Consumers are feeling the rise of fuel, food and travel and as commodity prices are generally on the rise, CiCi’s Pizza has been able to absorb many of those costs. CEO Mike Shumsky talks with Neil Cavuto on Fox Business on how his company has been able to manage food costs.
According to CEO Mike Shumsky, “the CiCi business model is a unique model where we value the consumer mind set.” Being able to absorb costs, like owning their own store delivery system, creating an in house purchasing function and doing advanced buying, allows CiCi’s Pizza to continue to keep their prices low and benefit their loyal customers.
The equation for CiCi’s restaurants requires them to be efficient in managing commodity costs, and when you’re “in the business of feeding million” as Shumsky says, “the most important part is to a run a restaurant that provides value to customers.”
According to IFA’s December Franchise Business Economic Outlook Report, plans for new business are restrained by the tax and regulatory uncertainties, yet CiCi’s Pizza has been able to continue to show signs of growth and Shumsky claims that CiCi’s, like many restaurant chains, will only raise costs as “a last resort.”
“One thing to remember is that systems within the restaurant are pretty sophisticated and help us absorb those commodity costs as they come along,” according to Shumsky.
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