By Tracy Morin
As many restaurant brands respond to inflation by tightening labor and simplifying menus, Cicis Pizza, based in Coppell, Texas, with 272 locations, is taking a different approach.
Under Jeff Hetsel, president of Cicis Pizza and JMC Distribution, the brand has reduced average food costs from 32% to 27.5% while maintaining its labor model, anchored in a simple philosophy: You can’t cut your way into prosperity. Instead, Cicis has focused on operational and supply chain efficiencies, including:
- Leveraging its vertically integrated distribution partner to control costs and pricing
- Shifting cheese production closer to its distribution center to streamline logistics
- Investing in equipment like the Cheese Hog (which allows for 83% faster shredding) and new dough mixers, saving more than 6.5 hours per store weekly
- Upgrading its transportation network and fleet to improve delivery efficiency and reduce fuel costs
In this exclusive interview with PMQ, Hetsel breaks down these changes, including how Cicis is prioritizing cost control without compromising operations, and how that strategy is shaping decisions across supply chain, labor and technology in today’s challenging restaurant landscape.
PMQ: Rather than cut labor or simplify menus to manage inflation, why did Cicis choose a different path?
Jeff Hetsel: Our focus has been on improving how the business operates—without pulling back on what makes the experience work. Our core strategy is to continuously evaluate costs while still driving top-line sales. We have never backed off our core values of quality, consistency and value. We’ve leaned into operational discipline and supply chain efficiency—from sourcing and distribution to equipment and logistics. That’s allowed us to reduce average food costs from 32% to 27.5% while continuing to invest in our teams and maintain the variety and value our guests expect.
PMQ: Tell us about the philosophy “You can’t cut your way into prosperity.” What does that look like in practice when costs are rising, and what rising costs have been most challenging in your operations?
Hetsel: If you start by taking things away, whether that’s labor, quality or experience, you’re eventually going to feel it in your top line. For us, that means protecting the things that matter most, which are our team members, the quality of our food and the guest experience. Instead of reacting by reducing labor, we’ve focused on making our teams more efficient and setting them up for success. We always ask, does this help the guest, and does it support our top line? If the answer is yes, we move forward.
PMQ: As Cicis reduced food costs from 32% to 27.5%, what were the biggest changes that made that possible?
Hetsel: The biggest driver has been our supply chain strategy. One key change was shifting our cheese sourcing from California to Texas to be closer to one of our distribution centers, which significantly reduced logistics costs. We’ve also continued to refine how we work with suppliers through our distribution partner, and we’ve focused on consistency at the store level, better inventory management and execution. Those changes, combined, are what helped us bring food costs down from 32% to 27.5%.
PMQ: You also have a vertically integrated distribution partnership. How has that helped you control costs differently than other brands?
Hetsel: Our relationship with JMC Restaurant Distribution is a major advantage. It’s been built specifically to serve Cicis for over 35 years, so we have a level of alignment and control that many brands don’t. It allows us to be proactive, whether that’s locking in pricing, adjusting sourcing or improving logistics. This extends across our core items and our proposed limited-time offerings. Instead of reacting to cost pressures, we’re able to plan ahead and make decisions that benefit both our franchisees and our guests.
PMQ: Can you talk about investments like the Cheese Hog and new dough mixers—how do those kinds of tools change day-to-day operations at the store level? And how do you implement them and get team members on board?
Hetsel: Investments like the Cheese Hog and new dough mixers are all about efficiency at the store level. The Cheese Hog alone shreds cheese 83% faster, and our new dough mixers save more than six hours of labor per store each week. This allows our teams to spend more time serving guests and running great operations. When we roll these out, we focus on training and making sure the tools are easy to use. These new pieces of equipment clearly improve day-to-day workflows of our team members. When team members see that it makes their jobs easier, adoption comes naturally.
The investments we’ve made in equipment, processes and training allow our teams to operate more efficiently without reducing headcount. That’s been critical for culture. Our managers and team members are the heart of the business, and we’ve stayed committed to that.
PMQ: How do you ensure that cost-cutting on the back end doesn’t negatively impact (or even improves) the guest experience?
Hetsel: Everything we do is filtered through the guest experience. If a cost-saving measure negatively impacts the guest, it’s not the right move. Efficiency on the back end should make the front end stronger, not weaker.
PMQ: How else have you improved efficiency and lowered costs?
Hetsel: Upgrading our transportation network has been a big piece of the puzzle. We’ve invested in new trucks and trailers to improve fuel efficiency and reliability, and we’re leveraging technology through our transportation partners to optimize routes and delivery timing. That helps reduce costs while also ensuring our restaurants are consistently stocked and operating smoothly.
PMQ: Where do you think restaurant brands may fall short in their response to inflation right now, and how do you envision the way the pizza industry will evolve in years to come?
Hetsel: I think where some brands fall short is focusing too much on short-term cost cuts instead of long-term operational improvement. The brands that will win are the ones that stay invested in their systems, their people and their supply chain. Looking ahead, I think the pizza category will continue to evolve around value, convenience and consistency. The brands that can deliver all three at scale will have an advantage.
PMQ: As inflation and cost pressures continue, how will Cicis balance efficiency, investment and growth going forward?
Hetsel: Our brand is over 40 years old, and as a legacy brand, we’ll continue to focus on the same fundamentals, driving sales and managing costs in a way that supports both our guests and our franchisees. That means continuing to invest in our supply chain, leveraging technology where it makes sense and staying disciplined in how we operate. We’re constantly evaluating what’s happening in the broader environment, but our approach doesn’t change. We focus on building a model that works in any cycle, keeping Cicis Pizza as [our tagline,] The Best Pizza Value Anywhere.
Tracy Morin is PMQ’s associate editor.
