Upscale fast-casual concept plans extensive franchising with only one unit open to date
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A year after opening its flagship — and, so far only — unit in Los Angeles, Midici is moving into the rapid franchise growth that is now typical in the fast-casual pizza segment.
Midici: The Neapolitan Pizza Company was founded in June 2015 by Amit Kleinberger, CEO of the 500-plus-unit frozen yogurt chain Menchie’s. It’s a build-your-own-fire-baked pizza concept in the Neapolitan tradition, but one with a much more premium positioning that stands out from the crowd of fast-casual pizza players that includes leaders Blaze Pizza, MOD Pizza and Pieology.
Still, like those solidly in the fast-casual space, Midici jumped into aggressive franchise growth with only one unit open. The brand has about 100 franchisees that have signed on to open 352 units across the U.S. over the next five years, Kleinberger said.
Fifteen restaurants are scheduled to open in 2016, followed by another 50 locations in 2017.
Kleinberger sees Midici as a disruptive model.
Midici specializes in classic Neapolitan pies. Photo: Midici
Although customers order at the counter, get their own silverware and fountain drinks, he doesn’t see Midici as fast casual at all, but more “fast fine,” competing against casual-dining brands.
In fact, some future locations of Midici will be next to a Blaze or MOD unit, he said.
“Landlords don’t see us as in the same category,” he said. “We don’t appear in the same exclusivity clause.”
On the menu at Midici, for example, are appetizers like marinated warm olives, fresh burrata with beets and balsamic, and baked truffle cheese bread.
In addition to pizza, customers can build their own salads, and desserts include gelato and signature dishes like a Nutella calzone with fresh berries and banana. Beer and wines are available by the glass or bottle, and diners can order espresso.
The restaurant design, with a live tree in the dining room and fire pits on the patio, encourages lingering. Servers bring food and alcoholic drinks to the table, but customers have to return to the counter to order dessert or a second drink.
Midici’s footprint is around 4,000 square feet, almost twice that of the fast-casual brands.
The restaurant sees the majority of sales at dinner, although lunch is also strong. Prices are also higher than that of fast-casual brands. At Midici, specialty pizzas range from $8.50 to $14, for example. Appetizers range from $4.50 for a small bowl of olives to $16 for a charcuterie and cheese plate for two, and salads are priced at $7.50 to $10.50.
According to franchise disclosure documents, the restaurant generated gross sales of $1.6 million for the 29 weeks ended Dec. 31. Kleinberger declined to offer details, but said sales are trending upward as brand awareness grows.
Franchisees, meanwhile, include experienced operators like Sean Olsen, who operates Five Guys units; J.D. Graves, a Long John Silver’s franchisee; and Brandon Gawthorp, who operates Wingstop locations, Kleinberger said.
And Midici has attracted a number of professional athletes as first-time franchise operators, like 12-year NBA player John Salmons, who played most recently for the New Orleans Pelicans, and has signed on to open five Midici units in the Philadelphia, New Jersey and Delaware region.
Salmons said he heard about the brand from a friend and felt good about Midici’s marketing position.
“They have a slogan about bringing friends together, and it made me feel like it’s something positive,” he said. “It’s not just about making money, but it’s about helping people and making the world a better place.”
Contact Lisa Jennings at [email protected]
Follow her on Twitter: @livetodineout
