He's Got Pizza In His Blood

James Covalt Izzy's Pizza

Accomplishment: Izzy's Pizza is a mid-priced, family-style restaurant chain that up to now had been more familiar to residents of Portland. But its reputation has spread. In October, a new Izzy's opened in Kirkland, and already is surpassing its sales projections, says manager Keith Cassel. Another Izzy's opened in Kent in February.

Izzy's specializes in pizza but has a salad buffet and other foods like baked beans and lasagne that are derived from family recipes. James Covalt, 36, is Elizabeth "Izzy" Covalt's son and a franchisee, along with his brother David, of three Izzy's restaurants - two in Portland and one in Kent. The Kirkland Izzy's is a franchise operated under a management contract from Covalt Enterprises, founded by James Covalt's parents but is owned by six Oregonians. Covalt Enterprises plans to open nine to 11 more Izzy's within the next year, Cassel says, including restaurants in Lynnwood and Tacoma, as well as in California and Oregon.

Covalt grew up in a restaurant family. His parents ran Shakey's Pizza Restaurants from 1957 to 1979 in Albany and Corvalis, Ore. They created Izzy's after a court battle over franchise rights with the Hunt Brothers, who bought Shakey's. Covalt went to college, worked on the Alaska pipeline and eventually decided to go into the restaurant business. He went to work for the family chain and then became manager of the Izzy's in Eugene.

Wanting to expand the small chain, he became a franchisee with his brother in 1985, opening an Izzy's in the Portland area.

Quote: "A lot of our food could have been served at your grandmother's table. Sometimes we wonder whether it's worth the extra effort . . . The customers ultimately do notice the extra care, but you have to fight that tendency to make a little bit more money by substituting items for less expensive ones."

Advice: "Learn the management skills necessary and strive to excel at them and, at the same time, look for sources of financing. It can come from family or friends; that's the hard part." Covalt and his partner brother got a Small Business Administration loan to open their second restaurant in Portland in 1989. The SBA, he says, educated them on what information bankers need when issuing loans. "Establish a track history," he says. "Put a plan on paper."

Setback: Covalt says his greatest setback has been his own management style and personality. "I started out with a John Wayne style of management, through intimidation and force of personality, rather than listening to people and letting them do their work. I compensated for people not buying into my philosophy by working 100-hour weeks. . . . I was determined to be successful, but I went about it the hard way." Covalt says he learned from his brother, who is more laid-back. . . . "I have a more balanced approach now," he says.

Reported by Times East bureau reporter Scott Williams and South bureau reporter John Stevens..