Pizza industry is thriving in tough times

Typically, the pizza takeaway and delivery industry prospers in hard times as diners swap a meal out for a slice and a DVD.

Mr Schnatter, who places his company at the high end of this market, recognises the evidence.

He said: "Our business is flat in the States. It was up last year but this year it's flat again. But over here it's great. We're in double digits - eight per cent up in the first quarter and 10 per cent in this. And 11 per cent up last year. Business is good."

He was talking to The Wharf at the East India Road takeaway where last Wednesday he was paying for 100 pizzas for the public from his own pocket to celebrate 25 years of business.

Born in 1962 in Indiana, Mr Schnatter is the founder, chairman and CEO of Papa John's.

He started his own business when he expanded the kitchen at his father's bar to make a pizza service.

Now he has franchised out nearly 3,000 Papa John's restaurants worldwide.

He said: "It's all I've ever done. I worked my way through high school and now I've been making pizzas for 32 years. I always wanted my own pizzeria - it was my dream. And 25 years ago I did it.

"We have a high level product, quality people and a passion for what we do. I like people and I like business so this is great."

Mr Schnatter prides himself on the quality of the Papa John's product - its slogan is

"Better Ingredients. Better Pizza" - which he says helps the company to stand out ahead of his competitors during the recession.

He said: "You can't make a silk purse out of a sow's ear. We use 100 per cent fresh ingredients and rich tomato sauce. It costs more but it's worth it.

"People may not be able to afford to go out as much to eat, but they still want quality food and that's why they are coming here."

The franchise business allows Mr Schnatter to expand at pace with a start-up for franchisees from around £170,000.

The East India Road store exemplifies that for him.

He said: "The people who do well have three characteristics. Passion, understanding the fundamentals of the business and execution of the standards. This store here just keeps doing better and better. I'm so much prouder of it than five years ago. It's worked its way up fast."

Its success over the last 12 months or so has encouraged Mr Schnatter to continue the pace of expansion. He has big plans for growth this year and sees a growing target market.

He said: "We've just opened our 50th store in London and have 128 in the whole of the UK, but the UK can hold 6oo-700 stores, so we're looking at bringing in 30 to 40 stores this year. We've already opened 10. Overall that will be 800 or 900 jobs.

"With a new country it takes time to get it where it is. And it needs a lot of hard work from teams like this."

THE FRANCHISEE

- Raheel Choudhery, 32, the owner of the East India branch of Papa John's, has nine franchises after six years in the business.

He said: "My father owned a laundry business but I wanted to do something for myself.

In 2001 we started looking around and I found my first site in Grays. It was an existing BJ's restaurant."

At a cost of £200,000, Raheel turned it into a Papa John's, thanks to money borrowed from property and from his family.

"That set me up," he said. "Going forward and expanding I had to take some from the banks, but I don't think it's wise to do that any more."

Even during a recession things are sunny for Mr Choudhery, who has seen sales grow by between 20 and 30 per cent in recent months.

But that has not caused him to rest on his laurels. He still hopes for future expansion, especially in the east London area, and - despite enjoying financial comfort - wants to carry on working hard.

He said: "It's given me a better lifestyle. I can afford most things, but I'm still very much in the store. Fridays and Saturdays I love to work and love to be involved - the thrill of it all."

And his views on why the franchise concept is the safer way to success in the business world?

He said: "The relationships are already there. You take out the variables of bringing in supplies and negotiating price rates. It was all done. All we do is concentrate on the customers and the products.

"It cuts out the admin that many businesses fall down on. A few do succeed though - John Schnatter for example."