In a recent trip to Dallas, I came across with a logo that raised immediately my attention. Not only because it seemed to be a fast food company which I had never heard before, but also because it was one of those logos which made me want to know more about the company, despite being another pizza chain, something which I don´t really care for. The logo featured a sort of Hispanic Indiana Jones´ face with a fedora hat and the following tagline in Spanish: “ Más pizza. Menos dinero” (more Pizza, less money). The company´s name was “Pizza Patron”. I didn’t have the chance to try the product but I decided that I would research the company when I got back home.
The company was founded in 1986, but it wasn’t until 2003 when the franchising began, allowing expanding from four locations in Dallas to the current 92 locations in six states: California, Nevada, Colorado, Arizona, Texas and Florida. Their current goal is to grow to 750 outlets within the next ten years. Pizza Patron has recently seen five straight quarters of double-digit same store sales increases. And sales continue to grow, despite the state of the economy and the fact that the recession hit pizza chains particularly hard. What is then the secret behind the success of Pizza Patron?
In their corporate site, the company defines itself as “festive, Latin influenced Pizza stores with a community base in Spanish speaking or Hispanic neighborhoods”. Its mission statement: “Service to community, commitment to value”. And they deliver value by its very low priced offerings, which range from $4 to $8. They target immigrant Hispanic families “which previously couldn’t´ afford Pizza nights”.
The key for Pizza Patron is focusing wholly to this niche and earning a reputation within the local Hispanic community as language and culture is not a barrier. Employees are bilingual in English and Spanish, and the chain even accepts Mexican pesos. This move was popular with the customer base, and the chain has continued the practice, though pesos make up a very small percentage of its business.
Domino’s, Papa John’s and Pizza Hut also offer online ordering in Spanish, and Domino´s has a Spanish language hotline, but they’re not devoted to the Latino market the way Pizza Patron is. “We are often asked about opening stores in non-Hispanic neighborhoods, but that will never happen,” said Andrew Gamm, Pizza Patron’s director of brand development. “We are fanatically dedicated to making a strong connection, and doing a better job serving the Latino-Hispanic community than our competitors.”
The brand is uniquely aligned with the youngest and fastest-growing demographic in the U.S. A. From 2007 to 2008 US Hispanic consumers were responsible for 30% of the $40 bn. growth in the food industry. Surprisingly the company is based not on products with Hispanic origin, but with an All-American one: pizza, U.S. style. Today’s Hispanics are largely from the second and third generations and are more acculturated, so they have a lot of influence from U.S. mainstream culture, including food. As Latinos strongly prefer fresh food, the simplified menu is based on natural ingredients with innovative toppings customized for Latin preferences. Everything is offered at a low cost.
This is a very interesting example of how customizing the product to the profile of your niche and committing to their preferences pays off with loyalty. This is becoming more and more important nowadays in America, as cities are more and more diverse.