Panarottis opened five new restaurants and converted
one Casa Bella to a Panarottis because its location was
more suited to family dining. Wood-fired ovens are used in
28 restaurants to enhance product quality and save on electricity consumption. The total investment by franchisees in new outlets, relocations, revamps and conversions to wood-fired ovens was R29.1 million.
Restaurant sales grew by 0.9%, while sales from existing businesses declined by 1.4%, as the division continued to be impacted by aggressive discounting by competitors in the takeaway pizza market.
Revenue benefited from additional supplier and other recoveries, an increase in initial franchise fee revenue and lower franchise fee concessions. The operating profit margin improved as a result of a focus on cost containment.
The Panarottis Rewards loyalty programme achieved a voucher redemption rate of 40% (2018: 34.7%). Since inception, loyalty sales have grown to more than R151 million, with an average spend of R258 per visit. Panarottis Kids now has 117 000 members (2018: 101 410).
The focus for 2019 was to reinvent the Panarottis brand and create a solid foundation for the next five years. Panarottis has a new logo, restaurant design and employee uniforms, which are adaptable locally and internationally, and facilitate the different Panarottis formats. The new logo is modern and suited to digital content. Similarly, the new range of cutlery and crockery presents Panarottis products better, and is more visually appealing for digital content.
The brand’s strategic intent is to create great family-dining experiences and be known for generosity and the quality of products. Panarottis wants highly engaged and profitable franchisees.
The brand continues to shift from a discounting strategy to a value-added strategy. After 15 years of existence, bottomless pizza will come to an end and a new family-friendly promotion will be implemented.
Casa Bella does exceptionally well in areas where customers have a higher disposable income. Casa Bella management has refined the business model to facilitate the brand’s expansion.