Franchise Coaches Insights
How Smack Pizza Built a Premium Brand Without Competing on Price
By Elana Koral, Founder, Franchise Coaches
When I sat down with Savvas Themistocleous, Managing Director of Smack Pizza, I expected our conversation to revolve around pizza.
Instead, we spoke about leadership.
We spoke about supplier relationships, landlord negotiations, franchisee support, operational discipline, and the importance of protecting margins without compromising quality.
It struck me that Smack Pizza isn’t simply selling pizza. It is building a business around a clear philosophy: customers don’t necessarily want the cheapest option—they want the best value.
At a time when many businesses are under pressure to discount, that’s a refreshing perspective.
Here are some of the biggest lessons I took away from our conversation.
Lesson 1: Compete on Value, Not Price
One of the strongest themes throughout our discussion was that quality should never become the first casualty when trading conditions become difficult.
Smack Pizza has deliberately positioned itself as a premium offering. Its dough is fermented for 48 hours, allowing it to develop a lighter texture and deeper flavour while making it easier to digest. The business has also invested heavily in sourcing quality local ingredients, working with suppliers that share its commitment to consistency rather than simply chasing the lowest price.
This isn’t about creating an expensive product for the sake of it. It’s about giving customers a reason to choose Smack Pizza because they genuinely believe they are receiving better value.
Franchise Coaches Insight
One of the biggest mistakes I see franchisors make during difficult economic periods is competing on price.
Price is easy for competitors to copy.
Value is much harder.
When customers understand why your product or service is different—and they experience that difference consistently—they become far less price-sensitive.
The strongest franchise brands compete on value, trust and experience.
Lesson 2: Innovation Should Solve Problems, Not Create Them
Smack Pizza has introduced products such as truffle pizzas, chilli honey combinations, Buffalo chicken pizzas and Paneer Tikka options. Yet what impressed me wasn’t the creativity itself—it was the thinking behind it.
Savvas explained that they don’t simply launch products because they’re fashionable. They observe customer behaviour, test ideas, and refine concepts before rolling them out across the business. They also pay attention not only to what customers say, but to what they don’t say.
Innovation, in other words, is disciplined.
Franchise Coaches Insight
Many franchisors confuse innovation with constant change.
The two are not the same.
Your franchisees don’t need a never-ending stream of new products. They need thoughtful improvements that make commercial sense, strengthen the brand, and genuinely improve the customer experience.
Innovation should always have a purpose.
Lesson 3: Small Stores Can Be More Profitable Than Big Ones
One of the more interesting parts of our conversation centred on store format.
Rather than chasing larger, more expensive restaurants, Smack Pizza has increasingly focused on smaller takeaway-oriented stores with high throughput.
The reasoning is practical.
Larger restaurants bring higher rental costs, bigger wage bills, greater utility expenses and significantly more operational complexity. A smaller, efficient format can often deliver stronger returns while reducing financial risk.
Franchise Coaches Insight
Many businesses still equate growth with bigger premises.
In reality, growth is about stronger economics.
As franchisors, we should continually ask:
“Does this investment improve profitability, or does it simply make us look bigger?”
Bigger isn’t always better.
Better is better.
Lesson 4: Every Rand Matters
This was probably the part of the interview that resonated with me the most.
Savvas spoke openly about reviewing supplier contracts, negotiating continuously, buying strategically, working closely with landlords, monitoring energy consumption and analysing seemingly small costs that quietly erode profitability.
He shared a simple example:
If a particular item increases by R150 a box and you’re buying multiple boxes every week, that seemingly insignificant increase can quickly become equivalent to an employee’s monthly salary over the course of a year.
Margins aren’t usually lost through one dramatic mistake.
They’re lost through hundreds of small decisions that go unnoticed.
Franchise Coaches Insight
Financial discipline isn’t only the responsibility of franchisees.
Great franchisors constantly look for ways to improve buying power, negotiate more effectively, reduce unnecessary costs and protect franchisee profitability.
Helping franchisees make more money isn’t just good for them.
It’s good for the entire franchise system.
Lesson 5: Great Franchise Support Goes Beyond Operations
Perhaps the biggest takeaway for me had nothing to do with pizza.
It had everything to do with leadership.
Savvas has experienced life as a franchisee himself. That perspective shapes how he supports his network today.
Rather than waiting until problems become crises, he believes in being present, visiting stores regularly, talking to staff, checking standards, listening carefully and helping franchisees work through challenges before they escalate.
This isn’t about policing franchisees.
It’s about partnering with them.
Franchise Coaches Insight
Over the years, I’ve observed that the strongest franchise relationships are built on trust rather than fear.
Field visits shouldn’t leave franchisees feeling inspected.
They should leave them feeling better equipped to succeed.
Support is not about catching people doing things wrong.
It’s about helping them do more things right.
Questions Every Franchisor Should Ask
After reflecting on my conversation with Savvas, these are some questions I believe every franchisor should consider:
- Are we competing on price or on value?
- What genuinely differentiates our offering from competitors?
- Are we helping franchisees protect their margins?
- How often do we review supplier relationships and operating costs?
- Do our field visits feel like coaching sessions or compliance inspections?
- Are we innovating with purpose, or simply changing for the sake of change?
Final Thoughts
One of the reasons I enjoy interviewing franchise leaders is that the conversation often goes in unexpected directions.
I thought I was going to learn about pizza.
Instead, I was reminded that successful franchise systems are built on something much deeper.
They are built on clear positioning, disciplined operations, strong relationships, thoughtful innovation and an unwavering commitment to helping franchisees succeed.
Smack Pizza’s story isn’t really about pizza.
It’s about making hundreds of good decisions, every single day.
And perhaps that’s one of the most valuable lessons of all.
Thinking about the right time to franchise?
Let’s talk through where your business is today, and what building a franchisable system would actually take.