into the body, you need some fat along with it." Fat such as you'd get from olive oil and mozzarella. In a study published last year, researchers gave human guinea pigs either virtual pizzas of bread, tomato paste, and corn oil or salads of fresh tomato slices and oil. Lycopene levels rose two and a half times higher in the blood of people who ate the pizza than in that of the salad eaters.

Loading up on Iycopene could do more than cut your cancer risk, suggests a 1997 study of 1,300 European men. Those with high levels of the compound in their body fat were half as likely to have heart attacks as men with low levels.

Of course, any warranties are null and void if you go for the wrong kind of pizza--one with extra cheese or layers of pork sausage and pepperoni. "High-fat toppings potentially kill the effects of the Iycopene," says nutritionist Linda Nebeling, who directs a National Cancer Institute program that touts the benefits of fruit and vegetables. If a meatless pie seems shamefully naked to you, choose ham or canadian bacon, with two-thirds less fat than traditional pepperoni.

The best topping, naturally, is more vegetables. Paul Lachance, a food scientist at Rutgers University, favors slices of bell pepper. "It's the only vegetable that will retain any vitamin C through all that heat," he says. But adding whichever other greens, yellows, or reds you like will boost your daily vegetable count, adding even more antioxidants and fiber.

And that's what makes pizza perfect: You pick the size, the crust, the toppings. No pizza-slinger would deny you a thick-crust veggie, easy on the mozzarella, even if he'd rather pile on the pepperoni.

"Everyone has their opinions," says Al Rose, who as menu development manager for Domino's Pizza spends his days designing pies and listening to consumers' reactions. "For many people," he says, "pizza is the most passionate food."

PIZZA

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By WENDY MARSTON

2006-02-23T12:30:00.000-08:00

DALLAS -- Pizza Inn Inc. said a decrease in new territorial-franchise agreements and a 1.1-percent drop in same-store sales led to a 2.8-percent decrease in second-quarter revenues for the period ended Dec. 28, 1997, to $17.07 million, vs. revenues of $17.56 million in the year-ago period. The company, which is the franchisor of some 502 pizza restaurants in 19 states, said profits improved 2 percent in the period, however, to $1.19 million, compared with $1.17 million in the year-ago quarter.

"Fortunately, we were able to maintain controls on our [general and administrative] costs and our franchising costs," said Ronald W. Parker, chief financial officer. He said the company recorded some $209,000 less in upfront fees from territorial franchisees than in the year-ago second-quarter period.

Through six months, profits were up 5 percent, to $2.28 million, vs. profits of $2.16 million in the year-ago half-year period. Year-to-date revenues totaled $34.1 million, compared with $35.29 million in the preceding year, a 3.3-percent decline.

Fully diluted earnings per share were 9 cents for the quarter and 17 cents for the year-to-date, compared with 8 cents and 16 cents in the preceding-year periods.

The company also was able to build its stock capitalization to qualify last month for a move of the stock listing to the Nasdaq National Market from the Nasdaq SmallCap Market.

Separately, the company said board member Don Navarro has resigned and has been replaced by Butler Powell, who is vice president of Hibernia National Bank in Metairie, La.

Send financial items to Richard Papiernik, Nation's Restaurant News, 425 Park Ave., New York, N.Y. 10022. Fax to (212) 756-5215. He can be reached at (212) 756-5205.

Copyright of Nation's Restaurant News is the property of Lebhar - Friedman Inc.

2006-02-23T12:29:00.000-08:00

SHOWBIZ PIZZA NETS 93% GAIN IN YEAR-END PROFITS

IRVING, Texas -- ShowBiz Pizza Time Inc., parent of the 312-unit Chuck E. Cheese's chain of pizza-party restaurants, posted profits of $25.5 million in the fiscal year ended Jan. 2, a 93-percent gain over profits of $13.22 million in the preceding year. Revenues were up 19 percent, to $350.27 million, from $293.99 million.

In the fourth quarter profits totaled $5.56 million, an increase of 148 percent over profits of $2.24 million in the year-ago fourth quarter. Revenues in the fourth quarter were $89.04 million, up some 26 percent over revenues of $70.91 million in the year-ago fourth quarter.

Fully diluted earnings per share were 30 cents and $1.34 for the most recent quarter and 12 month period, respectively, compared with 12 cents and 70 cents in 1996.

The company, which owns 251 of its restaurants, said same-store sales were up 14.2 percent for the fourth quarter and 10.7 percent for the year, compared with results from the year-ago periods.

"Record performances in sales and earnings during each quarter of 1997 combined to result in the most successful year in the 20-year history of the company," said Richard M. Frank, chairman and chief executive.

ShowBiz said same-store sales were up 9.1 percent in the first eight weeks of 1998. The company also told analysts it would invest $55 million in capital expenditures in 1998 in remodeling.

The second phase of its remodeling program -- which features enhanced game, prize and merchandise packages -- will be added to between 100 and 120 stores in 1998 after 107 received the new package in 1997. In addition to the remodeling, ShowBiz also is testing an interactive, robotics showroom known as "Studio C."

At the end of 1997, ShowBiz Pizza Time's stock climbed 28 percent, to $23.13 a share, from its Jan. 1 start at $18.13.

Send financial items to Richard L. Papiernik, Nation's Restaurant News, 425 Park Ave., New York, N.Y. 10022. Fax to (212) 756-5215. He can be reached at (212) 756-5205.

Copyright of Nation's Restaurant News is the property of Lebhar - Friedman Inc.

2006-02-23T12:27:00.000-08:00

Detroit Free Press
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By Nancy Costello, Detroit Free Press

Mar. 19--For many Little Caesars pizza franchisees, Toozy! Doozy! was the beginning of the bad times.

The eight-week promotion, created by the corporate office in late 1992, offered two medium pizzas with pepperoni for $5.99. Customers across the country flocked to buy. But franchisees, saddled with what some say were high prices for ingredients and supplies provided by Little Caesars, watched profits evaporate.

"We called it the `Toozy Loser,'" said John Hennessey, a Little Caesars franchisee in Minnesota. "You can't buy flour, cheese and sauce from anybody when you sell pizzas for $5.99 and still make a profit. But the idea was to keep the money flowing to Mike Ilitch at all costs. A lot of franchisees suffered enormously."

With pizza sales sluggish nationwide, scores of franchisees say stiff marketing costs and onerous operating rules have pushed them out of business in the last three to four years.

Thirteen franchisees have filed two lawsuits against Little Caesar Enterprises, claiming the company illegally monopolized distribution of products with company logos and sold the products to franchisees at inflated prices.

More than 200 other franchise owners met in Las Vegas last month to discuss concerns about Little Caesars strategy, distribution policies and a national advertising program that pressures franchisees to cut prices.

At least 25 percent of franchisees have stopped paying fees of 4 percent of monthly revenues to cover national advertising costs, according to a Little Caesars report. Some franchise owners claim the number may be 50 percent or higher. Ilitch downplays such developments as not unusual in the fast food business -- that when sales slide, franchisees fall behind on their payments.

"Franchisees just keep dropping. They are too far in debt, and they have to escape," said Gary Smith, a Florida franchisee and plaintiff in a 1993 lawsuit still pending against Little Caesars. "I get calls from people from California to Chicago. They arejust closing the door and leaving the key. It's sad."

Mike Ilitch, founder and chief executive of Little Caesars, acknowledges unhappiness among franchisees but insists that slumping pizza sales, not company policies, are the root cause of complaints.

Ilitch noted that Smith and some others who have filed suit against the company made millions of dollars from Little Caesars stores in the 1980s, when sales were strong.

"When the sales are there, everything is fine. They go bad, and it's my fault," Ilitch said.

According to Little Caesars' most recent annual franchise offering circular, issued in May 1997, the number of franchisee-owned pizza outlets dropped from 3,483 in 1994 to 3,288 in 1996. The number of company-owned outlets in the same period dropped from1,023 to 657.

The profit squeeze on franchisees, some of them say, started in the late 1980s with Little Caesars subsidiary Blue Line Inc., which sells restaurant supplies to owners. The lawsuits pending against Little Caesars allege that Blue Line conspired with other distributors to fix prices and force franchisees to switch to Blue Line.

Blue Line also charged inflated prices for paper packaging and basic items such as cheese, dough and sauce, the plaintiffs said.

Former Minnesota franchisee Mike Andrzejek defied Little Caesars by buying cheese, sauce and flour from another distributor, saving $15,000 a year in operating one restaurant. He said declining quality of Little Caesars food products prompted him to shopelsewhere. Other franchisees have complained that Little Caesar has watered down its cheese and reduced the quality of dough and sausage.

"Customers were saying `I don't like your pizza anymore,'" said Andrzejek, who sold his store last fall. "We used to have a good-tasting product, but it got to the point where it became horrid."

Andrzejek filed suit in 1995 against Little Caesars in Minneapolis with 11 other franchise owners from Michigan, Louisiana, North Dakota, California, West Virginia, South Carolina, Missouri, Kansas and New Jersey.

Ilitch insists that franchisees are free to choose other suppliers. But he said most don't switch, because Blue Line provides quality food items and also extends lines of credit to franchise owners.

Some franchisees also griped that promotions such as the introduction of spaghetti and football-shaped pizza required them to spend money on special pots, pans and trays, all purchased from Blue Line.

Ray Griffin, a Little Caesars franchisee for 20 years in Grand Haven, measured these promotional fiascos when he piled 900 pounds of obsolete pots and pans in his truck and hauled them to a junk yard last October. Griffin said the special supplies cost him at least $10,000 over seven years. As scrap metal, they were worth $370.

"They have taken away my individuality by telling franchisees what products we're going to buy and what price we are going to sell them at," Griffin said. "We aren't businessmen anymore; we are like employees."

The Minnesota Little Caesars case was transferred to federal court in Michigan in 1996 and may be consolidated with Smith's lawsuit, which has been certified as a class action case.

Little Caesars, meanwhile, has asked to dismiss the lawsuits based on a federal court ruling last fall against disgruntled Domino's Pizza franchisees.

"Domino's just won their lawsuit. The law is on our side," Ilitch said.

But franchisees believe they will be vindicated.

"I want to live long enough to have the class action suit come to an end," Griffin said. "Even if I only get a dollar, I want to hear a judge say, `Mike Ilitch, you are wrong. You have damaged these people.'"

http://www.auto.com

http://www.freep.com

http://www.freep.com/jobspage

http://www.yakscorner.com

2006-02-23T12:26:00.000-08:00

Daily News, New York
~~~~~~~~

By Sallie Han

Pizza brings out so many prejudices in people.

The same pie can judged too thick or too thin, too moist or too crisp. You can say it has too much cheese or not enough tomato sauce. Or, if it has chocolate sprinkles on top, you can argue that it's not pizza at all - maybe it's just dessert.

The government of Italy is trying to take the perplexity out of pizza: Recently, it established laws that define the very essence of a vera pizza napoletana, or true Neapolitan pizza, and dictate the minute details of how it must be prepared and with what ingredients.

According to the Associazione Vera Pizza Napoletana, fewer than 100 restaurants in the world are up to snuff. Among them are two in Japan and two in the U.S. - one in Los Angeles and one in New York.

``There's a lot of good pizza in New York,'' admits Brad Bonnewell, co-owner of La Pizza Fresca Ristorante in Manhattan. Although partial to Patsy's in Brooklyn himself, he says: ``It's not authentic Napoletana. We are the only ones.''

To bear the title vera pizza Napoletana, the dough is pressed by hand with only water, yeast, salt and Italian flour, and the sauce is crushed from tomatoes raised in the San Marzano region of Italy. Then it is topped with mozzarella made only from the milk of water buffalos living in the region of Italy between Naples and Rome.

(The cheese is flown in twice a week.) Once made up, the pies are baked in an Italian-style brick oven for about two minutes at 450 to 485 degrees Celsius.

Even the smallest deviation in the process could cost the restaurant its status as a true Neapolitan pizza maker. The Associazione regularly sends out pizzaioli, or pizza police, to patrol pizza production.

But for all the toil and trouble involved, some New Yorkers seem to think, well, a true Neapolitan pizza isn't really pizza after all.

``People are sometimes surprised,'' Bonnewell says. ``It isn't what they expect of brick-oven pizza.''

Indeed, compared to other brick-oven pizzas in New York, it's smaller, softer and chewier.

Restaurant co-owner Anthony Montalto, who trained under a certified true Neapolitan pizza chef, says the ideal Neapolitan pie is supposed to be pliant enough to fold the whole round over in quarters without breaking the crust.

``I can't talk you into liking it,'' Bonnewell says, ``but it's authentic.''

La Pizza Fresca Ristorante is located at 31 E. 20th St. between Park Ave. South and Broadway.

http://www.mostnewyork.com/

2006-02-23T12:25:00.000-08:00

NATIONAL CHAIN SEEKS A SLICE OF WESTCHESTER'S PIZZA MARKET

A national pizza chain specializing in take-out and delivery will make its debut in Westchester this January. Papa John's International Inc. will open a store on Route 119 in Greenburgh.

The Louisville, Ky., retailer plans to add the Hudson Valley to its pizza empire of 1,470 restaurants in 35 states.

Eric Goldschmidt of Goldschmidt & Associates in Scarsdale is the exclusive site selector for Papa John's area franchise developers Harris Simons and George Cavedon. "We did have a previous deal on Mamaroneck Avenue in White Plains, but we couldn't get the proper zoning," said Goldschmidt. "It was very disappointing because it would have been a major addition to the community."

Goldschmidt said the franchise is targeting heavily populated areas from Yonkers to Mount Kisco. A second Westchester location could be in Harrison. where negotiations are under way.

Each store requires a minimum of 17 feet of frontage and off-street parking. "Parking is important, since these restaurants will he all take-out or delivery," he said.

Simons said he and Cavedon have formed Northeast Food Services L.L.P, as the exclusive franchise developer for the lower Hudson Valley, including Westchester, Rockland, Putnam, Orange, Dutchess and Ulster counties.

"It's virgin territory and right now the company is expanding rapidly on both coasts." said Simons. He and Cavedon contend lower Westchester can support about 12 Papa John's locations, while the northern part of the county could support five. They hope to have a total of 31 units in the six-county area by the year 2000.

Headquartered in West Hartford, Conn., Northeast is using its own funds to develop the business. "We have a large group of investors and we've both been involved in a lot of startup operations before," said Cavedon.

According to Simons, startup costs for each location can range from $225,000 to $250,000, including building renovations and equipment. "In most cases, we won the building new stores," he said.

They plan to utilize existing space in small shopping centers that are near major population centers. "Our objective is to put them in a place where drivers can act to households within seven minutes," said Simons

To keep costs down. drivers will use their own tars and will he reimbursed for travel expenses. "It's a great opportunity for people who need extra cash," said Cavedon. "If people use their own cars. they tend to take better care of them." While Papa John does not charge for delivery, many drivers can earn a substantial amount in tips. Each store typically employs up to 25 full-and part-time workers.

Papa John's has grown from one tiny shop in 1984 to a national chain of 1,0)72 franchise operations and 398 company-owned store. The company goal is to have 2,000 restaurants by the year 2,000.

When he was just 23 years old. company founder John Schnatter invested $1,600 in equipment and materials. and began making and delivering pizzas from a converted broom closet in the hack of an Indiana tavern.

During his first year of operation, Schnatter sold up to 400 pizzas a week. He reinvested the profits into a small shop of his own and continued to expand over the next 13 years. Earlier this year, Papa John's unseated Pizza Hut as the best pizza chain in the country in a survey by "Restaurants & Institutions."

Spokeswoman Diane Comer said the company's secret to success is keeping things simple. The menu is limited to pizza, breadsticks, cheesesticks and soft drinks, and the business is strictly carry-out and delivery.

"We're marketing to the sophisticated consumer who wants a high-quality product that's competitively priced," she said. "We think business will do very well in Westchester."

According to Comer, Papa John's uses quality dough, low-fat cheeses and fresh tomatoes. "You can really taste the difference once you try one of our pizzas." Each store orders products directly from a Papa John's commissary, the newest one opening recently in Rotterdam.

Simons said they're not worried about competition from other large chains like Pizza Hut and Domino's. "Papa John's has successfully marketed themselves in other parts of the country. Once we establish a presence in the area, we'll be able to differentiate ourselves from the other chains."

Papa John's revenues topped $109.6 million for the first quarter of this year, resulting in a 43 percent increase over last year's revenues during the same period. Comparable store sales for the quarter reflected increases of almost 12 percent for company-owned restaurants and 7.3 percent for franchised restaurants.

Comer credits America's love affair with pizza for keeping the market open for more players. "Statistics indicate Americans eat up to a trillion slices a year, and more than 100 acres of pizza each day," she said. The pizza delivery business alone represents a $20 billion industry.

According to the National Association of Pizza Operators, there are 60.000 pizzerias nationwide, of which about 60 percent are independently, owned. Annual sales of pizza, including frozen pies, topped the $32 billion mark last year. The New Albany, Ind., organization surfaced in 1983 and now boasts more than 10,000 members. It also publishes "Pizza Today" magazine, a trade publication with an international circulation of 50,000.

Simons and Cavedon are confident their new venture will be a profitable one. "New Yorkers are always receptive to new ideas, and we're looking forward to the grand opening of our first Papa John's in Westchester."

~~~~~~~~

By MARY T. PRENON

Copyright of Westchester County Business Journal is the property of Westfair Communications, Inc.

2006-02-23T12:24:00.000-08:00

HOME TEAM PIZZA IS IN THE DOUGH

Ten years ago, Thomas Baldwin Jr. abandoned a comedy career to open a pizzeria. With a projected $4.7 million in sales this year, he appears to have made the right choice.

With stars in his eyes, Thomas Baldwin Jr. pursued his career choice. Without direction, without contacts, he went to California. Within three weeks, Hollywood lost its appeal -- and an aspiring comedy writer.

That was more than a decade ago. Three million pizzas and $20 million in sales later, Baldwin has grappled in pizza wars with national chains and come out with nary a mark.

"When I decided to open a pizza place, I had no credit -- let's say no good credit -- no assets and no capital," Baldwin says. "I was 23 years old and West Bank got me started. I opened up my first small shop by Drake on Oct. 7, 1987."

Baldwin's first shop was named Home Run Pizza. He didn't know it at the time, but the Home Run Inn in Chicago owned the rights to a version of the name. He was quickly made aware of it. Baldwin's store became Home Team Pizza.

"I'd still rather be Home Run Pizza. It rolls off of the tongue easier. We get called Home Town Pizza a lot. Wish we could have kept the name."

In the beginning, the former Domino's delivery driver and manager had few visions of grandeur. "One store was good enough. I could run it and work on my comedy writing."

That was not to be. Drake students proved to be a hungry lot. With the store's success, Baldwin opened two more shops in Des Moines within two years. Then one in Omaha. He took on a partner. Disposed of the partner. And sold the Omaha shop.

In '94, he opened five stores. Two were his; three were sold as franchises. Today, he owns three Des Moines-area pizzerias. Nine other Home Teams are franchised.

"Every one of the franchises is owned by a former employee of mine," he says. "I receive a royalty percentage and each store contributes to an ad fund. I've financed nearly every store myself."

Baldwin also chooses the franchise locations. Two in Des Moines, one each in Ames, Ankeny and Iowa City, two in Omaha, one in Lincoln, and one in Ft. Collins, Colo. Combined, the stores employ 250 people.

"Overall, all of our stores are doing fairly well. Some are good. Some are all right."

Though Baldwin shies away from mega-marketing campaigns, he's dabbled in direct mail and radio. Lazy customers, those who order infrequently, are contacted directly. Consumers haven't demanded changes, but Home Team doesn't wait for requests before making them. It was the first to promise delivery within 30 minutes or the order was free. It also developed a 20-inch pizza and applied for a trademark on its name, Huger Huge.

"Our marketing has consisted mostly of word of mouth. Especially for the first three stores. Word of mouth travels faster than the mail anyway. Look at Drake. We pretty much own that campus. We go through 100 pizzas a night over there quite often."

Most Home Teams are carryout and delivery only. In fact, 92 percent of the company's business derives from those who prefer to dine at home. Dine-in is offered only at one Omaha store and the Ames location.

Baldwin almost prefers to keep dine-ins out of Home Team's entourage. The service requires more employees, a hot commodity these days. When asked about the effects of the labor shortage, Baldwin responds, "It sucks. It gets worse every year, trying to find qualified help in fast food. I hate to call us that, fast food. But we are fast and we do have food, so I guess we qualify."

Baldwin says his pay scale beats the competition's. Benefits are better, he claims, and drivers make more in tips due to the sheer volume of business. Insiders tell him that Home Team retains its employees up to five times longer than other pizzerias.

Touting the attributes of Home Team doesn't make it any easier to attract workers. "If I had one or two good management people all of the time, I'd open stores till the end of time. This is a service-driven business. It's a shame we can't open more stores. The only thing that limits us is finding good, quality employees and management. I could be two to three times bigger if I had an endless supply of employees. I don't want to grow rapidly and so huge that I own America, but I'd like to open a few more stores."

The situation isn't as dismal as it sounds. Baldwin plans to set up new stores early next year. He's waiting for the right employees to purchase franchises. He's never sold to an investor, and though he'd consider it, that's not his goal.

"There are a couple of markets left in Iowa I'm looking at. Cedar Falls/Waterloo and Cedar Rapids are prime examples. We're not a small-town company. We've carved out a market niche by placing ourselves near colleges. Outside Iowa, I'm looking anywhere there is a Big 12 or a Big Ten school."

Further down the line, Baldwin would like to return to the comedy scene. "I don't get much of a chance to work on it now. I can't own a business and do something else too. My life is driven by one thing at a time. But the heater is burning and one time I might just pounce on it. Eventually, I'd like to sell the pizza company."

PHOTO (BLACK & WHITE): TEAM SUCCESS: "Every once in a while, I wake up at night and think, `This is really cool,'" says Thomas Baldwin Jr., owner of Home Team Pizza.

~~~~~~~~

BY DENISE EDGINGTON

2006-02-23T12:23:00.001-08:00

Section: Opening Notes
THE FILM THAT PIZZA BUILT

If Canada's film industry had a Genie award for resourcefulness, Montreal film producer William Mariani would probably be a shoo-in. Four years ago, while a Concordia University commerce student, Mariani used his pizza-delivery job to drum up some of the $420,000 needed to produce his first film, Obstruction of Justice, a suspense starring Sara Botsford. "I started delivering the prospectus with the pizza," says Mariani, 29, who targeted affluent-looking homes for the sales pitch. "And it worked." Over a year, Mariani raised $30,000. "They saw this young guy wearing this incredibly ridiculous outfit delivering pizza, and they wanted to help him," says Mariani. He managed to raise the rest of the money for the 1995 film through conventional means with his business partner, Ron Price. A longtime film buff who spent his adolescence making movies on video with friends, Mariani has since produced three other features, including Dead Innocent with Graham Greene and Genevieve Bujold. He hopes that his company, Blackwatch Communications Inc., will go public within the next five years, and then he plans to give shares to everyone who invested in his first film. "I really wouldn't be sitting here if it wasn't for them."

PHOTO (COLOR)Mariani: all dressed with a prospectus

~~~~~~~~

Brian Bethune

Copyright of Maclean's is the property of Rogers Media, Publishing Ltd.

2006-02-23T12:23:00.000-08:00

Strategy

PIZZA PARTING

Revamping Caesars Splits with Agency

Little Caesars is seeking a new marketing exec to develop a more consistent brand strategy and halt a two-year sales slide, with an eye, sources said, to a possible public offering within 18 months. The developments coincide with Little Caesars' decision to put its estimated $40 million ad account up for review.

That move prompted incumbent shop Cliff Freeman & Partners to resign the account, ending a 10-year partnership that has produced some of the funniest, most-awarded advertising on Madison Avenue. Three agencies left pitching the account are former Domino's agency Grey, N.Y., Bozell Worldwide, Southfield, Mich., and Fallon McElligott, Minneapolis, with a decision expected by April, said company rep Sue Sherbow.

"We've had such enormous success . . . but it was time to move on," said Cliff Freeman, chairman and chief creative officer at the New York agency.

Caesars' systemwide sales have been stuck at about $1.8 billion for two years amid heavy competition from larger rivals Pizza Hut and Domino's Pizza, and a more recent quality challenge from fourth-ranked Papa John's International in the $25 billion category. Despite years of rib-tickling ads, Caesars' value message may have grown tired in flush economic times as consumers opt for tastier offerings. Franchisees have also complained about inconsistent marketing ideas from headquarters (Brandweek, Jan. 26).

Caesars' owner Mike Ilitch Sr., who with his wife Marian owns baseball's Detroit Tigers and hockey's Red Wings, recently underwent a second round of heart surgery and may be ready to loosen his grip on his 9,000unit pizza empire, said sources close to the company. Caesars recently hired a Midwest search firm to solicit candidates for a creative services post that would report to vice chairwoman Denise Ilitch Lites, who oversees marketing. But word is Ilitch Lites wants to leave the business, possibly to pursue a political career in Detroit, where the family hand extends to a bevy of municipal projects.

Sherbow declined to comment on the candidate search and would not speculate about Ilitch Lite's future plans. She said she was not aware of any plans for an IPO, which prospective candidates approached for the marketing job say has been dangled before them.

As sales slowed, Caesars has been forced to dial back marketing efforts. With 25% of franchisees behind on payments to the national ad fund, the company suffered an $8 million shortfall last year, said franchisee sources. Spending totaled $34.6 million through November of last year, versus $53.2 million in 1996, per Competitive Media Reporting.

The review, quietly underway since mid-January, was disclosed by Ilitch Lites in a Feb. 4 memo to franchisees that praised the agency for doing "an exceptional job creating a vivid, memorable campaign for our company." She added that CF&P would continue handling the business and "look forward to participating in the review."

But after "serious soul-searching," Freeman said he decided to resign the business last week, saying agency and client "differ greatly" on finding solutions to Caesars' problems.

In the past decade, CF&P created some of best-loved advertising to appear on television, with clever spots touting two-for-one Pizza! Pizza! specials via a cacophony of cloned sheep, dancing poodles, lowly pizza deliverymen and stretchy mozzarella run amok.

"They put us on the map and vice versa," Freeman said.

~~~~~~~~

By Karen Banezra

Copyright of Brandweek is the property of VNU eMedia, Inc.

2006-02-23T12:22:00.000-08:00

RPM PIZZA INC.

Focus, energy fuel pizza legend on march to success

Probably all of today's mature restaurant chains in their early days had a franchisee like Richard Palmer Mueller.

While the brains in headquarters tinkered to perfect the operating systems and solidify the marketing identity, franchisees in the field like Mueller were instinctive caterers to consumer needs who performed so well that one day corporate came calling with a job offer, saying to the effect: "Run our units as well as you run yours, and we'll pay you more money than you ever have seen plus give you a piece of the company."

But neither corporate's big bucks nor an unflinching devotion to another millionaire named Tom Monaghan could keep Mueller a corporate drone in Domino's Pizza's Ann Arbor, Mich., headquarters for long.

With his entrepreneurial drive unsatisfied, Mueller went back into the trenches, where his company's contributions in advancing the Domino's brand would make RPM Pizza Inc. the chain's most innovative operator. At each stage of growth RPM would conceive of marketing or operational innovations that not only would become endorsed systemwide but also often were copied industrywide.

Perhaps the company's best-known legacy is Mueller's invention of Domino's portable, triangular car top signs. But Mueller would like to say that he hopes his best-known legacy is giving more than 140 employees the training and support to become franchisees and run their own units.

Other innovations include:

• Development of a cheese machine that accurately portions the amount of topping, saving labor and time.
• Creation of a chain signature item, the Extravaganza, a nine-topping pizza for the price of four that proved to be a popular product during the discounting wars.
• A more efficient kitchen layout that became stamped in a generation of chain prototypes, which Mueller designed using his engineering background.
• RPM's sending all of its management crews to pizza college and an intensive Dale Carnegie seminar even though Domino's corporate does not require it. That investment annually amounts to tens of thousands of dollars.
• The company's sharing its profits with unit managers and allowing them to participate in all strategic decisions.

Just last year RPM was awarded the International Franchise Association's "franny award," the group's highest honor to franchisees who demonstrate consistent operational excellence.

Mueller and those who know him best would say that those accomplishments get ahead of the story. He points to the bleak days when he overexpanded and was forced to close 130 units, was $20 million in debt and had to call a halt to his ill-timed expansion in Germany.

Losing market share after Pizza Hut's expensive invasion into home delivery in 1990 and blasted in the press around the nation for a string of auto accidents linked to its 30-minute delivery guarantee, Domino's was on a downward spiral earlier this decade. Making matters worse, Pizza Hut and some new competitors in the segment raised issues about the quality of Domino's product.

If that weren't enough, the recession and even the Gulf War dried up demand for home delivery.

Nearly 1,000 Domino's units systemwide would close between 1991 and 1993. For franchisees, it was not a happy time, especially in a system whose contract forbids its operators from broadening their revenue streams by running other businesses.

But nearly 10 years later, RPM Pizza -- which does not stand for revolutions per minute but is actually the initials of Mueller's name --is basking in Domino's third consecutive year of same-store-sales growth and systemwide volume increases. Last year alone RPM opened eight stores and hired 500 people.

To no small measure, much of Domino's rebound is owed to the Gulfport, Miss.-based franchisee.

"Domino's gave me an opportunity to grow, and I became a millionaire," says the 48-year-old Mueller, who is about to be a grandfather. "If I were smarter, maybe I would have done a lot of analysis and tried something else.

"But I was never smart enough, so I stayed."

Mueller was a third-year engineering student at Michigan State, working part-time as a Domino's driver, when he dropped out of school in 1967 to run a Domino's unit.

"I just fell in love with it," Mueller says. "Time just seemed to fly. But I just knew that if you worked hard, this would pay off.

"To me, college was someplace you went to find yourself and something you enjoy doing, and I found it. So dropping out was not a big deal.

"Of course, if my son had done that, I'd probably shoot him."

As it turns out, Mueller's son, an M.B.A. honors graduate from Duke University, operates one of RPM's outlets in Mobile, Ala.

Mueller's father, a doctor, lent him $600 to buy a half-interest in a struggling Ann Arbor Domino's store once he realized that his son was more interested in pizza than in engineering. After Mueller put together a series of self-inspired promotional campaigns, the unit was eventually pulling in $2,000 a week.

"Just think, we were doing $2,000 a week on a pie that sold for $1.70 with 30 cents per topping," he recalls.

Realizing the value of direct marketing and customer identification, Mueller created a handwritten database of every address that ordered pizza delivery from his unit. That database, with more than 2,000 names, became the tip of an iceberg he used to reach households that did not call him.

Through direct-mail discounts to homes that did not order, Mueller reached thousands more households before he sold his interest in the unit in 1970 to take over a struggling store near the Ohio State University campus in Columbus.

That unit, which was bringing in $800 a week, was considered one of the top 10 highest-performing stores in the state. Within six months, after Mueller had used some of his self-taught innovations in customer profiling and marl marketing, the unit became No. 1 in the state.

"I think businesses looked at college students back then like cattle," he says. "But they were like any other consumer. Give them a quality product, delivered on time, and a decent price, and they remembered you.

"I was only 22 years old myself then, so I could relate to them, and I knew what they wanted: a good pizza at a reasonable price."

On the debut of Monday Night Football in 1970, Mueller created a special 12-inch pizza, delivered for $1. Monday nights, which usually grossed somewhat more than $100, generated $1,000 from the special and triggered other innovations. There came two free sodas on a regular pizza and four free sodas on a large one, which virtually guaranteed repeat business.

Using the profits from the Columbus store to buy a second store, whose profits were used to buy a third, from 1971 to 1978 Mueller rapidly expanded his units to 60 before chain founder Monaghan asked him to come to headquarters. Mueller was asked to nm the system as vice president of operations, for which he would receive a lO percent ownership in the corporation.

For three years Mueller worked in the corporate division and saw Domino's system cross the billion-dollar sales threshold by 1981. Then he sold his interest in the corporation for $1 million and went back to franchising.

"I liked working up there and the experience, but I really wanted to get back to running my own franchise," Mueller says.

In 1981 he founded RPM Pizza and acquired the Mississippi and Louisiana territories. His brother Glenn, who held an M.B.A. and was a C.P.A., joined the company that same year as president.

Within a few years the company expanded to Chicago, Detroit, the Bronx and even Germany, reaching a peak of 371 units with sales in excess of $150 million. In one year alone RPM opened 45 stores.

But by 1991, with a recession raging, the Gulf War killing home delivery, $20 million in debt and Pizza Hut harpooning Domino's quality in prime time TV ads, RPM Pizza took a nosedive. It closed or sold off more than half of its units to concentrate exclusively on those in Mississippi and Louisiana.

"Those were some tough tunes," Glenn Mueller remembers. "But we never lost faith when we were down, and we got back to what we do best: pizza delivery."

Glenn, who campaigns whenever he can against the unfairness of the federal income tax, says the economy was not totally to blame for RPM's troubles. "We were not managing them well," he admits. "And owing $20 million certainly didn't help our cash flow."

It was just around that time, Glenn says, that Pizza Hut's advertising assault became a needed pick-me-up. Pizza Hut's assault was its "change for the better, change for the best" commercial spots.

In the controversial ads two teenagers wearing T-shirts were relaxing on recliners on the sun deck of a roof. One of them muses that he wouldn't know what he would do If Pizza Hut didn't deliver. As the camera pulls back, the viewer is shocked to see that not only are the youths on a roof of a Domino's unit, but also they are Domino's employees who are on a break and put on their uniforms after eating the Pizza Hut's pie.

While Domino's corporate fumed and demanded that the networks pull the ads since they insulted employees and franchisees, RPM got busy.

"The thing about those Pizza Hut ads is that they got me inspired and ready to go to work every day," Glenn says. "It was like a cheap shot in a football game: You can come down to their level and play, or you can stay focused and outperform them.

"No, we didn't run negative, counter ads about them because we didn't have to. Just like sports, we just checked the score board at the end."

Richard Mueller sounds more sympathetic, now that his archrival is owned by a new parent company that is contemplating closing or selling 1,400 Pizza Hut stores.

"Can you imagine what it must have been like to be a Pizza Hut franchisee with a parent company like PepsiCo that didn't want you anymore?" he asks.

Jim Stansik, vice president of franchise administration for Domino's, says RPM symbolizes leadership in the system. "Leadership and energy," Stansik says, "that's what the Muellers, both of them, demonstrate. They are not afraid of being leaders.

"Richard amazes me, though, with his focus after all these years. He is not somebody who is concerned about retirement, vacation homes or the things he owns. He is focused on carving out just one more second to take a pizza order, and he is innovating all the time.

"They are outstanding individuals, and if all of our franchisees were like that, it would make my job a lot easier."

Eric Marcus, personal friend of Richard Mueller's and a Domino's chain pioneer in his own right, is president of the 51-unit Dayton, Ohio-based Western Ohio Pizza. He says he worked for Mueller as an employee before being encouraged to become a franchisee himself.

Marcus says Mueller is a man to whom the word "tired" does not apply.

"He's a crazy man; what can I tell you?" Marcus says. "He's one of these guys who never stop. I remember in 1975 when we were getting started, virtually on a shoe-string budget for about $15,000, and we needed refrigeration for our future stores.

"Kroger [a supermarket chain in Ohio] was closing down, so Richard went and loaded up all of these walk-in coolers at 2 a.m. By the next morning we had walk-in cooler parts stacked all the way to the ceiling."

Marcus says he considers himself to be a pretty well-known character within the chain. But Mueller's fame nearly rivals Monaghan's himself.

"Do Christians know of Jesus?" Marcus snaps, when asked how popular Mueller is in the chain. "He's a legend."

RPM is currently on a growth mode. After going since the mid-'90s with around 120-odd stores, the company is back on the expansion track. Richard Mueller expects that RPM likely will hit 200 stores within the immediate future, largely because of the resurgence of Domino's.

"We'll open 20 stores this year," he says, "I expect 1998 to be another booming year for Domino's."

Name: RPM Pizza Inc.

Locations: 15384 Fifth St., Gulfport, Miss. 39503

Concepts: Domino's Pizza

Number of Units: 130

Leadership: Richard P. Mueller, chairman; Glenn Mueller, president

Total annual sales: $80 million

Year founded: 1981

PHOTO (COLOR): From the company trenches to the top of the entrepreneurial heap, Richard Palmer Mueller expects to keep the boom times a-comin' for Domino's.

~~~~~~~~

By Milford Prewitt

Copyright of Nation's Restaurant News is the property of Lebhar - Friedman Inc.

2006-02-23T12:20:00.000-08:00

Section: What's Cooking
PIZZA PARTY!

Contents
Pizza Dough
Classic Pizza
Toppings Galore
White Pizza
Deep-Dish Vegetable Pizza
Dessert Fruit Pizza With Chocolate Glaze
PARTY PLANNING
SAUCE SWITCHES
CONVENIENT CRUSTS
How to Use Our Nutrition Data
Pizza is the perfect food for a get-together, for kids and adults alike--especially when you invite guests to create their own. If you want to host a party, prepare the dough ahead of time (or buy it premade; see "Convenient Crusts," page 168), along with an assortment of toppings such as the ones on page 168. Ask one family to come with a green salad and another to bring a dessert of cookies and fruit--or have everyone pitch in to make our Dessert Fruit Pizza With Chocolate Glaze (page 173). But even if you're not up for a party, these recipes are so easy that you can enjoy homemade pizza any night.

Pizza Dough
PREPARATION TIME: 20 MINUTES, PLUS 80 MINUTES FOR DOUGH TO RISE

YIELD: 2 THIN-CRUSTED 10- TO 12-INCH PIZZAS, 4 THIN-CRUSTED 6-INCH PIZZAS, OR 1 DEEP-DISH 13 1/2 / 9-INCH PIZZA

The dough can be made up to 2 days ahead of time, then wrapped tightly in a plastic bag and refrigerated; it can also be frozen for up to 2 months. You can use all white flour, but whole-wheat flour adds a nice chewy texture--and much more fiber.
1 tablespoon active dry yeast 1 1/2 cups warm water[*] 3 1/2 cups white flour (or 1 1/2 cups white flour and 2 cups wholewheat flour) 1/2 teaspoon salt 2 tablespoons olive oil
* If the water is too hot it will kill the yeast, but if it's too cool, the yeast won't activate properly. The temperature of a warm baby's bottle is just about right.

Mix the yeast and water in a large bowl and place in a warm spot for about 5 minutes, or until yeast begins to foam. (If it doesn't foam, discard it and start again with fresh yeast.)

Sift the flour and salt into the yeast. Mix well, then add the olive oil and form a soft ball. If the dough is too sticky, add additional flour.

Transfer the dough to a lightly floured work surface and knead it until soft and elastic, about 5 minutes. Shape into a ball and place in a lightly oiled bowl. Cover with a clean tea towel and place in a warm, draft-free spot--like an unlit oven-for about 1 hour.

Punch down the dough and reshape into a ball. Cover dough, and let it sit another 20 minutes, or until it rises again. Punch down again. Refrigerate the dough until you're ready to use it.

HOW KIDS CAN HELP All steps, from mixing the dough to rolling it out; pizza dough holds up well and can't really be overhandled.

PER SERVING (1/6 of recipe; approximately 2 slices of 10- to 12-inch pizza): 274 calories, 7 g protein, 5 g fat, 49 g carbohydrate, 2 g dietary fiber, 179 mg sodium, 0 mg cholesterol.

PER SERVING (1/4 of recipe; approximately one 6-inch pizza): 411 calories, 11 g protein, 8 g fat, 74 g carbohydrate, 3 g dietary fiber, 269 mg sodium, 0 mg cholesterol.

Editor's Note: The following preparation times don't include making your own dough.

Classic Pizza
PREPARATION TIME: 30 TO 40 MINUTES

BAKING TIME: 10 TO 12 MINUTES

YIELD: 4 TO 6 SERVINGS

This recipe is for a basic tomato-sauce-and-cheese pizza; additional toppings are listed below.

1. recipe pizza dough (see above) or 2 store-bought pizza doughs
2. cups grated cheese (one type or a combination, such as parmesan, romano, mozzarella, and cheddar)
3. cups tomato same, bottled or homemade
4. tablespoon olive oil, optional 2 to 3 tablespoons cornmeal, for dusting baking sheet

Preheat the oven to 450 degrees.

Generously flour a clean work surface. Divide the dough in half, or in quarters for individual pizzas. Roll out each half 10 to 12 inches wide, or 6 inches wide if you're using quartered dough. Lightly sprinkle cookie sheets or shallow baking pans with the cornmeal. Lift the dough carefully with both hands and place it on the sheets. Pinch a lip along the edges.

Divide the tomato sauce equally and spread on the dough with a spoon. Divide the grated cheese equally and sprinkle on each pizza. Drizzle olive oil on top if desired. Bake the pizzas on the bottom rack of the oven for 10 to 12 minutes, or until the crust is golden brown and the cheese is bubbling.

HOW KIDS CAN HELP Roll out the dough; pinch the crust; spread sauce with a spoon; sprinkle on cheese.

PER SERVING (1/3 of 10-inch pizza; approximately 2 slices): 491 calories, 20 g protein, 15 g fat, 62 g carbohydrate, 4 g dietary fiber, 696 mg sodium, 26 mg cholesterol.

PER SERVING (one individual 6-inch pizza): 736 calories, 29 g protein, 23 g fat, 93 g carbohydrate, 6 g dietary fiber, 1,044 mg sodium, 39 mg cholesterol.

Toppings Galore
Pizza is a great way to use leftover slices of meat, poultry, and raw or cooked chopped vegetables, such as carrots, broccoli, tomato, and zucchini. For a 10- to 12-inch thin-crusted pizza, add 3/4 cup sauce, 1 cup of toppings, and about 1 cup grated cheese. Use half that amount for a 6-inch pizza, and double it for a deep-dish pizza.

Mini Meatballs Mix 1/2 pound lean ground meat with 1 egg, salt and pepper to taste, 1 teaspoon dried thyme, and 1/2 cup bread crumbs (or enough to hold the mixture together). Form into small balls. Heat I tablespoon oil in a large skillet over moderately high heat and cook the meatballs for about 10 minutes, turning once, until they're cooked through. Drain on a paper towel.

YIELD: ABOUT 12

Caramelized Onions Thinly slice one large sweet (Vidalia) onion and cook with 1 tablespoon olive oil and salt and pepper to taste in a large skillet over moderately low heat for 15 to 20 minutes, or until they're golden brown and caramelized.

YIELD: ABOUT 1/2 CUP

Roasted Garlic Slice half an inch off the top of a head of garlic; place in a small, ovenproof skillet or pan and drizzle 1 tablespoon olive oil on top, along with thyme or your favorite herb. Roast in a 350-degree oven for about 20 minutes, or until the garlic is soft. Squeeze the garlic out of its skin and onto the pizza dough. (If the garlic is roasted well ahead of making the pizza, squeeze garlic out of the skin while it's still warm and store it in a sealed container.)

YIELD: ABOUT 1/3 CUP

Sausages and Olives Place 2 sweet Italian sausages in a medium skillet and pour in 1/2 cup water. Bring to a boil over high heat, reduce, and let simmer for about 10 minutes. Drain any remaining water, add 1 teaspoon olive oil, and cook sausages another 5 minutes, or until brown and crisp. Drain and cut sausages into thin slices and combine with slices of pitted black or green olives.

YIELD: ABOUT 1 cup

Mixed Peppers Thinly slice one red, one yellow, and one green pepper, and saute in a large skillet over moderate heat in 1 tablespoon of olive oil with a pinch of basil until soft, about 10 minutes.

YIELD: ABOUT 1 1/2 CUPS

Spinach Thoroughly wash one pound of fresh spinach, or use 1/2 cup frozen spinach, thawed, with excess water squeezed out. Leave wet and cook in a large skillet over high heat until wilted, about 3 minutes. Drain and chop finely before placing it on the pizza dough.

YIELD: 1/2 CUP.

White Pizza
PREPARATION TIME: 35 MINUTES

BAKING TIME: 10 TO 12

MINUTES YIELD: 6 SERVINGS

Grated cheese, ricotta, and basil make a mellow pizza that's especially appealing to kids who don't like tomatoes.

1. recipe pizza dough (see above) or 2 store-bought pizza doughs
2. tablespoon olive oil, optional

Freshly ground black pepper

1. cup part-skim ricotta cheese
2. cup mozzarella cheese, cut into tiny cubes
3. tablespoons chopped fresh basil, or 1 1/2 teaspoons dried
4. to 3 tablespoons cornmeal, for dusting baking sheet

Preheat the oven to 450 degrees. Generously flour a clean work surface. Divide the dough in half. Roll out each half 10 to 12 inches wide. Lightly sprinkle cookie sheets or a shallow baking pan with the cornmeal. Place the dough on top and use your fingers to pinch a lip along the edges.

Spread the olive oil on the dough with a pastry brush or the back of a spoon, if desired. Add a dash of pepper, then spread the ricotta on top. Sprinkle mozzarella and basil over me ricotta.

Bake on the bottom rack of the oven for 10 to 12 minutes, or until the crust is golden brown and the cheese is melted and bubbling. Serve immediately.

HOW KIDS CAN HELP Roll out the dough; brush on olive oil; add cheese and basil.

PER SERVING (1/3 of a 10-inch pizza; approximately 2 slices): 426 calories, 16 g protein, 12 g fat, 62 g carbohydrate, 3 g dietary fiber, 284 mg sodium, 26 mg cholesterol.

Deep-Dish Vegetable Pizza
PREPARATION TIME: 40 MINUTES

BAKING TIME: 35 TO 40

MINUTES YIELD: 6 SERVINGS

Feel free to substitute 2 cups of any chopped vegetables for the peppers. You can also add a layer of cooked, chopped ham, prosciutto, bacon, pepperoni, or sausage on top of the vegetables.

1. recipe pizza dough (see above) or 2 store-bought pizza doughs
2. tablespoons olive oil
3. large red pepper, cut into thin strips
4. green pepper, cut into thin strips
5. cups tomato sauce, bottled or homemade
6. cup grated mozzarella cheese
7. cup grated parmesan or romano cheese
8. ripe tomatoes, cut into thin slices
9. tablespoons chopped fresh basil, thyme, or oregano, or 1 tablespoon dried
10. tablespoon cornmeal, for dusting baking pan

Salt and freshly ground black pepper

Preheat the oven to 450 degrees.

Roll out the dough into a rectangle that's about 15 by 11 inches. Sprinkle the bottom of a 13 / 9 1/2 / 2-inch baking pan with the cornmeal, and place the dough in the pan, draping the excess over the sides.

In a medium skillet, heat 1 tablespoon of the oil over moderate heat. Add the pepper strips (or the vegetables of your choice) and saute about 10 minutes, stirring frequently, until they're soft. Season with salt and pepper; set aside.

Spread half the tomato sauce on the dough. Add the sauteed vegetables and top with half the mozzarella and half the parmesan. Layer the sliced tomatoes on top of the cheese, then sprinkle on the basil. Top with the remaining cup of tomato sauce, followed by the remaining mozzarella and parmesan. Drizzle the remaining oil over the pizza. Trim the edges of the dough and pinch to form a lip.

Place the pan on a cookie or baking sheet. Bake on the bottom rack of the oven for 33 to 40 minutes, or until the edges of the crust look golden brown and the cheese is bubbling. Let pizza cool slightly before cutting into squares.

HOW KIDS CAN HELP Roll out the dough and place it in the pan; layer toppings on the pie; pinch the edges into a lip.

PER SERVING (1/6 of recipe; approximately 1 slice): 502 calories, 20 g protein, 15 g fat, 65 g carbohydrate, 5 g dietary fiber, 700 mg sodium, 26 mg cholesterol.

Dessert Fruit Pizza With Chocolate Glaze
PREPARATION TIME: 40 MINUTES

BAKING TIME: 20 TO 25 MINUTES

YIELD: 8 SERVINGS

Why not have pizza for dessert too? This luscious apple-and-pear version, drizzled with melted chocolate, is a also a feast for the eyes.

1. 2 recipe pizza dough (see above, but use all white flour) or 1 store-bought pizza dough
2. to 3 tablespoons cornmeal
3. 1/2 tablespoons sugar
4. large tart apples, peeled and thinly sliced (try McIntosh or Granny Smith)
5. pear, peeled and thinly sliced
6. 3 cup semisweet chocolate chips

Preheat the oven to 400 degrees.

Roll out the pizza dough on a lightly floured surface until it's about 11 inches in diameter. Lightly sprinkle cornmeal on baking or cookie sheet. Transfer dough to baking sheet and pinch the edges to form a lip.

Sprinkle 1 1/2 tablespoons of the sugar on the dough. Place the fruit in a circular pattern, alternating pear slices and apple slices. Sprinkle the remaining sugar on top of the fruit. Bake on the bottom rack of the oven for 20 or 25 minutes, or until the dough is golden brown and the fruit is soft.

Meanwhile, carefully melt the chocolate chips in a small saucepan over very low heat. Use a small spoon or a pastry bag to drizzle the melted chocolate over the pizza, including the crust.

HOW KIDS CAN HELP Roll out the dough; pinch the edges; add sugar and fruit. Kids 6 and older can drizzle warm chocolate on top.

PER SERVING (1/8 of recipe; approximately 1 slice): 213 calories, 4 g protein, 5 g fat, 40 g carbohydrate, 2 g dietary fiber, 77 mg sodium, 0 mg cholesterol.

PARTY PLANNING

• Make the dough the morning of the party or the day before, or buy it premade. Cover it tightly with plastic wrap and refrigerate. To make things even easier, roll out individual pizzas ahead of time and place on cookie sheets sprinkled with cornmeal to prevent sticking; then wrap and chill.
• Have toppings chopped and cooked (if needed) beforehand. Place in unbreakable bowls or on plates along the center of a long table, with the pizzas on one end. This way people can work their way down either side of the table, choosing toppings.
• Encourage kids to design their pizzas with a mix of flavors and colors. They might create a face or spell out their name; pepper strips, carrots, and olives work well.
• Put out a bowl or two of "adult" toppings, such as pesto, roasted garlic, grilled eggplant, or a spicy sauce.
• Bake the kids' pizzas first, then move on to the adults'.

SAUCE SWITCHES
Instead of tomato sauce, try spreading thin slices of tomato, fresh or sun-dried, over the dough. Or top it with pesto. To lend extra zest to any pizza, drizzle on an oil flavored with basil or oregano.

CONVENIENT CRUSTS

• Premade dough--ready to roll out so your pizza can be any size or shape--can be found in the refrigerated section of your supermarket or specialty food shop. Or ask your local pizzeria if you can buy their premade dough. It's usually been made within the previous 24 hours, so it's fresher than store-bought.
• Prebaked crusts, like Boboli, are even easier; just add toppings, sprinkle on some cheese, and bake.

How to Use Our Nutrition Data
PARENTING recipes are analyzed with the most current data available from the U.S. Department of Agriculture and other sources for calorie count, grams of protein, fat, carbohydrates, and dietary fiber, and milligrams of sodium and cholesterol. Unless noted, the analysis is for a single serving; it does not include optional ingredients or those for which no specific amount is stated (salt to taste, for instance). If an ingredient is listed with an alternative, the figures are calculated for the first choice only. Recipes are tested and analyzed by Janis Jibrin, a registered dietitian based in Washington, DC.

PHOTO (COLOR): I knead you, you knead me. ... Pizza dough holds up well to kids' handling

PHOTO (COLOR): Spooning on tomato sauce, then sprinkling on toppings, is child's play

PHOTO (COLOR): Look Ma, no tomatoes! White pizza is a kid pleaser

PHOTO (COLOR): Pepper and olive slices add pizzazz to pizza

PHOTO (COLOR): Fruit-and-chocolate pizza--yum!

~~~~~~~~

By Kathy Gunst

Copyright © The Parenting Group Inc.

2006-02-23T12:19:00.000-08:00

RISING CRUST'S STAR STILL RISING; PIZZA GAINS 10.7%

Contents
Leading Brands of Frozen Pizza
Sales of Frozen Pizza In 20 Leading Markets
Market Development Index For Frozen Pizza[*]
The frozen pizza category continues to be the beneficiary of the near-phenomenal success of rising crust products.

From a standing start two years ago, rising crust products enjoy 25% of category sales, led by Kraft Pizza Company's DiGiorno Rising Crust Pizza, which has vaulted past the $200 million mark to become the second-largest frozen pizza brand behind the company's main Tombstone line. DiGiorno, which didn't even go national until the second half of 1997, enjoys 11% of frozen pizza dollar sales.

Two other rising crust lines, Kraft's Tombstone Oven Rising Crust and Freschetta from Tony's, are up almost $100 million combined.

Seeing obvious gold at the end of the rising crust rainbow, two leading manufacturers swung into the segment last year. Tony's Superrise, billed as a value product at $4.29, vs. more than $5 for most other rising crust pies, rolled national with six varieties after being introduced at the end of 1996. (Tony's also went national with Red Baron Low Fat Deep Dish Singles to capitalize on low-fat appeal.)

VDK Frozen Foods launched Mama Celeste Fresh Baked Rising Crust Pizza in September in key northeast markets. The four-item line, with an SRP of $5.49, is billed as the only warehouse-delivered rising crust pizza, with ads hammering at a "pizzeria pizza without the pizzeria" theme.

But the success of rising crust products, while undeniable, is being built more on existing frozen pizza purchasers trading up than on new users. This is indicated by the fact that the 10.7% dollar sales growth in the 52 weeks ending Oct. 12 was way ahead of a 2.2% increase in units, according to Information Resources, Inc., Chicago. Also, as DiGiorno was rocketing past $200 million, Tombstone's regular line slipped 5.1% in dollars and plummeted 10.8% in units in the 52-week period ending Oct. 12.

Packers agree that while rising crust products have attracted business from carryout and delivery, cannibalization of lower-priced products is a source of concern in that incremental category sales are not as robust as they would like. "Units aren't growing as well as one would expect vs. dollars," says Gene Welka, chairman/CEO of Frozen Specialties, Inc., Archbold, Ohio. "This could create a vulnerability as the category shakes out."

The other concern voiced by packers is that frozen pizza, despite its sales surge in 1996 and 1997, still gets inadequate space. "The key challenge for us and our customers is to be sure we increase space accordingly," says Tom Sampson, vice president of marketing at Kraft Foods' pizza division. "Frozen pizza has 8% of department sales but gets only 5% of space."

Dan Koch, general manager of Tony's Pizza Service, Marshall, Minn, says retailers are giving more space to pizza but "it's an uphill battle."

The argument for boosting space is bolstered by the fact that household penetration of frozen pizza, which stood at 66% in 1996, jumped to 71% last year, according to IRI. In 1997, an IRI study for the National Frozen Pizza Institute, McLean, Va., demonstrated that frozen pizza had the highest lift of all frozens across all merchandising types tested--feature, display, price reduction and feature/display combinations.

As rising crust carves out a significant share of frozen pizza sales, manufacturers view its premium niche as clearly defined from other segments. Mark Jansen, marketing manager for pizza at The Pillsbury Co., Minneapolis, breaks the category into premium, functional and individual segments. Kraft's Sampson delineates private label with extreme price sensitivity; brand with price sensitivity; and premium with restaurant quality.

In Jansen's view, the segments relate less to demography than to usage, although users in the functional segment are a bit younger, are more likely to have kids and are heavier users of frozen. "But they're not necessarily lower income," Jansen adds. "We get significant volume from $50,000 and up income."

Jansen notes that DiGiorno is more for a sit-down family meal while Totino's (Pillsbury) is more for quick, hurried occasions. He claims that even with sharply lower prices, so-called functional pizza can yield more dollars per facing due to higher turns.

If Jansen is beating the drums for traditional frozen pizza, John Crowder, director of marketing for St. Louis-based VDK Frozen Foods, which markets Celeste Pizza for One, is pushing single-serve, a segment sometimes downplayed by retailers and some packers. VDK commissioned a category management study, driven primarily by turns data from the top 30 chains, that showed "single-serve is the most profitable segment per linear foot for the retailer. It has 34% of category sales and a higher percentage of profits."

Private label is doing well, with dollars ahead 10.6% and units up 5.0% in the 52 weeks ending Oct. 12. Packers say private label is benefiting from overall category strength, with some noting a surge in private label premium to give consumers another price option.

"Private label is doing well because it delivers a comparable profit vs. popular-price pizza due to multiple purchases," Welka says. "When private label pizza is in the cart due to a high skew towards families with three or more kids, the average grocery bill will be $55 instead of $33."

Regardless of what type of product is being pushed, there is more cross-merchandising of pizza with other items for meal solutions or just promotional opportunity. Kraft, for one, cross-merchandises mostly with beverages but also with salads and meats, utilizing heavy in-pack couponing and displays as well as cross-purchasing incentives through its Tombstone sampling van.

Tony's not only cross-merchandises with beer, soda and salads, but has cross-promoted with movies, Koch notes. It views Anheuser Busch as its prime partner.

Celeste has done tie-ins with IBC Root Beer and this month kicks off a buy-four-get-a-liter-free FSI promo with Coke.

Home Run Inn Frozen Foods, Woodridge, Ill., is pursuing what director of sales Tom DeAngelo calls co-op opportunities, "combining two or three companies together to formulate some kind of a meal." Home Run Inn is looking to build on its links with beer and soda by tying in with ice cream, and plans to expand beyond display and signage to on-pack couponing, DeAngelo notes.

Leading Brands of Frozen Pizza
(For 52 Weeks Ending 10/12/97) Legend for Table: A - 1997 Period B - % Change '97 vs. '96 C - Dollar Share D - Share-Point Change '97 vs. '96 E - Unit Share DOLLARS Brand A B C D Tombstone $244,991,136 -5.1% 13.3% -2.2 DiGiorno 203,328,864 NA 11.0 5.6 Red Baron 164,586,208 7.3 8.9 -0.3 Tony's 148,459,408 9.0 8.1 -0.1 Totino's Party 148,251,072 10.5 8.0 0.0 Pizza Private Label 97,054,832 10.6 5.3 0.0 Stouffer's 74,485,504 -9.4 4.0 -0.9 Celeste Pizza 67,801,280 15.1 3.7 0.1 for One Jack's Original 60,610,736 4.8 3.3 -0.2 Red Baron 48,808,592 -1.6 2.6 -0.3 Breakfast Pizza Tombstone 47,626,688 NA 2.6 2.5 Oven Rising Crust Freschetta 47,513,136 NA 2.6 2.6 Jeno's Crisp 44,689,152 -1.7 2.4 -0.3 'n Tasty Pappalo's 42,443,120 -12.8 2.3 -0.6 Healthy Choice 40,112,352 27.5 2.2 0.3 TOTAL CATEGORY $1,844,066,304 10.7% 100.0% -- UNITS Brand A B E D Tombstone 70,185,072 -10.8% 9.0% -1.3 DiGiorno 40,463,888 NA 5.2 2.8 Red Baron 45,001,520 3.6 5.8 0.1 Tony's 53,368,160 0.8 6.8 -0.1 Totino's 114,602,832 8.4 14.7 0.8 Party Pizza Private Label 62,184,960 5.0 8.0 0.2 Stouffer's 27,475,712 -10.9 3.5 -0.5 Celeste 46,818,432 16.4 6.0 0.7 Pizza for One Jack's Original 20,656,128 0.8 2.7 0.0 Red Baron 17,395,664 -3.2 2.2 -0.1 Breakfast Pizza Tombstone Oven 10,493,407 NA 1.3 1.3 Rising Crust Freschetta 8,630,231 NA 1.1 1.1 Jeno's Crisp 45,460,096 -3.8 5.8 -0.4 'n Tasty Pappalo's 14,422,649 -8.3 1.9 -0.2 Healthy Choice 21,678,784 25.1 2.8 0.5 TOTAL CATEGORY 779,257,856 2.2% 100.0% -- NOTE: Brand data are based on IRI's brand definitions Source: Information Resources, Inc.

Sales of Frozen Pizza In 20 Leading Markets
(For 52 Weeks Ending 10/12/97) DOLLARS UNITS % Change % Change VS. VS. Market Sales Year Ago Sales Year Ago Chicago $105,023,744 13.4% 34,349,168 2.9% New York 61,796,480 2.4 30,603,424 1.5 Los Angeles 60,083,216 15.6 25,067,680 -1.1 Milwaukee 56,538,464 11.1 16,627,632 4.3 Minneapolis/ 46,796,720 7.2 17,212,880 2.8 St. Paul Baltimore/ 39,774,432 7.3 16,540,946 4.1 Washington Dallas/ 36,686,496 14.3 16,712,824 0.1 Fort Worth Philadelphia 33,528,752 5.7 14,179,876 2.0 St. Louis 33,479,216 3.4 11,490,218 1.8 San Francisco 29,634,192 11.2 10,253,864 2.5 /Oakland Peoria/ 27,695,152 8.1 8,692,520 -0.8 Springfield South Carolina 27,367,664 5.1 15,638,954 -5.1 Seattle/Tacoma 25,801,312 14.1 8,930,245 1.7 Denver 25,780,656 3.3 11,910,121 -6.5 Boston 25,421,568 8.1 14,873,336 8.1 San Antonio/ 24,907,504 12.9 12,392,701 10.5 Corpus Christi Houston 24,788,080 12.8 11,148,882 2.2 Miami/Fort 22,611,808 8.7 11,710,798 2.4 Lauderdale Harrisburg/ 22,536,448 10.5 9,812,749 8.3 Scranton Birmingham/ 22,179,104 7.3 10,254,480 -2.6 Montgomery Source: Information Resources, Inc.

Market Development Index For Frozen Pizza[*]
(For 52 Weeks Ending 10/12/97) Market Index Green Bay 363 Milwaukee 286 Minneapolis/St. Paul 246 Des Moines 243 Peoria/Springfield 241 Chicago 202 St. Louis 198 Omaha 166 Indianapolis 148 Kansas City 146 Grand Rapids 143 Memphis 136 Little Rock 132 Mississippi 118 Charlotte 115 Tulsa 115 Columbus 113 Louisville 112 Wichita 109 Dallas/Fort Worth 108 Richmond/Norfolk 108 Oklahoma City 105 Denver 102 Knoxville 102 Toleda 102 Seattle/Tacoma 100 Atlanta 90 Jacksonville 89 Roanoke 89 Spokane 88 Phoenix/Tucson 85 Houston 85 Orlando 84 Harrisburg/Scranton 82 Baltimore/Washington 80 Salt Lake City 80 Cleveland 79 Tampa/St. Petersburg 79 Philadelphia 78 Sacramento 78 [*] Index of 100 = Average weekly dollar sales per million dollars of all commodity volume (ACV) in the total United States. Source; Information Resources, Inc.
~~~~~~~~

By Dan Harrison

Copyright of Frozen Food Age is the property of Cygnus Business Media, Inc.

2006-02-23T12:18:00.000-08:00

WE ASKED SHOPPERS: `DO YOU LIKE FROZEN PIZZA?'

`Yes!' They Said, `But Give Us More Variety & Lower Prices!'

What do consumers really think about frozen pizza?

Outside a supermarket in Fort Collins, Colo., we asked shoppers what they like--and don't like--about the product. We also asked them about their households, and how manufacturers and supermarkets could sell more frozen pizza.

As a rule of thumb, our shoppers want more variety, more toppings and lower prices. They are influenced by restaurant prices, and are trained on BOGOs.

Here's what they said:

Dana: I buy frozen pizzas maybe once a month--usually more than one package at a time. I expect to spend about five bucks on one of the larger sizes for my family. I usually weigh the price of frozen pizzas against restaurant pizzas where I can get a buy-one-get-one-free deal, but I think frozen pizza prices are a little high. My husband is the primary wage-earner in the family--he's self employed in satellite television. I don't normally buy frozen pizzas other than in grocery stores.

Scott: I've probably bought three frozen pizzas in my lifetime. They're too expensive. If I'd suggest anything to the manufacturers, I'd suggest better cheese, better crust and better sauce. I buy a lot of restaurant pizza--a lot.

Mike: I buy it about two times a month, often two packages at a time. I expect to pay $2 to $3 for a large, and I use coupons maybe once a month. I also buy frozen pizzas at a club store. My wife is a chemical engineer and the primary wage-earner. Pizza manufacturers could offer a thicker crust and better taste--more meat, cheese and better sauce. Lower prices would enable grocery retailers to sell more frozen pizzas.

Gene: I used to buy them about 20 years ago. I'll be 80 at Christmas time. My appetite's changed. I usually order in a pizza--it tastes a little better.

Keiko: I buy frozen pizza for my son every month or two. I usually make pizza myself. I just buy one package when I do buy it and expect to spend, for a small size, about $3. I don't use coupons. My husband's a professor and the primary wage-earner. We have two children. My son's 11, and eats the most frozen pizza of any of us. Manufacturers could better the product by lowering the price, but I don't mind because I buy it so seldom.

Laura: I buy frozen pizza maybe once a month, one package at a time. I spend about $1.29 for a smaller pizza. When I can get coupons, I use them. Pizza manufacturers could lower the price, and grocery stores could offer more variety.

Joe: We buy frozen pizzas every couple months, usually a couple packages at a time. My wife is the primary wage earner, and we have three kids. I don't really pay attention to the price--what is it, about $2.50 apiece? That's reasonable. My six-year-old girl eats the most frozen pizza in our house--usually we only buy it for the kids. The cheese isn't very good. We're from Wisconsin, and the cheese is better there. If grocery stores had a bigger variety of items they would sell more pizzas. Second, if they used samples it almost always gets people to buy it. The final point is that, as a family, we're really moving towards organic foods. We're getting more and more concerned with what's in the food--the pesticides in particular. If they would make an effort at selling pizzas that have organic qualities, there would be a little niche there.

John: I buy frozen pizzas about once a month. typically six at a time for $1.20 each. I usually buy the Totino's party pizzas. When I can get coupons, I use them. Right now, I'm a student and live with my brother who also eats frozen pizzas. I don't ever buy them anywhere other than grocery stores. Manufacturers could offer more variety. I'm vegetarian, and some of my friends are vegetarian. Supermarkets could lower the prices.

Cari: I buy frozen pizza about once a month, usually three or four packages at a time. I usually buy the Totino's party pizzas for about $2 each. I'm an engineer, I live alone, and I don't buy frozen pizzas anywhere but in grocery stores. Manufacturers should offer more variety--pizzas with different topping combinations. They usually only have a supreme or meat combination. Grocery stores should also lower their prices.

Ilene: Maybe twice a month I'll buy frozen pizza Generally. I don't buy more than one at a time. I usually pay about five dollars for the larger size, and I use coupons. Most of the frozen pizzas, I don't like. I don't think the flavor is good, and there aren't enough toppings. Supermarkets should offer more coupons and more (promotional) sales.

Chantel: I buy them about once a month, only one at a time. I usually pay $1.25 per pizza--that's the cheapest I can find. I'm a post-doctoral student and work at the university. I eat more frozen pizza than my husband (no children). Manufacturers should offer more crust that's less dry. They should offer more toppings and more options of meats and vegetables. Instead of having toppings that I can't even identify, they should offer the real stuff. In a college town like this (Colorado State University is at center-stage), supermarkets should offer more lowercost pizzas.

Shane: I buy frozen pizzas maybe twice a month. I definitely buy more than one at a time--I'd say between four and five. I like to get the party pizzas (Toting's) which are usually under a buck. They're a . bargain. If have coupons, I use them, but I don't get them very often. My fiance and I eat the same amount of frozen pizza. Occasionally, I'll buy the pizzas at a club store. Manufacturers could lower the price. Supermarkets could offer more buy-one-get-one-free deals.

Jill: I buy frozen pizzas twice a year, for a kid's birthday party or some thing (she's married with two children). The children, 8 and 11, are definitely the biggest frozen pizza consumers in the house. I usually spend five dollars for a medium size frozen pizza. I think that's pretty reasonable. I buy frozen pizzas wherever I happen to see them, maybe at a savers club or something similar. Manufacturers should improve the crust. I don't like the crust--that's why I don't buy them. Fresh pizza is better. For the supermarkets, I think demos are a good idea--that always helps me decide.

David: I buy frozen pizzas maybe once or twice a year, usually two at a time. I definitely expect to spend less on a frozen pizza than on a restaurant pizza--maybe two mediums for three dollars. I'm up at school right now, living in the dorms--my roommate doesn't eat frozen pizza at all. I don't buy them anywhere but grocery stores, and I don't usually use coupons. Manufacturers could offer better sauce--it tends to be too tangy. Grocery retailers should give out more samples and offer more variety in the category.

PHOTO (COLOR): Dana

PHOTO (COLOR): Scott

PHOTO (COLOR): Gene

PHOTO (COLOR): Joe

PHOTO (COLOR): John

PHOTO (COLOR): Cari

PHOTO (COLOR): Ilene

PHOTO (COLOR): Shane

PHOTO (COLOR): Jill

~~~~~~~~

By Matt Nesland

Matt Nesland is a freelance writer.

Copyright of Frozen Food Age is the property of Cygnus Business Media, Inc.

2006-02-23T12:15:00.000-08:00

Detroit Free Press
~~~~~~~~

By Bill McGraw, Detroit Free Press

Feb. 13--A Hollywood movie studio is suing Little Caesars Enterprises for $100 million, saying the Detroit pizza maker backed out of a deal to promote the upcoming film, "Lost in Space."

Little Caesars' defense has put the family-run firm in an awkward position by placing much of the blame on Mike Ilitch Jr., son of founders Mike and Marian Ilitch.

In court papers, Little Caesars denies Ilitch Jr. was involved with the company last year when New Line Cinema said he executed an agreement on behalf of the company to use its pizza outlets to promote the big-screen version of the popular 1960s TV show.

Little Caesars said Ilitch Jr. had no authority to conduct business on its behalf.

Moreover, it charges that Ilitch Jr. "had some financial interest in the success of the `Lost in Space' project and had a personal interest in associating the film with Little Caesar." That allegation stems from Ilitch Jr.'s role as an owner of a firm called Prelude Pictures that bought the movie rights to "Lost in Space" and sold them to New Line in 1994.

In fact, Ilitch Jr. will be listed as a co-executive producer when the film opens nationally April 3.

"I have loved `Lost in Space' since I was a kid and am excited to be an executive producer," Ilitch Jr. said Thursday in a statement from Israel, where he said he was working on some developments on the movie.

"I believe `Lost in Space' could be a home run, and I had hoped that Little Caesars would be on base.... Unfortunately, a deal could not be worked out. I'm concerned by the lawsuit, and I'm hopeful that the matter can be resolved."

Little Caesars' spokesman Al Sebastian said: "We feel the lawsuit is without merit because there was no agreement reached. We will vigorously defend our position."

New Line declined comment.

The suit, filed in September in U.S. District Court in Los Angeles, also offers a glimpse into the business of Little Caesars, a privately owned company that is very guarded about its finances.

The Ilitch family also owns the Detroit Tigers, the Red Wings and the Fox Theatre, and Marian Ilitch is a partner in one of the casinos planned for downtown Detroit, where the Tigers are building a new stadium.

Both sides in the lawsuit agree that when Little Caesars attorney Mary Jo Teel called New Line on Sept. 11 to say there would be no deal, she also said something about Caesars having cash-flow problems.

In New Line's version, Teel said Little Caesars "was experiencing cash-flow difficulties that made the promotion too expensive for the company to bear."

In Little Caesars' version, Teel stated that Caesars "had cash-flow problems like everyone else...."

The company did acknowledge that the promotion would be too expensive for Caesars, but denied there was any connection to cash problems.

Caesars spokesman Sebastian went further Thursday: "At no time has Little Caesars ever experienced cash-flow problems. We are a very healthy company."

In the suit, New Line charges that Little Caesars knew it had "financial shortcomings" but fraudulently refused to disclose them. The company continued to act as if it wanted to promote the film in order to prevent New Line from exploring opportunities with Caesars' competitors, the suit charges.

Little Caesars denies those claims.

The suit details Ilitch Jr.'s travels between Los Angeles, London and Little Caesars' Woodward Avenue headquarters to discuss the project with New Line officials. The film stars Gary Oldman, William Hurt and Mimi Rogers and tells the story of a family's intergalactic voyage on a sabotaged spacecracft.

Promotional possibilities were out of this world: The two sides discussed pizza boxes shaped like rocket ships, a "Lost in Space" Family Meal, tie-ins with the Tigers and Red Wings and even inserting Little Caesars products into the actual film.

Such promotion and merchandising tie-ins are considered vital to the success of big-budget films, and New Line appeared eager to strike a deal with Little Caesars, the nation's third-biggest pizza chain with about 4,000 outlets.

In addition to Ilitch Jr., both sides agree that a number of Caesars' officials were involved in the talks, along with Caesars' ad firm.

New Line says Ilitch Jr. suggested Kmart and Coca-Cola, which have business alliances with Little Caesars, might join the promotion. On July 1, Ilitch Jr. and New Line officials met at Coca-Cola's Atlanta headquarters, where Ilitch Jr. said Caesars and New Line "had entered into" a promotional deal, New Line contends.

On July 14, New Line received a fax of what it believed was a binding agreement with Little Caesars for a $20.5-million promotion including advertising and giveaways. Ilitch Jr. signed the line marked for Little Caesars; his title was given as "stockholder/owner." A more detailed agreement was expected to be signed later.

Talks continued several times a week between various employees at each company into mid-September. New Line says Ilitch Jr. and Little Caesars officials continued to assure the studio that the pizza maker was committed to the deal and at work on details of the promotion. Little Caesars denies that.

On Sept. 11, Teel, the Little Caesars attorney, called a studio executive. Interpretations differ, but the bottom line remains clear: No deal.

The next day, New Line says, Ilitch Jr. called and said he had been told his family was backing out.

The suit quotes Ilitch Jr. as saying: "I don't see how they can just walk."

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2006-02-23T12:11:00.000-08:00

Detroit Free Press
~~~~~~~~

By Doron Levin and Nancy Costello, Detroit Free Press

Mar. 19--Faced with faltering pizza sales and grumpy franchisees, a feisty Mike Ilitch is promising a dramatic change of strategy for his Little Caesar Enterprises during the next 18 months.

Ilitch's pizza company, known mainly for low prices and hefty portions, will de-emphasize cheap eats and introduce reformulated, upscale pizzas starting this summer.

Ilitch laid out his new game plan in a wide-ranging interview with the Free Press.

To accomplish the overhaul, Little Caesars plans to spend $35 million to $40 million annually to advertise a new image. The message, Ilitch said, is quality. Ilitch said he will hire a new advertising agency from among three contenders next week.

A rebound by Little Caesars would quell doubts that have arisen in Detroit about the Ilitch family's ability to pursue simultaneously a large number of expensive, high-profile projects. The Ilitches -- who are invested in a casino, two big-league sports teams, theaters, restaurants and real estate -- negotiated long and hard with a consortium led by Comerica Inc. for a $145 million stadium construction loan before turning this week to Sumitomo Bank of Japan for the money.

Although Comerica won't say why the Detroit bank couldn't come to terms with a prominent local entrepreneur, there's little doubt that poor results at Little Caesars made a loan seem less attractive.

Little Caesars expanded rapidly from a regional to national chain in the 1980s using the slogan "Pizza! Pizza!" -- a two-for-one offer that promised cash-strapped consumers a good value. "I was having a lot of children and knew what it cost to buy a little girl's dress," Ilitch said.

Today, however, with an economic boom in its seventh year and unemployment low, consumers aren't always looking for the least expensive meals.

Acknowledging rising competition from Pizza Hut and local and regional pizza chains like Papa John's claiming to sell better-tasting products, Ilitch said of the customers: "Really, what they are demanding today is quality. So you've got to be able to make a quality statement and deliver a quality pizza."

The repositioning of Little Caesars away from the low-priced end of the market, he said, will cause his privately owned company to adopt new ingredients and baking technology, which in turn will require investment by franchisees. Many franchisees have already seen such marketing initiatives as home delivery, pizza by the foot and football-shaped pizzas fizzle.

Store operators have grown increasingly fearful that their investments, which can amount to more than $100,000 per store, could diminish or vanish unless the company recovers its momentum. One franchisee group has been waging a class-action lawsuit against the company for six years. A second group, representing the operators of roughly 1,000 stores, has been meeting periodically to explore conciliatory strategies to reinvigorate the company and thereby restore franchisee profit.

"Ten years, ago when we opened our first stores, you could barely keep up with demand some Friday and Saturday nights," recalled Tom Morley Jr. of Clinton Township, who operated 22 Little Caesars stores in Baltimore until two years ago.

But by 1993, Morley's sales were sinking. He said the slowdown was a shock to him and others who had experienced earlier success. Franchisees "had gotten comfortable," Morley said. "When sales suddenly go the other way, you have to re-engage; now you're fighting customer-by-customer, and that becomes an operational battle."

Due to unrelated business considerations and the death of his partner, Morley negotiated an agreement with Little Caesars to surrender his franchises. He said he remains an admirer of the Ilitches.

Notwithstanding turmoil among franchisees, Ilitch believes the company's shift to emphasize quality will spur sales and end the grousing. "The answer to the business is sales," Ilitch said. "If your sales are strong, all the franchise problems go away. The only reason you have franchise problems is because sales are down."

Corporate revenues dropped for three straight years, from a peak of $774 million in 1993 to $619.5 million in 1996. Last year's numbers are not yet available, the company said.

Because growth in the U.S. pizza industry has slowed dramatically during the past five years, a rebound in Little Caesars sales demands a fierce campaign to win a bigger piece of the pizza market, which has reached roughly $21 billion annually.

In response to queries about Little Caesars' financial health, Ilitch, 68, expressed supreme confidence that he is in solid condition and will pull off a sales revival.

"I'm going to turn it around, just like any other chain has turned it around," he declared. Though Little Caesars' profitability has been marginal for at least three years, he said, his enterprises collectively earned as much as $100 million in the best years of the past decade. "I do have other entities and I do have some cash, and I do have a lot of assets. Like I told them down in Lakeland" -- spring training base for the Detroit Tigers -- "I'm not a poor guy."

But Ilitch, who is recovering from heart bypass surgery two months ago, is today a somewhat humbler entrepreneur than in 1993. That was the year he turned over the reins of Little Caesars to hired management so he could devote the bulk of his efforts to the Tigers, the Red Wings and other entertainment projects.

"Our sales flattened out," he said, describing Little Caesars' results since 1993. "I'm not saying this is the reason, but I just stepped out of the business for three years."

He said he refocused intently on Little Caesars full-time in April 1997. That month marked the departure of David Deal, who had been installed as president in 1993, and the hiring of Harsha Agadi, a former Domino's International vice president of field operations, as chief operating officer.

In the same month, Ilitch promoted Denise Ilitch Lites, his eldest child, to vice chairman of Little Caesar Enterprises. She has transferred her family's primary residence from Dallas, where she had been a director of the Dallas Stars National Hockey League team, to suburban Detroit. Ilitch said she is "very, very involved" in the pizza business and figures prominently in the company's executive succession plans. Indeed, more direct involvement of the family is a key to a turnaround, he said.

"To be honest with you, the ideas kind of dried up in 1993," he said. "We made some mistakes by shortening our menu, giving us less products to bundle" with pizza. Until 1993, Little Caesars had been "experiencing 20 to 25 percent growth every year."

Ilitch declines to assign blame to the previous team of top executives for the company's ills. The pizza business "was like second nature to me. I did it all my adult life," he explained. "They were around me, and I thought that this would be the team todo it. I can second-guess it all day long. Maybe I should have been monitoring it more closely; maybe I should have been more involved."

Having decided on a new direction, Ilitch says he now is immersed in the operational details of preparing a new product, menu and theme.

Lately, his efforts have been aimed toward reformulating pizza dough: "When I got into this business, the emphasis was on sauce. In the '80s, it was cheese; now they want a certain type of dough," he said.

"I do have the technology, and I do have the equipment to proceed with it. I have my test plant built -- and beyond that, the strength to go forward and not just provide a lot of lip service."

Ilitch said he was the first to introduce an oven conveyor system to quickly bake pizza, while minimizing labor. Using conveyors also necessitated the use of ingredients that may have compromised high quality, he said.

Though he wasn't specific, he implied that he may replace or modify conveyors for the production of his reformulated pizza. "I think you're going to have to go back and perhaps sacrifice a bit of the hurry-up process and go back to every single step you can to ensure quality," he said.

The first signs of "a large emphasis on quality" should appear this summer, he said. Then, "in about 18 months we'll be kicking in new products, and the dough process and all these things I talk about will be ongoing and everyone will feel a lot more secure."

How Little Caesars convinces consumers to shift to its upscale pizzas may require tinkering with the alchemy of price, ingredients and advertising: "When you talk a lot about price, it connotes cheapness. Pizza Hut was the first to cook pizza in a pan, and they somehow got the message across that if it's cooked in a pan it's got to be high quality," he said. Creating an image "is sometimes just one stroke of the brush, if it's the right stroke."

Searching for just "the right stroke" of product innovation, pricing and marketing savvy has occupied much of his business life since 1959, when and his wife, Marian, opened their first store. Marian Ilitch remains the company's treasurer and a director.

By the 1980s the family had about 200 stores, mostly in the Midwest. With the help of advertising agency Cliff Freeman and Partners of New York, the Ilitches took the company national, starting in 1986, amid rapidly expanding demand for fast food and especially for pizza.

Cliff Freeman and Partners created the highly acclaimed Pizza! Pizza! ad campaign, built upon a cartoon Roman soldier in a toga, as well as a variety of sight gags, such as an infant being twirled about by long, sticky globs of cheese.

By reducing the sizes of small, medium and large pizzas, the company was able to extend a clever offer -- two for the price of one -- without necessarily delivering twice as much pizza as competitors. The goal: filling stomachs as inexpensively as possible.

"When they walk out of the store," Ilitch told the New York Times in a 1992 interview, "I want them to get a hernia."

Discounting or offering similar two-for-one promotions was a relatively simple way for newcomers to ride on Little Caesars' coattails. Moreover, additional fast-food alternatives such as Boston Market were crowding onto the scene.

In 1992, Ilitch bought the Tigers from crosstown pizza entrepreneur Tom Monaghan. At that time, he decided to relinquish day-to-day supervision of Little Caesars. He also spent roughly $50 million to refurbish the Fox Theatre in Detroit and established several tony restaurants, including Tres Vite.

The baseball team, so far a money-losing venture, "has been a very hard struggle," he said. "I felt that if I could buy the Tigers, build a stadium one day, that the appreciation would be there for baseball as it was for hockey." The Red Wings, he said, cost him $6 million to $8 million in 1982; he reckons the Wings are worth at least $150 million and perhaps as much as $200 million today.

Ilitch was asked recently whether the big money paid to his star athletes -- such as Sergei Fedorov's $38-million contract -- is a drain on Little Caesars. His response: "I've been in business for almost 40 years, and I've never taken any money out of our corporations other than my salary ... I didn't have to rob Peter to pay Paul."

Suffering lean years in the pizza and baseball business aren't fatal, but subpar financial performance isn't pleasant to discuss, Ilitch said.

He doesn't enjoy getting "beaten up" with less-than-flattering publicity, he said, especially when other companies have bigger troubles than he: "What knocks me out is, the automotives lose billions and make billions."

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2006-02-23T12:09:00.000-08:00

RETAILER SERVES UP LITTLE CAESARS

Kmart Corp. plans to add about 1,000 Little Caesar restaurants over the next two years as part of an overhauled food-service program. It already is the largest franchisee of Little Caesars, with about 520 restaurants in its stores nationwide.

In another move, Little Caesars Blue Line distribution division will supply all food-service products for Kmart's KCafe concept, replacing the 25 suppliers Kmart now uses.

Most of the additions will be Little Caesars Pizza Express; others will be Little Caesars Pizza Stations.

Copyright of Franchise Times is the property of Crain Communications Inc.

2006-02-23T11:56:00.000-08:00

PIZZA HUT AND PAPA JOHN'S TRADE SWIPES IN AD CAMPAIGNS

The pizza wars are escalating as chains compete for market share in a slow-growing segment of the fast-food business.

The fiercest battle is being waged between industry giant Pizza Hut and upstart challenger Papa John's, the fourth-largest and fastest-growing chain in the $21.1 billion category.

Papa John's is singling out Pizza Hut -- the struggling brand spun off last October from PepsiCo as part of Tricon Global Restaurants -- in a comparative ad campaign that is forcing its larger rival to respond.

DEDICATED TO WINNING
``We're dedicated to winning the pizza wars,'' Papa John's founder and CEO John Schnatter declared with zeal at a recent financial conference, prompting one investor to note, ``This is brutal.''

Sparing No. 2 Domino's Pizza and No. 3 Little Caesars Pizza, Papa John's last week took aim at Pizza Hut in a new $6 million TV campaign that claims customers prefer its pizza over Pizza Hut's.

The national campaign, set to run for three weeks, comes as Domino's is posting its best sales ever.

Little Caesars, on the other hand, is struggling, coping with declining sales and reduced national media spending. The chain last week threw its $40 million account into review (see story on Page 1).

``Papa John's has dramatically gained share at the expense of Pizza Hut,'' said John Weiss, a restaurant analyst for Nationsbanc Montgomery Securities, sponsor of the New York conference at which Mr. Schnatter declared war. Last year, Papa John's company-owned restaurants gained 9% in same-store sales, while Pizza Hut saw a 1% dip.

DARE FROM PIZZA HUT
The spark for Papa John's campaign is the challenge Pizza Hut launched last year on its pizza boxes, daring customers to find a better pizza.

In the new 30-second spot from Fricks/Firestone, Atlanta, Papa John's says it beat Pizza Hut in a blind taste test. The spot contrasts its sauce -- using a glamour shot of vine-ripened tomatoes -- with Pizza Hut's, depicted as thick red goo scooped from a plastic bag.

A spokesman for Pizza Hut said the chain disagrees with some of the claims made by Papa John's, but finds the focus on quality to be a flattering imitation of the quality initiative now under way at Pizza Hut.

Pizza Hut, however, isn't rolling over. The chain has launched versions of the 30-second spot it first aired during the Super Bowl with new voice-overs, showing footage of Elvis Presley that promote its Edge pizza. Each spot targets a different chain: Domino's, Papa John's and Donato's Pizza, a tiny chain in Columbus, Ohio.

In one version, a young man says, ``I heard Elvis the king has come back. He was seen having the Edge pizza down at Papa John's.'' A second man snickers, ``That's about the stupidest thing I ever heard. You can't get the Edge pizza at Papa John's. You have to go to Pizza Hut.''

DOMINO'S STEERS CLEAR
Cheryl Bachelder, VP-marketing for Domino's, said her chain and its new agency, Campbell Mithun Esty, Minneapolis, are staying above the fray.

``When your plans are working, you do less looking around,'' she said. ``Papa John's has singled [Pizza Hut] out as the Avis/Hertz discussion, which is not unusual for an upstart company.''

Papa John's operates some 1,538 units in 41 states and Washington, with a goal of reaching 2,000 units by the year 2000.

According to NPD Foodservice Information Group, while pizza restaurant traffic increased about 1.7% in 1997, Papa John's had a 32.1% increase compared with Pizza Hut, which was down 4.75%; Domino's was up 2.9%, while Little Caesars fell 7.8%

LIKES THE ATTENTION
As for Donato's, VP-Marketing Tom Santor said he's delighted Pizza Hut is targeting his chain in one of its ads.

``I guess we'll take it as flattery that the largest pizza chain in the galaxy has singled out a little 123-store chain in Columbus, Ohio,'' he said.

PHOTOS (COLOR): Salty: Papa John's TV spots take aim at Pizza Hut's "thick red goo" sauce.

~~~~~~~~

By Louise Kramer

2006-02-23T11:45:00.000-08:00

AN OVERVIEW OF CURRENT AFFAIRS IN EUROPE'S CAPITALS

Ibersol became Portugal's first quoted catering company in November when domestic and foreign investors gobbled up 49.9 percent of its shares in the hope of profiting from one of the country's fastest growing service industries.

Like TelePizza in neighboring Spain--a star performer since it came to the Madrid stock market in late 1996 --Ibersol is betting on southern Europeans' growing appetite for fast food and new dining experiences. By exploiting internationally known brands, such as Pizza Hut and Kentucky Fried Chicken, and concepts that it has invented, such as Pasta-Caffe and its Brazilian restaurant chain, O Kilo, Ibersol has seen its sales go from $2.15 million in 1990 to almost $43 million in 1997.

From sixty-five restaurants now, Ibersol plans to open new outlets at the rate of one every twenty-five days through the year 2000. It's aiming for more than 100 by then, with about half of them Pizza Hut units.

Ibersol is the brain-child of Alberto Teixera and Antonio Pinto de Sousa, who built the business under the sheltering wing of Sonae group with interests ranging from media through property and retailing to building materials. Both men entered the group in the 1980s, when it was establishing its reputation as Portugal's most aggressively managed and fastest growing conglomerate under Belmiro de Azevedo.

De Azevedo, himself a self-made man who battled for and won control of Sonae in the 1980s, usually likes to maintain control over his holdings. But as part of the reorganization that led to the share sale in November, Teixera and de Sousa got the chance to profit directly from their company's projected growth, receiving a 25 percent stake. Other employees also could take part in the share offering on preferential terms.

Since Imparsa is retaining slightly more than 25 percent of the company, Ibersol will continue to benefit from its links with the Sonae group. One of the major factors in its success so far is its restaurants' location in shopping malls that are built and managed by Sonae Investimentos, Portugal's largest developer of malls. It recently opened the largest in the Iberian peninsula, Colombo Center in Lisbon.

With new sites thus assured, Ibersol is basing its sales forecasts on the fact that Portugal has the lowest penetration rate for restaurant chains in the European Union. Chains currently account for 4.5 percent of the market, against an EU average of 14.6 percent.

For now, Pizza Hut remains Ibersol's money maker, generating $27 million in revenue last year. It also introduced a nationwide telephone number for its delivery service, bolstering its leadership in what is one of the fastest growing segments and the one that has driven. TelePizza's growth in Spain.

In a country in which tens of thousands of small companies have little access to capital, Ibersol proves that being part of a larger group doesn't rule out entrepreneurial success.

~~~~~~~~

By Alison Roberts

2006-02-23T11:34:00.000-08:00

The Kansas City Star, Mo.
~~~~~~~~

By Steve Everly, The Kansas City Star, Mo.

KANSAS CITY, Mo.--Dec. 17--Fred Hipp, who has led the Kansas City-based Houlihan's Restaurant Group into a successful chain of 135 restaurants, is moving to Los Angeles to run an upscale pizza restaurant company.

Hipp will become president and chief executive officer of California Pizza Kitchen Inc. He takes over Jan. 5.

"We're thrilled that we were able to attract a person of Fred's caliber," said Nick Valenti, the acting chief executive officer of California Pizza Kitchen.

California Pizza operates 80 restaurants in 20 states, including one in St. Louis. The restaurants serve 25 varieties of pizza. The company, whose majority owner until July was Pepsico, has experienced some slow growth.

Hipp, a 17-year veteran of Houlihan's and its predecessor, Gilbert Robinson Restaurants, said Tuesday he was looking for a new challenge and decided now was a good time to take it.

He said, however, that he has mixed emotions about the decision. He'll miss his co-workers and Kansas City but the plans for Houlihan's future are sound and the management team has never been stronger.

"I'm leaving with a clear conscience," he said.

Warren Gfeller, a member of Houlihan's board, will serve as acting president of the restaurant chain until a permanent replacement is picked. That search process is expected to take three to six months.

Hipp leaves behind a chain that now generates $375 million a year. It has grown in the last few years from 27 to 135 outlets including the Houlihan's restaurants and Bristol Bar & Grill.

But the chain started the decade with an uncertain future. In 1991, Gilbert Robinson Restaurants filed for bankruptcy protection. By 1995, when it changed it's name to Houlihan's, it was well on its way to recovery.

According to Nation's Restaurant News, Hipp is credited in the industry for improving Houlihan's financial position and for successfully responding to the trend of less consumption of alcoholic beverages.

Bar sales at one time accounted for more than 40 percent of Houlihan's sales mix but are now in the 20-percent range, according to the magazine.

"We're going to miss him and we wish him all the best of luck," said Kathi Hamilton, Hipp's executive administrative assistant at Houlihan's.

2006-02-23T11:02:00.000-08:00

By Steve Everly, The Kansas City Star, Mo.

KANSAS CITY, Mo.--Dec. 17--Fred Hipp, who has led the Kansas City-based Houlihan's Restaurant Group into a successful chain of 135 restaurants, is moving to Los Angeles to run an upscale pizza restaurant company.

Hipp will become president and chief executive officer of California Pizza Kitchen Inc. He takes over Jan. 5.

"We're thrilled that we were able to attract a person of Fred's caliber," said Nick Valenti, the acting chief executive officer of California Pizza Kitchen.

California Pizza operates 80 restaurants in 20 states, including one in St. Louis. The restaurants serve 25 varieties of pizza. The company, whose majority owner until July was Pepsico, has experienced some slow growth.

Hipp, a 17-year veteran of Houlihan's and its predecessor, Gilbert Robinson Restaurants, said Tuesday he was looking for a new challenge and decided now was a good time to take it.

He said, however, that he has mixed emotions about the decision. He'll miss his co-workers and Kansas City but the plans for Houlihan's future are sound and the management team has never been stronger.

"I'm leaving with a clear conscience," he said.

Warren Gfeller, a member of Houlihan's board, will serve as acting president of the restaurant chain until a permanent replacement is picked. That search process is expected to take three to six months.

Hipp leaves behind a chain that now generates $375 million a year. It has grown in the last few years from 27 to 135 outlets including the Houlihan's restaurants and Bristol Bar & Grill.

But the chain started the decade with an uncertain future. In 1991, Gilbert Robinson Restaurants filed for bankruptcy protection. By 1995, when it changed it's name to Houlihan's, it was well on its way to recovery.

According to Nation's Restaurant News, Hipp is credited in the industry for improving Houlihan's financial position and for successfully responding to the trend of less consumption of alcoholic beverages.

Bar sales at one time accounted for more than 40 percent of Houlihan's sales mix but are now in the 20-percent range, according to the magazine.

"We're going to miss him and we wish him all the best of luck," said Kathi Hamilton, Hipp's executive administrative assistant at Houlihan's.

2006-02-23T10:46:00.001-08:00

In checking pizza shops, I found that most use about 1 c of tomato sauce for a 12-in. pizza. That works out to less than 3 Tbsp of sauce per slice in a 6-slice pizza. So why not get twice the protective lycopene by ordering your pizza with double sauce? That's what I now do, and I like pizzas better that way--they're much moister. (More tips: Order light cheese to keep fat sensible. Then, pile on veggies galore!)

PHOTO (COLOR): An easy pizza trick can double your lycopene.

~~~~~~~~

By Holly McCord, RD

Holly McCord, RD, is Prevention's nutrition editor

Copyright of Prevention is the property of Rodale Inc..

2006-02-23T10:46:00.000-08:00