Pizza Haven New Zealand Growth Continues

Fast food operator Pizza Haven has reported a positive increase in sales for the 12 months to December 2000 in what many regarded as a tough retailing environment.

The company, which operates 38 stores around New Zealand, reached $22 million in sales in that period, nearly 3% more than the same period in 1999.

Pizza Haven attributes the increase to three key factors – a bold new advertising campaign, a store refurbishment programme and more targeted marketing activity.

The increase is pleasing because, for many companies, sales towards the end of last year were stationary if not negative, Pizza Haven’s New Zealand operations manager, Colin Mellar said.

“We began 2000 with a plan to actively grow our sales in this market. New products and a stable pick up pizza price are two further reasons why we’ve been successful where others haven’t,” he said.

In June last year, the company announced plans to spend more than $2 million over the next two years on building new stores and refurbishing existing ones. To date seven stores have undergone the Cosmo 2000 refurbishment with another two to be completed in the next six weeks. The remainder will be done by mid 2002.

Pizza Haven also plans to open four new outlets this year and is actively seeking franchisees and sites for Taupo, Queenstown, Gisborne and Whakatane.

Mr Mellar anticipates sales growth will continue this year. “We have a number of strong initiatives planned for the first half of the year and we will be continuing with the irreverent style of advertising which has made us so popular with the youth market.”

The company’s new training initiative, in partnership with the Hospitality Standards Institute, will help attract good new staff with subsequent improved efficiency and service levels, Mr Mellar added.

Pizza Haven employs over 6,000 people in Australia, New Zealand and Thailand and generates $120 million gross sales per annum across the group. Established in New Zealand in 1995, Pizza Haven was first set up in Australia in 1984. The majority of its outlets in this country are franchised.

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