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Business As Usual

‘The business of pizza is not just about cooking and serving’

The Philippine Star

MANILA, Philippines - If there is one comfort food Filipinos seem to love apart from Nanay’s adobo, it would most likely be that staple of Italian cuisine – pizza. There’s just something about that mélange of pepperoni, mushrooms, cheese, peppers, tomatoes, and virtually a whole range of meats and vegetables, all nestled on a bed of delectable sauce, and topped with even more cheese. Served piping hot, it’s like biting into a pillow of scrumptious sunshine. And when enjoyed in the company of family and friends, pizza becomes the great equalizer, as diners can’t help but stay silent while busily chewing on each slice.

Now, when it comes to pizza, discriminating Pinoys can be seen braving the long lines just to sink their teeth into a slice of Sbarro.  And why not? After all, Sbarro serves authentic New York style Italian pizza, deep-dished and loaded with flavorful ingredients.

The restaurant was actually a spin-off of the salumeria, an Italian delicatessen, that Gennaro and Carmela Sbarro opened in Brooklyn in 1956 with their three sons Joseph, Mario, and Anthony. Immigrants from Naples, the Sbarro couple naturally shared their Italian culinary heritage with their newly adopted community in the US.

On the heels of this successful enterprise, Carmela “Mama” Sbarro opened the restaurant in 1967, highlighting pizza-making in an area where customers can enjoy watching its preparation.

Pampanga native Jaime “Jimmy” Salvador joined Sbarro in 1972, working alongside the original owners, imbibing their work ethic and business principles. Rising through the ranks, he eventually became Sbarro’s first area manager. In 1989, Salvador returned to the Philippines to establish the Sbarro brand, opening the first branch at the Annex in SM North Edsa by 1990.

Today, Sbarro delights pizza-craving Pinoys through their 45 branches nationwide. The Salvador family continues to be at the helm, making sure that Sbarro Philippines remains true to Mama Sbarro’s legacy: “The commitment to good food, fresh ingredients, excellent service and great value for money.”

Jimmy Salvador’s son, Fred, president of Supersalute Foods Corp., master franchise of Sbarro Philippines, knows why the restaurant is such a big hit in the country. “I think it’s because it’s authentic,” he declares. “Some people claim to be from New York, some people claim to be Italian based but they’re not.”

The man from New York knows whereof he speaks. He remembers how his father worked directly for the Sbarro family. In fact, their families were so close that Mr. and Mrs. Sbarro even wanted him to call them Grandpa and Grandma. Salvador adds: “And I would be ashamed if we let them down in this market, if we served a bad product. I’d really be disappointed. I think my Dad will come back and haunt me if we don’t try our best here.”

On his recent visit to the Philippines, Sbarro’s CEO and president J. David Karam spoke about the company’s pizza supremacy. He says: “Sbarro is the sixth largest pizza chain in the world, and so our focus is increasingly selling and communicating the superior quality of pizza to consumers in all of our members.”

Pizza picks

“At every one of our restaurants, we make the dough fresh every morning. We’re one of the only national restaurants with global pizza that uses 100 percent mozzarella cheese, the best cheese you can get, and shredded fresh every day. Nobody does that,” Karam says.

The local Pinoy market has embraced Sbarro’s pizzas with open arms, so much so that the Philippine franchise team was recognized as Franchise Partner of the Year at the recently concluded Sbarro franchise conference held in the US. This award was earned based upon “superior operational execution and a commitment to developing the brand with new stores and really penetrating the markets that they serve in.”

But not one to rest on his laurels, Salvador reveals: “So far this year, we’ve opened a record number of stores. We’ve opened 10 stores, and we plan to open five more before the end of the year. One of these will be a self-contained delivery unit which will be at the Sea Residences in Pasay (MOA).” 

Rounding the bend

After experiencing a brief period beset by tough challenges, Sbarro emerges with a revitalized vision, a direction that hinges on passion and creative innovation.  Looking at the glass half full, this short chapter in the company’s history paved the way for positive changes.

Karam details the progress that Sbarro is now experiencing after that momentary hiccup: “First, it has improved the balance sheet. The company has a very sound balance sheet and a very strong future, as it is now almost debt-free. Second, we increased the profitability dramatically by eliminating non-profitable stores. And third, by relocating our headquarters to Columbus, Ohio, which is rather a central hub for restaurant and retail companies, but with operational costs lower than the previous offices in New York, it allowed me to build a management team that has a lot of industry experience. And they can start to really put in place the strategies that will really position the brand for significant growth in the future.”

While this was happening in the US, Sbarro’s Filipino market was naturally concerned. But as the head office explained the situation properly, Salvador was able to address the issue. “A lot of guests would call the office,” he recalls. “But we assured them that this had nothing to do with us and that this will be over in a few months.”

“It was a tough chapter but we are glad we got through it quickly,” Karam reflects. “It was a very well planned filing and we are very fortunate that we have the support of our ownership, our franchise partners, as well as our vendors and landlords.”

Pizza with a passion

“Pizza is a very big category, nearly a 50 billion dollar category globally and the second biggest serving category in the industry,” Karam observes. “Sbarro has great credentials on pizza. We would like to tighten the focus a little bit and bring it to life. Think authentic New York style pizza and more.”

To accomplish this purpose and attract new generations of pizza lovers, Sbarro has developed a new logo design that is cleaner and more modern. The stores have also been reworked to be more open, allowing diners to watch how their pizza is made, and streamlining the flow of service. And of course, new products and flavors are in the pipeline, like the authentic Sicilian pizza, which is now available in the US, as well as the Philippines.

Karam reiterates: “We have a very broad menu, and it will not be reduced dramatically, but over time you will expect to see us continually emphasizing pizza. We also have great credibility in pasta and salad. In the US, we are not leaving the malls but we don’t want to be bound by the malls, so we’re developing off-mall stores and also delivery and carry-out business.”

The business of pizza is not just about cooking and serving. Success is anchored not only on food excellence, but also on the innate qualities of its people. Salvador emphasizes that, in this regard, Sbarro is about “developing people.” He says, “We hire them because we believe in them, we want them to succeed.”

Karam describes the Sbarro brand in three words: Passionate, quality, and pizza-focused. He elaborates: “Passionate because people who are part of this brand, no matter how long we’ve been there, we know that we have enormous satisfaction when we see customers lined up to eat our food. There is a sense of pride; we are all part of a team.”

Salvador agrees: “You have to find people who are passionate about what they’re doing. We try to instill in our managers that this is not a job but a career.”

 

vuukle comment

DAVID KARAM

FRANCHISE PARTNER OF THE YEAR

GENNARO AND CARMELA SBARRO

KARAM

NEW

NEW YORK

PIZZA

SALVADOR

SBARRO

SBARRO PHILIPPINES

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