In this FDD Talk 2016 post, you’ll learn the following:
- Section I – Background information on the MidiCi Neapolitan Pizza franchise opportunity, including relevant news updates
- Section II – Estimated initial investment for a MidiCi Neapolitan Pizza franchise, based on Item 7 of the company’s 2016 FDD
- Section III – Presentation and analysis of MidiCi Neapolitan Pizza’s financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
- actual total gross sales for the one company-owned MidiCi Restaurant located in Los Angeles County, California and operated by the franchisor’s affiliate, MidiCi LLC, during the Measurement Period (the 29-week period from June 13, 2015 through December 31, 2015)
- actual gross sales for the company-owned Restaurant during each week beginning on June 15, 2015 and ending on January 3, 2016
- actual gross sales for the company-owned Restaurant during each calendar month during the Measurement Period
- percentage that the gross sales for each day of the week represent, on average, of the total weekly gross sales of the company-owned Restaurant during the Measurement Period
- percentage that the gross sales for each hour of the day represent, on average, of the total daily gross sales of the company-owned Restaurant during the Measurement Period
- cost of goods sold percentage for each menu category at the company-owned Restaurant during the Measurement Period
- percentage that each menu category represented of total product sales to guests at the company-owned Restaurant during the Measurement Period
Section I – Background Information
Amit Kleinberger is the CEO of a successful frozen yogurt franchise called Menchie’s, which under his leadership expanded from one location in 2008 (he was 27 years old at the time) to more than 359 in the U.S. and another 137 in 15 different countries around the world. Part of what makes Menchie’s different is its emphasis on the social aspect of people coming in for frozen yogurt.
When Amit visited Naples, he fell in love with the whole concept of Neapolitan pizza. He decided to create a new restaurant concept that would combine Neapolitan pizza with an emphasis on friendship in a hybrid of fast-casual and fine dining – you could maybe call it upscale fast-casual.
He spent a couple years refining the concept and then started building the first location in Sherman Oaks, California. It was supposed to open in February 2015, and then April, and then May, and did finally open in June. A second location will soon be open in Columbia, Missouri.
Here’s how MidiCi keeps things hot in the fast-casual pizza segment:
Gotta Have a Gimmick
There’s no shortage of newcomers in the fast-casual custom pizza segment, and they’re all trying to figure out their unique twist. MidiCi has a combo of things. First is the Neapolitan pizza niche (more on that in a minute), second is the upscale take although the prices are still reasonable, and third is its emphasis on bringing friends together.
This is captured even in the name – MidiCi (mee-dee-chee) in Italian means “You tell me!” It serves a dual purpose of pointing towards its build-your-own customized approach to its pies, and its mission to bring friends together.
There’s still only one location, with a second about to open, but MidiCi’s website lists no fewer than 278 locations “coming soon” in 29 different states and Canada. There may be something to be said here about counting chickens before they’re hatched, but considering what Kleinberger did with Menchie’s, he may just pull it off.
The Naples Connection
What exactly is Neapolitan pizza anyways? The Italians invented it 300 years ago, and its ingredients and method of preparation is protected by the Italian legislature.
The dough must contain only four ingredients: flour (zero or double zero), water, sea salt, and live brewer’s yeast. After rising, the dough must be stretched by hand (no rolling pins or other help) and then baked for 60-90 seconds in a wood-fired stone oven maintaining at 905°F or more.
Classic variations of Neapolitan pizzas include the Marinara (tomato, garlic, oregano, and extra virgin olive oil), the Margherita (tomato, sliced mozzarella, basil, and extra virgin olive oil), and the Margherita extra (tomato, mozzarella from Campania in fillets, basil, and extra virgin olive oil).
Everything used at MidiCi is non-GMO (genetically modified organisms). Period. Kleinberger believes that’s what most people want these days. Well, at least in California.
Section II – Estimated Costs
- Please click here for detailed estimates of MidiCi Neapolitan Pizza franchise costs, based on Item 7 of the company’s 2016 FDD.