Papa Murphy's pizza a take-and-bake winner
The same is true for Papa Murphy's, the Vancouver-based franchise chain that is the seventh-largest pizza company by volume in the United States, according to the trade magazine Pizza Today.
"Papa Murphy's is a David and Goliath kind of story," said Marc Botts, associate editor of Pizza Today. Papa Murphy's has steadily climbed the ranks of Pizza Today's Top 100 companies to its current position, recording $320 million in gross sales in 2001, according to the magazine. Rob Elliott, executive vice president of marketing at Papa Murphy's, said the company has 729 stores in 22 states and plans to open 100 more in the coming year.
Papa Murphy's is targeting the Midwest for its next expansion and believes davidandgoliath can create a buzz that will translate into interest and sales. The $5 million ad campaign promotes Papa Murphy's uniqueness as a take-and-bake pizza, as well as its freshness, quality and self-professed superiority over other pizzas.
In one of the several spots now playing, a woman wonders about the future of frozen pizzas. The scene cuts to a man in a park using a frozen pizza as a flying disc, then back to the woman as she's handed a fresh Papa Murphy's pizza. Another ad shows a former pizza-delivery car careening down a mountainside as a stunt vehicle. The payoff in the ads is the tagline, "Hand made, home baked."
Papa Murphy's is the marriage of two take-and-bake operations. Papa Aldos, founded in Hillsboro, Ore., and Murphy's Pizza of Petaluma, Calif.
Terry Collins, CEO of Papa Murphy's, bought controlling interest of Murphy's Pizza in 1988 and two years later bought Aldos. The company had 140 stores in 1995 when both chains merged operations and names. Collins established the headquarters in Vancouver, where he lives.
The marketing edge Papa Murphy's offers to its franchise-store owners is the relatively inexpensive upfront investment and easier operation than a traditional pizzeria. It takes between $140,600 and $203,000 to open a store. Papa Murphy's costs less because the stores don't need ovens, seating space, delivery cars or other costs associated with a sit-down eatery. The franchise agreements also require an owner to work at the store.
Elliott said the company has positioned itself as a replacement for a traditional meal and even carved a niche among low-income families who can use food stamps to pay for the pizzas.
Botts said Papa Murphy's hit the magazine's radar this year because of its explosive growth. Editors took a closer look at the operation, focusing on its business model and product. The scrutiny garnered Papa Murphy's the magazine's chain of the year award for 2001.
The growth puzzles Botts.
"I'm kind of surprised that take-and-bake would be able to grow so quickly," he said. "At one point, you might have been able to say it's a novelty. It's not now. Other people are following suit."
One of the biggest champions of take-and-bake pizzas is Dave Ostrander. The former pizzeria-owner-turned-consultant has spent hours watching Papa Murphy's operations and interviewing its customers and employees. He found a quality product, clean stores, knowledgeable workers and one of the slickest business models.
"It's a no-brainer; it's too simple," he said.
Ostrander considers Papa Murphy's a leader in the take-and-bake market. He encourages the startup of new take-and-bake enterprises and suggests traditional pizzeria owners consider adding the unbaked pizzas as a way to expand business.
Meanwhile, Papa Murphy's continues to expand its menu to include a "deeper dish" pizza, calzones and even cookie dough.
Botts doesn't see Papa Murphy's toppling the giants atop the magazine's Top 100 list, but expects it to remain in the top 10 for quite some time.
"I don't see any reason why they shouldn't continue to grow," Botts said.