This is part of Nation’s Restaurant News’ annual Second 100 report, a proprietary census ranking restaurant brands Nos. 101-200 by U.S. systemwide sales and other data. This special report focuses on a smaller, more growth-oriented universe than the Top 100 report.
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Marco’s Pizza saw domestic sales jump by 41.3 percent during 2014, making it the second fastest growing large chain in the country. It opened 141 units, giving the restaurant a total of 578 units, or a 32 percent increase from a year earlier. That’s on top of the 103 units it added in 2013, when it saw its sales jump by 21.3 percent.
Led by CEO Jack Butorac, who bought the franchise rights for Marco’s Pizza in 2004, this 100-percent franchised chain was able to expand even when financing was much harder to come by thanks to creative strategies from upper management. Those strategies include expediting loans to franchisees through personal-guarantee insurance and Marco’s running its own loan-guarantee program called Marco’s Assurance.
The chain also has helped drive sales through creative limited-time offerings, such as the Grilled Chicken Florentine Pizza, offered last spring, which, along with chicken, featured Parmesan garlic sauce, sliced red onions, sliced tomatoes, spinach and a proprietary four-cheese blend.
Late last summer, to appeal to fans of spicy food, the Toledo, Ohio-based chain featured the Italian-American pepper relish giardinera on a vegetarian Spicy Fresco Three Cheese pizza, as well as on a protein-rich Spicy Double Pepperoni Fresco.
Keys to growth
Consistent leadership: The company has had the same CEO for ten years. Although Jack Butorac has recruited top management from other chains over the past couple of years, he also has promoted from within, including the promotion in April 2014 of Bryon Stephens from chief operating officer to president. Stephens was the first executive Butorac hired in 2004.
Creative financing: When loans were hard to come by during the recession, Marco’s management used the company’s own credit to guarantee loans for franchisees, which helped keep new restaurant openings in the pipeline.
Embracing technology: Around 17 percent to 20 percent of Marco’s sales now come through digital channels, and that percentage is growing, with some newer locations seeing digital sales as high as 60 percent of the total. Marco’s tracks digital orders to understand those customers better and communicate with them more effectively.
It’s in the right segment: Pizza in general is seeing healthy growth. Publicly traded restaurant chains saw same-store sales grow by more than 6.4 percent on average in the fourth quarter of last year.
Contact Bret Thorn: [email protected]
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