Monday, December 6, 2010

Tower 27 Yogurt Highlighted in the "Franchise Focus" Section Of "Nation's Restaurant News"

Nation's Restaurant News

Rather than add new items to its menu, Straw Hat Pizza decided to add an entirely new brand--a self-service yogurt shop called Tower 27. The first-ever Tower 27, which was co-created with a local Straw Hat owner at his Walnut Creek, California location opened in September [2010].

"We needed to find a way to add revenue without competing with the pizza," said Straw Hat chief executive Jonathan Fornaci. "Yogurt and pizza are completely compatible."

Fornaci points out that the yogurt has a health halo, is inexpensive and consumed at times when pizza is not. In addition, given that an approximately 700-square-foot yogurt shop can be retro fit into an existing Straw Hat unit for as little as $65,000, there are no labor costs because it's self-service, food costs are low and the margins are above average, Fornaci sees the yogurt add-on as a huge opportunity. So huge that Straw Hat plans to open 10 co-branded yogurt shops by the end of the year.

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