Pizza Capers

Anthony Russo

Scott Geiszier

The recession has been good for the pizza business. And not just because people turn to takeaway food as a cost saving measure. The owners of Pizza Capers found that consumers chose to buy a quality takeaway meal such as a gourmet pizza, instead of eating out at restaurants. This change in eating patterns more than made up for the consumers who changed from once a week to fortnightly purchases, says founder Anthony Russo.

In fact, Pizza Capers did so well in the last year, they increased staff numbers by 200 and grew revenue from $14.5 million in 2007-08 to $38 million in 2008-09, an increase of 137.65%.

Russo, 40 and Scott Geiszier, 34 started Pizza Capers in 1996 with a clear aim: to satisfy a need in the market for great tasting, value-for-money, takeaway gourmet pizzas that were made using high-quality ingredients at a time when the pizza market was dominated by a "cheap is best" mentality.

They started in Brisbane, spread throughout Australia via a franchising model and are now planning to move overseas.

"We were the first pizza chain to offer pasta and gluten-friendly pizzas and internet ordering. Recently, we became the first pizza chain to offer risotto," he says.

It took them five years to hit the $1 million revenue mark. Their biggest challenge as a start up was managing the rapid growth. "It was a matter of defining our growth strategy so we could manage the growth of the brand well," he says.

They also found the hours very long. "It's almost impossible that it won't consume you, at least for a while. Make sure you pick something that you love doing because you're going to be doing a lot of it," he says.

He also says it was crucial to plan for support structures. "Because of the personal sacrifice, it's important that you plan for your support structures. You need internal talent to call on and take some of the load. You need to bolster relationships with family and friends, and find ways of relaxing and tapping into the creative side of your mind. Otherwise, you can get bogged down in the analytical work required, and as a result miss opportunities which are sometimes less than obvious," he says.

The pair also learnt to build long-term partnerships with suppliers. "It's better to find suppliers you can partner and work with, rather than investing time and energy moving from supplier to supplier looking for a few dollars short-term saving," he says.

The pair want to grow the brand nationally, are currently opening the third Melbourne store, and have sold a further 10 stores in that market.

"We are constructing the first Adelaide store, and have a plan and team in place to develop this territory into a major hub for the brand over the coming two years. And we are fielding interest and applications from Canberra, Tasmania, New South Wales and throughout regional Queensland," he says.

They now have 56 franchises, say all are profitable and are planning to open their 80th store by Christmas 2009, and then a further 80 stores in 2010.

"At the commencement of 2009 we had the ability to open a store a month. As it sits in June 2009, we have the capacity to open four stores per month. As of July, this increases again to more than two stores per week. This is achieved through development and strengthening of people, systems and partners, as well as planning at financial and legal levels," he says.

He says he has never had to advertise for a franchisee. "Our new franchisees come from referrals from our existing group, or from people seeking us out. Additionally 70% of our existing franchisees are actively seeking their second, third or fourth stores."

He says the industry is changing rapidly. "Customers are becoming more discerning in terms of both product and service. In years gone by, the fast food industry was dominated by businesses providing a wide variety of cheap options. Imitation or manufactured style products were used to deliver to the guest cheaper meal options. Today, we've focused on offering the guest restaurant quality produce prepared and served in interesting and enticing combinations," he says.

Quality, nutrition and taste have now taken over from price as the key purchase driver. At the same time customers are also expecting these higher quality meals to be delivered faster than ever, and to be served with the presentation formerly associate with mid- to high-end restaurants.