Growth Chains: Mr. Jim’s PizzaGrowth Chains: Mr. Jim’s Pizza

By Ron Ruggless


Mr. Jim’s Pizza Worldwide Inc., a 58-unit pickup and delivery pizza chain, works to differentiate itself from the big-player competition with a neighborhood focus and product quality, according to founder and owner Jim Johnson.


With stores predominantly located in Texas but with outposts in Louisiana, North Carolina, Wyoming and, most recently, Nevada, Johnson said he expects Mr. Jim’s to open as many as eight more stores in the next year. The company, based in the Dallas suburb of Farmers Branch, Texas, recently set up a broker system for franchising.


Last fall Mr. Jim’s debuted a two-tiered pricing system, offering a 14-inch D’Lish pizza at $6.99 and a 14-inch D’Luxe with two levels of toppings at $10.99. Pizzas are offered with a choice of thin or thick crusts.


“We try to follow the motto, ‘We’ve got the pizza to fit the life you live,’” said Johnson, who founded the company in 1975. 


HEADQUARTERS: 
Farmers Branch, Texas

SEGMENT: pizza, predominantly pickup and delivery

NO. OF UNITS: 58

SYSTEMWIDE SALES: $14 million (estimate for 2012)

AVERAGE CHECK: $19.94

LEADERSHIP: Jim Johnson, founder, and Randy Wooley, executive director

YEAR FOUNDED: 1975

METHOD OF GROWTH: 
franchising

COMPETITORS: Pizza Hut, Domino’s Pizza, Little Caesars Pizza, Papa John’s

TARGET MARKETS: 
Las Vegas, Houston, 
Louisiana, Mississippi

WEBSITE: www.mrjims.com

The thick crusts are handmade in the stores, but the thin and crispy crust is prepackaged. 


“We use 100 percent spring wheat from one mill in Alton, Ill.,” Johnson said. The company is testing gluten-free crusts at stores in Wyoming and in Garland, Texas, he added.


Facing the competition of big players like Domino’s Pizza, Little Caesars Pizza, Papa John’s and Pizza Hut, Johnson said Mr. Jim’s works to position itself “deep in the community.”


“We have closer ownership to the customer,” he said. “The customer can actually talk to the owner.” 


With an average check of $19.94 including beverages, the concept is designed to appeal to young families with children, Johnson said.


“I have the philosophy that there are two kinds of restaurants: The one where you ask, ‘Where do you want to eat tonight?’ — when you go out, sit down and [actually] have a meal — and the other is, ‘What do you want to eat tonight?’ — where you get delivery or carryout. 


“I think we are in the ‘What do you want to eat?’ category,” he said. “Instead of driving out for burgers or Asian food, you say, ‘Let’s call Mr. Jim’s.’”


Although the model is based on carryout and delivery, Mr. Jim’s does have some stores with dine-in options.


All but one of Mr. Jim’s 58 units are franchised, aimed at retail-development rental real estate in the area of 1,000 to 1,500 square feet.


Mr. Jim’s has been moving the company heavily onto the Internet, Johnson added.


“We’ve tried to integrate the Internet into all aspects of the operation,” he said. “We have an Internet phone system where nobody ever gets a busy signal and every phone is answered by ‘Mr. Jim’ himself. He suggests a product to you. For a franchisee, that’s a big help. 


“We also have our own proprietary point-of-sale system that’s provided as part of your royalty,” Johnson said. “Some guys might have to pay $20,000 for a point-of-sale system, but that’s included in our package. You do have to buy about $5,000 worth of hardware.”


Randy Wooley, executive director for Mr. Jim’s, added, “The system infrastructure is cloud-based, allowing the franchisees to share the same software and access a central database of customers that keeps everything organized with regard to sales and delivery areas/territories among stores and franchisees.”


The point-of-sale system provides Johnson with “a wealth of statistics about what’s going on in the restaurants,” he said. 


“We have a code for every single coupon we offer, so there’s 7,000 valid coupon codes now, and I can pull a report and tell stores what we can do and what effect it has. It also provides for online ordering capabilities. It’s all integrated.”


Online orders make up about 13.2 percent of sales, with the rest being phoned orders.


Most stores have the proprietary ordering system, which “gets the stores more local,” Johnson said. 


The company also allows franchisees to use both new and repurposed equipment. 


“Allowing the use of secondhand equipment that operates at a first-rate standard enables the franchisee to save thousands of dollars,” Wooley said. Typical locations can open for $150,000, he added.


Since 1975, major changes in the concept have been portion control and consistent product that now takes advantage of impinger-style conveyor ovens, Johnson said. 


“We can make sure the customer gets the same pizza every time,” Johnson said. “Nobody is as dedicated to it as we are.” 

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Contact Ron Ruggless at [email protected].
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