Multi-Unit Franchisee Magazine Issue IV, 2011 | Page 60

as Christmas and holiday parties, private
events including fundraisers and church
get-togethers, and local fairs and sporting events. He says he can offer up to
90 percent of his physical store menu
from the truck.
Another plus: “Customers can go to
our website and reserve the truck online for their events,” he says. “One of
the added bonuses is that every time the
truck is headed to an event we’re getting
the effects of a giant mobile billboard.”
He’s even considered hiring someone to
drive the truck around on days when it’s
not needed for catering.
So far, his truck is still a relatively
minor revenue generator for his growing franchise operation. Webster says he
typically uses it at two to three events a
week—and he can staff it by himself or
with one other employee for larger events.
Webster is pleased with his investment
and says the marketing benefit the mobile
truck provides has been incredible for
him. “The truck is a high-impact tool that
provides another sales point and good
margins for my business,” he says. And
the potential for expanded use is huge.
“I can definitely see us going beyond the
catering events and testing the waters of
food parks and office complexes.”

Tom Jones

58

Pizza Delivery 2.0

W

isconsin-based Toppers Pizza launched its first “mobile pizza
store” in July. The brand is one of several testing the waters of
mobile food delivery vehicles. Executives hope it’s a move that
will help them gain market share in the highly competitive pizza sector.
“Thus far we are only using the truck within the delivery area boundaries of a corporate-owned market,” says Scott Iversen, director of marketing
at Toppers. “We want to determine the best ways to use the truck to capture
additional sales from a current trade area before suggesting to franchisees to
make an investment in one for their areas.”
Iverson sees several potential advantages to the mobile model. First, he
believes the trucks will help capture more “impulse sales” opportunities than
a traditional brick-and-mortar location could. “On average, our franchises already produce very high average unit sales ($941,000 a year),” he says. “But if

“Social media is the vehicle
we use to tell people where we are
going to be and when.”
we could build on those high averages with a model that produced even more
revenue from the same-sized trade area, that would be an attractive investment for our franchisees.”
He also says the truck could be great for convincing customers to give
the brand a try. “In a mobile store we can offer our same products in smaller,
trial-sized portions for a lot less, and they’re ready without having to wait to
be delivered or picked up,” he says. And the truck serves as a constant visual
reminder that there is a Toppers store in the neighborhood.
Iverson says the first truck was built for about $160,000, but he thinks it
could be done for less. Compare that with the $400,000 it typically takes to
build a store; and the truck features much of the same equipment found in their
stores. “We can produce over 100 full pizzas per hour in the truck with capacity
to triple the product volume by adding two more ovens if we need to do so,”
he says. “The big advantage the truck has over a regular store is that many of
the fixed costs are one-time expenses (building and equipping it) rather than
ongoing expenses (rent, utilities, etc.).”
And since fixed costs are lower, the truck offers a much higher profit margin. “Our current brick-and-mortar stores average $161,000, or around 17
percent profit,” says Iverson. “Profit margin in the truck can approach 30 to
40 percent on the best days.” He notes that it still comes down to maximizing
the same three important variables as in any restaurant: top-line sales, food
cost, and labor cost.
Iverson believes social media will play a critical role in the mobile truck
plans at Toppers. “Social media is today’s word of mouth. It is where people
are having conversations with their friends and family,” he says. “If we want to
be a relevant part of people’s everyday conversations, we have to be present in
the space where they have those conversations. Social media is the vehicle we
use to tell people where we are going to be and when.” n

Multi-Unit Franchisee Is s ue IV, 2011

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9/23/11 6:30 AM