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Standing Out In The Crowd
San Francisco’s Mozzarella di Bufala Embraces Technology to Get Ahead

By Tom Boyles
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Mozzarella di Bufala is a genuine family-run restaurant in every meaning of the phrase. The owner works at the register, they recognize their customers by first name, and everything in the restaurant has a personal touch. In addition to the sincerity of a business such as this, the food quality and selection is among the top in San Francisco. This is evident by some of their accolades, such as 2007's Best Pizza in San Francisco, which was awarded by AOL Cityguide. In addition to pizza and Italian dishes, they offer unique and authentic Brazilian dishes as well. Part of their success comes from their dedication and offering customers options that no other pizza delivery company can offer, such as authentic Brazilian menu offerings in addition to pizza and Italian dishes.

But, as many pizzeria owners know, it takes more than good food to survive, especially in markets like San Francisco where competition is tough…very tough. This is where Mozzarella di Bufala stands out in the crowd. Through direct mail programs where they get 22-cent menu fliers printed and sent, innovative magnet strategies, mining their POS database and utilizing the Internet, they have gotten the upper hand in San Francisco, explained Ilana Teles, Mozzarella’s marketing manager.

Pedro Galletti is the owner of two locations in San Francisco. His brother began his career in pizza back in 1974 and Pedro joined the business in 1979. The brothers worked together until 1990 when Pedro opened Mozzarella di Bufala. The reason I contacted Pedro was on a tip about some of the marketing he does using his POS system. I asked him what the catalyst was that first inspired him to purchase what some pizzeria owners think of as an ‘expensive cash register’ and his explanation is a lesson to all business owners.

Using the POS Better

“We’ve always had a POS system,” he said. “I’ve never thought of technology as an expense, but as a tool to help me get ahead. Way back years, before everyone had cell phones, we paid $2,000 each for the old Motorola “brick” phones. Even then we realized that communication and technology was the path to success and the way to stay on top of our business, especially with deliveries and multiple locations. We don’t use all of the functions the POS system has to offer, but even if you only use just 5% of what these machines can do, it gives so much to work better with. We have also been involved with the Speedline Challenge, which is offered through our POS company. The program offers valuable tips on how to maximize the use of the POS system, and how to integrat it into the restaurant's marketing program. It shows all the possibilities that can be explored on the POS. We’ve been able to market and develop strategies in areas that had not received appropriate attention in the past,” said Ilana Teles.

Pedro said his POS system helps them locate the areas of the city where they receive the most business and from there they cater their marketing strategies to fit the data they have extracted from the POS’s database. By generating and analyzing the POS reports, they’re able to identify lazy, frequent and new customers and carefully design specific marketing actions, such as direct mail pieces, e-mail marketing, web coupons, and more.

Recapturing Customers

The Lazy Customer promotion mentioned above has proven successful for Mozzarella di Bufala. “We pull info from our POS about customers who aren’t ordering,” Pedro said. “The promotion was designed in-house using our POS. We created a very simple letter/flyer in a bright gold paper, with black and white print, targeting lazy customers (those were identified by not ordering within the last 60-90 days). The offer itself consisted of a large pepperoni (best selling topping) pizza, plus a 2-liter Coke for $12.99, which is a savings of over $8. The response was amazing: about 20% of our customers came back. This is a strategy we read about in PMQ and simply put, it works.”

Amazing Magnet Promotions

Pedro said his magnet promotion is one of the most successful marketing strategies he uses. He said this idea originated when the airlines started their Frequent Flyer programs. “I wanted to create some type of frequent buyer program for us,” he said. “At the time we used the standard square magnets. I came up with the idea to have customers collect magnets and exchange them for free food and the ‘Collect 10 Magnets’ promotion has been continuously working for years. We started using slice-shaped magnets on the suggestion of one of my employees.  We got the magnets from a company called Newton Manufacturing. When customers order at least $18 in food, we give them a magnet. Once they collect enough (10) to make a compete pizza, they can redeem them for $15 in free food. I know customers who have saved up four and five whole magnet pizzas in order to throw a party. Our customers get really excited about completing their pizza pie and redeeming them. This provides an easy way to create repeat customers, as all of the ordering information necessary is on the magnet itself (our name and phone number) and also reminds the customer to keep ordering in order to receive free food.  Another great thing about this promotion is that the magnets are recycled once customers redeem them. The children love the magnets too – they know who Mozzarella is because of the magnets at home on their refrigerator.”

Menu Mailing Assistance

Another gem for marketing Pedro uncovered was a promotion passed on to him by his Grande rep in which Grande assists its customers by providing a printer and mailing house to help create customized fliers that are printed and mailed all for about 22-cents each. “We simply give them the zip codes where we want the fliers sent, select a design from several options they have, upload our menu and photos and that’s all we have to do,” Pedro said. “The printing company, CFM Marketing, creates the piece using the template I choose and includes either your photos or you can select some stock images they have. Then Max Marketing and Promotions does the mailing. I don’t have to worry about anything. If you’e a Grande customer, all you have to do is contact your local rep and ask about the package.”

Maximizing the Internet

The Internet has been highly useful for Pedro too. Their website offers two easy online ordering systems (Golicious and EZMenu) so the customer does not even have to call into the store, and allows for menu browsing and information about their special dishes, such as the Brazilian offerings. The great part about their online ordering is that all orders go directly into their POS system. Pedro said they are getting about 20 online orders each day.

“With the 20 or so orders we get online each day, we don’t have to tie up phone lines to take the order, plus the orders are more accurate because customers see what they order before it is placed and it goes directly into the system…faster and more accurate,” Pedro said. “Also, we're currently constructing our first VIP newsletter, which introduces tour redesigned website. Customers sign up to become a VIP member on the site and then we send these VIPs specials that are incredible deals but good for 24 hours only.”

Corporate Accounts

Pedro also offers Corporate Accounts on his website. Companies can go online and fill out an application and once approved, all orders made by the authorized person are billed back to the company at the end of the month with itemized statements and copies of all invoices for that month. Customers can also set up automatic monthly credit card payments. The key to getting these large corporate accounts is to make it as easy for the company representative as possible and deliver hot and consistent food each and every time.
As you can see, Mozzarella di Bufala has their game face on when it comes to operating in the San Francisco area. If you would like to learn more about their online ordering, corporate accounts or their menu, pay a visit to their website www.dibufala.com and take a few notes while you’re there.

The Stats:
Mozzarella di Bufala
Owner: Pedro Galletti
Marketing manager: Ilana Teles
Original Location: San Francisco, CA
Number of Locations: 2
Year First Opened: 1990
POS System: Speedline
Oven Type: Deck: Woodstone/Bakers Pride
Dine-in, Delivery, Carryout, Take-n-Bake: Dine-in, Delivery, Carryout
Number of Seats Per Location: 30@ original location and 50@ second location
Number of Deliver Drivers: 7drivers/night
Number of Employees: 60
Best Individual Marketing Tool: Magnet Promotion (collect 10, get $15 in food)

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