New frog in the pond

[NicksPizza]

It appears that our county is getting 2 new pizza places in coming months. One opened in July, and seems to be still somewhat anonymous. Had ribbon cutting on my birthday They have a decent looking place, and a menu good for starting out in a small market. Their place is sort of out of the way, and the location of a previously failed pizza place . . . been vacant for a couple three years. Their location has only one thing going for it, and that is across the street from a huge commercial development/shopping area/theater. No street facing, no big signage . . . lots of downside to that location for a non-delco pizza joint. don’t know yet if they deliver. They are like 15 miles from us, so no impingement on delivery zone, but could eat into our prospective dine-in market growth.

I am only concerned because he probably is on the front end of his capital reserves, and will do some advertising that could draw attention from us. We are not as reserve-capable to be able to throw out a bunch of advertising right this week. We’ll see how it goes with him. They are in a 1400 sq ft space (I estimate) and baking on what looks to be a Blodgett 981 oven. SOMEHOW, they call themselves a “Brick Oven Pizza” place, though. What the public doesn’t know won’t embarrass the owners yet. They say the have brink on the decks, but a 981 comes with steel decks . . . could be aftermarket stones, I guess.

2nd one looks like a bigger operation, and is just now breaking ground on a new space next door to a Taco Mac. It is going to take big $$$ for whoever builds the space. They have a registered trademark, a themed webpage started, and could be even more capitalized. Thing is, it is less than a half mile from the place now open. They have a funky rock and roll sort of theme from what I see, so could be a play on the Mellow Mushroom regional brand. 6300 sf ground up construction that has a conceptual drawing . “scheduled” to be open late November. These guys to take a bite out of our butts if they come out with the concept that flies. Their location and frontage are superior to the previous, and have lots more power than we can muster for drawing customer base from the county seat where they are located.

We are looking at our realistic options to try to make a big push right now to develop some visibility and customer interest before that place pops up. No idea what their interior business model or decor will be. We need to find a way to build out our dining room and expand the menu concept with no money and restrictive debt. Hmmmmmmm.

 

[Pakula_s_Pizza]

15 miles away…Ive got about 100 in between me and 15 miles. I think you should be fine. Unless they make the best ever

 

[Kris]

Nick,
Keep doing what you are doing and be confident in what you do. Sure people are gonna try the new place so you can expect a little lag during that time…so be ready for it.

Instead of spending money to expand etc…save that money to ride the storm…should it come. I would not borrow money for anything. If you have the cash yeah if not…now way!

Kris

 

[famouspizza]

first instict is ro stress out but then you realize that they are going to do whatever it is regardless. Only thing you have control over is your own operation…use this as a kick in the pants to address any deficiencies. If there are none then you should have nothing to worry about.

We have about 20 places with in 3 miles most of which offer basically the same mediocre food and service…differentiate yourself from the rest and you on your own island

a new guy opened across the street from me and was actually the best thing that ever happened to my business…would have never started delivery if he did not open

good luck

 

[Napoli_Pizza]

I know I’m not the smartest guy on the board, but, if I understand you correctly: You have 1 place opening up outside your delivery area, without the most important asset on his side - location.
You have another place, I think that already exists, but is moving to a new location. And you are concerned, as a leading member of your community, a friend to many of your customers, and an experienced and extremely knowledgable entrepreneur, that when your customers go to the new location, they will be mesmerized by the bright lights and shiny things, and never come back.
I’ve been in your spot, and can tell you:

1. for some unknown reason, my business has always gone up when I got a new competitor. My only logic is that the new competitor led people to discuss pizza more often, which reminded them of me.
2. Those big fancy places, as you said, take big $$$ to build, and rent. Often, the community doesnt do enough business to support them, and they just close. Surprises me everytime.
3. Just keep doing what you do best. As Kris says, people will try them, and you should be prepared for that. Either cut labor, or take this opportunity to get a little rest. But people are also creatures of habit. They will get your email newsletter, see your postcard, see your facebook update, see your face in town, see your car on the road, and remember where they get their pizza from.
   Otherwise, if I’m wrong, their are a few fat, bald pizza guys who aren’t afraid to come to town and bust a few kneecaps.

 

[HoustonPizza]

In the 11 years we’ve been in business, we’ve seen a lot of new shops open and close within 5 miles of us. Every time we’d drive by a strip center it seemed like another new pizza shop was opening up and it would immediately start stressing us out. Then we came to realize that we can’t focus our attention on what they’re doing or let ourselves become distracted from running our business the best we can (I believe this is advice that we learned from here). We have to worry about ourselves and what we’re doing and what we need to continue doing to keep our current customers and continue to get new ones. Sure we might have seen a small slip in business for a little bit - but it always rebounded and came back stronger than it was before. I would have to agree with Napoli – sometimes it seemed our business even increased a little from the marketing that the new guys was doing. It sure can be a crazy business sometimes.

 

[indie_pizza]

Napoli Pizza:

1. for some unknown reason, my business has always gone up when I got a new competitor. My only logic is that the new competitor led people to discuss pizza more often, which reminded them of me.

I couldn’t agree with this more! We’re in a tough market with 1-2 more pizza places than we should have. Every time I see the place up the street doing a “customer appreciation” weekend, with $5.99 larges or PJ that just did a $5 large weekend, I think “ok, need to run some lower labor in response” and every time we end up having a day with great numbers.

 

[pizzatime]

I agree with the last couple of posts.

I know how this plays on your mind. One thing not to do is burn out mentally on this. Stay strong to what you have been doing so far. Go back and spend some time ready your old posts and realize you know what to do.

I use to have a knee jerk reaction when competion moved in. I would change up the menu, add,add and add. I was so mentally engaged that it would burn my employees. They had to learn all the new items and it actually back fired due to poor service.

Keep doin what you are doin. You need to step it up (if not already) with a steady door hanging routine-this is the best along with the other ways you advertise.

This business will make you bi-polar in a day.

pt

 

[Daddio]

Nick
I went for a Sunday afternoon drive yesterday and discovered three new pizza places within 5 miles of my store. I didn’t even know they had opened. I have no concern of them taking my customers because they are all offering unrealistic low pricing which means either the service or quality or both are not at the same level as mine.

I am thinking you will be just fine with you quality and service as you selling point.

 

[Scott_Hack1]

Nick,

One of the things that comes to mind is taking pizza dollars out of the market place. Offer gift cards or pizza bucks or something at a slight discount right now.

The next thing is you need to do something CRAZY to draw some attention to you and your shop. I’m thinking something like a 24 hour pizza-thon.

24 community charities and 24 hours in the day. Each hour is tied to a charity. Dinner and lunch time charities get a different % then say the 2am people.

Run movies all night long in the dining room. Something like Mission Impossible, or James Bond movies or something.

Maybe a dunk tank outside of community leaders and business owners, and charge $1 for 3 throws. Let them decide what charity to donate the money to.

Battle of the Bands from say 9 until midnight.

You want to create a HUGE community event. A big fall festival.

Chili Cook-off… a tug of war contest with the local fire department, police department, high school classes. Freshmen vs Seniors… Little League baseball etc. Whatever you can do to get people there.

Obviously a lot of stuff, and you won’t need it all, but just some ideas to give you an idea.

 

[wa_dave]

After just going through a corporate opening just 100mts up from our shop I don’t think you have too much to worry about. Just be alert, not alarmed.
We thought that we would drop 10 - 15% for a couple of months as people tried them or moved from our high priced high quality to their lower end product, but how wrong that turned out to be. On average since they opened we are up 10 - 12% over last years figures in a flat economy. In the 17 weeks they have been open we have only dropped year on year sales one week and that was after a 20% increase the previous week.
I think a 15 mile buffer will not affect you that much. If people are coming to you now from there and yhat is with another joint open there as well then I think there is a strong drawing for your shop. They may try the newbie out of curiousity but I think your personality, community involvement, quality and total offereing will prevail for you.
I know you are in an extremely small market and rely on pulling from other areas but in the end of the day your immediate customer base is your bread and butter and they won’t be drivig 15 miles for a unknown quality pizza.
Maybe market on the extremes of your boundary to entice people to come to you - the ones who are placed 50 - 50 to you and the new store. Offer a meal package for them to come to you and dine in with a free drink/dessert/sides or something that they can see as a perceived bonus and that won’t break your bank to do it. Have a redeemable coupon so you can track where they come from. Make it an experience that will draw them back time after time. As a small family operated concern you will have it all over a big flashier outlet who will have multiple staff working for a job, not working for the business.
Time to take that chill out pill and do some deep breathing and look on this as another opportunity.

Dave