RFG's Acquisition of Pizza Capers: what you need to know
In this exclusive interview RFG's CEO Tony Alford outlines the rationale behind the recent purchase of Pizza Capers and their plans for the future.
QSR Media: What are your plans for Pizza Capers?
Tony Alford: Pizza Capers (PC) has a strong, proven and very capable management team which coupled with its founders Anthony Russo and Scott Geiszler are remaining with the PC business. PC will continue to operate from its current base in Darra, Brisbane. RFG expects the PC business to seamlessly integrate with RFG and few short term changes are expected.
PC has maintained a steady and credible growth profile and RFG expects this to continue. Twenty (20) new outlets are expected to be commissioned over the calendar year.
Outlet growth is to be supported by a focus on the development of outlets outside of the businesses traditional heartland SEQ (which currently comprises circa 70% of the over-all outlet population). Growth in NSW will be a focus. WA is also viewed as a market of interest.
RFG acknowledges that whilst PC operates in a completely different segment to RFG’s current systems there are synergies that can be garnered from the inclusion of PC under the RFG umbrella. RFG anticipates that benefits from “its increased strength in brands” (RFG tag line) will flow to all stakeholders in particular PC Franchisees.
RFG views the contrast in the nature of the PC business and its trading environment with RFG’s other systems as requiring RFG to operate PC to operate as a separate and distinct business unit.
Consideration will also be given to the international exploitation of the PC system via master licensing. RFG presently undertakes a master licensing program which has to date witnessed outlets associated with RFG brands opened in China, Saudi Arabia, Papa New Guinea and New Zealand .
QSR Media: You mentioned "challenging economic times" how are you finding the current retail environment?
Tony Alford: Like many other retailers, Franchisees of our systems are not immune from consumer apathy and in the case of enclosed shopping centre based outlets foot traffic flow stagnation. All of which has held average weekly sales growth at very modest increase levels.
QSR Media: Pizza Capers has OS interestes, are they part of this deal as well?
Tony Alford: The transaction includes the assumption of the Area Development arrangement in existence in Singapore. Presently there is only one PC outlet in operation in Singapore.
QSR Media: Pizza Capers was looking to grow significantly in NSW, is this still the strategy?
Tony Alford: Growth in NSW as noted above is a key strategy given the underrepresentation of the system in that market. Of the next 14 outlets in the PC outlet opening pipeline 50% will be NSW located.
QSR Media: What will the culture of RFG bring to Pizza Capers the brand?
Tony Alford: Systemisation is not only applicable to outlet operations but also permeates RFG. PC stands to benefit from a greater level of structure and systemisation in its method of operation not to mention the much larger support structure RFG offers.
QSR Media: The premium pizza market is getting very competitive, Pizza Hut for example have just announced their new focus on this slice of the market, do you have any thoughts on this and how Pizza Capers will stand up long term in this environment?
Tony Alford: The first PC outlet opened in 1996 and the PC system which really only gained traction from 2006 has survived and flourished since that time.
We anticipate that the space will only grow more congested over time. Premium pizza is already a feature of the product offers of Eagle Boys and Domino’s not to mention Crust.
Pizza Hut offering a premium range we see as a natural progression and function of the market.
