DeAngelos Pizzeria Company

DeAngelo's Pizzeria Company was founded in Baton Rouge, Louisiana, in October 1991 by
Louis DeAngelo, Jr. Louis is originally from New Jersey and honed his culinary ability in a
friend of the family's pizza shop. He began working at the age of ten by washing dishes,
bussing tables, working the counter, and eventually making pizzas.. By the time Louis was
seventeen, his passion for pizza became an inevitable part of his future.
Louis spent less than a semester in college before deciding that his goal was to open his
own pizza restaurant, which was fuelled by the support and enthusiasm of his parents. His
grandfather loaned him the initial capital to buy equipment, signs, and utensils. From there
he was headed to Baton Rouge to give the town what it really needed - quality pizza! Before
opening the doors at the first store, Louis promised himself that he would only serve the
best pizza possible and hold everyone to that promise everyday. The restaurant was a
success three to four months after opening because of his passion and commitment to
quality. The philosophy of the restaurant quickly grew from great pizza to great service,
which eventually led into great teamwork.
Following the first location in the Hammond Aire Shopping Center, DeAngelo's continued to
grow. In 1996, DeAngelo's Pizzeria opened up on Bluebonnet Boulevard. Following that, in
1997, DeAngelo's Pizzeria in Mandeville opened up, in which Louis's brother Tim is a
managing partner. In 1998, DeAngelo's Pizzeria on West Lee Drive opened; and, in 1999,
development of a franchise package began. In March 2000, DeAngelo's Pizzeria on
Coursey Boulevard at Hickory Ridge opened.
The mission and values that developed out of these initial goals are at the very center of
this company.
When talking about franchising, the biggest obstacle was how to transfer what DeAngelo's
is all about. That "feeling" is what makes the restaurants so special, and without it,
DeAngelo's is just another restaurant serving good food.
Louis redesigned the training program, refocussed the trainers, and made transferring
DeAngelos Core Values priority "Number 1." Louis believes that this will always be a major
key success, but at the same time, will always represent the greatest threat to that success
and to the people who stand for what DeAngelo's is all about.
Core values make up a targe part of the Family Corporate Culture When a new team-mate
is hired, they are taken through a two-step interview process, and then given a test on
DeAngelo's nine core values. These values are the people, guests, teamwork, service,
productivity, quality, communication, working environment and commitment.
If Louis believes that they have what it takes to be a part of the team, and can contribute to
the culture, regardless of their experience, then he gives them a chance. Louis provides
them with all the proper tools, training, and most of all, the opportunity to make a success of
their efforts. If they put forth their best intention, and care about what they are doing and
who they are doing it for, then they have earned a place on DeAngelo's team. The one
lesson Louis has learned is "the more you grow, the harder you must work at the
fundamentals."
The next challenge was to develop a system where the franchisees would put the same
care and concern into their food and their people as Louis has for the last ten years. To
Extracted from Judd RJ, Justis RT (2008), Franchising An Entrepreneurs Guide, 4e, Thomson, p.165-166

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address the food issue, he decided that the franchisees would purchase core items labeled
as "proprietary," which include dough, dressings, and sauces, so that Louis may help close
the gap on any quality control issues that might arise from another interpretation of the company recipes. By doing this, Louis efficiently ensures that the food the cooks are preparing
is the same as the fine company-owned restaurants.
In the final analysis, Louis has come to understand that business opportunities are made
and lost on a daily basis. By orchestrating what he calls "controlled growth," DeAngelo's can
help ensure that each franchisee is as successful as the first, and by pursuing such growth,
the company can put the proper time and energy into them, helping to eliminate the
mistakes and wasted motions experienced over time. Louis would rather have ten excellent
quality franchisees, instead of fifteen or twenty average ones. Quality, not quantity, is what
DeAngelo's will always be known for.

Review Questions
1. Why must marketing fit in with other functions of a franchisee! business?
2. What is strategic planning in marketing? How is it used?
3. What are the four Ps of marketing? Provide an example of how each can he applied in
franchised merchandise retailing; in franchised service retailing.
4. Explain the legal considerations associated with product pricing in the franchisorfranchisee relationship.
5. What is meant by a dual system in franchise product distribution?
6. Distinguish between sales promotion and mass advertising. How might the distinction be
made in franchise retailing compared with franchise wholesaling?
7. It is said that products have "psychological" attributes. Explain.
8. Explain the potential conflicts between the franchise's decisions about customer
orientation and resource allocation.
9. Discuss innovation in terms of its role in franchise product and service delivery.

Extracted from Judd RJ, Justis RT (2008), Franchising An Entrepreneurs Guide, 4e, Thomson, p.165-166

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