The Development Plans of Dodo

Daily revenue of dodo pizza (delivery) in August 2011, rubles

The average revenue of Dodo on the 27th of August was 30,320 rubles per day. The growth compared to July was +23%. I announced the final results of the last summer month in the early of September. At this rate, we will refund the initial investment to a pizza in less than 10 months and maybe even faster. We expect the further growth - and getting ready to reorder the kitchen. Why are we growing? It's simple.

We are sincerely working for clients. We pay attention to details, recognize and correct problems. We try to make a good product and do not lie. We make a delicious pizza with quality and fresh ingredients. No tricks. We do not save on the quality. People really appreciate it. The number of regular customers is constantly growing. We are recommended by our clients. I understand what a huge value it is - the customers’ loyalty. This is the most pleasant thing that may be in business. And our main goal - not to lose this trust, and make the service and products much more better.

Even many of my fellows businessmen do not believe that we actually give a pizza for free if we broke our words. We stated in the advertisement that we would deliver pizza no more than for 60 minutes after receiving the order. Even our couriers do not believe that we give you a free pizza, in order we are late for a minute. Our clients don’t believe as well. But we really do that. Fundamentally and without compromise. And it works.

Free pizza for us is a wonderful way to keep ourselves in a good shape. In the great shape. If we gave away a free pizza, it's a loud signal to us: "Somewhere there was an error! We are relaxed! Increased the demand, and we have not changed! "Free pizza - is a powerful incentive to set up the system and people for the faster work. A speed of our business is strongly associated with the quality. The faster means fresh and tasty. The same principle we apply to other things, such as the quality of the ingredients and the cleanness, but I'll explain it in the next entry.

Lately, I've been thinking a lot about our future development. I realized that I am the best of all that what I like in this business is to make a quality product and service to where I am not ashamed to invite my friends. The quality will never be sacrificed to the volume and the speed of the development. This will be important in our development. Dodo Pizza should be the synonym to the quality. To ensure the quality and service in the industry, where everything is built on people, is very difficult. But the task becomes more interesting in that way.

How will we grow? At least for a year, we will be working in one pizzeria. We will improve our recipes, menus, quality and the taste of the dough, develop standards to perfect technology. We will be creating our own information system specifically for our business. We will not run and use the imaginary possibilities. Only when we are sure of ourselves, earning additional capital, our company will begin to move into other markets.

What model will we take for our development? The main road is the pizzeria that is focused on delivery. The formats of Domino's Pizza and Papa John’s in America. As I wrote later, for such like pizzerias it’s much easier to find the room. As for these formats the first line is not needed. The lack of suitable premises is the main obstacle in the development of fast-food chains in Russia. We will not have such a brake. And most importantly, the location is not a major advantage. There are important quality system, marketing, service and speed, but not a restaurant at the entrance location. Here we have more options.

Whether this is a viable format in Russia or not? I believe that it has a great potential. But as a rule, people involved stationary public catering are not looking to work only on delivery. The main argument: "Having no fixed establishments, customers can not try the product, they will not trust to the quality and the brand." But all these arguments are unfounded. At delivery pizza there is a huge market and the potential, a lot of advantages and benefits that in stationary facilities cannot be found. There will always be people who "do not want to cook today," or "suddenly want a holiday in the office in the evening ..." Everything that works in developed markets, will work with us. Perhaps in a modified form, but will.

Did I think about the stationary format of Dodo Pizza? Sure. We will create a quality product and we offer it to the maximum number of customers, not just for delivery. What kind of the format  will it be, the stationary Dodo Pizza?

In fact, everything depends on the specific technology and the speed of making the core product. For example, a burger is a designer. It is collected from the rolls, meat and vegetables. The speed assembly of the burger in a fast food restaurant, if he is made to order for the client, is about 3-5 minutes. I recall that at McDonald's, as a rule, burgers are made in advance, and not by the order.

A whole pizza is cooked at least 10-15 minutes and are usually designed for a few people. This specificity determines the existence of the three formats pizzerias:

1) Pizza Buffet - ready to sell pizza is sold by slices. Pizza is baked in advance. The client chooses available pieces. Advantages - fast, cheap, choice - have the opportunity to try several pizzas. In that format Sbarro and Tashir Pizza and well-known pizzeria in Syktyvkar "Milano" work.

2) Pizza-delivery (for delivery) - the pizza is made for a particular customer by the order and is delivered. Due to the fact that the pizza is cooked faster than other foods and is very well suited for transportation, this format can be called as the junk food in delivery. Usually supplemented by a small delivery room, where you can pick up or ready to eat the whole (!) Pizza. By this format Domino's Pizza, Papa John's, Pizza Fabrika in Moscow, and Dodo Pizza in Syktyvkar work.

3) PizzeriaandRestaurant - an entire pizza is made to the order for the customer. By this format Pizza Hut in Russia work.

There are the hybrid format - an express pizzeria. This is an attempt to make small pizza for an each customer by the order. Waiting time - about 10 minutes, but it offers a small inexpensive pizza for one (the size of a burger). This format has developed, for example, the Pizza Hut on food courts and airports in the West. I was in such a pizzeria in London.

Mini pizzas from Pizza Hut Express in London

Initially, I thought about the first format,  of course. It is closest to fast-food. Customer’s waiting time is minimum. The average ticket - a small, and therefore it is possible to reach more people and create a production system for the sale of pizza slices.

But this format has two big minuses - limiting customer choice to cook pizza and possible quality problems. Format of the burger, the fast-food can guarantee the highest quality and the freshness. But the format of a pizza buffet - no. I did see the whole system from the inside, when I worked at Sbarro as a pizza-maker.

I've been thinking a lot about it, even invented an experimental format, about which I will ever write. Eventually, I came to realize that selling pizza slices - this is not our way, because we can not guarantee the quality. Why? Pizza as the product does not create such a flow as burgers, pizza making will inevitably lead to what is sold the stale product.

If we have a fixed format, it will be fast-casual restaurants of Dodo Pizza, where pizza is baked to order for each client. Without pieces, without advancing and without limitation of choice. Only fresh pizza from the oven. What is a fast-casual? This format is in the middle between fast-food and restaurants. We will offer the quality food at reasonable prices, but instead of fast-food, you can not only eat, but also spend your time. Buying an entire pizza - this is the company! It will be a place with real atmosphere, but in this case - not pretentious restaurants. This format will be ideally combined with our brand and focus on the quality and the democracy at the same time. And we will make sure that we have served very quickly. 15 minutes and a free pizza is yours;)

I will present today the development strategy. We will go into new markets with pizzerias for delivery. This will be the basic format. If we find the ideal space for a stationary format, and we will have opportunities to open fast-casual restaurant of Dodo Pizza. If a particular market is not a good area - than only delivery.

There are tons of interesting things. The story will be long.

Read in the nearest future:

1. How did I spend my time in London at the invitation of Evgeniy Chichvarkin.

2. The results of Dodo Pizza in August.

3. Why are we developing the information system? At what stage are we now?

4. How do we work at the improvement of the quality of our dough.

5. The food-court of the Perm’s company 'Alendvik " in Kirov mall.

P.S. After the publishing of my book, I read a lot of letters. Someone asked for advice, asked to recommend a book or to say the opinion of the business. Someone just wanted to talk and to get acquainted. Someone offers the friendship. If I do not answer, do not be offended. I have a lot to do or I don’t have the spare time for consultations, although I would love to help with an advice to budding entrepreneurs. Or, perhaps, your suggestion didn’t interest me. Communication must be mutually beneficial. If you have any questions - write into my blog, there are more chances that I will answer. And if you have any suggestions, make it so that I could not refuse.

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