 Committed to staying true to its classic pitas, Pita Pit rarely adapts to consumer fads. Instead, it remains on the lookout for patterns within the industry itself. Taking on new challenges and ventures has always been somewhat of a hobby for Pita Pit USA CEO Jack Riggs, M.D. Originally an E.R. doctor in Coeur d'Alene, Idaho, Riggs says he opened the region's first urgent-care center in the mid-1980s to address expensive and crowded hospital emergency rooms.
"I developed several more immediate-care centers in nearby areas and, basically, evolved into more of a businessman, rather than the typical emergency room doctor," Riggs explains.
Soon after finding success in this venture, Riggs was drawn into the debate regarding state healthcare issues and was inspired to become more politically involved. In 1996, Riggs was elected to the Idaho State Senate, and served three terms before being appointed lieutenant governor of Idaho.
After leaving office, Riggs says he started looking for ways to spend his free time. His son Peter and son-in-law Paul had both just graduated from college, and were working with the owners of the Canada-based Pita Pit Ltd. to open the franchise's fifth California location at the University of California, Santa Barbara.
Familiar with Pita Pits at the University of Idaho, home to the second Pita Pit in the United States, Riggs was already impressed with the concept's high-quality, healthy food. "I immediately recognized this product as something with great potential," Riggs asserts. "I really thought The Pita Pit had a future. I started helping my son and son-in-law with their location in Santa Barbara and suggested the idea of talking to the owners about operating a larger area.
"Surprisingly, the owners asked if we wanted to buy the entire U.S. company. Nine months later, we had developed a group of investors who were interested in the venture, and the deal was finalized."
History of Success The original Canadian company was founded in 1995 in Kingston, Ontario, by two young restaurateurs, John Sotiriadis and Nelson Lang. The concept was originally geared to college students seeking healthy alternatives to the typical fast-food restaurant. They began franchising in Canada in 1997 and created the U.S. company in 1999, Riggs notes.
In addition to the typical lunch and dinner crowds of families and young professionals, the companies in both countries cater to their young clientele's late-night cravings. Today, many of the locations remain open until 3 a.m.
With more than 120 existing U.S. shops and 235 total Pita Pit locations throughout North America—and 53 more in development in the United States—The Pita Pit continues to appeal to customers who are looking for healthy, convenient meals on-the-go.
"To me, when I look at this menu, I see something that is much healthier than most other traditional fast-food restaurants," Riggs explains. "Our menu offerings are much fresher and lower in carbohydrates than many other restaurants out there. As a doctor, I like the concept, because I know the food is good for people. As a customer, I know it also tastes great."
Smooth Transitions Riggs took over the U.S. operation with a clear vision in mind. "My goal, which was shared with the people involved in the new management team, was to lay the foundation for future growth," he explains. "We already knew we had a great product, so we didn't want to make any drastic changes. We truly believe that the more people that are exposed to the Pita Pit, the more they will want it. We're certainly seeing proof that this is true after only 22 months of ownership."
From the beginning, the U.S. team worked to strengthen the company's franchise program, streamlining the entire process to increase efficiency, Riggs explains. "The goal from the start was to create a system where we could adequately perform site selection and process the legal documents and paperwork in a more efficient way," he explains. "We weren't trying to reinvent the wheel. We were just trying to implement a solid, but simple, system."
In the past, the company did not have a formal development program or selection process for potential franchisees. "Typically, in the past when someone contacted the company with interest in opening a Pita Pit, the company would quickly respond and start interacting with them," Riggs explains. "But they didn't have an official system in writing.
"After taking over in 2005, we focused for quite a while on writing down the process that was already in people's heads. We created a franchise development manual, which details the process that potential franchisees will go through to open a Pita Pit," he continues. "It shows them key strategies of how to finance the operation, and outlines the steps the owner goes through before, during and after the opening. Now, with the franchise development system in place, the company itself is also able to begin opening corporate-owned locations."
Pride in Products Riggs says today's consumers are on the lookout for wholesome, convenient food that tastes good. "The attitude across the country is moving more toward healthier food," Riggs asserts. "Our timing is great, in that respect, because we specialize in high-quality, very tasty lower-fat alternatives to traditional fast-food restaurants.
"And what makes us different from traditional sandwich shops is that normally, in those restaurants, customers would receive a lot of bread with a small amount of filling," Riggs continues. "But with our pitas, it's just the opposite—customers receive more of the healthier ingredients instead of mostly bread."
In addition, Pita Pit emphasizes freshness and quality in its ingredients. "We don't grill the meat until the customer has ordered," Riggs explains. "By the time the customer has finished selecting their fresh vegetable fillings and sauce toppings, we have meat hot-off-the-grill that's ready to be added to the pita."
Each franchise owner is encouraged to appeal to regional tastes of their customers by having the option to develop his or her their own special pita. "This is called The Local," Riggs says. "If a franchisee or employee develops a great new recipe, we're open to adding it to the national menu.
"Additionally, at most locations, we offer fresh salads, soups, breakfast pitas served all day long, wheat or white pitas, and fresh-fruit smoothies—all available with catering and delivery options."
Quality Control The company operates an evaluation system designed to maintain quality throughout all locations. "We have a 500-point grid that serves as a main part of our evaluation system," Riggs explains. "We have staff support members from our corporate office that travel and spend at least a half-day with each franchisee every six months, going over these points, and examining how the store looks and is operating.
"Various aspects of the test are graded and, if the store is doing very well, we won't be back for another inspection for six months. If there are any major issues, however, we'll cut that time in half to make sure our list of issues are either improved or changed on a timely basis. Our main goal overall is to help franchisees be successful."
According to Riggs, the company is looking to maintain steady, controlled growth by working with talented people. "We're not looking to open 5,000 locations right away," he says. "We only want to work with high-quality franchisees and corporate staff. We truly feel that if we have the right people in place, we all will be successful in the end. We know that our product is simply better than our competitors' because it's a unique combination of something that's good for you that also tastes great. I believe that alone is our most significant competitive advantage."
Committed to staying true to its classic pitas, the company rarely adapts to consumer fads. Instead, it remains on the lookout for patterns within the industry itself. "Industry trends that we've noticed recently include an increased interest in our market," Riggs says. "There have been many traditional fast-food or sub sandwich shops out there that have been adding wraps to their menus. They've been looking into our market because they see that there's an advantage of being in our position. They are recognizing that this is the direction the public is moving."
A Strong Focus Pita Pit's focus on maintaining a quality operation will drive its success into the future, Riggs says. "My philosophy from the beginning has been to stay focused and try not to be distracted by what our competitors are doing," he explains. "I don't want to ever be taken off course by what's happening with our competition, but at the same time, [we need to be] sensitive to the needs of the consumer. I believe these strategies and this commitment is why we are growing rapidly today." The company has found success with its original business model of opening locations in college towns, but is also expanding its customer base.
"We've found that Pita Pits are also popular in downtown business areas and neighborhoods alike," according to Riggs. "We think our food has a broad appeal, so we continue to look outside the college market and into just about every other segment. "The interesting thing about our food is that it can be eaten while customers are sitting down or on the way out the door, because the product is tightly wrapped," Riggs continues. "There's a creativity and flexibility to our product that consumers really like."
Cornerstone of Success According to Riggs, the company has reached its level of success only by the dedication and commitment of its employees. With no previous restaurant experience, he relied on key players in the company to help grow the U.S. operation.
"One of the original co-founders, Nelson Lang, essentially sold his part of the Canadian business to his partner to come help grow the U.S. company," Riggs explains. "His experience was key because he already knew the existing franchisees when we took over in the U.S. market. He made the transition much smoother than it might have been."
The company strives to enlist only the most talented and successful franchisees, and does so by requiring each new owner to attend an in-depth 10-day training program, which includes a combination of classroom and hands-on training at one of the busiest locations in the country. Located in Coeur d' Alene, Idaho, the Pita Pit National Training Center has just undergone a major renovation as it expands to accommodate the growing company, Riggs says. "Training is free to all franchisees, and they are welcome to come back at any time for additional training, as well," he says. "We also send an operational support specialist to each new location for at least five days during the store opening to help train the on-site staff.
"Cultivating franchisees and corporate staff for the greatest success possible is more important than simple numerical growth," Riggs notes. "My real vision has less to do with numbers of locations and more to do with quality. In the future, I want us to be able to maintain the great reputation of Pita Pit USA. It's my goal to make sure every customer that comes into a Pita Pit has a positive experience. "I want them to say, 'The food was great, the staff was friendly, and I will definitely return in the future.'" |