3 for 1 Pizza & Wings and The Power of Media
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3 for 1 Pizza & Wings and The Power of Media

As charming as is the story of how the name for 3 for 1 Pizza and Wings came about, it wasn't just a chance call from a customer that prompted my breakout. In 1991, market conditions were absolutely right for bold new players. Many small businesses were going under in the wake of the recession that hit at the beginning of the decade. This put a lot of prime real estate on the market at a price a young entrepreneur could afford.


In retail, as the adage goes, location is everything. My business got an enormous boost from my decision to enter the market when I did. I couldn't know it at the time but I'd judged the real estate bottom just about perfectly.


But in the pizza home delivery business, almost more important than real estate is the telephone number. I knew exactly the number I needed: A coveted “341” telephone prefix. Unfortunately, at that time, the Toronto Sky Dome and its hotel monopolized these numbers.


However, I had a good friend: A friend who worked for the Canadian telecom giant, Bell Canada. I arranged to have lunch with him and, over the course of the hour, I explained my business plan. He loved it. He went to bat for me and secured the perfect telephone number: One that was memorable and communicated our core value message: Three, Four, One -- Ate-Ate-Ate-Ate (341-8888).


That number was routed to the new central call center I'd opened for my two stores. It was a call center that only barely lived up to the name. There were no computer systems in which to enter customer orders, nor was there a database of customer addresses, nor was there any automated routing of caller data to our locations. Nope. I couldn't afford any of that. In fact, I couldn't even afford operators!


So it was that the first customers of 3 for 1 Pizza & Wings, when they called our telephone number, placed their order with the president of the company! I took down their orders by hand on note-paper and, when the customer hung up, I called the corresponding store and placed the same order a second time on the customer's behalf, reading from the hand-written notes I had taken.


Such a convoluted procedure was terribly inefficient and hardly made any sense with just two stores, but it was necessary if one telephone number was to function for both locations. Customers had only one number to remember. That would become increasingly important when we expanded and I had every intention of expanding.


A year and a half later, after opening a few more locations, I got a big opportunity.


One of our regular customers was an employee with the Canadian Broadcasting Company (CBC), the dominant media organization in Canada. The CBC had the rights to broadcast all the Toronto Blue Jays games.


He called and said, "Can I speak with the President of the Company?"


I said, "You have him!"


"Listen," he continued, "I love your pizza and your chicken wings. And I have an offer for you.


"I know the size of your company. You cannot afford the advertising on television but I want you to hear my proposal. CBC has an annual party. If you supply us with 100 large pizzas, I will give you three ad spots of television baseball on prime time. Each spot is worth $6000."


I knew enough to recognize a good deal when I heard it but I  really had no idea just what a massive break I'd been given.


When the ads debuted, we were inundated with so many calls, our call center nearly broke down under the strain. For 24 hours straight, our lines stayed busy. Operators went from one call to the next. Regular customers were unable to get through and our two stores had to shut and lock their doors, unable to devote any time to walk-in orders.


We were on the map.


Perhaps more importantly, I felt the power of Media. Forever-after, strong advertising and branding would play a pivotal role in our business strategy.


Sadly, that power of Media would prove itself a two-edged sword. Media could put you on the map or wipe you off the map.


At that time, no Canadian pizza franchises were advertising on television. Not even Pizza Pizza had any television advertising. Nor Pizza Nova. Today, these companies are staples on television with their commercials. 3 for 1 had the same effect on print advertising. For 10 years or more, the big Canadian companies had relied upon plain, one-color paper fliers for advertising. Once they saw that every month, 3 for 1 had a different, full color glossy printed flyer, and saw the effect that advertising had, they changed their ways.


Though 3 for 1 is no longer around, the pizza industry was forever changed by our presence. We revolutionized the pizza delivery industry in every way.

Rapid Expansion

By the age of 26, my company was worth millions of dollars. This was a testament to my good fortune, my good judgment, and my hard work and personal sacrifice.

3 for 1 Pizza and Wings quickly became the fastest growing pizza company in North America (in terms of annual percentage growth). It was a moneymaking bonanza for everyone involved. In every territory it entered, the brand quickly rose to complete domination – and this in a market already saturated with competitors. Our success was achieved within an industry known to have been at the time one of the toughest businesses in which to compete -- where the immediate question was always, which player was to be eaten next?

Innovations continued. One of the most successful and most emulated by competitors was the 3 for 1 Pizza & Wings “Mega Deal” -- a menu item that served as both a sales promotion and as a system by which to simplify customer orders.
 
Before we introduced the Mega-Deal, completing the typical customer order required eight to ten minutes (this was after we'd purchased the computer systems to furnish a proper call center). Much of the time was spent simply conveying the wealth of options our menu made available. The wait time just to speak with an operator was as long as 30 minutes (imagine - our customers had been willing to wait on the phone for a half hour just to order our pizza and wings!).
 
The mega-deal system combined several popular items into a single package and offered it at an outrageously low price. Doing so, it reduced the average order time from nine minutes to two minutes: Almost an 80% reduction in the order-taking process. That enabled us to make far more sales, of course, which was the key to keeping the cost of the mega-deal so low.

 

The deal was so attractive and so easy for customers to order, it tripled sales company-wide overnight. Overnight.

Soon enough, 3 for 1 had grown so large, I could no longer personally oversee operations. I opened up a management headquarters on Toronto's Bay Street and tasked the staff with overseeing the chain's ongoing expansion.
 
By the year 2000, less than a decade after our grand opening, 3 for 1 Pizza and Wings had 138 locations from coast to coast across Canada and was initiating expansion into the United States. In addition, we had a lengthy list of people eager to purchase new franchises. Our biggest problem was that we couldn't build new stores and qualify the applicants fast enough to supply the demand! We had 20 new applications every day and 100 new telephone each week.
 
With so much money being made, everyone was hungry for a piece of the pie.