Successful Capture of 18-34-Year Old Demographic Spikes ’09 Sales; Projects Strong Onward Growth
WHITEWATER, WI – In 2009, the face of the pizza industry frowned, as sales were sluggish and growth was stunted. Toppers Pizza, though, dodged a slowdown with increased average unit volumes and system-wide sales; five new units; and 18 under contract. When the big chains are down, Toppers has remained up, taking names and gripping its share of the $40-plus-billion pizza industry. Why?
“The reason for our success is simple: We are not one of the ‘Wal-Marts’ of the industry. The big chains have lost identity and brand connection,” said Scott Gittrich, founder and CEO of the growing Whitewater, WI-based 26-unit franchise brand. “Our customers are fanatical about our brand. Our quirkiness and edginess has given our brand character, thus we have been able to continue our growth and bonding with an untapped national demographic – the 18-34-year olds.”
Along with its ability to tap into the most influential demographic, Toppers has made a name for itself as the innovators of unique menu items. Toppers was the first delivery brand to capture the cheesy bread marketplace with its famous Topperstix. Toppers has never shied away from innovation with its Mac ‘N Cheese; Potato Topper; Cool C-B-R (Chicken-Bacon-Ranch); The Hangover Helper; Buffalo Wings, Quesadillas, Grinders, and dozens of other menu items. Different from the competition, 70 percent of Toppers’ sales come from items not traditionally found on competitor’s menus.
Gittrich has never swayed from his original mission: Create an eclectic pizza delivery experience while maintaining a better product and service than the competition. While Papa John’s, Domino’s, and Pizza Hut are stuck in a stiff battle for the family demographic, Toppers has maintained its original strategy of being a hip, cool brand, connected to the nationally untapped 18-34 demographic. This strategy, Gittrich said, has helped Toppers sustain its growth, even in a down economy, in that there are more young, energetic consumers craving a real brand connection.
Additionally, to celebrate the grand opening of each new location, Toppers gives away free food for a year to the first 50 customers. This marketing method creates a fanatical madness, and rush, with Toppers’ customers waiting as long as 48 hours prior to the opening of the doors. This, coupled with other out-of-the-box marketing methods, has lifted the brand into high ranks of success.
When Gittrich created Toppers in August 1991, he had the fortune of a long-stint in the Domino’s camp, in which he was inspired by its core culture, values, leadership of its founder Tom Monaghan, and even earned the privilege of securing one of the famed Rolex watches Monaghan awarded to his top performers. When given the opportunity to become a franchisee of two sinking Dayton, Ohio, Domino’s units for the price of just $1 each, Gittrich turned it down.
“I rebelled against the big box,” he said. “I knew that by pouring my heart and soul into my own concept I would be able to create a brand one-step better than the competition.”
Gittrich’s plan worked. The first Toppers location opened to rave reviews, a fanatical following, and an all-star first four months after opening in August of 1991. But just like any start-up business, there was bound to be a down moment. In December of its first year of operation, Toppers’ sales sunk to just $700 for the week, thanks to an underestimated college winter break. The downs are the reason Gittrich has remained a franchisee in his own system, as the owner of seven locations, he is able to test, treat and market new initiatives as well as contribute to the national advertising fund.
“I won’t give up being a pizza delivery franchisee,” he said, noting he still operates the locations, including the newest Whitewater location/training facility. “It is important for me to be in the trenches with my franchisee family. Plus, I love the grind way too much.”
Unlike other franchise brands, Toppers makes an earnings claim in its franchise disclosure documents, stating that the Wisconsin locations make an average of $945k/year (2008 AUV), which is a remarkable financial measure given the size (1,600 – 1,800 sq. feet) and that industry averages are nestled right around $600k/year. The high return on investment is built from the fanatical aspects of the brand, as well as dedicated, driven franchisees who are deeply connected to those in their community – especially the nearest university. Franchisees entering the Toppers system must have a minimum liquidity of $150k and a net worth of $300k. The average cost to open a Toppers is $400k.
“As we grow, like a balloon, out of Wisconsin and into surrounding states and then nationwide, we want to maintain a stronghold on top-tier franchisees. By doing so, we can maintain our core culture, our brand evolution, and our methodical growth pattern,” Gittrich said.
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