Pizza Magazine - January-February 2017

blame economic conditions or the “market.” In fact, we should look at where the responsibility truly lies, which is nearly always with some combination of marketing and store operations.

REAL CUSTOMERS, NOT DEAL CUSTOMERS

I believe that one of the biggest mistakes independents make is putting too much energy into chasing short-term customers with deals rather than building the underlying business model of value and customer loyalty. There are endless ways to approach either of these strategies, but I’m convinced that a key part of our success at Pizza X has been cultivating the real customer rather than the deal customer. Pizza X turned 34 years old last year and operates only in our home market—five locations in the metropolitan Bloomington area. Pizza X had its best year ever in 2015, and, as of this writing (in early October), it looks like we will top that record performance in 2016.

The fact that we are still breaking records after 34 years
in business is full of significance. How difficult is it to
think 30 years ahead when you start a business? It is
well-nigh impossible for most of us! It certainly is for
me. (Memory is notoriously unreliable; I think it’s virtu-
ally impossible to accurately recall what was really going
on in your head—and the dreams you had—as a much
younger person.)

Pizza X has thrived for more than three decades without catering to those customers who seek out the cheapest pizza they can find. So making real customers instead of deal customers is almost entirely about marketing and operations. Once you’ve determined what you sell, how you make it, and what it looks and tastes like, then it comes down to operations.

A PEOPLE-CENTERED PHILOSOPHY

Operations is mostly about people. Managing, motivating and leading people is a complex task. Management philosophies and dogma abound, but there is, in fact, a golden secret, a master key to leadership. And it’s right in front of your nose. It’s so simple that we’ve forgotten it, but remembering it is the key to riches of all kinds.

What we need to remember is that we are people, too, so if we are simply willing to study our own true natures and apply what we learn, we have the answer. This is clearly where democratic principles have come from. (While slavery may be quite efficient and excellent for economic growth, try to find someone who wants to be a slave!) To manage people and to manage a business, we must study ourselves and think carefully about our ideas and marketing schemes. Do our ideas actually add value, or are they merely schemes to get ahead? Are we actually serving our highest ideals, or are we merely seeking a short-term goal? (I’ve always been suspicious of the culture of goal-setting, and I think it’s for this reason.)

One of the biggest mistakes independents make is putting too much energy into chasing short-term customers with deals rather than building the underlying business model of value and customer loyalty.