The Pizza Company

Pizza 4P's: The Pizza Company is an international restaurant chain and franchise based in Bangkok, Thailand Focusing on pizza and Italian-American cuisine, it is a subsidiary of Minor International company. In 2013, they opened the first pizza restaurant in Vietnam Along with the trend of development and international integration, this is one of the fastest growing pizza brands with more than 70 restaurants nationwide and has become a favorite destination of many customers

Compared with other pizza restaurants in the market like Pizza Hut, Alfresco, Domino's pizza, according to CukCuk, The Pizza Company's price position and customer is higher by the margin of 20,000 - 60,000 VND This pizza chain targets upper middle-class customers with stable income.

Pizza 4P's:

Pizza 4P's is a Vietnamese company with a Japanese founder that serves pizzas and fusion dishes, first opened in Ho Chi Minh City in 2011 Currently, there are 24 Pizza 4P's restaurants located across Vietnam, including Ho Chi Minh City, Ha Noi, Nha Trang, Hai Phong, Da Nang, and Phnom Penh (Cambodia).

According to Yosuke Masule - the Co-founder & CEO of Pizza 4P’s, the name of the restaurant serves the long-term vision, which is “Make the world smile for Peace". It can be observed that the majority of customers coming to pizza restaurants in Vietnam are young people who like to celebrate birthdays, holidays, anniversaries, special occasions, etc. The habit of having conversations while eating is one of the uniqueness of Vietnamese people

Although choosing Pizza as main dishes, Pizza 4Ps positions itself as a fine–dining restaurant, instead of a fast food chain like Pizza Hut or Domino Pizza. Since the brand strictly controls its supply chain and operation, Pizza 4P’s number of stores are modest when compared to the market However, its growth rate recently has catched up with The Pizza Company and exceeded Pizza Hut in recent years [10] The supporting factors behind Pizza 4P's success in revenue would be further discussed in the next session

Al Fresco's:

Operating in Vietnam since 1996, Al Fresco’s has transformed from the first restaurant serving Eastern European dishes for foreigners into an eatery chain catering for local taste Al Fresco’s current customer base is consisted of 60% Vietnamese diners, 20% Westerners and the rest from foreign eaters within the Southeast Asian region [A] To meet the diverse demand of varying diners, Al Fresco Corporation also expand other brands such as: Pepperonis Pizza for young and price-sensitive consumers, Jaspas for business and luxurious settings and Jacksons Steakhouse for fine-dining experience with imported steaks By 2013, the company owned 33 restaurants all accross Vietnam.

Domino's Pizza:

Domino’s Pizza was first launched in Ho Chi Minh city in 2010. After 13 years, the foreign pizza chain has established a presence in seven provinces and cities This is also the first pizza brand pioneered the concept of delivery 30 minutes or less.

Pizza 4P's:

Timeline

2011

Milestones

First branch launch in Le Thanh Ton &. Established first cheese factory in Da Lat

2017 Achieved a 79% increase in revenue

2019 Received investment from Mekong Enterprise Fund III

March 2020 Launched their delivery service

December 2020 Opened the first Craft Beer bar in Da Nang.

July 2021

First zero-waste restaurant launched beyond Vietnam (Phnom Penh, Cambodia)

Fig. 3. Pizza 4P's development timeline (2011-2021)

MORE INTO PIZZA 4P'S

Pizza 4P's Milestones:

The past decade has witnessed Pizza 4P’s major development milestones, from its humbling start in 2011 at Le Thanh Ton street to the recent oversea branch launch in Phnom Penh, Cambodia. The table abovee shows the notable milestones of this special pizza branch

Pizza 4P's target market : a. Demographic:

Their targeted consumer is between the ages of 20 and 45. More specifically, a large customer of Pizza 4P are Generation Y, who were born between 1981 and 1995

Therefore, they are really conscientious, knowledgeable and educated adults, they are academically good students, working in management, administration, higher professional and upper middle class Besides, Pizza 4P's customers are people who spend a lot of time moving from one place to another, such as offices, malls and stores. They definitely have urban style even though some people do not live in the city b Geographic:

Consumers can come from across Vietnam, but mainly in Hanoi, Ho Chi Minh City and Da Nang city, which are considered commercial centers to expand Pizza 4P's business The target audience comes from densely populated urban areas. Pizza 4P's has opened several well-designed restaurants in these three locations such as in Ho Chi Minh, three in Hanoi and only one restaurant in Da Nang (in 2018)

Characteristics

They are educated white-collar professionals who are interested in reading or staying up to date with news and trends on health issues

They are clearly creating the social impact of the brand and want to do something about it More specifically, they strongly expect the brand to open farmer support centers, use biodegradable packaging, provide college opportunities for employees and work to improve the surrounding community, and attract target audiences that share the company's mission.

They can perceive value not only in quality per unit price but also in the added benefit expected from a product over the brand of the manufacturing company In more detail, they're looking for the ideal combination of the best pizzas (taste, crispness, ingredients, toppings) and 4P's customer services that go even further (the rule) restaurant, menu and table standards, architectural design requirements).

- Print: Food & Wine Magazine, Bliss Saigon Magazine, Food Safety Magazine, Delicious Magazine, Taste, Food & NutrionMagazine

Media Usage

- Others: Intensive use of the Internet including web and social networks (Facebook, Instagram)

- Print: Newspapers (Saigon Times, Vietnam News), Fest Magazine, Parlour Magazine, AsiaLife Magazine Vietnam, TheGuardian, SaveurSupport: Out of home (Street Furniture: grand shopping malls, Transit: airports)- Other: Intensive use of the Internet including web and social networks (Facebook, Instagram)

- Print: Food & Wine Magazine, Fest Magazine, Business Insider, Pizza Today

- Support: Out of home (Inoce)

- Other: Occasionally use the Internet (Facebook, Instagram)

Pizza 4P's: d. Pizza 4P's SWOT Analysis:

Strengths

- Vietnamese-Japanese fusion cuisine

- Large menu selection

- High customer-oriented service

- Customers loyalty

Opportunities

- Product research & development.

- Vietnamese eating habits

- Consumer trend

IN-DEPTH DISCUSSION:

In this part of the case study, we will elaborate more deeply on Pizza 4P’s two outstanding factors: its quality assurance and commitment to sustainability

Quality assurance: a. Dishes a. 1. Menu:

The main reason that retains and attracts customers to Pizza 4P’s is its exquisite menu There are three reasons why 4P’s menu wins the heart of diners: Variety of choices, creative collaboration and extra flexibility.

Firstly, the pizzeria chain offers a wide assortment of dishes, from meat-stuffed pizza to fresh salads, from tasteful appetizers to well-decorated desserts. Diners would definitely find a dish for themselves amid the pyramid of options in 4P’s Menu, which is rarely seen in other chains such as Domino’s Pizza or Pizza Hut

Weaknesses

- Weaker brand image

- New comer in the market, less market share

- High price, niche market

- Prioritize product L&D over marketing strategies

Threats

- High competition.

- Dilemma between expansion and consistent quality a 2 Hand-made Pizza:

Secondly, the recipes are the unique fusion between Italian cultures (Cheeses & Pizzas), Japanese elements (Salmon & Seaweeds) and Vietnamese cuisine (Beef & Herbs) Customers could experience a new breeze of dishes Still, they could sense the familiar taste of Vietnamese and Italian food in the modern menu. Lastly, the restaurant adds more flexibility to the dishes options by offering Half-Half Pizza This is a concept of ordering pizza with half different flavor, allowing diners to be more economical and experimental with their own pizzas at 4Ps.

Amidst the “industrial” pizza brands on the market, Pizza 4P’s stand out with an image of “authentic, local-made and hand-made”, which precisely hits the pain points of diners regarding pizzas For customers who have been tired of mass produced, frozen pizzas, pizzas at 4P's are unique for being baked in brick stoves

Pizza 4P's:

For eaters who frown on the unhealthy image of pizza, the brand breaks the association with fresh ingredients being carefully sourced from organic fields in Vietnam, Japan and Cambodia The company has their own cheese factory in Da Lat, where they produce mose the cheese that are brought to 4P’s dining tables. They sourced natural sake from Niida-Honke (Japan), bought spices from Ho Tieu and eggs from Cambodian farms [11] These concerted efforts not only draw up a more healthy, safe image of pizzas to the audience, but it also helps the company fulfill its sustainable goals, which would be further discussed in the next section

Rather than investing in marketing and branding, developing delicious dishes are Pizza 4P's main focus Apart from making the main dishes, pizzas, exceptionally good, the company also focuses on enhancing the niche recipes such as crab pastas and burrata salad. So that if customers might not come again for pizza, they are still attracted by pasta and other side dishes, which has successfully worked out

b Fine-dining Concept

One obvious fact is that diners go to Pizza 4P's for a gourmet dining experience, while they travel to its competitors for a quick meal This special association of Pizza 4P's is attributed to its dedicated service, well-chosen location and clever interior design.

First and foremost, apart from excellent dishes, customer service at Pizza 4P's is unforgettable. Customers are served with a professional attitude like at the finest restaurant: being asked for feedback, being offered special desserts at birthdays, requesting reheating dishes, etc

From the company side, they use P-Score, which is a metrics recording level of customer satisfaction, to rank each branch. Branch with high P-score will share real practice of team management and customer management to other teams to follow [12]

Secondly, location plays an important role in 4P's success At the beginning, being hidden in a small alley on Le Thanh Ton street, Pizza 4P's could retain its popularity to loyal customers thanks to excellent dishes However, when scaling up, fine quality is not enough for the company to attract new buyers Therefore, they started to purchase convenient, expensive spots at popular streets such as Vincom Pham Ngoc Thach, Lotte Center, Landmark 72, Saigon Center, Estella Place, etc Places also help to link 4P's to a premium and luxurious brand image in customers’ mind

Lastly, the interior design sets the brand apart with a luxurious, earthy vibe The company often uses wood and raw materials to create a cozy and sustainable vibe, reminding its customers of their “Sustainability” and “Earth to People" concept. At Pizza 4P's, the space is also for art's sake Each branch has their own theme and meaning, such as “Vượt" theme at Giga Mall highlighting the strong mentality of Central people, or “Art Gallery” theme at Vincom Pham Ngoc Thach underscoring the core - the food

“Omotenashi '' is a Japanese term describing the dedicated hospitality Following the “omotenashi” mindset, Pizza 4P’s staff care deeply about the customers rather than just merely completing the tasks. When serving at the restaurant, the staff often observe the customers’ dining experience, identify needs and think of how they could better satisfy the customers

But how to bring “Omotenashi” into the delivery system?

That is the main hesitation of Pizza 4 P’s that explained why the company has not launched its delivery service before the Pandemic It was not until the Covid-19 hit in 2020 that it had to re-think

Being locked-down, people craved for hot dishes at Pizza 4P’s being shipped to home Seeing this as the opportunity to raise the revenue amidst the Pandemic, the company has partnered with a third party in delivery, which is AhaMove The question that the partnership had to solve at that time was: “How to convey the fine-dining experience via the shipping service?”

Firstly, it is to guarantee the food quality against long shipping time and lack of heat The solution then was to only match Pizza 4P’s order with shippers having heat bags. From Pizza 4P’s side, they add a heating device and resize the pizza box so that the dishes are not deformed during delivery The company also enhanced the pizza eating experience at home with a Spotify list of recommended music.

Secondly, Pizza 4P’s is concerned about how it can control the shipper quality from the third party. Ahamove then has customized a SaaS named Wheel for 4Ps to monitor “internal shipper” activities This third-party logistic company also additionally provided a pool of shippers with previously high review scores to 4P’s. Nowadays, around 70% of the orders are delivered by the internal shipper via app OnWheel

Building a delivery scheme for a brand that has a huge focus on quality and service like Pizza 4P’s is complex. But it is worthwhile since the endeavor has successfully reduced the average shipping time from 60-70 minutes to 32 minutes [13]

Sustainability:

The Pizza 4P's case also revolves around FnB sustainability. Famous pizza places to get the attention of potential customers to gain the most sales, that is why they invest a lot of funds in advertising their business However, Pizza 4P's does not focus much on marketing or advertising fees, instead, they are investing in their sustainability goals They focus on the economic, environmental, and societal (ESG) impact

Even though climate change might be considered one of the most significant factors for sustainability, it is surprising that in Pizza4P's report, it is one of the least impact and less concern [14]. According to ESG issues, there are 14 priority issues for the business, ranking from:

Low concern, less impact: Climate change, Energy management, Water management, Animal welfare, Biodiversity, Community support

Medium concern, middle impact: Diversity & Inclusion, Labor practices, Sustainable sourcing, Packaging, Environmental and social compliance on supply chain, Waste management

High concern, high impact: Healthy food, Food safety.

Among those issues, Pizza4P's focuses on seven main pillars, ranking from middle to high concerns and impacts, which details are demonstrated in the table below.

Pizza 4P's:

Sustainable Pillars Description

Packaging

Focus on Delivery & Takeaway, B2C and B2B Packaging. Aiming to use less plastic packed condiments and cutlery and shift to recyclable alternatives such as bamboo, wood, bagasse, etc Have eco-friendly innovation, design, and solutions

Sourcing

Suppliers-guaranteed of not using child labor, or using prohibited or harmful substances Ingredients are from certified food safety producers, most work with key sustainable suppliers to improve local and sustainable sourcing

Natural Resources Include the reduction in electricity, water, wood, and water consumption

Waste

Jar return program, recycling, whey, glass bottles, kitchen oil, recyclable wastes from the central kitchen, and single-use items

Food safety Ensure food quality with certified licenses, avoid critical food safety violations.

Climate change

Vegan food and low-carbon dishes- results from animal welfare and the impact of greenhouse gas emissions from livestock farming

Society

Maintains pay equity, fewer turnover rate, and increases ethics and wellbeing value Contribute to enriching the community through pizza workshops, donations, etc

Throughout the years, they publish reports with key detailed information about the companies' performance in the areas of packaging, sourcing, natural resources, waste, food safety, climate change, and society.

Regarding Pizza 4P’s journey to attain sustainability in its company operation, there are two key learning takeaways: a. Key takeaway 1: It's not only about how to reduce the environmental impact of a business, it’s about how organizations can be a force for change.

Yuma Nagata, Co-CEO of Pizza 4P's used to describe being a sustainability officer as “a lonely job" Despite the fact that more and more companies have been focusing on sustainability, there are common constraints that come with sustainability development When proposing a sustainable solution, similar comments are raised such as: “companies can't do things that do not generate profit”, “sustainability is not a priority”, or “sustainability is just a part of marketing”

(Yuma, 2021) b. Key takeaway

At first, it may be unreasonable for one to accept this conflict. However, this in fact, makes total sense when discussing direction with those in charge must be made first before one proceeds with any sustainablerelated solution. In the case of Pizza 4P's, the co-CEO first tried to persuade the company to use more organic vegetables Since the solution is reasonable but not yet effective in terms of costs and labor, the company sat down with top management and the head of the procurement department to have a further discussion In the end, they aligned on “sustainable food procurement" as one of the KPIs metrics that the business must achieve, they are then working together towards the same force and same visions, things are becoming more effective The story implies that it is not about finding the seemingly appropriate solution, it's about finding the key force for change that motivates us to take further actions.

2: Decision-making

on sustainable actions can be made, even if the economic benefits are unclear. This is not to encourage any idea that seems doable without financial backup data Occasionally, it would be easy to make a decision about a sustainable action that will contribute to sales. However, there are many sustainable ideas that cannot be clearly estimated until they are implemented, the metrics are unclear on whether they will increase sales, reduce costs, or increase brand values. Take the case study from the Jar Return Program as an example The program is a reuse program, customers would bring empty jars to Pizza 4P's locations and be rewarded with string cheese and yogurt or pudding.

As the idea creates an attractive incentive, the company is estimated to run a loss in its financial report. Occasionally, in the world of business, such ideas will be rejected right away However, the Chief Operations Officer was willing to try this program He claimed that the program is a great idea to get the customers coming to their restaurants, so even if they lose the money on the jar collection, they can still generate additional sales when customers come to return the jar and dine in According to Pizza 4P's report in 2021 [14], the program received up to 5,000 return glass jars, accounting for almost 10% return rate from B2C customers, contributing to raising guest incentives This also creates a good-feeling sense for the guests, as they know that they are contributing to be a part of sustainable development.

Pizza 4P's:

In order to identify Pizza 4P's success through sustainability, it can be seen in Table 2 that the company has tackled the appropriate way to solve current problems Actions such as outsourcing organic local food locally, and reducing food waste require low efforts (compared to others) but have a considerate impact Done right and properly, Pizza 4P's has successfully built a brand image tie with quality control

While Pizza 4P's made significant progress, it still continues to pursue more sustainable actions, leading toward a zero-waste restaurant - which can be resembled by the medium effort but high impact diagram.

Heading Toward The Future

Moving forward, Pizza 4P’s is presented with three opportunities yet challenges for every successful food chain: Building ecosystem and franchising decisions

Towards a True Eco-system:

While devotedly contributing to the global ecosystem, Pizza 4P’s is also creating an ecosystem for itself Running an inclusive F&B chain is considered profitable in the long-run.

Pizza 4P's:

Therefore, most Vietnamese popular brands such as Highland, The Coffee House are aiming to create their own ecosystem of products and customers. In order to follow the rising trend, the first step for Pizza 4P’s is to invest in acquiring a sufficient customer base, which is within the food chain’s reach due to its caring customer service.

FnB Chain Dilemma: To franchise or not to franchise?

Running an FnB chain is not easy It requires thorough preparation both in terms of human resources and finance One of the common questions that a food chain might face, when reaching a certain level of popularity, is: “To franchise or not?”

Franchising helps chain owners break-even faster and cut huge expenses such as Administration and Customer Management. If the chain owner does not choose to franchise, then it is difficult for the F&B chain to scale up and recover the initial loss spent on marketing and brand management. The brand also faces more severe losses when failure comes.

On the other hand, if the owner decides to build a successful franchise model, it also has to place additional investment on branding and brand management Franchising also demands the owner to work closely with franchisees to standardize processes and images

On the franchisee’s side, purchasing the right to sell an existing brand’s goods reduces risk of building a new brand name. Franchisees are also trained thoroughly by franchisors in terms of operation and management However, regarding the disadvantages, they have to spend a huge amount of budget to hire a franchise. Plus, a franchisor ability to create and innovate old business is also limited by the systematic design of the brand Following a streamline design is also a risk, since each local place possesses its own unique taste and preference. That is the reason why Burger King and McDonald’s failed in the Vietnam market

Conclusion

In short, after the long analysis of Pizza 4P’s in specifics and Vietnam F&B industry in general, the lasting impression is how Pizza 4P’s has differentiated itself from the global players: Its quality assurance and the commitment to sustainability The fine quality is explicitly portrayed from dishes to service; meanwhile its sustainability mission is conducted behindthe-scenes, and, therefore, is expected to surprise readers The story of Pizza 4P's is inspirational for those who are seeking to pursue sustainable goals, or just for those who are interested in how sustainable developments are made in the FnB industry.