Tulsa, Okla. – Mazzio’s LLC, operator of Mazzio’s Italian Eatery and casual dining concept Oliveto Italian Bistro, announces it has begun actively seeking additional franchisees for the state of Oklahoma. Multi-unit operators and investors with franchised restaurant experience will be targeted to complete the build-out of the Oklahoma markets, including the Oklahoma City and Tulsa metro areas. Currently, Mazzio’s has 169 locations; of those, 105 are franchise-owned.

Mazzio’s was introduced in 1979 and featured pizza, pasta, salad and sandwiches. Before that, the concept was known as Ken’s Pizza, which began in 1961. Since 1979, Mazzio’s Italian Eatery has established its brand in Oklahoma, Texas, Arkansas, Missouri, Mississippi, Kansas and four additional states.

“With 15 locations in the greater Oklahoma City market, there remains substantial market-share opportunities,” said Greg Lippert, CEO and president of Mazzio’s LLC. “There is significant room for growth state-wide, but particularly in Oklahoma City. With the right multi-unit franchisees added to our system, Mazzio’s is positioned for sustained long-term success in the state.”

In 2002, Mazzio’s Italian Eatery updated its 23-year-old brand to feature a more modern look, with bold colors and a tower on its buildings’ exteriors. “Results of our reimaging efforts have been very positive and will serve the brand well into the 21st century,” said Lippert. The system has already remodeled about half of its locations.

The new image includes a new modular building prototype for free-standing locations. “The advantage to the new modular system is that a building can be customized for each individual location based on the given market while at the same time reducing the cost of entry,” said Rex Hall, manager of design and construction for Mazzio’s. “The modular prototype is designed to be easily expanded to accommodate additional customer traffic. Less expensive in-line locations are also becoming a significant vehicle for unit growth.”

Oliveto opened its first location in 2008 in Tulsa, followed by a second location in Tyler, Texas, in December 2009. The restaurant offers a variety of sandwiches, soups and salads for lunch, as well as dinner dishes such as Wood Stone brick oven pizzas, brick-oven entrees, and pastas. The restaurant offers an extensive wine list, which includes 20 bottles under $25. Oliveto also offers a kid’s menu and full catering services.

“The strengths of this brand are its Oklahoma roots and reputation, as well as its broad menu appeal that attracts families, its key customer base,” said Dave Poth, senior marketing vice president.

For Mazzio’s Italian Eatery or Oliveto Italian Bistro franchising information, visit http://www.mazzios.com/franchising_request.html or http://www.olivetobistro.com/franchising.html.

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About Mazzio’s Italian Eatery
With 169 locations in 10 states, Tulsa-based Mazzio’s Italian Eatery, established in 1961, offers customers fast service, convenience, variety, value and quality. Its extensive menu features a wide variety of pizza, pasta, salad and sandwiches. Open daily for lunch and dinner, Mazzio’s is perfect for dine-in, carryout, delivery or catering. For more information about Mazzio’s Italian Eatery, visit www.mazzios.com.

About Oliveto Italian Bistro
Oliveto Italian Bistro opened in August 2008 as Tulsa’s first neighborhood Italian bistro. Tuscan-inspired food, including wood-fire pizzas, pastas and salads, is homemade from artisan ingredients in an atmosphere that is inviting, easy and relaxed. Open daily for lunch and dinner, Oliveto is available for catering and features an extensive wine list that includes 20 bottles under $25. For more information, visit www.olivetobistro.com.

Did you know that Mazzio’s is a Tulsa start-up? Founded in 1961 by Ken Selby, a school teacher that worked long hours after a full days work at Tulsa Public Schools, “The Pizza Parlor” was a hit in Tulsa. Four years later, Ken decided to make pizza his full time job and the one-man pizza place changed its name to Ken’s Pizza in 1965.

Needless to say, in 1979, after expanding in Tulsa, the name changed again to Mazzio’s. In ten years, the Mazzio’s chain grew to over 150 locations in a dozen states, setting new industry benchmarks for sales along the way. The pizza that our families here in Tulsa have known and loved continues to grow with 18 locations in the Tulsa area and a total of 170 restaurants in ten states.

We were lucky enough to be invited to try 4 of Mazzio’s new menu items a few weeks ago. Talk about food coma, we were sure in one after we left, and it was worth every minute! The new menu items are on the lunch buffet and can be tried Monday-Friday for around $6 per person along with the full buffet and salad bar – all you can eat! Take a look….
Mouthwatering Cinnaboli

Warm Fudge Brownies

Cheesy Potatoes, Fresh Fruit Medley, Warm Fudge Brownies and the Mouthwatering Cinnaboli

The fresh fruit medley combines cantaloupe, honey dew, grapes and pineapple into one light and healthy option. The cheesy potatoes bring together hearty potatoes and bacon with savory cheeses until bubbly and warm. Top off your lunch with brownies or a Cinnaboli – cinnamon and sugar wrapped up inside a mouth-watering, buttery crust.

[Video Link]

“Our pizza and salad bar are always fresh and delicious," said Greg Lippert, current Mazzio's CEO. "We want to continue to surprise our customers and keep them coming back for something different."

Technomic's recent Trends and Directions conference at Chicagoland's Donald B. Stephens Convention Center featured renowned foodservice analyst Nancy Kruse on menu trends. But Kruse offered more than new toppings suggestions for the pizza industry. To her, premium crusts offer the glimmer of a pizza renaissance.
 
It's about time: Unlike some sub-segments, pizza growth has been largely flat or negative. On the other hand, last year's "better burger" trend, exemplified by concepts such as Five Guys, The Counter and Fuddrucker’s, has helped drive burger growth: In fact, the fast casual hamburger sub-segment charted 16.7 percent one-year growth in 2009, according to Technomic.
 
Pizza has been helped by no such wildfire trends or innovations. In fact, pizza concepts were nowhere to be found on top-segments-or-brands-for-growth lists at this conference. Technomic predicts that the pizza segment of limited-service restaurants will have contracted -0.5 percent from 2009 to 2010. Perhaps that’s because that industry’s answer to limited-service overachievers like Panera, Five Guys and Chipotle has largely been $10 pizza deals.
 
But Kruse predicts another way. Citing a multitude of chains with specialized, even health-friendly artisan crusts, she welcomes the "premium crust movement." From her examples – including multigrain crust from Happy Joe’s Pizza & Ice Cream Parlor, gluten-free crust from Mellow Mushroom, mozzarella-stuffed crust from Godfather’s Pizza and "artisan" offerings from Mazzio’s – the trends seems indeed to be "better" crust, possible a multitude of ways.
 
But will it work? Market penetration could help consumers identify the differentiated movement, as they have for "better burgers." That could be eminent: Naked Pizza has already staked its claim to "ancestral grain," and the New Orleans-based concept is supposed to grow to hundreds of units in the next few years. The all-natural Neapolitan pizza movement has entered the mainstream with the growth of brands like Minneapolis-based Punch Pizza. If and when these brands grow like the Five Guys and Fuddrucker’s before them, pizza can indeed expect to see the artisan-crusted edge of mainstream pizza bring up the rear.

Tulsa, Okla. – Tulsa-based Mazzio’s Italian Eatery introduces its New Artisan pizza. This new menu item offers customers another great pizza choice and taste experience.

The new creation begins with fresh made dough, hand-crafted into a unique rectangular shape. Layered with a blend of mozzarella, provolone, Parmesan, Asiago and Romano cheeses and topped with your favorite three toppings or any Mazzio’s specialty pizzas.   Then brushed with garlic butter and dusted with toasted herbs.

“This new Artisan pizza experience adds a fresh taste to our menu,” said Greg Lippert, Mazzio’s CEO. “We want to keep our customers coming back, and offering an eight slice large pizza for only $8.99 is the way to do it.”

For more information about Mazzio’s, visit www.mazzios.com.

Tulsa, Okla. — Tulsa-based Mazzio’s LLC has signed a franchise partnership with Fransmart, the franchise development company that has opened over 3,000 locations in less than ten years for other restaurant brands in the United States. Fransmart will help develop Mazzio’s and Oliveto Italian Bistro locations across the U.S. and in select international markets.

“Mazzio’s is a well-established company with successful, long-term franchisee relationships. The timing has never been better to be a tenant looking for locations, so we were happy to be able to add Mazzio’s and Oliveto to our portfolio,” said Fransmart CEO Dan Rowe. “The concept is universally appealing and their franchise program is exceptionally well-structured to support new unit growth.

“Mazzio’s is a seasoned franchisor – they not only franchise restaurants, they are also excellent operators. Fransmart is excited to expand this great concept worldwide.”

The Mazzio’s concept features award-winning pizzas, made-to-order pastas, sandwiches and fresh specialty salads and appetizers. Founded in 1979, Mazzio’s has 172 units in 10 states.

Oliveto Italian Bistro is the newest edition to the Tulsa-based company. The restaurant opened its doors in Tulsa in 2008 and last year and added its first franchisee location in December 2009 in Tyler, TX. The contemporary Italian menu offers wood-fire pizzas, specialty pastas and salads along with an extensive wine list. The neighborhood-style bistro is filled with bold and vibrant colors offering an inviting atmosphere for any occasion.

In 2005, Mazzio’s brought on industry veteran Gregory R. Lippert to lead the chain as president and CEO. Lippert has been in the foodservice industry for 25 years. He began his career with Procter and Gamble Co. and has had executive experience and leadership roles with Seven-Up Co. and Fazoli’s, Inc. At Mazzio’s, he directed the efforts behind Mazzio’s Italian Eatery and Zio’s Italian Kitchen brands from 1984 to 2003. He helped with the launch of Mazzio’s newest fast-casual dining concept, Oliveto Italian Bistro.

“We know that pizza and Italian food is extremely popular with consumers based on the value it offers young adults, families and empty-nesters,” said Lippert. “There is so much demand for what Mazzio’s and Oliveto represent, and we want to extend the brand to new markets.

“Fransmart was drawn to Mazzio’s based on our history as successful restaurant operators and the experience found in our Tulsa Support Office. This new partnership will allow both brands to grow and provide new opportunities for employees and new franchise partners.”
 
Mazzio’s Italian Eatery was recognized in Technomic’s 2008 annual list of the “Top 45 Pizza Chains by Average Store Sales” and was also ranked 23rd on Pizza Marketing Quarterly Magazine’s “Top 200 Pizza Chains in the United States,” ranked by units. Additionally, Mazzio’s was recently ranked in Chain Leader Magazine’s annual “Best Places to Work” report due to its concepts’ low general manager turnover rate (16 percent) and its depth of employee benefits. Mazzio’s Italian Eatery has consistently won “Best Pizza” awards in its primary markets for many years and retains an industry-leading Customer Loyalty Index for Overall Satisfaction from SMG.

About Mazzio’s Italian Eatery
With 172 locations in 10 states, Tulsa-based Mazzio’s Italian Eatery, established in 1961, offers customers fast service, convenience, variety, value and quality. Its extensive menu features a wide variety of pizza, pasta, salad and sandwiches. Open daily for lunch and dinner, Mazzio’s is perfect for dine-in, carryout, delivery or catering.

For more information about Mazzio’s Italian Eatery, visit www.mazzios.com.

About Oliveto Italian Bistro
Oliveto Italian Bistro opened in August 2008 as Tulsa’s first neighborhood Italian bistro. Tuscan-inspired food, including wood-fire pizzas, pastas and salads, is homemade from artisan ingredients in an atmosphere that is inviting, easy and relaxed. Open daily for lunch and dinner, Oliveto is available for catering and features an extensive wine list that includes 20 bottles under $25.

For more information about Oliveto Italian Bistro, visit www.olivetobistro.com.
 

Tulsa-based Mazzio’s Italian Eatery introduces its new Jumbo Pizza promotion beginning Nov. 23.

            The Jumbo Pizza is an 18-inch, one-topping pizza for $13.99. Jumbo feeds five, provides 60 percent more pizza than a large and is more pizza than 2 Mediums. This new product will be available at all Mazzio’s locations through Feb. 28.

            “We’re excited to offer the Jumbo Pizza to customers,” said Greg Lippert, Mazzio’s CEO. “With holiday parties and gatherings just around the corner, we know consumers crave value and price, and that’s exactly what this deal has to offer.”

# # #

About Mazzio’s Italian Eatery

With 172 locations in 10 states, Tulsa-based Mazzio’s Italian Eatery, established in 1961, offers customers fast service, convenience, variety, value and quality. Its extensive menu features a wide variety of pizza, pasta, salad and sandwiches. Open daily for lunch and dinner, Mazzio’s is perfect for dine-in, carryout, delivery or catering.

For more information about Mazzio’s Italian Eatery, visit www.mazzios.com.

Tulsa-based Mazzio’s Italian Eatery announces the opening of its newest restaurant at 714 W. Main in Stigler, Okla.

“We are excited to expand into Stigler and look forward to being a part of the business community,” said Greg Lippert, Mazzio’s CEO.

The recently constructed, free-standing location is open under new franchise owner and builder Steve Fioretti. The Stigler location serves a robust menu of Mazzio’s specialty pizzas, pasta, salads and sandwiches.

“As the builder and owner it was rewarding to see the end product,” said Fioretti. “The land it’s built on is family-owned. My great-grandparents owned a restaurant on this very land, so I wanted to carry on the family tradition.”

The 3,200-square-foot restaurant offers a daily lunch buffet featuring pizza and salad bar. The management team is headed by general manager Deeann Johnson and assistant manager Nic Williams. The new location, featuring a modern look and bold colors, will seat 120 guests. The restaurant employs 32.

The restaurant will be open from 10:30 a.m. to 10:00 p.m., Sunday through Thursday, and from 10:30 a.m. to 11:00 p.m. on Friday and Saturday.

About Mazzio’s Italian Eatery
With 170 locations in 10 states, Tulsa-based Mazzio’s Italian Eatery, established in 1961, offers customers fast service, convenience, variety, value and quality. Its extensive menu features a wide variety of pizza, pasta, salad and sandwiches. Open daily for lunch and dinner, Mazzio’s is perfect for dine-in, carryout, delivery or catering.

For more information about Mazzio’s Italian Eatery, visit www.mazzios.com.

For more information about Mazzio’s Italian Eatery, visit www.mazzios.com.    

The new Mazzio's Pronto restaurant in Wagoner. (Photo by Rip Stell)

by Kirby Lee Davis

TULSA – Mazzio’s Corp. has signed a franchising agreement with Fransmart to grow the Tulsa Italian food chain from 170 to 1,000 locations.

The key could reside in a new restaurant brand making its debut in Wagoner.

At 2,130 square feet, the Mazzio’s Pronto uses 45-percent less space than a traditional Mazzio’s Italian Eatery. That footprint allows the Pronto concept to enter lifestyle shopping centers, infill locations or smaller communities that might not support a stand-alone Mazzio’s – and at a much lower entry cost.

“We’re targeting under half a million dollars,” said Greg Lippert, president and chief executive of Mazzio’s Corp. of Tulsa. “We believe you have to be in the range of a $400,000 to $500,000 cost of entry to really be marketable to new franchisees and new investors.”

The reduced size trades lower seating – around 75 – and subsequent lower sales volume for more manageable operating costs and employment. Lippert said Pronto retains about 85 percent of the Mazzio’s Italian eatery menu.

“We took out some of the slower-selling items that were not the top sellers to keep the kitchen smaller and ease of operation better,” he said. “The items that our customers know and love are there.

“Our goal is to have a two-to-one sales investment ratio,” he said of projected sales. “Right at this point, we are meeting that goal.”

Mazzio’s intends to analyze results from the 20-employee, company-owned Mazzio’s Pronto at 1520 Highway 51 in Wagoner for several months before considering other locations or marketing the results to franchisees.

Lippert sees the Mazzio’s Pronto concept as growth material both inside and outside the company.

“Even though we have over 100 locations in Oklahoma, we still have smaller towns like Wagoner that we’ve never been in before,” Lippert said. “This allows us to go into smaller markets with new potential. We also have an affordable investment vehicle for new markets, one with an acceptable return on investment.”

Analyst James Kenderdine said these moves made good sense in this national recession.

“That’s one of the things that Applebee’s has been very successful at,” said the professor emeritus of marketing and supply chain management with the University of Oklahoma Price College of Business. “Their footprint is small enough that they can go into a small town that cannot support another franchise restaurant. Applebee’s can go into a small town and become in effect the de facto restaurant in that town. Mazzio’s could do the same thing.”

Kenderdine said the smaller concept provided a strong tool for a firm like Arlington, Va.-based Fransmart, the franchise development company behind Qdoba, Five Guys Burgers & Fries and Zpizza.

“That’s the company that’s been very successful at that,” he said. “They work with a company that’s got a good concept but they help them work with more units. They help them refine the concept.”

The smaller footprint also opens the doors to co-branded travel stops along interstates.

“Branded food service at one of these travel stops or convenience stores can boost food sales by 10 to 20 percent over what they would have been, just because it’s branded,” Kenderdine said. “I know Love’s has gone almost exclusively to using branded food service with their stops and I’m sure QuikTrip recognizes the value of that, too.”

Fransmart pointed to several strengths in the Mazzio’s chain, from making Technomic’s and Pizza Marketing Quarterly Magazine’s top pizza chain lists to reaching Chain Leader Magazine’s annual “Best Places to Work” report.

“The timing has never been better to be a tenant looking for locations,” Fransmart CEO Dan Rowe said in a press release Wednesday. “The concept is universally appealing and their franchise program is exceptionally well structured to support new unit growth.”

With 171 units in its fleet including the upper-scale Oliveto restaurant in Tulsa, 66 of those company owned, Mazzio’s will continue to grow its larger Italian Eateries spread across 10 states. Lippert said the company has renovated 25 locations over the last four years to modernize their look and appeal.
“It worked for us a number of years,” he said of stand-alone stores. “But with this method, you’re really sharing the responsibilities of the demographic and traffic with other retailers. You’re not just relying on yourself.”

Pronto also gives Mazzio’s Corp. a potential vehicle to spread its concept beyond its five core states: Oklahoma, Texas, Arkansas, Mississippi and Missouri.

“From our perspective, providing a lower-cost-of-entry concept would be more manageable with a concept such as Pronto than with a standard Mazzio’s building,” Lippert said. “It allows us to have the brand to be more significant on a national level.

“Nowadays real estate is very expensive,” he said. “It’s not so much the economy. It’s the cost of the investment for new franchisees new investors. They would rather have a lower cost of entry, even with lower sales.”

Pronto builds its brand on the same graphic elements used by Mazzio’s.

“Pronto gives us the ability to communicate convenience, speed of service,” Lippert said. “It was really just taking what we had and fine-tuning the menu. We had already done the re-imaging process and our image alignment process several years ago. We knew what we were targeting. We just wanted to do it in a smaller space.”

--Copyright © 2009 The Journal Record All Rights Reserved

Along with a new CEO, Tulsa-based Mazzio's Corporation has signed a franchise partnership with Fransmart, the franchise development company behind the explosive growth of brands such as QDOBA, Five Guys Burgers & Fries and Zpizza. Fransmart will help develop Mazzio's Italian Eatery across the United States and in certain international markets Fransmart has been expanding in with its portfolio brands.

Mazzio's also brought on industry veteran, Gregory R. Lippert, to lead the chain as President/CEO in 2005. Greg has been in the foodservice industry for 25 years. He began his career with Procter and Gamble Company including being appointed Brand Manager of a 1.6 billion dollar brand with the Seven-Up Company. He has had executive leadership roles with Fazoli's, Inc. from 2003 to 2005 where he served as CMO and CCO and at Mazzio's Corporation where he directed the efforts behind Mazzio's Italian Eatery and Zio's Italian Kitchen brands from 1984 to 2003. Greg has also served on various industry boards and has been a featured speaker at MUFSO and COEX conferences.

The fast casual Mazzio's concept features award winning pizzas, made-to-order pastas, sandwiches, and fresh specialty salads and appetizers. Founded in 1979, the Mazzio's concept has 170 units in eight states.

"Mazzio's has been around for 30 years, has over 170 locations, successful franchisees, and the timing has never been better to be a tenant looking for locations so we were happy to be able to add Mazzios to our portfolio," said Fransmart CEO Dan Rowe. "The concept is universally appealing and their franchise program is exceptionally well structured to support new unit growth. Mazzio's Corporation is a seasoned franchisor – they not only franchise restaurants, they are also excellent operators. Fransmart is excited to expand this great concept worldwide."

President and CEO of Mazzio's, Greg Lippert, stated that this new partnership will allow both brands to grow and provide new opportunities for employees and new franchise partners.

"We know that pizza and Italian food is extremely popular with consumers based on the value it offers young adults, families and empty nesters. There is so much demand for what Mazzio's and Oliveto represent and we want to extend the brand to new markets. Fransmart was drawn to Mazzio's Corporation based on our history as successful restaurant operators and the experience found in our Tulsa Support Office," said Lippert.

Mazzio's Italian Eatery was recognized in Technomic's 2008 annual list of the Top 45 Pizza Chains by Average Store Sales, and was also ranked 23rd on Pizza Marketing Quarterly Magazine's Top 200 Pizza Chains in the United States, ranked by units. Additionally, Mazzio's was recently ranked in Chain Leader Magazine's annual "Best Places to Work" report due to the concepts' low General Manager turnover rate (16%) and depth of employee benefits. Mazzio's Pizza has consistently won "Best Pizza" awards in their primary markets for many years and has a very loyal customer base and retains an industry leading Customer Loyalty Index for Overall Satisfaction from SMG.

About Mazzio's Corporation:
Mazzio's Corporation is a privately held Tulsa restaurant company founded by Chairman Ken Selby that owns, operates and franchises Mazzio's Italian Eatery and Oliveto Italian Bistro restaurant brands in the United States.

Mazzio's CEO Greg Lippert is making a few changes in an effort to grow the business.

Since Ken Selby opened his first Pizza Parlor store in 1961, the business for the Italian-inspired entrees has changed almost as much as the menu itself.

Long gone are the days where chain pizza parlors dotted every block. Pizza Hut has begun converting many standard restaurants into Pizza Hut Italian Bistro casual dining concepts, and the once-dominant Little Caesars is now essentially a carry-out-only, hocking $5 pizzas.

Today, Mazzio's Italian Eatery, the successor to Selby's original parlors, goes head-to-head with restaurants such as Applebee's, Olive Garden and Fuddruckers in competition for diners' stomachs and wallets.

And with Selby and CEO Greg Lippert growing the Tulsa-based Mazzio's Italian Eatery into 10 states with 170 locations, owners are looking at how to continue to grow the brand in the accelerating world of dining and retail.

This summer, Mazzio's will debut a store concept aimed at retail shopping centers instead of traditional stand-alone locations.

Lippert, who took over the company in 2005, said the company is looking to break into new markets in smaller towns, such as Bristow and Stigler, that might now be able to handle the million-plus-dollars cost of building a stand-alone restaurant.

To put it simply, Mazzio's is looking for a bigger piece of the pie.

For Mazzio's, keeping the pizza the same while evolving the company has always been a key to keeping up with national-chain competitors.

Selby, founder of the Mazzio's chain, said competition from casual dining chains started heating up when Oklahoma changed its liquor laws in the 1980s to allow restaurants to sell alcohol by the drink.

"In my first location, I called it survival," said Selby, who is still chairman of Mazzio's.

Selby said he had to ensure prices were competitive and the food was a consistent quality to keep chains from luring away customers.

The company also started placing more emphasis on its line of sandwiches, salads, buffalo wings and other dishes to distinguish it from national pizza chains.

Lippert said the company gets only about 55 percent of its revenues from pizza; the rest comes from dozens of items on the menu.

When new construction and retail markets started to collapse last year, Mazzio's was facing a recession at a time it was hoping to pick up customers in new markets, Lippert said.

"Business at our existing restaurants has been good because pizza is a pretty good value compared to eating out and paying for each plate individually," Lippert said. "But we want to grow, and we needed to find a way to do so."

For the last 48 years, Mazzio's and its predecessors have followed the same principles for building new restaurants: find a corner or pad site and build a restaurant of 3,500 square feet or more.

With property, permits, construction and equipment, Lippert said those restaurants usually cost more than a million dollars each.

But moving into shopping centers was a move the company considered, Lippert said. Such a move would lower startup costs by about 30 percent and capitalize on the growing trend of retail "lifestyle centers."

But it's a move the company considered with caution, Lippert said.

"Investors today want to build something with a better initial return-on-investment," Lippert said. "This concept means they can lease a location from a developer, then just worry about running a restaurant."

The new restaurants will also be smaller, starting at about 2,500 square feet. But it is hoped they will attract a new customers shopping at nearby retailers.

The first of the new prototype franchises will open in July, but Lippert declined to say where because of issues with the real estate.

Lippert said the company has more strategies to fight growing competition from casual dining restaurants.

Mazzio's Corp. will open its second Oliveto Italian Bistro location in October, in the Dallas suburb of Tyler, Texas. Lippert says Oliveto, the company's second venture into Italian casual dining, is a more economical alternative to other chain restaurants.

And in September, Mazzio's will finish a remodel at its original location at 11th Street and Florence Avenue near the University of Tulsa.

Modern lines and a redesigned marquee will put the restaurant closer in line to national competitors. Lippert said the redesigns are simply a way to show that Mazzio's is reinvesting in its locations.

"The challenge is giving people a reason to choose us," Selby said.

All of Mazzio's salaried managers participate in a bonus program tied to three metrics: cash flow, customer loyalty, and food and labor costs.

By Maya Norris, Managing Editor

Managers at Mazzio’s Italian Eatery don’t have to rely on their annual 4 percent to 6 percent cost-of-living raise to boost their salaries every year. The Tulsa, Okla.-based fast-casual company gives all salaried managers the opportunity to earn bonuses that far exceed the traditional merit increase if their units meet strategic performance measurements the company sets and increase cash flow.

"We wanted to pay our people more, but we qualified that by saying we don’t want to pay all of our people more," explains Senior Vice President of Operations Steve Davis. "We want to pay our top people more."

Bonus Days

Mazzio’s bonus program, which applies only to company units, consists of three components that tie bonuses to unit performance. Every year the company assigns each unit specific food and labor costs and customer-loyalty scores to achieve based on how they performed the previous year. If managers achieve those goals, they earn bonuses. But they have the chance to earn even more money if they increase cash flow—and they don’t have to own an equity stake in the business.

At most restaurant companies, only general managers get a cut of the profits or sales. And they usually must become a managing partner and invest a substantial amount of money. Mazzio’s allows all of its salaried managers—not just GMs—to receive a portion of their restaurants’ incremental cash flow without having to invest their own money.

"What sets us apart from other chains is you don’t have to sign a managing-partner contract to share in the growth and value of your restaurant," says Director of Human Relations Devona Haslam.

Targeting Top Performers

Mazzio’s managers also get a bonus if their units meet customer-loyalty targets. When customers pay for their meals, their receipts invite them to participate in a telephone survey rating their experience on a scale of 1 to 5. If a unit earns a certain percentage of 5 ratings, the managers receive a flat amount quarterly, which the company won’t divulge. In 2006, 67 percent of people that responded to the survey rated their experience a 5, up from 38 percent in 2000.

Managers can also receive another bonus based on food and labor costs the company assigns to each unit. If a unit meets its cost benchmarks during a given period, the managers receive a flat amount quarterly. Mazzio’s won’t say how much it pays out or what its food and labor costs are. "It’s within the acceptable range of the industry," Haslam says. "We are pleased with what our managers are achieving in our food and labor costs."

"One way we describe a top performer is a general manager, manager or management team that’s hitting their bonus targets," Davis says. "You can’t really be considered a top performer and miss your bonus targets."

Rewarding Experience

The bonus program considerably boosted manager salaries in 2006. Restaurant managers, whose base salary averages $34,725, earned about 7.5 percent to 15 percent of their salary if they met operational measures Mazzio’s set for food and labor costs and customer-loyalty scores and increased their units’ cash flow. General managers made about $47,250 in base salary last year, but earned an extra 15 percent to 30 percent on operational measures and cash flow. Regional coaches, who oversee about eight restaurants and have a salary of about $74,500, earned about 20 percent to 35 percent of their salary in bonuses if the restaurants in their regions met operational measures and increased cash flow.

In 2006, the average total cash compensation for restaurant managers was $38,000, $56,000 for general managers and $92,000 for regional coaches. That doesn’t include benefits such as 401(k) and medical and dental insurance.

Mazzio’s credits its bonus program for its managerial turnover rate of 27 percent in 2006, with turnover for general managers averaging 17 percent and 39 percent for restaurant managers. The average tenure for restaurant managers is five years, 11 years for general managers and 24 years for regional coaches.

In addition, sales have increased 22 percent since the end of 2003. The average unit volume for company-owned units tracks at $1.15 million vs. $770,000 for franchised units.

While Mazzio’s says its bonus program is a way for it to identify top performers and help it become an employer of choice, it’s meant ultimately to enhance the dining experience. "We are in the people business," says President and CEO Greg Lippert. "Our No. 1 priority is to fully support, develop and recognize restaurant management and their crews so they can provide customer experiences that are second to none."