A story of any successful project is always of particular interest. Dodo Pizza started as a small pizzeria in Syktyvkar, the capital city of the Komi Republic, Russia, and now its revenue for 12 months (March 2020-February 2021) accounts for 27 billion rubles ($ 363 milliard), as the Dodo brand website provides. Dodo Pizza has 688 branches and not only in Russia, rather in 14 countries, including the United States, the United Kingdom, China, Lithuania, Estonia, Romania, Uzbekistan, Kazakhstan, and Kyrgyzstan.
The idea behind Dodo Pizza success is its marketing strategy
Fyodor Ovchinnikov, the founder of Dodo Pizza, initially had the idea to create a pizzeria of an unusual format – total openness of the institution. All kitchens are equipped with web cameras, which allow everyone to observe the work of employees, make sure that the products are fresh and the cooking process is in compliance with sanitary standards.
There is no stained “We cook according to the classic Italian recipe”. The company is based on openness, and it is in everything – from the company’s blog to the table where the dough is kneaded. Interestingly, anyone if curious may request a free tour of the kitchen. This is the concept of business – open and honest.
Dodo IS
One important element of the brand “Dodo Pizza” is Dodo IS, the browser system, which is the “core” of the company’s work. In short, it works as follows. Orders are accepted through a call center, website, or mobile app, and then immediately redistributed to the tablets installed in the kitchen. The employee who took the order notes the start time and the end time of the work. The program also keeps track of performance indicators-starting with the courier service, ending with the warehouse.
The specialized Dodo IS program is much better than the ones more universal, as everything in it is tailored for certain business processes. Firstly, because the efficiency in working with retail operations through such a program is much higher. But most importantly, such software is an excellent tool for franchise control. Dodo IS system manages the entire business as a whole while also increases the efficiency of individual pizzerias.
Franchise
There have been and apparently will be many willing to open their cafe under the brand. The conditions to do so include 350,000 rubles fee + VAT ($4700), monthly royalty fee that varies from 3.5% to 5% + VAT, and minimum budget that account for 6,000,000 rubles ($80700) with the profit expectations from 15% to 25% and a payback period in about 3 years. A cafe can be opened in one of three formats: a delivery, a family pizzeria, or a city pizzeria, according to a raise in the starting budget.
Dodo Pizza provides pieces of training for future partners, franchisers. The training lasts for 1 month in the training center “Dodo Pizza” that is located in Syktyvkar. During this time a franchisor delves into the principles of working in the network, is engaged in drawing up a business plan, and also practices resolving specially simulated critical situations. This helps to gain experience and become a competent manager in the future.
Quality check-up
Quality control plays an important role in the food industry. For this reason, Dodo Pizza continuously conducting secret check-ups with secret buyers coming to each pizzeria 8 times a month and evaluating service according to 118 criteria. Their reports are checked, and based on the information received, the management rates the pizzerias. The bests of all are awarded bonuses. If the pizzeria systematically gets low ratings, and owners do not will to improve and deliberately neglect the requirements then the pizzeria is closed.
Concluding, it’s not only the strategy that matters when opening a pizzeria. Ultimately, it’s the taste of pizza. The kitchens of “Dodo Pizza” have strict standards for working with dough and pastries, the allowed error is only 3 grams and 1 degree, the frozen dough is never used. While talent and skill play their roles, in the kitchen everything is based on formulas and standards. Taste is equally behind the success of a brand in the food industry.
Plan 333 and IPO 2024
Under the so-called “Plan 333“, global strategy for the next three years, Dodo targets to have at least 100 coffee shops and shawarma shops opened by 2024, mainly in Russia, China, and the UK. The prediction is that the international market share will account for at least 10% of total revenue.
Dodo also plans to issue ruble-denominated bonds on the Moscow Exchange, to raise funds and scale up the business. Most importantly, it plans to go public in early 2024. The company expects to raise between $50 million and $100 million.
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