Operations
Marco's big growth strategy not just about pizza
Marco's Pizza has more than 1,000 units with plans to grow to 1,500 by 2023. Its strategy isn't just about great pizza.
February 21, 2022 by Mandy Wolf Detwiler — Editor, Networld Media Group
Marco's Pizza has some aggressive growth plans in the next few years.
The company has more than 1,000 units but has plans to add an additional 500 in the next two years. The brand has been leveraging cutting-edge technology to help its operations and continues to invest in its omnichannel advertising.
Pizza Marketplace reached out to Steve Seyferth, SVP and chief experience officer, via email to learn about the expansion plans, how customer service plays a part in the brand's success and what technology Marco's is using to get there.
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Steve Seyferth, Marco's PizzaSVP and chief experience officer |
Q.How does Marco's plan to add 500 units by 2023? Where is growth going to be concentrated?
A.Current franchisees are hungry and eager to grow with us and will play a huge role in moving us toward that 2023 growth goal. Our development and performance strategy remains centered around growing through our current franchise base plus attracting new multi-unit franchisees. With our tremendous business momentum and strong sales, there are plenty of available territories for expansion. We expect strong penetration in all areas of the U.S., particularly growing deeper into Southeast and Southwest regions, with plans to further expand outside of the U.S. by 2023.
Q.AUV sits at more than $1 million for the top 50% of franchised stores. How will Marco's grow that with a priority on customer service?
A. Customer expectations continue to increase in terms of convenience and speed, so we are prioritizing technologies that create a better frictionless customer experience. At the same time, this will help to improve store-level profitability as we're on pace to reach $1 billion in annual systemwide sales in 2022.
Q. How will technology and innovation play a part in Marco's growth?
A.Marco's is investing millions of dollars in technology innovations throughout the next few years as we double in size. Technology will play an integral role in our overall growth — from creating a seamless customer experience to enhancing store infrastructure. We've implemented several innovation initiatives and pilot programs, including rapid adoption of third-party delivery plus utilizing AI for voice-to-text ordering and generating automated promise times. Marco's pushes to test robotic kitchen innovations, ghost kitchens, new operational equipment and even simulated a drone delivery.
Q. Explain Marco's multi-channel national advertising program. How does it help Marco's bottom line?
A. Marco's is a national brand with a national marketing presence and no longer operates like a regional brand. As a result, Marco's brand awareness has increased exponentially and we have great brand momentum, which has led to increased sales and orders for our franchisees as well as drawn interest from prospective franchisees and investors. The creative platform centers on the tagline "Pizza Lovers Get it" because our customers share an inordinate amount of love toward Marco's compared to customers of our competitors. The multi-channel advertising has created a surge in the topline, which increases profitability and allows franchisees to invest more in their teams and business.
Q. What kind of support do you give franchisees?
A. Many Marco's executives and support center team members are also successful franchisees themselves, so they understand what it takes to run a multi-unit operation. We have systemwide calls twice a month to share best practices and recognize leaders in the brand. We collaborate with several franchise councils who provide valuable input from the field that help inform and communicate about key program initiatives. In addition, Marco's provides a full development support system, including technology and tools to help identify the right territories for expansion plus expertise in financing, real estate, construction management and field operations to assist each franchisee and multi-unit operator.
Q. What does Marco's look for in a franchisee?
A. We like to say that we are in the people business, not the pizza business. Marco's looks for franchisees that are leaders and motivators of people who align with our business strategy and culture. These are people who take great care of their customer and provide a five-star gold guest experience every time. Prospective franchisees should be self-starters and proven organizational leaders who are eager to grow and scale. Having restaurant or other franchise experience is a big plus.
Q. What sets Marco's apart from its competition?
A. Customers continue to rank our pizza as well as our customer service as top in the category. As the No. 5 pizza brand in the U.S., we've experienced great momentum with plenty of white space to build your own pizza empire. Our commitment to product quality, ability to deliver the best customer experience and veteran executive leadership team, many who are also Marco's franchisees, make us a brand on the rise.
Q. What's something many people don't know about Marco's?
A. Many people don't realize that Marco's is the No. 5 pizza brand in the U.S. and one of the fastest growing. It surprises many when we tell them we continue to outpace top national pizza chains in terms of same-store sales growth.
About Mandy Wolf Detwiler
Mandy Wolf Detwiler is the managing editor at Networld Media Group and the site editor for PizzaMarketplace.com and QSRweb.com. She has more than 20 years’ experience covering food, people and places.
An award-winning print journalist, Mandy brings more than 20 years’ experience to Networld Media Group. She has spent nearly two decades covering the pizza industry, from independent pizzerias to multi-unit chains and every size business in between. Mandy has been featured on the Food Network and has won numerous awards for her coverage of the restaurant industry. She has an insatiable appetite for learning, and can tell you where to find the best slices in the country after spending 15 years traveling and eating pizza for a living.
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