Economy

New York Pizza grows 20 percent, ‘corona a fortune in an accident’

For many catering companies, 2020 was a dramatic year, but New York Pizza performed really well. Almost all branches deliver and consumers like to use it.

“There were more frequent orders and the orders were also larger,” says Joost Geurtsen, marketing director of New York Pizza.

Founded in Amstelveen, the company is only active in the Netherlands and at the end of December opened one branch in Leuven, Belgium, and two in Cologne, Germany.

11.5 million pizzas

Sales rose by approximately 20 percent last year. Geurtsen does not want to give a precise figure, but that increase is compared to the turnover of ‘more than 100 million euros’ in 2019. 11.5 million pizzas were baked in 2020, so an average of 8.70 per pizza.

The turnover that Geurtsen mentions is consumer turnover. That is the turnover that the New York Pizza establishments achieve.

The turnover of Black Tomato Holding (the holding company of New York Pizza) was 51.4 million euros in 2019, with a net profit of 4 million euros. The turnover concerned the fee paid by franchisees and the production plus sale of pizza dough, to franchisees, among others.

New York Pizza and Black Tomato Holding

New York Pizza is part of Black Tomato Holding. The income of the latter consists in part of the ‘fee’ that franchisers pay for using the New York Pizza name.

Black Tomato Holding also includes a company that makes and supplies dough and ingredients to the franchisers of New York Pizza, but also to third parties, says Teun van Geneugten. He is the director of Europizza Products, which makes and sells dough.

Roughly 25 percent of the dough that is made goes to New York Pizza franchisers. Three-quarters of Black Tomato Holdings’ total turnover comes from the wholesale activities (the production and sale of dough and ingredients) and only 15 percent from franchise revenues.

Slice vs. to deliver

In a small number of branches, such as in the center of Amsterdam, you can only buy ‘slices’, a slice of pizza. They don’t deliver. However, about 95 percent of the branches do deliver and that more than made up for the loss of turnover of the ‘slice branches’.

“It was the best year in New York Pizza history,” said CEO Philippe Vorst in a press release. The company has existed for 27 years.

From 224 to 300 locations

He wants to grow further. “By 2023 we want to move from the current 224 branches to 300,” says Geurtsen. This requires good business locations and entrepreneurs. After all, all branches belong to franchisers.

“Perhaps it is now easier to find good places because it is difficult for shops,” says Geurtsen. “That has been very difficult in recent years.”

Trend break

He thinks he will be able to achieve further good revenue growth in 2021, but not like last year. Nevertheless, he is optimistic for the somewhat longer term.

“Corona is causing a break in the trend, many more people have been introduced to delivery and will continue to do so,” Geurtsen said.

Growth in the Netherlands

He sees growth in both the Netherlands and abroad. Most branches are now in the Randstad. Especially in the north and east of the country there are still white spots.

Even in places where New York Pizza is already located, it can still grow, according to Geurtsen.

Belgium

Two years ago, CEO Philippe Vorst told RTL Z that he had no plans for expansion abroad for the time being. Now it is.

The focus is on Belgium, to start with Flanders. This is easier, because the fresh dough has to be transported there from the production site in Amstelveen and Flanders is simply not as far away as Wallonia.

First 10, then 100 branches

There are now also agreements with local entrepreneurs in Bruges and Antwerp. This year there must be a total of ten New York Pizzas in Flanders. Ultimately, that number should increase to about a hundred.

It is New York Pizza’s second attempt in Belgium. A branch was already opened in 2008, in a gas station, but that was pure collection of ‘slices’ and it was not a success.

Germany

Growth must also come from Germany. The third branch will soon be opened in Cologne. Because Germany is much larger, the focus is on the state of North Rhine-Westphalia. It borders the Netherlands and there are slightly more people than in the Netherlands.

Still, New York Pizza is somewhat cautious here, Geurtsen speaks of ‘exploring the market’.

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