In less than 3 years, the Shakey’s pizza brand posted a 90 percent turnaround in sales. In fact, according to the most recent figures, the brand has realized over a billion in system sales, despite the pressing oil crisis.
The brand was founded in Sacramento, California on April 30, 1954 by Sherwood "Shakey" Johnson and Ed Plummer. The business began with a Dixieland jazz piano to entertain patrons, and that type of entertainment was a staple of the Shakey’s experience well into the 1970s. The Pizza Parlor began franchising in 1957 and by the time Johnson retired in 1967, there were 272 Shakey’s Pizza Parlors in the United States. By 1975, the company expanded to the Pacific Rim, including Japan and the Philippines. The chain is now much bigger in the Philippines than in the United States.
Shakey’s franchise, experienced a renaissance brought about by, amongst others, bringing in young people. With renewed vigor, Shakey’s management, with its board solidly behind its decision for major changes, Shakey’s started on the path of revitalization.
From 2004 to the present, Shakey’s management has pleasantly surprised its loyal customers and the industry by bringing in a fresh, new but familiar look, starting with the re-birth of its old logo, widely recognized and loved by its loyal customers. It has further "wow-ed" its guests by constantly launching mouthwatering delicious new product lines.
Shakey’s General Manager Vic Gregorio banked on two factors that turned the pizza chain around: The classic thin crust pizza and the unique interiors, which showcase beveled-glass designs, antique-looking wooden signs, and a window allowing people to watch the pizza being made. Needless to say, the changes involved major expenses. The decision led to the closing of 4 restaurants, opening 30 new ones, and the remodeling of 25 restaurants, with the cost of renovation as high as opening a new restaurant. Gregorio said its focus on ambitious cost controls and aggressive growth was also a factor contributing to the positive results. The 91-unit chain includes company and franchise stores. He says: "We maintained good cost controls and focused on wow-ing the guests by offering exceptional food, quality, and service."
The great risk undertaken by the restaurant through attractive food packages and innovative products, led to record revenues and earnings for the year. Sales in 2004 ballooned to nearly a billion and further grew to more than P1 billion in 2005.
|
