Chicago Pizza Wins the Best Pizza Award for India

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 CHICAGO PIZZA is a take away chain of Pizza. Our mainProducts include Pizza, Sandwich, Hotdog and Pasta, other than the side orders like garlic bread and Sundaes.We have Hot and Cold beverages such as the patented Monster Fizz, Gingerale, lemonade, Ice tea Cold Coffee, Coke etc. The operational are process oriented and with the automated checks and audits in place, we have made our business completely streamlined and with minimal manual checks and interventions. We source our ingredients from suppliers catering to the demands of top multinational brands. The unique proposition is Build Your Own Slice has been the first of its kind concept in the Indian market place and has gained lot of media and social hype. We competed for the Best Pizza Award organized by the biggest media company in India Hindustan Times and  in the competition with all leading fast food brands such as Dominos, Pizza Hut, Papa Johns etc including Fine dine venues having Michelin experience and to our Pride, Won the Best Pizza Award for India.

 All our main Products can be completely customized for individual requirements by adding non-vegetarian or vegetarian toppings to suit customer preferences. For axample: A customer can ask for a Pizza slice with Chicken Tikka,Jalapeno, Capsicum, Onion, Olives and extra Cheese and the same is customized and handed over to him in less than 5 minimum. He could either take away and consume it while walking in a mall, sitting in a foodcourt or as a delivery order back home. Thus,though we specialize on take-away business, but have a casual dine, deliveries and also a catering model attached to the same outlet to generate additional sales, revenues and in turn higher profitability.There were few drawbacks in the Pizza industry.  An individual wanting to have a Pizza, would still have to consult his friends, family or group to either order in or dine out for Pizza. Pizza was a product which required tobe shared than individually consumed. During order taking again, one individual could be Vegetarian, while the othertwo could be Non Vegetarian One might like to have a Pepperoni, while the other preferred Chicken due to taste,palate or religious reasons. With our Brand, each customer can independently chose his toppings and make his main Product suiting his palate. Its similar to Subway kind of business, wherein you may chose between different breads, add on non-vegetarian or vegetarian toppings and prepare yourself a sandwich. However, the end result you notice will still taste nothing but a sandwich, no matter how innovative the toppings were. In our case, we have 4 different kind of breads: Pizza, Sandwich, Hotdog, Pasta and side order like Garlic Bread,so when you add your toppings on it, the end result such as a Pizza will be completely different to taste from a Sandwich or a Pasta etc. Thus we cater to a wide variety of tastes and customers.

 

Even the pricing is from just Rupees 40 for a sandwich, to a Hotdog of Rupees 60,Pizza of Rupees 75 and Pasta Rupees 95 thus catering to different segments of society. Now, a potential Franchise would wonder that to have such a variety that we cater, we might require a big space for our kitchen and take away counter. Well, we have been able to streamline our kitchen and take away counter operations in just a 100 sq ft. This minimum area requirement works well in a food court or a mall and bringing down the revenue expenditure month on month in terms of not just Rent, but the electricity and salary cost other than the Civil cost  of constructing a bigger area. Rent is in today time the MAKE or BREAK of any business and by taking minimum area are keeping our operations till streamlined, we make sure that our Franchise does not get effected by high Rentals and can manage to still take space in the best of locations. However when it comes to a High street, we suggest taking anything above 200 square feet so that we can fit our same kitchen and takeaway counter of 100 square feet and extra space is utilized for sitting and standing space. This helps us in better sales as now our customers can walk into the outlet and order in an air-conditioned comfortable environment. India being a country with extreme temperature, we thus suggest having atleast 200 to 250 square feet in high street locations while 100 square feet may be possible in a mall or foodcourt.The Investment is about Rupees 2.3 million to 2.5 million.The reason, we cannot give you an exact amount is because the investments are based on actuals and spent directly by you. Any savings, is to your account. Thus a potential franchise having an amount of Rupees 2.5million, can start one outlet of Chicago Pizza. This investment includes just about anything such as the Franchise fee, Civil work, Kitchen tool and equipments, the main Oven which is a 21 inch conveyor Oven time and temperature controlled. A similar Oven is also provided by2 other companies such as Lincoln and Middle-be-Marshall, whose costing is multiple times higher than the Oven of the same technology specially designed and exclusively manufactured for us to bring down the Capital cost. Forgot to mention, we have included the working capital requirements also for about two months, thus the rent, salary,electricity, stocks for the initial requirement of business is included in the investment. The reason is to account for all expenditures before you achieve a revenue break-even and generating profits. When such profits are accumulated for 9 to 15 months, you should be able to recover the Capital expenditure though the Assets still remain yours.

 

Now procedure of getting Franchise is that you pay Rupees Two hundred and fifty thousand as advance and sign up a letter of intent per outlet. This gives you the right to open one unit any where in your city. You could alsolock one location of your choice in the LOI. Once such location is locked, we through ourselves or through another franchise will not open in that location Though you still have the option to open 1 outlet either in the location you have locked or anywhere in your city. Thus your locked location is well protected by you and at the same time, you also get chose from various other locations in your city that might excite you. Once you finalize a location, we take our balance two hundred and fifty thousand Rupees Franchise fee of our total 5 hundred thousand fee and sign up the Franchise Agreement with you. Our inception manager, will suggest you many civil contractors who have worked to construct our site, however you can chose any civil contractor of your choice(may be your family member, relative or any other contractor you may know and trust). We will provide all the drawings, plumbing, electric, display etc on a goodwill gesture free of cost and supervise along with you that your outlet is constructed under our branding guidelines within approx 30 days. You will pay the money directly to your workers for the work implemented by them. Once the Outlet is ready, we can either provide you with the staff by charging one time below commission:10 days salary for a fresher, plus maximum of 10 day salary for training taken at our outlet. Else if you source the employees yourself, we will provide them training at our outlet  completely free of cost before your outlet launch. The staff required at a typical outlet are as follows: 

3 to 4 staff members of Rupees 6000 salary per month who will get training on how to make the Products offeredin our Menu.

IN addition the Outlet requires 2 Cashiers ofRupees 10,000 salary per month.
Now these staff member as you can see from their salaries, are not very skilled labour or Chef that we
require. This is because all our operations and automated and process driven. Once your outlet starts, our New store opening Team comprising of the best employees of Chicago Pizza till date will be present at your outlet and will remain there for days till your outlet operations are completely streamlined. All ingredients, such as Dough, Cheese, Non Vegetarian toppings, Packaging, Sauce etc will come directly to your outlet from our commissary kitchen. Only assemble operations take place at your site. For example OurDough comes in powder form which is a patented mix of Dough conditioner, Gluten, Salts, Emulsifiers, Flavours,Imported flour, Dry Yeast etc etc… All a staff member needs to do is add water and oil as per specifications and the dough will rise into a dough ball. Separate 6 portioned balls and shape them each into an 18 inch round Pizza.Bake the base and upon individual orders cut each Pizza base into 8 slices and customize one slice to fulfill the Order Pizza slice order. Because it is a 9 inch slice of Pizza cut from a 18 inch round Pizza, the corner are very less unlike a very small 6 inch pizza, wherein 50% are only sides without topping and cheese. Thus its wholesome and value for a money proposition for a customer not willing to consume just bread.To make it more attractive, we have combo deals as apart of the Menu. Also we do marketing activities for our Chicago Pizza outlets all over to do well. To name a few activities, we do campaign on FM, partner online companies such as Mydala, Snapdeal, Crazeal, Deals and You other than Delivery marketing co. such as Just eat, Zomato. Also we have partnered corporate marketing multinationals such as Sudexo, Edenred etc. who distribute coupons in corporates which are further given as food allowance of emloyees. The company employees bring insuch coupon to our outletand redeem them to get ourMenu products. Chicago Pizza re-imburses the amount ofcoupons to our Franchised Outlets.

TYPICAL BREAKUP OF OPERATIONS COST IS.
30% of Sales as Food cost thus Gross profit is 70% ofSales,
10% of Sales as Royalty,
20% of Sales as towards Rental (hypothetically).
Thus a Franchise is left with 40% amount of the Sales permonth.
Subtract a total of Rupees 60,000 (that is electricity of Rupees 20,000 plus Salaries of Rupees 40,000) from the above amount and you will reach the net profit of Sales expected.

CHECKS AND AUDITS.

Even though we have insured that not just the Capital cost is on actuals and the Ingredients come to our Franchise outlets directly from our Base Kitchen on cost to cost basis which saves 20 to 30% on the raw material price for ourFranchises as we are buying in Bulk and passing the cost benefit, we have also made sure that the Revenue expenditure in terms of Rent, Electricity and salaries are to the bare minimum by utilizing just 100 square feet for our kitchen takeaway counter. However the weak point still remains that employees of Franchise should be trustworthy and should not under bill and keep the extra money in their own pocket. This is a very common case in mughlai, chinese, gelato etc takeaway business as the stocks cannot be measured and accounted for. To circumvent such a situation, the checks and Audits followed by chicago pizza are more stringent than an other brand Globally keeping the interest of our Franchise.Though a Franchises personal attention is required to keep the employees disciplined and sales motivated, even if the Franchise was not present in the Outlet at any point of time or period, we have the below check and audits to make sure that sales are correctly reported.

Point 1. Dough packets are tracked and thus we know that if one dough packet makes 6 Pizzas of 18 inch, 10 dough packets will make 60 Pizzas etc.

Point 2. If the Employee tries to misuse and make more Pizzas out of the Dough packet, the quality and mass ofeach pizza will detoriate. No other brand can check such a flaw. We, at Chicago pizza have invested and placed Cameras on top of every Oven and our Camera men int he back office on a daily basis count the number of Pizzas coming out of each Oven. It is more like an owner sitting on top of the Oven and counting the number of Pizza made and sold. Thus by the end of the day, our Camera men can judge how may Pizzas were sold from a particular outlet.

Point 3. Our Billing Software at an outlet has all the recipes of our Main products inherited. Once the stock from our Main kitchen is sent to a particular outlet they credit the stocks of such items like 50 KG Cheese, 30 KG Dough, 40 KG Sauce etc. Upon making a bill for a customer, the raw material consumed to make the billed product are automatically debited by the Billing Software as per the Recipe followed. At the end of the day, the computer reflects the stocks that are billed for and thebalance stocks that the Outlet still retains. On physical check of the stock, a variance report is generated. Plus orMinus 2 Percent variance is allowed, however higher variance is questionable. Such report is sent to all the higher management of Chicago pizza including the Franchise to keep in account all the raw material being utilized at the Outlet.
Thus we try to make sure that you make money !

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