Donatos takes off with inovation
Plant-based pizza, franchising, carryout trend propel the company despite global pandemic
Despite battling a global pandemic, record worker shortages, and an employee-driven labor market, Donatos plans to extend recent growth, tripling the size of the company in the next five to seven years.
Donatos CEO Tom Krouse contributes the growth to a number of successes, including an increase in the number of Donatos locations and a significant increase in average sales per restaurant as more diners opted for carryout and delivery during the pandemic.
“In 2019, we averaged about $1 million in sales per location. And just last year, we averaged $1.3 million, so that's a 30% increase,” Krouse said. The company also has grown 195 traditional locations and Red Robin locations in 13 states in 2019 to 380 total locations in 22 states today.
What's driven that, he said, is innovation on the Donatos menu, including plant-based items like the cauliflower crust, which is now the company's second most popular crust; plant-based sausage and pepperoni; and plant-based desserts.
And franchising with Donatos has become particularly attractive for potential franchisees.
“We've got a brand platform ...that is very simple to operate, and so it's become really attractive to franchise,” he said. “So we've had more interest from potential franchisees just in the past six months to a year than we've ever had in our 59-year history.”
The Donatos-red Robin partnership
Of course, Donatos is looking to continue its recent success and wants to do so by expanding its nontraditional partnerships.
Starting in 2018, its partnership with Red Robin brings a category extension to the Colorado-based casual dining restaurant. Krouse said the pizza company will increase its presence to another 50 to 100 locations with Red Robin, and is also looking to expand with ghost kitchens, in partnership with Miami-based ghost kitchen startup Reef Technology.
See DONATOS, Page 18A “The pizza industry has never been stronger, and I am so excited about that. Today’s customer is searching for great-tasting meal solutions at home, and pizza is the perfect meal for that. The growth prospects for this brand including our partnership with Red Robin and Reef kitchens as well as building traditional stores has also never been brighter.”
Kevin King Donato’s president