October 20, 2012

The Andiccio24 Success Story

Andiccio24 is a pizza chain that has sprouted up in and around South Africa. Every time I go to one of their pizza joints, the place is usually bustling with people. After going to one of their spots last night for a slice and carefully analyzing the venue, it became very clear that whoever started this chain knew exactly what market they were gunning for and how to structure the business for maximum consumer traction. I respect a brand that can receive so much consumer attention in a saturated market like pizza, but Andiccio24 have hammered all the metaphorical nails on their heads, as I would like to illustrate:

Customer personalization
Many retail stores really struggle with personalizing the consumer’s shopping experience. What Andiccio24 have done is go the Subway route for pizzas, where consumers have complete control over the toppings they want on their pizzas, and essentially build up their pizza from scratch. They’ve taken this concept and gone to the maximum possible extent, with one being able to select every herb and topping they want. If you feel that the experience is tailor made for you, you value it higher and create an emotional attachment to it – thus allowing the brand to price their product’s higher, generate more customer loyalty and have people talk about their brand more often.

Customer engagement
The way you select toppings on your pizza is pretty smart, both from a consumer point of view and a sales point of view. The consumer picks up a pencil and checks boxes according to the exact pizza toppings he wants. This interactivity is fairly important in the purchase process, as it makes the person invest time and energy into their selection and value the end product more. From a sales point of view, all the input forms are easily managed and dealt with, streamlining the production line.

Unique branding
You can spot an Andiccio24 from miles away. The bright red branding and premium feel of the entire place, as well as the unusually overcrowded kitchen with zealous pizza workers gives the place a very authentic feel that is unlike any other pizza place I’ve to in SA. Even their tables are placed extremely close together, which actually stimulates conversation between strangers while they wait the 15 minutes to collect their pizzas. Everything is structured so that the customer has a unique purchase experience.

Premium niche and price point
I won’t lie, Andiccio24 pizza is pretty damn expensive when it comes to pizza pricing – I spent R100 on a pizza with some pretty basic toppings on it. So why do people buy from them? Put simply, the selling price of a product should not be related to its cost price unless you’re gunning for the lowest margins. The selling price is tied into the market’s valuation of the product, which stems from brand perception. The premium niche hasn’t been explored too much in the local pizza market, with most pizza places offering pretty standard “homey” pizza experiences. Andiccio24 also offer one of the priciest ice cream brands in the country with their pizzas – Haagen Dazs. This has been carefully selected to let customers know that they are entering a premium experience and thus should expect premium pricing. With the expectations set, there are no surprises.

Strategically placed locations
Mcdonald’s is well known for its strategically placed venues. Andiccio24 is no different, with its stores placed in some of the more affluent areas in Gauteng and usually in a location that is very close to a high-traffic road. The locations sell themselves, and coupled with the strong branding it becomes extremely hard to ignore as you pass by. Not only that, but the stores are open for 24 hours over weekends, making it a very attractive option after a good night out.

Excellent product
This is a no brainer of course. Very few businesses can start up with an inferior product and succeed for very long, so this was always going to be a given. This point is listed last since even though its crucial to sustain the business and retain customers, its not the main driver of Andiccio’s sales. In any case, pizza is a little like sex, even if its bad you’re still pretty glad you’re having it. In Andiccio24’s case, its really good pizza worth talking about.

What can they do better?

  1. They already offer free delivery, so why can’t I build a pizza interactively on their site and order it from there? I could order by credit, debit card or instant EFT and have the pizza delivered to me without having to pickup the phone.
  2. The waits can be monstrously long. I’ve waited 15 minutes once and my order hadn’t even been placed yet. Oftentimes pizzas sit on the table waiting to go into the oven since its already full – perhaps there’s a way to improve the use of space in the oven, or increase its size.
  3. With the production-line style of making the pizzas, its often difficult to keep track of which pizza is whose.  It would be great if the pizza could be delivered to my table while I’m waiting, instead of having me remember the number being shouted out each time.
  4. They have a metric ton of staff in each store. In quieter periods this means a lot of idle time and wasted expenditure. Although the crowded kitchen is one of their unique selling points, it probably comes at quite a price.

Have you eaten at Andiccio24? How has the experience been for you? Let me know in the comments!

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One Comment

  1. Gavin Wentworth April 28, 2016 at 6:47 am

    I stopped at your Boksburg Branch for my usual cup of coffee at 06h30 this morning three of your staff members standing on top of each other screaming and shouting instead of the coffee they should have served me a quart of beer it was like sitting in a shebeen never never ever again will I set foot in your Boksburg branch take a leaf from the Bedfordview Branch.

    Absolutley disgusting

    Gavin Wentworth

    084 580 9626

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