In the presence of Domino’s and Pizza Hut, can anyone create their own desi pizza chain? Yes, Brother One can create it, and it was created by a man who had absolutely no experience in the food industry, and that too without taking any money from investors. It is created like this.

Lapinoz Pizza Case Study: Know the success story of this popular Italian pizza brand 2024

It is India’s fastest-growing pizza chain. It has a turnover of Rs. 1000 crore. Has more than 600 stores and comes 3rd after Domino’s and Pizza Hut. It has done all this work in just 12 years. When Zudio grows very fast, then, as we usually say, it is Tata Group. They are big people. They must have done this. However, when a common man grows so fast and achieves turnover, I enjoy doing such case studies. So today, let’s hear, How does a common man, despite having Domino’s and Pizza Hut, make a separate name for himself? And after this case study, you have to analyze yourself.

Can you also enter the fight against a big brand and win? Is this growth scope limited to the food business? Or in any business, can business be expanded so fast? So, if you are doing business and want to do it and want to learn the lessons of business and management, then this video is for you. Are you ready? What does the public say?

History of LA Pino’z Pizza

The story starts in 2011, and the hero of the story is Sanam Kapoor. He was working at HCL. He was an IT guy. It was an IT company. Everything was going well. However, there is a bug in doing business normally among the people. Like, we will do business. We will do business. It is more common among corporate people.

They sit every Friday night and make a plan that, by doing something like this this weekend, they will leave the company. And then, brother, we will make our own company. However, that worm of entrepreneurship goes back on Sunday night, and they join on Monday. However, his worm of entrepreneurship remained alive, and he started his own company separately. Now, he has decided to do his own work and left the company.

However, I couldn’t understand what to do. So, he said, When you can’t understand anything, do that thing in which you are an expert or in which you have an interest. So, he said that he does not have expertise but has an interest in “food.” We will start a business related to o food. Hence, in the year 2011, he took a small space of 120 square feet in Chandigarh and opened his first pizza store.

He named it “Pinocchio Pizza,” and like everyone else in the beginning, he was self-employed and did all the work by himself. From making the pizza recipe to managing the bills of the customers, from managing the money to marketing, he does all the work by himself. Remember, we are talking about the 2011 year.

2011 was that era when pizza was not available everywhere. Pizza was a high-class commodity. It was available only in five-star hotels. And that too, at such a price point, that it was beyond the reach of the common man. Apart from the pizza chains available in the market, i.e., Domino’s and Pizza Hut, it was such an international chain, and they had a complete market. Domino’s was sitting alone with 54% shares, and if you combine Pizza Hut and Papa John’s, they were sitting together, covering 80–90% of the area. At that time, people did not have much income.

They did not spend too much money, and they stayed away from expensive things. This founder did not even have any experience. So, how could he go to anyone to ask for an investment? When he goes to ask an investor, the investor says (possibly) that neither he has the experience nor the market. So, brother, they didn’t even ask for it, and they didn’t get it either. So, he started the business with his own money. Now, brother, one thing that people ask me again and again, is: What business should I do? What should I do? Wow, should I do it? I give the same advice to everyone.

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If you want to start a business, and if you want to win over the competition, you should have three things in your product. Either it should be first, or it should be best, or it should be different.

 Either you should bring something that no one has brought, or if someone has brought it, make it like this; no one else makes it, or else make something different. So, what did he do? He worked on the same concept. He said, “The world is selling pizzas.”  I will also sell the same pizzas. What is the difference then? So, if I sell it similarly to everyone, the world will eat Dominos for sure.

Then what has he done? A new concept that was seen in Western countries There, you do not get a full pizza or a round pizza. If you order, you will get only a big slice of pizza. There was no such concept in India. He said that he would give huge slices of pizza. Hence, he changed the name of his company.

From Pinocchio’s Pizza to Lapino’z Lapino’z, meaning in Italian, “Giant Pizza,” Hence, the first difference they made from the rest is this: The second difference is that they said that whether you go to Five Star or Domino’s, all the flavors available are foreign. There is nothing like the flavour of India. So, they started giving it an it an Indian flavour. Now, if you go and check the menu at Lapino’z There is Paneer Makhani Pizza, Paneer Korma Pizza, and Paneer Butter Masala Pizza. One I too found interesting during my research was Makhani Do Pyaza Pizza. So, the first difference is big pizza pieces. The second difference is Desi Indian Tadka.

Then, slowly, with time, they made more innovations, and they have started offering large and extra-large pizzas too. So, there is an option at Lapino’s. Where you order a large pizza, and each slice of pizza has different toppings, On the basis of these innovations, it made a different name in the market, and there was a struggle in the initial phase.

 However, its first store became profitable. He said that it is profitable. However, there are fewer people in Chandigarh. If I want more space, then, brother, he went to Mohali and opened another branch, and the same concept became very popular there too.

Lapino’z  Turning point And Franchise Model

Then, when did the turning point in his life come? When one of his customers came to him and asked him, Brother, you make wonderful pizzas. Will you give me a franchise? He said, “Brother, why not?” Now, let’s pause this story and listen to one important thing: You have made a wonderful product, your brand has been created, and your process is all set.

 However, if you want to move it forward quickly, then the best and most effective way is to give franchises. What happens in the franchise model? You give the right to use that product and that brand to the other person, and the other person earns some money based on that and gives you money in the form of royalty.

It is the best way to increase business rapidly. Although it is seen a lot in the food space, whether it is Domino’s, whether it is McDonald’s, whether it is your Lapino’z or your Burger Singh, However, it can be applied in every area. Like Manyavar did this, Zudio did this. Now, what are the benefits of giving franchises? Let me tell you: The first advantage is rapid expansion.

You go to open a shop yourself. If I open one shop, then the CAPEX is in it: first seeing the shop, then liking it, fitting the machine in it, making it from inside, and then putting the product in. So much investment, so much team Their salary, rent, brother, you will get worried. And when you come to give a franchise, you can distribute the franchise to 10 people in a month; you can even distribute a franchise to 100 people in a year. So, the expansion happens very fast.

 Second, the local market knowledge I am a person from Jaipur, and I am thinking of opening a shop in Delhi. I don’t know the market in Delhi. I don’t know the audience in Delhi; I don’t know their taste. So, brother, I don’t know whether I will be successful or not.

 However, if I tell a local person in Delhi to open a franchise, he has information about it. He also has connections in the market, and if he knows as well, he will be able to run the Delhi store better than me. The third benefit The cost is less. Now, if I have one shop and I am making goods for that, I have to make goods for 10 franchises.

 So, the more capacity I have, the cheaper it will be for me. Plus, first I do marketing. One shop gets the benefit; I have 10 shops. So, the budget for marketing is the same. However, brother, the profit is distributed in 10 places. And fourthly, brand loyalty increases. When in every street and corner of every city, your brand boards start appearing The world starts connecting with you.

 Then, you get more benefits. So, what is a franchise? To whom should it be given, when should it be given, what are its types, and who should take it? What are the cons? On this issue, I will either Write Blog or,  if I have your permission, I will make a full course on it. Whether it should be given or not, and to whom should it be given? If you like, then tell me in the comment box.

Change Franchise Model

I will see if there is a response in that market or not. Now, brother, after two stores, he started Deni Chalu franchise but also made a little twist in the franchise, like they made a twist in their pizza and also made a twist in the way of giving franchise Normally, whenever international companies give franchises, what do they do? They hire a professional company.

 Dominos is a U.S. company; however, when it came to India, they partnered with Jubilant. That brother, look, you are a professional company; I will give you the right to give further franchises.

Like, when McDonald’s came to India, they talked with Westlife FoodWorld. Like, you give the franchise They said that if I go through a professional operator, I don’t know how it will happen. So, he said that I will give the franchise to a local person.

 So, if they went to Gujarat, they would give it to a local person from Gujarat. So, he will be able to understand that region in a better way. For example, let me tell you what happens many times: When big companies give franchises, there are strict norms for everything. Like, what to do? When should I do it? How do I do it? It is completely written down. They gave a little freedom.

 For example, if Subway is launched in Gujarat, then it’s a vegetarian menu and a non-vegetarian menu. Both will be given They are the same product. However, if La Pino’z said that, brother, there are some restaurants in Gujarat that say that we will not eat non-vegetarian So, pure vegetable-only Lapinoz has also been launched there.

One more interesting thing I came to know in my research is that they have introduced a pizza called “Jain Pizza,” “Without Onion,”  “Without Garlic,” and “Without Mushroom.” Now, what was its benefit? They said since we launched Jain Pizza Pizza is a food of youth or children’s. However, since the time we launched Jain Pizza, even elders have come to us to eat pizza. Like, let’s see what the new thing is. We were not eating for that reason.

However, now it is Jain Pizza, and so we will eat. They have done one smart thing by giving franchises. Normally, what happens? Like, Assume For example, I am Rahul Madam. I am sitting in Jaipur, and I have to give a franchise all over India. Then, I came to know that it is given as one from Delhi, one from Bombay, and one from Hyderabad. My franchise is in three cities; however, I am finding it difficult to handle it. They said no, he gets hold of one area first.

They gave 10-15 franchises there, and when they felt that everything was set now, they gave it to the second area, and then to the third area. Hence, their operation and logistics costs were saved a lot, and they saved a lot in management control. Let me tell you their franchise trajectories. In 2013, they gave their first franchise By 2015, they had 50 franchises in just 2 years.

After that, in 2017, it took a total of 4 years to reach 100 franchises. However, after that, the next 100 franchises came in 2 years: ‘2019: 200 franchises’, ‘2021: 300 franchises’, ‘2023: 600 franchises’ And with this, they crossed the turnover of 1000 crores.

Revenue Distribution

My team was saying that, Sir Ji, Lapino’z is not such a big brand. You are doing a case study on it. You are right, the brand is not that big. However, you get to learn something from the brand. It becomes my duty to make that case study available to you. Now you will say, What is Lapino’z? like, “Lapino’z is a pizza company.” Then, where should its revenue come from? The money will come from selling pizza, right?

When the company gives franchises,  this ratio becomes a bit reversed, like what they used to do in the beginning. They gave franchises and used to say that they would take a royalty of 8% of the total sales. And you can use all the other products at your convenience.

 Tomatoes, potatoes, or whatever ingredients you have to use, Use according to your convenience. Just give me 8% as the royalty. However, in the case of the franchisee, what do franchisee owners say? Brother, we have to increase the margin. So, lower the quality of potatoes, lower the quality of tomatoes, and lower the quality of flour.

Watch Online Video: https://youtu.be/so03dfnUsc8?si=AlDiREcU13wvfZJQ

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