CiCi's Franchisee Succeeds With Low-Cost Marketing

Randi Paporello, 43, opened her second CiCi’s Pizza franchise in Des Moines, Iowa, this May. Ms. Paporello is a longtime pizza franchisee. She owned 10 Little Caesar’s Pizza stores which she sold before buying a CiCi’s franchise in 2004.

Ms. Paporello opened her first location in June of 2005 and a second store in May of this year. She says she hopes to have four locations in Des Moines within the next five years, depending on real estate and other costs.

Ms. Paporello says she paid a franchise fee of $30,000 for the first store and $25,000 for the second store. The startup costs were from $550,000 to $600,000 per store, which, she says included construction, equipment, small wares, salaries, legal fees and insurance and other expenses.

StartupJournal spoke with Ms. Paporello about her advertising techniques.

SJ: What help do you get from the franchiser to get the word out about your business?

Ms. Paporello: Yes, you work with a marketing representative on a regular basis to figure out what’s best for your market. You contribute money to a pool and you can stockpile it or use it monthly. We regularly insert print ads in the Des Moines Register, which is the local paper, and that's my primary vehicle for advertising. CiCi’s is making a push to electronic media in October, which will be a mix of cable, radio and satellite-radio spots. I spend about $2,300 each month on advertising -- most of that money is put into the fund.

SJ: Do you advertise in any low-cost venues?

Ms. Paporello: Yes. Hispanic radio stations in Des Moines have sky-rocketed in popularity since the Hispanic population has increased. Also, there weren't any Hispanic radio stations a few years ago and now there are two. I tapped into an area other people haven’t tried. I have live remotes in which the radio station broadcasts from the store and listeners come in. It's a phenomenal deal for me. I spent $300 for a month and got 50 radio spots a week, plus a live-remote. A similar live remote would cost more than $300 at other stations. This has helped develop loyalty from the Hispanic clientele in Des Moines.

Church bulletins can be very cost-effective. I advertise in a local church bulletin for $200 a quarter. They have a huge denomination. We also have an employee shake a sign at the corner of the strip mall which has been successful. They have a board that spotlights an offer, such as a one-topping pizza or the buffet, to get the attention of drivers. They usually stand in front of the restaurant or on a busy corner nearby.

I advertise on a Des Moines community Web site, which has a small cost of $30-$45 each month and a local children’s magazine, which was $150 for a children’s coupon. Word-of-mouth advertising is also important.

SJ: Are there any advertising venues you would like to try?

Ms. Paporello: I look forward to getting on television because it will portray the concept well. Cable offers a great opportunity and we are looking into that. When Little Caesar’s went on national television, sales sky-rocketed. We'll have our first commercials on cable television the first two weeks of October. I'm excited to see the impact it will have because the commercials will be very educational.

SJ: Do you try to make your store recognizable in the community?

Ms. Paporello: Absolutely, there is a lot of local marketing. We have a strong relationship with teachers, preachers and coaches. We have school nights where students come in and have dinner and we donate 10% of sales to a school.

We also donate to the heart and lung association and churches. We donate pizzas to different events or charities so they can sell our pizzas to raise money. I just did a children’s tour and kids came in and made their own pizzas. People get to taste your product -- you reap what you sow.

I also give passes to coaches and tour bus drivers. If coaches bring in their team, the coach can eat for free.

SJ: Do you have any advertising tips for other franchisees?

Ms. Paporello: Plug into minorities and senior citizens. You need to diversify to reach more groups. Don’t leave any stone unturned. Minorities are often overlooked. We are looking into advertising in senior publications because it is a growing population that is becoming more active and cost conscious.

SJ: Is the CiCi’s franchise strict in their guidelines?

Ms. Paporello: It’s the CiCi’s way or the highway. They only choose franchisees that play into that. I have the benefit of already having been in a franchise. There are a lot of similarities as to how things work.

SJ: What is one of your biggest challenges?

Ms. Paporello: Trying to be the first in mind of the consumer when they are making a choice to dine out. I meet this challenge by getting our name out there in every way possible and being a big part of the community. Children have a big influence on where to dine and CiCi's is a family restaurant and we are a big part of the school system.

SJ: What was your biggest surprise when you first started out?

Ms. Paporello: I think start-up costs are typically more than you anticipate. You have to make sure that you account for a buffer. This whole deal is a continuous education. I learned about timing the opening and marketing and construction. For the opening, I had to hire three salaried managers and send them to Omaha to be trained, and then to Dallas to get certified. I paid their travel, hotel and meal costs. I was watching every dollar I had because there weren't enough funds for start up. Timing the construction with their training was critical so I didn't have to pay the managers longer than necessary.

SJ: What is the best part of being a CiCi’s franchisee?

Ms. Paporello: The franchise is a phenomenal concept in the sense that there is a huge wow factor in the quality, value and service. My relationship with the franchise is great. They do everything possible to help me make this work.

SJ: What is a typical day like for you?

Ms. Paporello: I get in between 9 and 10 a.m. and open the store and make sure the management team is set. I go from location to location at least once, if not twice, a day. At this point I’m still very hands on and very active in helping run shifts. I like to leave when the bulk of the rush hour is over, around 7:30 p.m.

SJ: Are there any pitfalls to the business?

Ms. Paporello: The downside to the restaurant business is that there is a lot of work involved and long hours. The only days you're closed in this business are Thanksgiving and Christmas. You don’t get to close the door and go home at 5. You are here scrubbing floors and toilets and closing to 11:30 p.m. some nights.