New horizons for SbarroNew horizons for Sbarro

Paul Frumkin

A reformulated Neapolitan-style pizza drove sales during Sbarro’s two-month trial of new products, service style and decor at 10 test units, but the Italian quick-service chain’s new line of made-to-
order pastas and sauces did little to spur trial during that time.


As a result, the 1,013-unit mall-centric chain, which is working to migrate into the fast-casual marketplace, will concentrate on the continued development of its pizza products and other, more portable menu items.


“Customers preferred the new sauces and pastas over existing recipes,” said Jim Greco, president and chief executive of Melville, N.Y.-based Sbarro Inc. “But their intent to purchase was not as high as we had expected. It wasn’t because of the taste, though. It just wasn’t what they were necessarily looking for in the mall at lunchtime.”


More consumers are open to new flavors delivered by sauces, spreads and condiments, according to “The Flavor Consumer Trend Report” published in November 2011 by Technomic. The Chicago-based research firm also found that customers at full-service Italian restaurants were the most receptive to new menu items, with 67 percent saying they would try new offerings. Still, Technomic concluded that even limited-service restaurant customers are open to flavor innovation, giving all operators a green light for introducing new tastes.


The Sbarro test, which began in June in 10 units around the country, revealed that pizza accounts for 45 percent of total sales, while pasta generates only about 6 percent.


Greco said the new pasta line — which consists of five sauces and three pastas — would continue to be offered and perhaps climb to 10 percent of sales eventually. 


“However, we don’t think [pasta] will be a big-selling item,” he said. 


The pasta line was designed to take 45 seconds to prepare and features such sauces as traditional pomodoro, Bolognese, Alfredo and vodka. Two pasta preparation systems were under test — one with sauté pans on induction cooktops and another that used fast boilers set into countertops.


The new pizza recipe was more enthusiastically embraced by customers. 


“We found that people prefer the new pizza to the existing recipe by a wide margin,” Greco said.


The new recipe is based on traditional Neapolitan-style pizza, with a thinner crust, simpler tomato sauce that requires few spices, freshly grated whole-milk mozzarella and Pecorino Romano cheese.


Greco would not specify when the new pizza would be launched across the system, but he said the brand was planning “a big event” around the new pizza iteration that will coincide with National Pizza Month in October.


The chain also is producing a five-quarter marketing calendar that will include the introduction of limited-time-only pizza varieties currently under development.


“Another thing we learned is that it takes a considerable amount of public relations to get people aware of new products,” Greco said. “We’re going to take those learnings and considerations into account when our next big initiative takes place.”


Among other new selections being examined are salads, desserts and handheld options that would fit well into a mall environment, Greco said.


The test units also provided operational data for the chain. 


“There is a need for extensive operational training to allow us to execute properly,” he said. “Some units executed better than others.”


Greco also said Sbarro’s new open-flame ovens took the time to prepare a large pizza down to 5.5 minutes from 8.5 minutes. The ovens also reduced the amount of time to warm a slice from two minutes to one minute.


“The flames are very impressive,” Greco said. “You can see them across the food court.”


The 10 test locations generated initial sales increases of about 10 percent, Greco said. 


Sbarro plans to continue transitioning itself into the fast-
casual sector under the brand positioning of “Hands on Italian.” 


“It reflects authenticity and creativity rooted in the Italian tradition, done with flair and fun,” Greco said. “‘Hands on Italian’ is very much in keeping with the fast-casual vision.”


The 10-unit test also allowed the chain to refresh its design. 


“We expect to have the new design in five units at the beginning of next year,” Greco said.


In the midst of its repositioning effort, Sbarro also is stepping up its franchising efforts this year with the appointment of two new executives. The company named Eric Taylor to a newly created role of vice president of international franchise development and Dave Gleason as vice president of franchise development. He will lead the growth of franchisees in North America. 


Taylor has been involved with international franchising since 1999, starting with work at Franchise Development Services, based in Norwich, England. Before that he was vice president of worldwide franchise development for Bennigan’s Franchising Company and a consultant for TR Global Management Group representing Applebee’s.


Gleason has spent more than 30 years in the quick-service industry in both an operations and franchise-development capacity. He has worked with such brands as Dunkin’ Brands, Häagen-Dazs, Manchu Wok and Jamba Juice, and was responsible for the development of the brands in traditional and nontraditional segments on a national level.  


Sbarro has locations in 40 countries. 


Contact Paul Frumkin at [email protected]
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