Franchising Opportunities

Quality & value

Invest

£175,000 - £225,000

Business Type

Food & Catering

You need to be signed in
to email this company.

Papa John’a pizza UK delivers all-time sales records

The credit crunch is failing to bite Papa John’s Pizza UK, which is setting new all-time sales records in stores and online. The world’s third largest pizza company is continuing to perform strongly in the UK marketplace despite the economic downturn.

Papa John’s has made a fantastic start to the New Year. Sales were up by 12 per cent in the first eight weeks of 2009, compared to 8.7 per cent in the previous six months. Online sales increased by an impressive 60 per cent and overall trading figures rose by a fifth Monday to Thursday, with weekend sales also increasing by six per cent.

Convenience

Managing director of Papa John’s UK, Ian Saunders, said: “It is clear from our results and the figures reported from the ‘at home delivery market’ that the convenience and value of the delivered food experience is one people are relying on more and more in these challenging times. We know that it is more important than ever to provide real value for money to consumers who are looking to spend as smartly as possible, and part of that value is our refusal to compromise on our ‘Better Ingredients. Better Pizza’proposition.

“That is why, despite the well-publicised pressures on all businesses through rising costs, we have continued to invest heavily in further improving our quality to remain a step ahead of the category - a point highlighted by our decision to develop a new fresh-dough, thin-crust base and become the first major chain to guarantee the use of only 100 per cent fresh dough for all pizzas on the menu. It has also been seen in the introduction of interesting, premium limited time offers (LTOs), such as our sumptuous Caramia dessert made with mascarpone, milk chocolate and dulche de leche caramel toffee sauce, and the new Italian Sausage Fiamma, which combines pepperoni, red peppers, Roquito chilli peppers, Italian-style sausage, onions and fiery Nduja sauce.

“We firmly believe that our success has been in combining this premium food positioning with outstanding and transparent value-formoney packages such as a national pricing structure for LTOs, permanent second pizza halfprice deals and great online offers.

“Papa John’s made a fantastic start to 2009. On New Year’s Eve and New Year’s Day trade was up by nearly a third. These results follow on from a successful 2008, which saw us named Pizza Delivery Chain of the Year by the Pizza, Pasta and Italian Food Association. On January 31 people across the UK helped Papa John’s celebrate by attending parties at our stores. Local mayors came along to present stores with award certificates, free pizza was given away to mark the occasion and many customers were delighted to receive expert tuition from our talented pizzaiolos on how to make a pizza.”

Papa John’s also felt the love from customers on Valentine’s Day, as cash conscious romantics opted for a tasty takeaway rather than an expensive restaurant meal. The pizza company reported a massive 64 per cent increase in year-on-year sales on February 14. Couples flocked to order starter combos, sharing pizzas and Papa John’s hand-made Caramia dessert, with the average Valentine’s order costing around £15 per couple.

Director of marketing, Simon Wallis, believes it shows that customers are looking for a blend of quality and value. He said: “I think Valentine’s Day is a prime example of an occasion where people have previously accepted the fact that they will not get value when they eat out, but the landscape has changed. This year we saw people rebelling against set menus and inflated prices and enjoying each other’s company by staying in and treating each other by getting their food delivered.

“I believe that we did well because we have shown everyone that we use only fresh dough for all the pizzas we make and we invest in the best ingredients, whether it be tomato sauce, cheese or fresh, locally sourced vegetables. We would have expected to see an increase in sales from last year as the 14th fell on a Saturday this time around, but we were also more than 15 per cent ahead of the same Saturday last year and had significantly stronger sales than the previous weekend - which can only point to the stay-athome Valentine’s factor.”

Online Sales

Another key to Papa John’s success is the new papajohns.co.uk website. In January the company had its highest ever week of web sales and transactions. Online sales in the UK have now reached £11 million, with figures up 60 per cent in the first eight weeks of this year. Transactions increased by 56 per cent, with online averaging 27 per cent of total sales in January and February.

Simon added: “It is very encouraging to see that our online sales are increasing so dramatically, and now make up over a quarter of our sales. It looks as though more and more people are logging on or ringing up to order a tasty takeaway at home rather than splashing out on a meal in a restaurant, and we are delighted that so many of them are choosing Papa John’s Pizza.”

In 2009 Papa John’s is planning heavy investment in online capability, and increasing communication with consumers is expected to drive online sales to over 30 per cent of transactions. The company is also targeting a 30 per cent growth in year-on-year system sales. As the figures suggest, Papa John’s Pizza is an increasingly successful and expanding business. The company is on course for around a 100 per cent increase on 2008 new store openings, with between 30 and 40 planned before the end of this year.

The British Franchise Association says franchising is a means of starting and running your own business with a “very high success rate”, which is making it an increasingly attractive option for anyone wanting to start their own business in the current economic climate.

Papa John’s director of property and franchising, Alan Mason, said: “Papa John’s provides a lot of support to new franchise owners, making it a lot less daunting than starting up your own business from scratch. Our business model has proved very successful, with many of our franchise owners continuing to expand to become multi-unit franchisees - one has grown his business to 10 stores within a sixyear period.

“Franchising could be a really good option for someone who has been made redundant in the credit crunch and wants to be their own boss from now on. We have a strong pipeline of pizza franchise owners, but are always keen to hear from anyone who might be willing to team up with us and start their own pizza store. Anyone who wants to find out more could come and visit us to talk through the options available. Papa John’s will have stands at The British and International Franchise Exhibition at Olympia this month and at the NEC’s National Franchise Exhibition in October.”

Papa John’s is confident that new franchise store numbers will continue to grow, in spite of the tough economic climate, and is looking to open 100 new stores within the next three years across the UK.

Free info no: 4375