MOD Pizza CEO on the company's digital growth and plans for expansion
Scott Svenson, MOD Pizza CEO, joined Yahoo Finance Live to discuss the company's digital growth and plans to open its 500th location in the first half of 2021.
Video Transcript
ADAM SHAPIRO: But as you're getting ready to plan your dinner, how about some pizza? Let's bring in Scott Svenson. He's the CEO of MOD Pizza. I hope I said that correct. It is MOD, correct?
SCOTT SVENSON: It is MOD Pizza, yep. Great to see you.
ADAM SHAPIRO: Congratulations on your phenomenal growth, more than, what, 493 locations in the United States. As I was going through your bio, you and your wife actually launched Seattle Coffee, was it, years and years ago.
SCOTT SVENSON: Seattle Coffee.
ADAM SHAPIRO: So what do you do with pizza next, because we all love pizza. Some people don't like coffee, but everyone loves pizza.
SCOTT SVENSON: Yeah. My wife and I have had a long-term love affair with all things Italian. And we were approached years ago about bringing the fast-casual service model to the pizza business. And while initially somewhat skeptical, we looked into it and were really excited by the possibility. And we've been on this journey now for about 12 years. And we couldn't be more excited about what's ahead of us.
SEANA SMITH: I imagine the last year though, has been pretty challenging. You've been presented with a number of headwinds here for your business. How have you navigated that? And, I guess, how has it played into your strategy, then, looking ahead to 2021?
SCOTT SVENSON: Yeah, well, to say 2020 was a challenge is a bit of an understatement. It-- it certainly challenged us in a lot of ways. The thing I'm most proud of is the way our team responded, and the way we came together and addressed what was a really difficult situation last March, just about a year ago. The result of it was, though, we really leaned in and had to work on our digital capabilities, our off--premise capabilities. Those parts of our business grew almost 275% in 2020.
But that was against a backdrop where all of our on-premise business, which is really where we had been strongest prior to the pandemic, was virtually gone. And so that acceleration of work that we were already doing has really positioned us better coming into 2021, than we were coming into 2020. I mean, we really feel optimistic for what's ahead, despite the fact that 2020 was a year to remember.
ADAM SHAPIRO: I want to ask you where the growth is going to be in the future. And let me premise this, with I'm an old pizza nut. One of those teenage jobs I had, Boston Pizza, Old Orchard Beach, Maine. Our secret was provolone cheese, not mozzarella. With you, it's the flour. But where's the growth going to be?
SCOTT SVENSON: Well, listen. I think there's a real appeal for what MOD has to offer. We offer an individualized, super high quality pizza or salad, made exactly to your specifications, super fast, and at an amazing price. And I think that's a demand that is going to pull us forward. At 493 locations, we'll have our 500th store opening here soon.
We've just scratched the surface of our market potential. And I think that continual migration to customers looking for better, faster, higher quality, just the way they want it. And I think you see that across a number of different categories and it applies to the restaurant industry. And I think MOD's incredibly well-positioned to meet that need.
SEANA SMITH: Scott, I have to ask you about the debate going on in DC right now. That, of course, is whether or not to raise the minimum wage. The Biden administration is pushing $15 an hour. How would that affect your business?
SCOTT SVENSON: Well, let me start by saying, you know, MOD was started with an incredibly strong commitment to making a positive social impact. At the heart of our businesses is providing opportunities to people who otherwise face barriers to employment. We employ a lot of people who are previously justice-involved. Opportunity Youth, those between the age of 18 and 24, who are either unemployed, or out of school, or both. And people with intellectual and development disabilities. So, this idea of leaning in and paying a fair wage, is at the heart of who we are. So we're big supporters of the move towards more progressive, more sustainable living wage.
Now, that being said, like with any change, it's got to be done in a manageable and thoughtful way. We pay well ahead of the minimum wage, so for us, I think we're pretty well insulated. As wage rates go up, it'll impact our business. But I do think that consumers are prepared to pay more for their meal experiences, to make sure that team members, employees are getting paid fairly. So we're big supporters of it.
Our only caution is that it should be rolled out and implemented in a thoughtful way. A one-size-fit-all just isn't really appropriate. The wages we pay in some markets, based on where the customer is, should be different than the wages we pay elsewhere. But moving wages up over time, making it a truly living wage, and allowing people to work in the restaurant industry and be able to raise their family there, is something that we should all be behind. And we certainly are. It's a core part of who we are.
ADAM SHAPIRO: Scott Svenson is the CEO of MOD Pizza. Good luck, and congratulations as you approach 500 stores nationwide. Seana?
