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Lisa Jennings
SALEM ORE. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Ron Berger’s latest deal to expand Figaro’s portfolio of franchise concepts follows his 2006 acquisition of then-10-unit Sargo’s Sub, which has expanded by two locations since then. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Terms of the acquisition of Hillsboro, Ore.-based Pizza Schmizza, a wholly franchised, by-the-slice specialist, were not disclosed, though Berger, who is Figaro’s chairman and chief executive, described the deal as a “cash and stock” transaction. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Pizza Schmizza officials said they began contemplating a sale of the brand after chief executive and key shareholder Doug Wetter fell ill several months ago and could no longer lead the company. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Further deals to expand Figaro’s portfolio of restaurant brands, most likely also in the pizza segment, would offer franchisees more options for growth and boost food purchasing and marketing efficiencies, Berger said. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Economies-of-scale advantages are becoming increasingly important for pizza operators as they are slammed by sharply rising costs of flour and cheese. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Both Figaro’s and Pizza Schmizza will remain unchanged, with the majority of the smaller chain’s management team being incorporated into Figaro’s infrastructure, Berger said. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
The entirely franchised Figaro’s chain is different enough from the dine-in Pizza Schmizza concept that both brands can be franchised distinctly, with the acquired chain keyed to dine-in opportunities and Figaro’s geared for take-home and delivery settings. Plans call for Figaro’s to grow by 15 to 20 new locations per year as Pizza Schmizza adds about six annually. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Berger said his intention with the purchase two years ago of Sargo’s was to give Figaro’s franchisees opportunities to co-brand and add Sargo’s sandwiches to expand lunch sales. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
About half of the original 10 Sargo’s locations were closed after that acquisition, and six co-branded Figaro’s-Sargo’s units have since opened. Other Figaro’s units have developed dual-brand identities with the additions of such outside concepts as Carvel Ice Cream and Blimpie sandwiches. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Though co-branding allows franchisees to build sales during slower dayparts, the potential for such alliances is “location sensitive,” Berger said. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Although the pizza segment’s sales nationally slipped in the first quarter by about 4 percent, according to Berger, he said the Pacific Northwest core market of Figaro’s and Pizza Schmizza has not been hit as hard by the slumping economy. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Nonetheless, “conditions today are very challenging between the rising costs and consumers’ down-buying,” he said. “But all of us are facing the same wheat and cheese challenges. And with consumer down-buying…in some ways we’re benefiting from people trading down from casual dining.” —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
“Pizza’s not going away,” he said. “It’s the ultimate comfort food.” —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
The nationwide credit crunch, however, has hurt franchisees’ efforts to stay afloat, he conceded. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Figaro’s in 2006 boasted 115 units, but 10 have closed as a result of poor locations or inadequately capitalized franchisees. “It has always been two steps forward, one step back,” said Berger. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Figaro’s is one of the few pizza chains to offer ready-to-bake pizzas for delivery. Its average ticket for delivery and takeout units is $15. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Berger, who bought the chain in 2001, is the fourth owner of Figaro’s, which was founded in 1981. His partners in the venture are his wife and Bill LeVine, a veteran of the franchise business who founded Postal Instant Press, known as PIP, and was a founding board member of California Closet Co. and other franchise concepts. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Though Figaro’s had been opening dine-in variant outlets in recent years, it will focus in the future on takeout and delivery units only, and franchisees looking for dine-in opportunities will be steered to Pizza Schmizza, Berger explained. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Pizza Schmizza was founded in 1993 by Andre Jehan, who took its name from his father’s reaction when he was asked for money to help start the business. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
“He said, ‘Pizza schmizza, go get a real job,’” recalled Jehan, whose father now works in one of Jehan’s two branches. Jehan grew the chain to 12 units before selling the franchising rights to Wetter and other shareholders in 2002. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
The concept is known for gourmet, New York-style pizzas, some of which feature such out-of-the-ordinary toppings as alligator, boar and emu. Whole, 18-inch pies range from $20 to $30, and sales are fairly evenly split between lunch and dinner. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
The chain has also drawn attention for its guerrilla-marketing tactics. To stop panhandlers from bothering customers, for example, Jehan once paid a homeless man to hold a sign saying, “Pizza Schmizza paid me to hold this sign instead of asking you for money”—a move that garnered international headlines. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
Jehan, who will serve as a consultant to the brand’s new owner, sees the acquisition of Pizza Schmizza as good news for the chain, which has only been registered for franchising in the Pacific Northwest. Figaro’s, which is registered in all states and has units in 22 nationwide, is expected to expand Pizza Schmizza’s franchising reach, Jehan said. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
“Figaro’s is strong financially and they have the wherewithal to help us grow significantly,” he said. —The leader of Figaro’s Italian Pizza, a 105-unit franchised chain based here that delivers baked and ready-to-bake pies, says he is hungry for more acquisitions following his purchase this month of 31-unit Pizza Schmizza, a fast-casual brand known for exotic toppings.
