Advice Line with Scott and Ally Svenson of MOD Pizza
Sep 5, 2024
45:51
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Scott and Ally Svenson, the visionary founders of MOD Pizza, share their entrepreneurial insights in this engaging discussion. They address the impact of the pandemic and inflation on pizza businesses, emphasizing strategic market presence. Evan shares his journey from a Richmond pizza restaurant to a vegan frozen pizza company, while Zebbie discusses scaling his hot chicken concept. Finally, Christiane, a tequila-maker, highlights her mission for better labor practices in the spirits industry, merging ethics with entrepreneurship.
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Quick takeaways
MOD Pizza's journey illustrates the crucial need for agile business strategies and adaptability in the face of shifting economic conditions post-pandemic.
Engaging with local communities and influencers fundamentally enhances brand visibility, thus playing a pivotal role in market acceptance for new products.
Balancing financial sustainability with growth ambitions requires understanding key performance indicators and focusing on foundational growth in home markets first.
Deep dives
Challenges Faced by Mod Pizza
Mod Pizza's journey highlights the challenges faced during a 16-year growth period, particularly after the pandemic. While the first 12 years were marked by rapid expansion, the company had to shift its strategy in response to market changes and operational difficulties that arose during the pandemic. Issues such as staffing shortages, supply chain disruptions, and inflation contributed to declining consumer dining habits, forcing the business to adapt. Ultimately, Mod Pizza was acquired by an investment group to avoid potential bankruptcy, demonstrating the need for agile business strategies in a shifting economic landscape.
Importance of Adapting Business Strategies
The conversation emphasizes the necessity of adapting business strategies to survive changes in market conditions. After the pandemic, Mod Pizza had to transition from rapid growth to market infill, raising capital in 2019 to support this shift. However, as the pandemic halted plans for growth, the company struggled to regain its previous momentum. Scott and Ali underscored the importance of flexibility and staying in tune with market demands to ensure business resilience and sustainability.
The Role of Community and Influencer Engagement
A key discussion point was the value of community and influencer engagement in expanding brand reach and visibility. Scott and Ali advised a caller in the vegan pizza industry to connect with the strong vegan community to leverage their influence. Building relationships with key influencers and exploring co-branding opportunities can enhance brand recognition and market acceptance. Utilizing grassroots marketing and sampling events can also facilitate the introduction of new products in different markets.
Lessons from Peer Entrepreneurs
The episode features a range of entrepreneurs seeking advice on how to navigate business growth challenges, allowing for insight into various entrepreneurial journeys. For example, a caller from a vegan pizza business faced the challenge of expanding beyond his local market with limited resources. Scott and Ali provided tailored advice, including emphasizing quality over rapid growth and nurturing existing relationships with local retailers before branching out. The collective sharing of experiences highlights the camaraderie and support among entrepreneurs facing similar challenges.
Navigating Growth and Sustainability
As entrepreneurs discuss growth and capital requirements, a recurring theme centers around balancing financial sustainability with the desire to expand. A caller who runs a hot chicken restaurant expressed interest in scaling while maintaining quality and managing operational complexities. Scott and Ali noted that focusing on foundational growth within home markets can provide a more secure base before exploring new territories. The importance of understanding key performance indicators like average unit volume and store profitability was also emphasized as essential metrics for sustaining healthy growth.
MOD Pizza founders Scott and Ally Svenson join Guy on the Advice Line, where they answer questions from three founders about strategic expansion, plus discuss MOD’s recent acquisition.
Today we meet Evan, who recently turned his Richmond-based pizza restaurant into a vegan frozen pizza company. Then Zebbie, a restaurateur in Birmingham who's looking to take his hot chicken concept on the road. And Christiane, a Los Angeles area tequila-maker on a mission to improve her industry’s labor conditions.
Thanks to the founders of Udderless Plant-based Pizza, Eugene’s Hot Chicken and Valor Bebidas for being a part of our show.
If you’d like to be featured on a future Advice Line episode, leave us a one-minute message that tells us about your business and a specific question you’d like answered. Send a voice memo to hibt@id.wondery.com or call 1-800-433-1298.