New
World Technology & Old World Tradition:
A Unique Recipe for Success
at Beggars Pizza
Remember 1987? Not too many restaurants
had POS systems back then. But a few forward-thinking pizzeria operators
understood the competitive advantage of the new technology and became
early adopters. "We were one of
the original customers of a pioneering POS company in 1987,"
says Ray Cantelo, manager of operations at Beggars Pizza in Chicago,
Illinois.
The restaurant had just undergone a major renovation
the year before with the addition of an atrium sitting area to accommodate
diners. Strong sales prompted the construction of a second kitchen
in 1989. The following decade was marked by steady growth for the
company: By 2002, Beggars Pizza ran 6 restaurants in the south and
southwest suburbs of Chicago.
By then, however, the company had outgrown its
POS. It was time for a new POS solution to fuel further growth.
"I did a lot of research," says
Ray, "And SpeedLine stood out. I talked to Terry Haan, vice-president
of development at SpeedLine, and I could tell that the company was
growth-minded. I wanted to be part of that and grow right along
with them. And that's why we installed SpeedLine in 2002."
"We've not been disappointed,"
Ray adds. "Every new feature SpeedLine has added since we
installed the system has been an asset to our business. As soon
as they release a new upgrade, they have another one in the works.
And they provide outstanding customer service."
The last few years have seen rapid growth
at Beggars: The chain started to franchise in 2004. At the time
of this writing, in addition to the 6 company-owned stores, four
franchises are operating. Beggars runs 75 POS stations, including
eight in the chain's SpeedLine call center. Four hundred employees
work in the company-owned stores and another 200 man the franchises.
And these numbers are bound to grow, as two more franchises are
already slated to open later in 2007, and one more is under contract.
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| Growing on a Solid Foundation |
From the time Angelo Garetto
opened the first Beggars Pizza in Blue Island, a suburb of Chicago,
in 1976, the company rested on the strong pillars of family and
community. When Angelo transformed a Sinclair gas station into a
pizza business, he named the store after his two sons and four daughters,
who had been accomplished little beggars all through their growing-up
years.
Unfortunately, he did not live to see his small
restaurant expand and grow into a regional pizza chain. When he
passed away in 1980, his two sons, Larry and Peter, took over the
family business and built on their father's legacy. To this
day, they remain faithful sponsors of softball and Little League
groups and active members of the business community.
"Being family owned and operated contributes
to our success," says Ray. "Even today, we look for
franchisees who are family- and community-oriented."
"In our 30 years in business, we've built
a solid reputation in the community," Ray adds. "The original Beggars
is not a big restaurant, but it drives unbelievable sales. And even
though the town of Blue Island has only 25,000 people, we've opened
another 12,000 square foot restaurant in 2002 to accommodate our
customers. It's all because people know and trust us."
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| The Challenges of Growth |
With more than 30 years
of business experience, Beggars Pizza has established time-tested
processes and recipes. "We lay it on thick," the chain's tagline
reads. It's important that every customer gets a culinary experience
that's true to the original recipes Angelo brought to Illinois from
the Piedmont province, high in the Alps of Northern Italy. And yet,
the more locations they open, the harder it is to achieve consistency
and quality control.
"Ten years ago, we set up a commissary.
We make all our dough and tomato products there and we ship out
daily to all our locations," says Ray. "This gives us
more control over food consistency."
The chain has also promoted long-time managers
to quality assurance positions to make sure all Beggars Pizza restaurants
deliver the same good food and quality service.
In addition, the core menu at all locations
is identical. "Prices don't need to be the same, because
SpeedLine allows us to customize menu pricing for each location,"
Ray says. "But the menu layout remains constant. When we move
employees to different locations, the computer set-up is exactly
the same at all levels to make it easier to deliver consistent customer
service."
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| "We're
also using the SpeedLine call center in three of our locations,"
says Ray. "This has helped us systemize both labor efficiency
and customer service. On a busy Friday night, our call center
can process up to 2500 tickets for the three locations. We're
more efficient, since we don't need to have so many employees
who answer the phone at the store level. |
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| "Our SpeedLine call center
has helped us systemize both labor efficiency and
customer service." |
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Because the core
menu is identical in all stores, Ray can implement menu changes
centrally through remote access from his SpeedLine system. And when
the need arise, the menu can be adapted to fit each store's
special needs. "We have three restaurants that have large
bars," Rays states. "With SpeedLine, we were able to
optimize the menu to fit the bar perfectly."
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| "With
SpeedLine we were able to optimize the menu to fit
the bar perfectly. " |
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| The chain is currently
testing SpeedLine Inventory in one store to control stock
usage and food costs. "We've installed SpeedLine
Inventory in one of the stores that is run through our
call center," says Ray. "We wanted to test
it and make sure it fits with our operations. We've
been pretty successful with it. When we've systemized
the setup, we will expand it to our other stores." |
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| Opening New Franchises |
| To ensure that all
stores conform to Beggars' high standards, the chain provides
extensive support and training to franchisees. "We're
very hands-on," Ray explains. Each operator trains four to
six weeks in a company-owned store. When a store opens, I bring
out a management team that is there seven days a week for the first
couple of weeks. The team stays on a few days a week until franchisees
can manage on their own. After that, one of our managers goes down
to the stores once or twice a week to check on quality assurance.
And I'm available 24/7 to answer questions."
Even though some Beggars' locations have
large dining and party room facilities seating upwards of 200 people,
the mainstay of the chain remains pick-up and delivery. "Delivery
and pick-up represent 80 per cent of our business," Ray says.
"We make steady use of SpeedLine's delivery functions."
"Recently, we've opened restaurants
in areas we're not familiar with," Ray points out. "I'm
thankful we have MapPoint integrated in our SpeedLine system, because
it maps routes for us from point A to point B and then back to the
restaurant. Having mapping has helped us a lot."
With 10 stores in operation and counting, Ray's
a pretty busy guy. "I monitor the stores remotely from home
seven days a week," he says. "SpeedLine has expanded
their reports significantly in the last few years. I can access
detailed order information for each store."
While managing several new stores can be a challenge,
it also opens new opportunities. With the growth of the franchise,
Ray envisions chain-wide marketing efforts: "Once we have
more than ten franchises opened and operating," he says, "we'll
plan larger advertising campaigns that small franchisees could not
afford on their own."
Right now, Beggars Pizza's database contains
more than 100,000 customer records. "We have a local company
help us with direct mail," Ray says. "We pull the information
from our SpeedLine database and send targeted offers to each customer
group. For example, last Christmas, we sent a calendar as a thank-you
to a thousand of our frequent customers."
Like many operators, Ray wants to put more
efforts into marketing on the Web in 2007. The company already runs
a Web
site, where patrons can find information about menus, catering,
coupons and specials, and franchising. "Online ordering is something
I definitely want to look into for Beggars in 2007," Ray says. "It
will fit in our restaurants' structures. And we also want to utilize
email marketing more in the coming months."
Beggars Pizza's success rests on
this blend of tradition and daring: New technology is fueling growth
because it integrates with the company's core values and established
processes. For this established independent, SpeedLine is a key
part of a proven and repeatable system: Beggars Pizza is a chain
to watch as more franchises open in the coming months.
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Beggars Pizza in a nutshell:
- Established in 1976
- 6 company-owned stores employing
400 people
- 4 operating franchises employing
200 people
- 75 SpeedLine stations chain-wide
- 2 more franchises slated
to open later in the year and 1 more under contract
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Visit
SpeedLine's home page
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| On a Friday night in the Beggars Pizza's busy call center, Ray Cantelo and his staff can field as many as 2500 calls. |
visit
Beggars Pizza
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