10/23/2019 Facilitator October/November 2019 Pizza Prevails Sherleen Mahoney

Washington state is home to one of the largest franchises

One of the largest Pizza Hut franchisees in the country operates 100 Pizza Huts in , Idaho and Oregon. Based in Mukilteo, Wash., the group operates under three different franchise entities: Columbia Basin Pizza Hut, Emerald City Pizza and Spokane Valley Pizza. It has been operating Pizza Hut and delivery/carryout locations for nearly 40 years.

CEO Terry Hopkins has always believed that although the Pizza Hut brand is one of the most recognizable names in the world, it is the connection to the local communities that sets them apart from other brands.

“Our franchise agreements are under different legal names, but our customers know us as Pizza Hut, and the reputation and importance of providing hot, fast and reliable service to each community is what sets us apart from the competition,” he said.

Mr. Hopkins champions the Pizza Hut brand by ensuring his stores create delightful and consistent guest experiences.

“We have a great product that is universally loved by our customers,” he said. “We augment that by running the best restaurants possible. Having our customers know they can count on us is the key ingredient to our longevity and success over the last 40 years. In this business, you have to be better every day.”

Modernizing Assets

Pizza Hut today is about delivery and carryout. The company still maintains its legacy dine-in restaurants and operates a number of them. America grew up with traditional dine-in restaurants since 1958, but today’s customer has a strong appetite for quick and easy access to products that fit their changing lifestyles. The focus on delivery and carryout reflects a changing customer expectation.

“Our dine-in assets were designed exclusively around the dinein occasion, and not focused on delivery and carryout,” said Kevin Falconer, Director of Design and Construction at Pizza Hut. “The dine-in industry has migrated to the fast-casual experience, in which guests can enjoy reasonably priced, high-quality food in a timely manner, where they control the timing and experience instead of relying on a server.”

The DBR and FCD concepts satisfy the tripartite mission of delivery, carryout and fast-casual dine-in experiences.

“Pizza Hut is part of the collective memory for many people,” Mr. Hopkins said. “However, our customers have changed how they enjoy our product over the years. Today, we are more pressed for time, and pizza has become an everyday choice. We need to be where and when our customers need us. Home delivery and drive-up windows fit today’s consumer needs. The onlinedigitalpublishing.com/publication/frame.php?i=627323&p=&pn=&ver=html5 1/6 10/23/2019 Facilitator October/November 2019 technology factor is huge and having the ability to order on your phone and have it ready when you arrive or delivered quickly to your door is mandatory in today’s world. We have an increasing portfolio of modern assets that are designed to meet the needs of customers in a variety of markets. The DBRs and FCDs are part of the evolution of our brand.”

The DBR concept was created first. It is larger, measuring between 2,400–3,000 square feet with 50-80 seats. The concept emphasizes delivery, rather than dine-in. There’s a dining room but not a full-service wait staff. Instead, guests place orders for pizzas, pasta, wings, salads and desserts at the counter. With the open kitchen, orders are prepared in full guest view. Top-of-the-line quick-cook ovens bake 9-inch pizzas in five minutes. The oven setting can be lowered for delivery and carryout orders of large and pan pizzas. There’s also a bar area with several TVs and beers on tap. For guests on the go, there is a drive-through pickup window. Guests can also place carryout orders through an app, which tracks their orders and notifies them when their pizza is ready for pickup.

Corporate soon realized the large DBR size limited its development and created the FCD, a smaller, less complex concept. The FCD has less than 50 seats, does not have a bar, offers a smaller menu and uses disposable tableware.

“The FCD has proven to be a very compelling asset model because of its affordability and size,” Falconer said. “For those franchisees who are transitioning out of older, dine-in assets, the DBR and FCD models provide an excellent bridge for their migration to a delivery-focused fleet to ensure we are always hot, fast and reliable.”

“Many people don’t consider pizza for lunch because it can take 15 minutes to bake, but the DBR and FCD concepts change that,” added Terri Hurst from Maguire Marketing.

“The design of the DBR/FCD ensures the restaurant can efficiently and effectively serve delivery and carryout customers while creating a modern, fast and relevant experience for our guests who came to dine-in or carryout,” Falconer said. “The result was a streamlined, highly efficient design that showcased the kitchen—specifically the make table, oven and cut area—and provided a flexible and welcoming customer area.”

After reviewing the Washington-based project requests, viability, demographics and capabilities, the parent company determined the group was a perfect partner to launch a number of new and updated locations. The locally owned franchise group operates three DBR/FCDs that were built within the last 18 months.

“Our Washington franchise partner has been a long-time leader in working with us to pilot and test new concepts and prototypes as we work toward constantly improving our guest experience,” Falconer said. “They are always eager to step forward and work alongside us to create something new and improved.”

“Only a handful of franchises have DBRs and FCDs,” said Robert Hernandez, the Facility Manager who is responsible for all 100 locations. “Our DBRs and FCDs have been very well received by our customers, and we look forward to adding more.”

onlinedigitalpublishing.com/publication/frame.php?i=627323&p=&pn=&ver=html5 2/6 10/23/2019 Facilitator October/November 2019 Hernandez is part of a two-person facility team that includes Director of Facilities and Construction, Chuck Henderson.

Henderson finds properties and negotiates lease terms for new locations and manages new construction. Once the stores are built and open, Henderson hands the reins to Hernandez, who manages repairs/ maintenance and remodels.

All the stores and vendors are connected to Corrigo, which helps Hernandez manage so many locations. Hernandez, who spends 40 percent of his time in the field, also oversees the vendors and provides restaurant manager training, which involves teaching the managers how to use Corrigo, reviewing major equipment and components with them, and setting the maintenance and brand expectations.

“I train the trainers so they can teach their teams how to manage their stores,” Hernandez said.

A RFMA member for three years, Hernandez says the organization serves as an integral part of his success.

“I keep all of the Facilitator magazines handy for reference as I often look through them for guidance and recommendations for new vendors and products,” he said. “RFMA has also helped me immensely with the networking that comes with membership, both on the website and at the annual conferences.”

“The best thing about our company is our people. It sounds cliché, but it’s true,” Mr. Hopkins said. “Chuck brings a vast amount of experience and knowledge to the business. He is detailed, thorough and sets a great example. Robert is someone who always finds a way to get it done— no matter what the situation is. He is tremendously organized, tireless and supportive of our restaurants. Like many of our folks, he is also the first to step up to help someone else. I am always proud of having Chuck and Robert represent us because they reflect the culture we value here.”

PRIMETIME PIZZA

Pizza Hut has been named the new sponsor of the NFL.

“We know many of our fans enjoy pizza while watching NFL games and we are thrilled to have Pizza Hut, an industry leader and one of America’s favorite brands, as an official league sponsor,” NFL Commissioner Roger Goodell said a statement. “With a focus on family, friends and fun, Pizza Hut has the creativity we are looking for in a partner and we look forward to working together with them to make the at-home NFL experience more exciting than ever for our fans.”

The sponsorship also means the local franchise group works closely with the Seahawks to provide a variety of fun and interactive experiences that include player appearances and game tickets that build on the power of both the NFL and Pizza Hut. Part of those experiences has included the availability of Pizza Hut pizza at the last two Seahawks training camps.

“We’re part of an American tradition that goes hand-in-hand with pizza,” Hernandez said. “Not every franchisee or corporate-owned store gets to work with an NFL team. We are lucky enough to be one of four franchisees to be associated with an NFL team.” onlinedigitalpublishing.com/publication/frame.php?i=627323&p=&pn=&ver=html5 3/6 10/23/2019 Facilitator October/November 2019 During the NFL season, the Washington stores are offering three promotions. The Lockett-Up Deal includes two medium three-topping or specialty pizzas and 12 traditional or 16 boneout wings for $29.99. Another deal offers the 12s (what the Seahawks calls their fans) a three-topping pizza for $12.99, and every time the Seahawks score two or more passing touchdowns in a game, the fans receive free Cinnabon Mini Rolls with a $12 Pizza Hut purchase.

“We’re 2-0 so we’ve been giving away Cinnabons, but it’s all good!” Hernandez said.

“Being associated with the NFL presents a lot of different ways for us to interact with our customers,” Mr. Hopkins said. “Pizza and football are natural companions. They combine the excitement of rooting for your favorite team with the importance of sharing the experience with family and friends. It’s an honor to play a role in that experience with our customers and team members.”

IN THE COMMUNITY

The Washington state Pizza Huts receive daily calls asking for pizza donations for various charitable causes.

“While we frequently say yes to people who reach out to us, it felt random,” said Pam Hopkins, Connections Committee Chair/ Spotlight Editor. “We formed a Connections Committee to pick a non-profit organization and focus our energy behind it.”

Mrs. Hopkins has led the involvement with Treehouse, a nonprofit that provides academic and other essential support for more than 7,000 youth in foster care across Washington state each year. She has coordinated holiday toy drives and volunteer days that allow Pizza Hut team members to connect directly with the communities in which their store is located. Additionally, as a childhood family therapist for 35 years, she has a special place in her heart for foster kids and parents.

The committee decided to make Treehouse its main charitable focus in 2013.

Pizza Hut continues hosting Treehouse toy drives, coordinating volunteers for the donation warehouse/store, donating pizzas and offering job readiness training at career fairs for teenagers. Each February, the stores launch the Have a Heart for Foster Kids campaign. Guests are asked to donate $1 for a paper heart that displays their name and donation, which is posted in the stores. Since 2013, the stores have raised $50,000 for Treehouse. The organization has recognized the partnership with a wooden pizza paddle that features both logos. The paddle is proudly displayed at the franchise office in Mukilteo, Wash.

“Treehouse is a wonderful organization,” Mrs. Hopkins said. “We operate in the same footprint. They serve the entire state and so do we. We receive lovely handwritten thank-you notes for the smallest things we do for them.”

Emerald City, Columbia Basin and Spokane Valley Pizza also participate in Pizza Hut’s BOOK IT! program that motivates children grades K–6 to read by rewarding their reading accomplishments with praise, recognition and pizza. From October to March, teachers set a reading goal for each student. When they meet their monthly goal, the teachers recognize them with a reading award certificate, good for a free one-topping personal pan pizza. onlinedigitalpublishing.com/publication/frame.php?i=627323&p=&pn=&ver=html5 4/6 10/23/2019 Facilitator October/November 2019 In Washington state, approximately 1,400 classrooms, which include public, private and home schools, are enrolled in the 2019- 2020 BOOK IT! program.

Last year, Seahawk Tyler Lockett appeared at Destiny Middle School in Tacoma, Wash., and West Seattle Elementary to lend his support to the program.

During the holidays, Columbia Basin hosts “A Day of Giving,” in which local restaurants donate more than 200 pizzas to local first responders, hospitals and shelters. It’s a way to give back to the local Yakima community and say thank you to area residents, civil servants and first responders.

“I think we all like to think of ourselves as good neighbors,” Mr. Hopkins said. “We have a platform to articulate those values. Our team members have donated many hours to Treehouse and other organizations because they want to be a positive force in their communities, and we are happy to provide time and effort to making that happen. I think our customers want to see corporations look for ways to give back, and we are proud to do it.”

The Washington franchise group also offers many opportunities to support and recognize its employees.

The companies organize an annual summer picnic. Seahawk Sean Locklear attended the picnic this summer as a special treat for the employees. Each franchise also hosts an annual awards ceremony to recognize outstanding employees. One of the awards is membership into the ABR Club, comprised of top-performing restaurant managers. The winners receive recognition and an all-expense-paid trip with their spouse to Las Vegas. Lastly, Team Fridays is a program that raises funds for employees during times of need. Team members can wear their favorite sports teams’ logos on Fridays and over the weekend if they contribute $1 to the fund. The company matches the contributions and allocates funds to employees who have fallen on hard times.

“We really care about the people who work for us, too,” Mrs. Hopkins said. “There’s a lot of people here with longevity. It’s a tough job, and I’m really proud of the people who work so hard for us.”

“We attract people who enjoy taking care of our customers as if they were family,” Mr. Hopkins added. “Together, we have navigated downturns and upswings. We learn with each experience and never take for granted the privilege we have been given.“

FORTY YEARS AND COUNTING

Mr. Hopkins and his wife, Pam, met at Walla Walla College when he was 21 and she was 18. They both also worked at the same Pizza Hut store. They dated, fell in love and married. After Mr. Hopkins graduated, the six Pizza Hut stores in eastern Washington were purchased by a franchisee who offered him a stake in the company if he agreed to stay on. He agreed and was soon promoted to area coach, director of operations and CEO. He has also been involved in numerous committees and various other franchise associations. This year, Mr. Hopkins was inducted into the International Pizza Hut Franchise Holders Association Hall of Fame. He has worked with Pizza Hut for 40 years. He and his business partners all live and work in the communities where they own and operate Pizza Huts. onlinedigitalpublishing.com/publication/frame.php?i=627323&p=&pn=&ver=html5 5/6 10/23/2019 Facilitator October/November 2019 “The majority of our ownership group is active in the business” Mr. Hopkins said. “I enjoy the teamwork and the challenge of the restaurant business. It is an exciting job, and I like the adrenalin push of working busy nights and organizing people toward a common goal. As time went by, there was something to learn about the broader aspects of the business. I enjoy challenging myself to learn new things and have never felt bored in whatever position I’ve occupied.”

“Terry moved to Walla Walla from Colorado, got a job, met a girl, and he still has the job and still has the girl,” Mrs. Hopkins proudly added.

CFO John Nguyen leads the finance and development duties; Eric Hughes heads the human resources department; and Joe Kerns is the Director of Restaurant Operations.

“There is no way this business is as successful as it is without partners like this,” Mr. Hopkins said. “We are not only partners, but the friendship and trust we share is the backbone of our success.

Personal success aside, Mr. Hopkins is most proud of the friendships he has made throughout his career. And like all great leaders, he’s passionate about developing the emerging leaders around him.

“We have an iconic American brand, and it’s fun to associate yourself with something like that, but the most valuable things I’ve experienced is the partnership and teamwork,” he said. “I have met my best friends in life while working with this brand, and I have seen many of our people further their careers, raise families and enjoy their own success. I enjoy seeing the opportunities I’ve received be repeated for others who have worked for our companies.”

Sherleen Mahoney is a staff writer for Facilitator.

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