Johnny's Pizza House - Comprehensive Analysis Report

Summary

Johnny's Pizza House is a pizza chain established in 1967 in West Monroe, Louisiana. Originating as a single store, it has become the largest locally-owned pizza chain in North Louisiana. The company's mission emphasizes serving high-quality pizza and cherishing community values. It blends traditional values with modern technologies, such as cloud-based training and in-house online ordering systems.

1. Strategic Focus & Objectives

Core Objectives

Maintaining quality and a family-oriented environment are key objectives.

Johnny's Pizza House aims to continue community support through local initiatives.

Specialization Areas

The company specializes in fresh, never-frozen pizza toppings extending to the edge, rectangle-cut slices, and hand-pressed dough made fresh daily.

A signature offering is the "Sweep the Kitchen" pizza, featuring 11 toppings.

Target Markets

Johnny's Pizza House primarily targets customers in North Louisiana.

The company is expanding its franchises into small to mid-sized markets in states that include the Carolinas, Florida, Tennessee, Alabama, and Georgia.

2. Financial Overview

Funding History

Initially funded by Johnny Huntsman’s family, friends, and early employees.

By the end of 2018, Johnny's Pizza House transitioned to a 100% employee-owned organization through an Employee Stock Ownership Plan (ESOP).

In May 2000, Johnny Huntsman established the ESOP by selling 8,806 of his shares.

The company's annual revenue is estimated to be between $10 million and $100 million.

3. Product Pipeline

Key Products/Services

Sweep the Kitchen: A specialty pizza with 11 toppings.

Chicken Ranchero: A pizza featuring chicken and ranch flavors.

Bacon Cheeseburger: A pizza with bacon cheeseburger toppings.

Breadsticks and Cheesesticks: Shareable appetizer items.

Muffuletta Sandwiches: A regional sandwich offering.

Peach Puddin' Pie: A dessert option.

Cinnamon Sticks: A sweet pastry item.

Chocolate Chip Cookies: A classic dessert.

Keto-Friendly Crustless Pizza Bowls: A low-carb pizza alternative.

Johnny's Flips: A variation on the Italian calzone.

4. Technology & Innovation

Technology Stack

Plans include implementing cloud-based training programs.

New in-house online ordering and customer relations software is being introduced.

The company uses a fully integrated online ordering platform managed and funded by the corporate advertising fund.

5. Leadership & Management

Executive Team

Melvin DeLacerda: President and CEO since 2000, with a long history with the company starting in high school.

Johnny Huntsman: Founder, who passed away in 2017.

Bernie Lear: Chairman of the Board.

Recent Leadership Changes

Johnny Huntsman passed away in 2017.

The company transitioned to an Employee Stock Ownership Plan (ESOP) due to no family members being interested in taking over the company.

6. Competitive Analysis

Major Competitors

Domino's

Pizza Hut

Papa John's

Johnny's New York Style Pizza

John's Incredible Pizza Company

7. Market Analysis

Market Overview

Johnny's Pizza House operates primarily in North Louisiana, with some locations in Arkansas and Mississippi.

The company is expanding out of state in the Carolinas, Florida, Tennessee, Alabama, and Georgia.

Their franchises have proven successful in small to mid-sized markets.

8. Strategic Partnerships

Johnny's Pizza House supports youth and collegiate sports in the Louisiana region.

9. Operational Insights

Johnny's Pizza House is known for its fresh ingredients, unique menu options like the Sweep the Kitchen pizza, and rectangle-cut slices.

The transition to a 100% employee-owned structure in 2018 promotes a culture of ownership and enhanced employee engagement.

10. Future Outlook

Strategic Roadmap

Johnny's Pizza House is focused on expanding its presence in new markets while maintaining its core values and product quality.

The company is exploring strategies to increase individual store volume growth, including introducing seasonal menu offerings and expanding its craft beer selection.