Zpizza — The ‘Chipotle’ of fast-food pizza
August 27th, 2008, 6:00 pm · 30 Comments · posted by Nancy Luna, Staff Writer
While most pizza chains are hawking $5 pizzas to attract consumers, Newport Beach-based zpizza is proposing a different strategy amid gritty economic conditions: raise prices.
In the fall, zpizza, known for its healthy and wholesome pizzas, is increasing menu prices 10 percent to cover ingredient changes. In late September, eateries will switch to organic flour for all of its pizzas and will also add a gluten-free crust option on the menu.
So why raise prices when everyone else is lowering them? (Note: A 10-inch zpizza cost $9.95.)
“If you give people good food, they’ll come back,” says Sid Fanarof, who founded the chain in 1996. “That’s my basic belief.”
The strategy seems to be working. The chain is posting year-over-year sales increases, and is on an expansion tear – having recently announced plans to open several franchises in Colorado, the Middle East and India.
During a recent phone interview, Fanarof talked about his chain. Read on to hear what he thinks about cheap pizza, the economy and fancy sandwiches:
Q: How would you describe zpizza’s demographic? In other words, where do you like to open units?
A: Our niche is health conscious. Wherever Whole Foods opens, we look and say, ‘That’s our neighborhood.” (Note: 68% of zpizza’s customers are women.)
Q: How is your pizza different than rivals?
A: It’s the napkin. You don’t need one to wipe the grease off.
Q: Being that you use only fresh, natural and/or organic ingredients, I want to call you ‘The Chipotle of fast-food pizza.’ Is that OK?
A: That would be an honor. We are the Chipotle of pizza.
Q: By going with organic flour, you are raising prices by 10 percent later this year. Will your customers be put off by that?
A: No I don’t think so.
Q: Why not?
A: We’re improving the quality. People know they pay more for the quality and they like it. During this (bad economic) time, quality is what people will look for.
Q: Is that why your sales are up 10%?
A: Yes. People want value, but they want quality. We offer that.
Q: So Pizza Hut and Domino’s aren’t your rivals?
A: Our real competition is with local competitors (not big chains.)
Q: What’s next for zpizza?
A: To upscale my sandwiches a bit more.
Q: How do you upscale a meatball sandwich?
A: (Laugh) That’s a tough upscale. But a tuna sandwich with mayo could, instead, be done French-style with maybe some egg, olive oil and arugula and put it on ciabbata.
To write a review about zpizza, or to get location information, go to The Register’s Events calendar.
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August 28th, 2008 at 8:15 am
Health conscious? Hmmm, and all this time I’ve been eating at ZPizza only because it tastes so good. The food is rather expensive compared to other chains, though. Not a place I’d eat at on a daily basis.
August 28th, 2008 at 8:31 am
Z Pizza is just priced too high and the quality is mediocre.
In Aliso Viejo, the slice deal for lunch means a wimpy slice that is not hot enough.
Z Pizza is yesterday’s lunch.
August 28th, 2008 at 8:58 am
Ummmmmmmm, yeah, not greasy? The office orders from zpizza on a semi-regular basis and several of the pizzas have that greasy goodness. The dude is full of himself.
August 28th, 2008 at 9:03 am
Yes, because “organic flour” is going to make a difference in your health when you are eating Pizza.
It’s like the fat people who get the biggest cup size and then ask for diet coke.
But thank the maker for organic flour, that fake stuff our moms used is so bad for you…
August 28th, 2008 at 9:08 am
keep in mind that $20 pizza will feed 3-4 adults. and that isn’t just a cheese pizza. it is one of the many “zpizza creations”. i don’t know anywhere else i can get a meal that is both healthy and that everyone will enjoy for that price!
August 28th, 2008 at 9:38 am
“i don’t know anywhere else i can get a meal that is both healthy and that everyone will enjoy for that price!”
HAHAHHAHHAA!!
And not sure what kind of adults you refer too. But those pizza’s don’t fill me up. Maybe 2 or 3 would.
August 28th, 2008 at 10:14 am
I like zpizza. Certainly pizza is better for you than burgers, burritos and the like, but zpizza seems to be trying to go even beyond and make it with organic sauce, fresh vegies and now organic crust. I appreciate the attempt. I will pay more to put better stuff in my kids’ belly when they want pizza. Plus this is real pizza made from scratch, not that junk you get at Dominos where everything’s made off site and passed through a conveyor toaster (no wonder it’s so cheap). And, zpizza’s medium pizza is the same size as the fast food pizza places, so when you get zpizza’s large at 18″ you’re actually getting way more pizza, so of course it’s gonna cost more. And, if I don’t want pizza, they deliver awesome salads . . . without iceberg lettuce.
August 28th, 2008 at 10:23 am
zpizza is better than the rest… May cost a bit more, as good quality ingredients always do… But definitely worth the investment. From their salads to their sandwiches and of course their pizzas, you have so many choices!!
My favs are: The “Pear and Gorgonzola” salad, the “Pollo Latino” sandwich, (though the “Z-Tuna” is AWESOME too) and the “Santa Fe” pizza.
YUMMY! =)
August 28th, 2008 at 10:43 am
I eat at Z Pizza at least once a week and think it’s a great value. There is a difference between a steak from Outback and a steak from Ruth Chris. Theres also a difference between a pizza from dominoes and a pizza from Z Pizza. You get what you pay for.
August 28th, 2008 at 11:02 am
Very weird posting.
Didn’t Chipotle have to close some stores due to over expansion?
As for preference, I’m not a fan of Chipotle.
August 28th, 2008 at 11:07 am
They’re also the only chain that has vegan cheese as an option, and compared to most vegan cheese, it’s actually good. This isn’t an issue for most people, but I’m sure that small demographic is helping.
August 28th, 2008 at 12:27 pm
I love zpizza. they have great salads and sandwiches. did you know a large slice of cheese only has 200 calories and the gourmet pizzas have around 150-180 calories for a small slice. i don’t know about you but its nice to know i can have pizza ( really good pizza at that) and stay on my diet. i think the pizza is totally worth the cost. also i would not compare it to chipoltle there food is so high in fat and calories its crazy.
August 28th, 2008 at 1:17 pm
ZPizza SUCKS!!!! And I find it incredibly stupid that they would open up in Seal Beach right next door to the real thing…..A Slice of New York! Every time I go by there on my way to A Slice of New York, I always look into ZPizza’s store and see NOBODY in there. Whereas A Slice of New York ALWAYS has a line.
August 28th, 2008 at 1:42 pm
Ummmm….yeah. It’s OK pizza. Nothing to “toot” your horn about.
August 28th, 2008 at 3:36 pm
Try Pizza Fusion - http://www.pizzafusion.com. They just opened up a restaurant in San Deigo and they’re more than 75% organic with their entire menu, including drinks. And they offer vegan and gluten-free pizza, as well. Furthermore, they’re very eco-friendly. Much better than zPizza in my opinion.
August 28th, 2008 at 4:35 pm
“68% of customers are women.” Is that because men are making their women go out and get the food for them?
August 28th, 2008 at 9:28 pm
A couple of things to note:
If I have an opportunity to feed my family of four for $20 compared to $30 plus at Z pizza, I’m choosing the deal every time.
Also, while I’ve enjoyed Z pizza in the past, try getting any help or customer service if your order goes wrong or you’re over- charged for something - nothing but crickets. Seems to me you have to offer good, “wholesome” food and a great deal to make it in this economy. Time will tell.
August 28th, 2008 at 10:43 pm
Pizzaguy must work @ Pizza Hut (Im sorry), and Debbie, Z pizza sucks? Unfortunately, for your husband, you dont. Skip a meal
August 29th, 2008 at 9:15 am
Rick:
I do work at Pizza Hut, as a driver
I’m just calling it as I see it- mediocrity mascarading as something “great”.
August 29th, 2008 at 9:31 am
I think zpizza is great. It offers quality that you would get from fine dining restaurant for half the price. The service is excellent. I have never get my order wrong. I personally thing Zpizza is the best there is.
August 29th, 2008 at 9:39 am
You have to try zpizza. Once you try it, you will never go back
August 29th, 2008 at 6:25 pm
I Love zpizza and eat it once a week. The quality is head and shoulders above any other pizza out there… Get real… Healthy is cool, and so is zpizza…….
September 3rd, 2008 at 10:07 am
i love zpizza, i order their deep-fried buffalo wings once a week. The portion is generous and It tastes great
September 3rd, 2008 at 3:21 pm
I am a z pizza franchisee and would like to set the record straight regarding our ‘vegan’ cheese. The quality and taste of our cheese is excellent however it does contain ‘CASEIN’, which is an important factor for vegans to consider when ordering. We have never had a ‘casein-free’ cheese although the founder of z pizza, Sid Fanarof, has researched numerous options but none (so far) have met the high quality we feel is necessary for our customers.
September 16th, 2008 at 2:30 pm
This comment came to me by the CEO and co-founder of Pizza Fusion. What do you think of Vaughan Lazar’s comments? Is zpizza a copycat?
“Going organic?
I usually stay far away from responding to other people’s 15 minutes but when I read the recent post ‘Zpizza — The ‘Chipotle’ of fast-food pizza’ article, I couldn’t let it go without a few words.
I’m not a customer, but rather an “industry peer.” I am the co-founder of a young organic pizza chain called Pizza Fusion. I applaud Zpizza for having the amazing foresight to switch to organic flour, as well as a myriad of other familiar changes this company has made… since Pizza Fusion opened in 2006. They say that “imitation is the sincerest form of flattery,” and if that statement is true, well, then I’m flattered. Switching to organic flour, changing the shape of their pizzas to a familiar artisan format, offering soy cheese, and adding gluten-free crust are things that have earned Pizza Fusion a loyal customer base and may be positive steps for Zpizza. Again, we’re flattered to have caught the radar of an established chain like Zpizza, but this response actually has nothing to do with the (scary) likeness of our two companies. It has to do with why restaurants are making changes like these.
It’s evident to me that there’s a tremendous disconnect between these restaurants and their consumers. If restaurants are going to make such changes, they must get to know their consumer and realize why they embrace organic or vegan foods. For example, to offer vegan-cheese you need to know that vegans want a “cheese” without casein or rennet, both of which are animal proteins… i.e. not vegan-friendly. Or to offer an organic menu option supplemented with conventional ingredients – it’s contradictory.
This is the identity crisis I feel many restaurants are having during this transition from conventional menu offerings to organic. American food consumers are becoming more educated, hence, the rise in vegan and organic eaters. These are people that choose a diet based on personal values, whether for animal treatment, their personal health, or the preservation of the planet. They’re very passionate about what they put into their body, the production of the food they buy and eat, and how it impacts the world overall. This awareness creates discrimination among consumers for restaurants and food in general that takes their concerns into consideration. They’re very serious about the food they eat and thus respect restaurants that are serious about the food they serve. Like an environmentalist doesn’t respect a company guilty of greenwashing, organic and vegan consumers perceive organizations’ minimal attempts to attach themselves to their demographical market as insincere. This inconsistency has a direct reflection on restaurants’ brands.
At Pizza Fusion, we share these concerns with our customers. We are these consumers. Our family is made up of vegans, vegetarians, environmentalists, organic lovers, and celiac individuals. In fact, it’s the insincere restaurants described above that motivated Michael and I to create Pizza Fusion in the first place. We couldn’t go out and eat organic or opt for an eco-friendly restaurant when that’s what we craved. So we started our own.
I digress… if you’re going to cater to organic and vegan consumers, then do it appropriately, tastefully, sincerely, and with respect for their concerns. Walk the walk. Only then will you truly earn the loyalty and respect of these niche consumers.”