News

Kotipizza Group shoots for $224.7 million for 3 brands by 2020

February 5, 2018

Kotipizza Group Oyj's board of directors has approved a new strategy and financial goals for the next three years to manage a portfolio of franchised fast casual brands focused on customer experience. Key mega trends influencing the company's operations include urbanization and digitalization, a news release said.

The company's new mission is to "make the world a better place, one bite at a time" and plan for the following over the next three years:                                                                                        

• Kotipizza to grow to 300 units by 2020 with $148.9 million in sales.
• Chalupa to grow to 40 units by 2020 with $9.9 million in sales. 
• Social Burgerjoint will grow to 20 locations with $16.1 million in sales.
• All three brands will grow to a total of $224.7 million in sales. 

"Now that we are genuinely a home of many brands, numerical objectives will help us focus on what's important - the continuous development of customer experience, our expertise in franchising and marketing, and effective sourcing and logistics in the Foodstock business unit in particular, Kotipizza Group CEO Tommi Tervanen said in the release. "At this stage, it is not possible to set targets for every one of our new concepts. However, we believe that the international No Pizza concept, Kotipizza Go pizza slice concept and the Tasty Market lunch concept hold potential for significant growth already in the next few years."

Launched in tandem with the new strategy, Tasty Market is a lunch restaurant concept in which the consumer can pick and choose their lunch from the selection offered by several fast casual brands in a cozy environment. In the kick-off phase, Tasty Market will have products on its menu from at least Kotipizza and Chalupa. Kotipizza Group is looking for partners for the Tasty Market lunch restaurant project with whom to open restaurants in, for instance, business parks, office buildings and institutions of education. The concept is estimated not to have a significant impact on the Kotipizza Group's earnings in 2018.

"In their spare time, Finns rely on high-quality restaurant brands," Tervanen said. "Tasty Market gives the opportunity to put together a fresh meal from the goods of popular brands. At the same time, the concept brings something familiar and something new to the table every day. On the basis of our estimations, lunch-time dining is worth up to half of the total of two billion euros Finns spend annually on eating out. I believe that the Tasty Market concept will become a strong challenger in the lunch market."

Tervanen will be among the many restaurant leaders speaking at this year's Restaurant Franchising and Innovation Summit in London, as well.