The Decline of CiCi's Pizza...What Happened?

Company Man
14 Oct 202011:26

TLDRCiCi's Pizza, once a booming buffet-style pizza chain, has seen a decline in recent years. Starting with a unique concept and low prices, it expanded rapidly but faced challenges after the departure of co-founder Joe Croshy. The company's growth stalled, with inconsistent franchise management and quality issues affecting its reputation. Despite revitalization efforts and a new focus on a broader dining experience, the brand has yet to regain its former glory, leaving its future uncertain.

Takeaways

  • 🍕 CiCi's Pizza is known for its affordable, unlimited pizza buffet with a variety of flavors including traditional and unique options like mac and cheese pizza.
  • 📈 At its peak in 2009, CiCi's was the fifth largest pizza chain in the U.S. with 650 locations, but has since declined to around 400 locations.
  • 💡 The founders, Mike Cole and Joe Croshy, started CiCi's in 1985 in Texas with a focus on low costs and high value, which contributed to their initial success.
  • 🔄 After an initial failure with a second location, CiCi's introduced a pizza buffet which became a signature feature and helped them stand out in a competitive market.
  • 📚 The company's growth was initially slow and steady, focusing on quality and customer service, but accelerated after Croshy's departure in 2003.
  • 🔑 Croshy's exit from the company in 2003 marked a turning point, with a significant increase in the pace of expansion and a potential decline in franchisee selection standards.
  • 🛑 The rapid expansion and possible lowering of standards may have led to inconsistencies in restaurant quality and a decline in the brand's reputation.
  • 🏢 In 2017, CiCi's reported 13 consecutive quarters of same-store sales growth, suggesting some improvement in their business strategy.
  • 🛍️ The company underwent a revitalization strategy in 2015, including a rebranding effort and a new tagline 'Better Believe It!' to attract customers.
  • 💼 In 2016, CiCi's was sold to Arlen Group, and in 2018, they implemented an incentive program to attract high-quality franchisees, indicating a shift towards improving the brand.
  • 🤔 Despite recent efforts, there is no clear evidence of significant improvement in the number of new restaurant openings or overall brand performance.

Q & A

  • What is the main characteristic of CiCi's Pizza that the speaker describes in the beginning?

    -The main characteristic of CiCi's Pizza described by the speaker is that it is cheap, unhealthy, creative, and you may regret eating it later but still want to eat it.

  • What is the price for the all-you-can-eat pizza at CiCi's?

    -The price for the all-you-can-eat pizza at CiCi's is 5.99 dollars.

  • How did CiCi's Pizza start and what was its initial business plan?

    -CiCi's Pizza started in 1985 in Plano, Texas, by Mike Cole and Joe Croshy. Their initial business plan was similar to Little Caesar's, focusing on carryouts and keeping costs down to sell pizzas at unbeatable prices.

  • What was the turning point for CiCi's Pizza that led to the development of their identity?

    -The turning point for CiCi's Pizza was when their second location near Dallas didn't do as well with rock-bottom prices, which forced them to develop their identity by adding the now famous pizza buffet.

  • How did CiCi's Pizza expand after the success of their second location?

    -After the success of their second location, CiCi's Pizza expanded by getting into franchising in 1987, which led to rapid growth and the opening of multiple locations throughout Texas and eventually other states.

  • What was the peak year for CiCi's Pizza in terms of the number of locations?

    -The peak year for CiCi's Pizza in terms of the number of locations was 2009, with 650 locations.

  • What happened to CiCi's Pizza after the departure of Joe Croshy in 2003?

    -After Joe Croshy's departure in 2003, CiCi's Pizza accelerated their expansion plans, opening many new restaurants, but it is suspected that the company became more lenient in selecting franchisees and lowered the standards for the restaurants.

  • How did CiCi's Pizza attempt to revitalize their brand in 2015?

    -In 2015, CiCi's Pizza attempted to revitalize their brand by making several changes, including redesigning their restaurants, dropping the word 'pizza' from their name, and adopting a new tagline 'Better Believe It'.

  • Who bought CiCi's Pizza in 2016 and what changes did they make?

    -CiCi's Pizza was bought by Arlen Group in 2016. In 2018, they hired a new CEO and Chief Operating Officer and started an incentive program to attract high-quality franchisees.

  • What was the speaker's speculation about the decline of CiCi's Pizza?

    -The speaker speculated that the decline of CiCi's Pizza might be due to the new owners getting blinded by expansion, letting standards slip, and forgetting what made them successful in the first place.

  • How did CiCi's Pizza fare during the 2009 recession according to the script?

    -According to the script, CiCi's Pizza's sales in the first week of 2009 were four percent higher than the first week of 2008, suggesting that the recession might have actually helped their business as a value pizza chain.

Outlines

00:00

🍕 The Rise and Fall of Cece's Pizza

Cece's Pizza, known for its affordable and creative pizza offerings, has experienced a significant decline in popularity and number of locations. The brand was once the fifth largest pizza chain in the U.S., boasting 650 locations at its peak in 2009, but has since seen a drop to 397. The founders, Mike Cole and Joe Kroshy, started the business in 1985 in Texas with a focus on low-cost, high-volume pizza sales. They innovated by introducing a pizza buffet, which they claim to have invented before Pizza Hut. The company initially grew rapidly, expanding throughout Texas and adopting a franchise model. However, after Joe Kroshy's departure in 2003, the company's fortunes began to wane, with a shift in focus towards rapid expansion that may have compromised quality and consistency across franchises.

05:01

📉 Decline in Quality and Expansion Strategy

The decline of Cece's Pizza is attributed to several factors following Joe Kroshy's exit. The company's aggressive expansion strategy, which involved opening numerous new locations in a short period, may have led to a decline in the quality of franchisees and restaurant management. This resulted in inconsistent customer experiences and health code violations, damaging the brand's reputation. The company's sales did not meet expectations, despite claims of a strong relationship with franchisees and efforts to revitalize the brand. The narrative suggests that the new management did not maintain the standards set by the original founders, leading to a loss of the brand's identity and customer trust.

10:01

🔄 Attempts at Revival and Future Prospects

In an attempt to revive the brand, Cece's Pizza underwent several changes in 2015, including a redesign of their restaurants and a shift in branding to emphasize a broader food offering beyond pizza. The company was sold to the Arlen Group in 2016, and new leadership was brought in to implement strategies aimed at attracting high-quality franchisees and improving the brand's image. Despite these efforts, there is no clear evidence of significant improvement, and the company's promised new restaurant openings have not materialized as of the time of the script. The future of Cece's Pizza remains uncertain, with the potential for either a successful turnaround or further decline.

Mindmap

Keywords

💡CiCi's Pizza

CiCi's Pizza, also known as cc's, is the central subject of the video. It is a restaurant chain known for its affordable and creative pizzas, including unique flavors like macaroni and cheese pizza. The video discusses the brand's decline from its peak in 2009, when it had 650 locations, to the present where it has significantly fewer stores. CiCi's Pizza is used as a case study to explore the factors that may have contributed to its fall in popularity.

💡Buffalo Chicken

Buffalo Chicken is one of the non-traditional pizza flavors offered by CiCi's Pizza. It represents the brand's innovative approach to menu offerings, moving beyond the standard pizza options to attract a wider customer base. The video mentions this flavor as an example of the diverse and creative flavors available at CiCi's Pizza.

💡Franchise

A franchise refers to a business model where a company, in this case CiCi's Pizza, allows entrepreneurs to operate their own CiCi's Pizza outlets using the company's brand and business systems. The video explains that CiCi's Pizza began franchising in 1987, which led to rapid expansion across Texas and eventually other states.

💡Pizza Buffet

The Pizza Buffet is a unique feature of CiCi's Pizza that was introduced to differentiate the brand from competitors. It allows customers to eat as much pizza as they want for a fixed price. The video notes that CiCi's Pizza claims to have invented this concept, which later became popularized by Pizza Hut.

💡Expansion

Expansion in the context of the video refers to the rapid growth of CiCi's Pizza through the opening of new locations. The script mentions an aggressive expansion plan that led to a significant increase in the number of stores, particularly after the departure of co-founder Joe Croche. However, this expansion is also suggested as a potential factor in the decline of the brand's quality and consistency.

💡Recession

The term 'recession' is mentioned in the video as a possible factor that could have affected CiCi's Pizza's performance. However, the video argues that the brand's sales actually increased during the 2009 recession, suggesting that the economic downturn may not be the primary cause of its decline.

💡Franchising Standards

Franchising Standards refer to the criteria and requirements set by a company for potential franchisees. The video suggests that after Joe Croche's departure, CiCi's Pizza may have become more lenient with these standards, leading to inconsistencies in restaurant quality and a decline in the brand's reputation.

💡Health Code Violations

Health Code Violations are breaches of the regulations set to ensure food safety and restaurant hygiene. The video implies that there have been instances of such violations in some CiCi's Pizza locations, indicating a potential decline in the brand's commitment to cleanliness and quality.

💡Revitalization Strategy

A revitalization strategy is a plan implemented to reinvigorate a business that is experiencing a downturn. The video describes CiCi's Pizza's efforts to improve and modernize their brand, including restaurant redesigns and a new tagline, in an attempt to attract back customers who may have had negative experiences in the past.

💡Arlen Group

Arlen Group is a New York-based investment firm that acquired CiCi's Pizza in 2016. The video mentions this acquisition as part of the brand's efforts to turn around its fortunes, including hiring new leadership and implementing strategies to attract high-quality franchisees.

💡Incentive Program

An incentive program is a set of rewards or benefits offered to encourage certain behaviors or outcomes, such as attracting quality franchisees. The video notes that CiCi's Pizza started such a program in 2018 as part of their revitalization efforts to improve the brand's performance and reputation.

Highlights

CiCi's Pizza is described as cheap, creative, and offering an all-you-can-eat experience for $5.99.

They offer traditional pizza flavors as well as unique options like buffalo chicken and barbecue pork spinach alfredo.

CiCi's Pizza was once the fifth largest pizza chain in the U.S., with 650 locations at its peak in 2009.

The number of CiCi's Pizza locations has significantly dropped to 397 from its peak.

CiCi's Pizza started in 1985 in Plano, Texas, by Mike Cole and Joe Croshy, focusing on a carryout model with low prices.

The name 'CeCe's' was derived from the founders' last names, both starting with the letter 'C'.

CiCi's introduced a pizza buffet to differentiate themselves from competitors.

They claim to have invented the pizza buffet concept before Pizza Hut.

CiCi's Pizza expanded its menu to include pastas, salads, and dessert pizzas.

In 1987, CiCi's Pizza began franchising, leading to rapid growth across Texas and eventually nationwide.

CiCi's was known for its cleanliness, affordability, and family-friendly environment.

In 2000, CiCi's attempted to move away from its value pizza image by raising prices and improving the dining experience.

The company's rapid expansion after 2003, especially the year after Joe Croshy's departure, may have led to lower standards.

Joe Croshy's exit from the company in 2003 and the subsequent aggressive expansion strategy may have impacted the brand's consistency.

CiCi's Pizza has been taking over many franchises, indicating a stronger central control over the brand.

In 2015, CiCi's implemented a revitalization strategy to improve the brand's image and attract customers.

CiCi's Pizza was sold to Arlen Group in 2016 and has since been making efforts to improve franchisee relationships and restaurant standards.

Despite announcements of new restaurant openings, the expected growth has not materialized.

The video invites viewers to share their experiences and opinions on CiCi's Pizza and its offerings.