Peter Riggs saved Pita Pit once. But can he do it twice?
Two decades ago, Riggs was a student at the University of Idaho and loved his hometown Pita Pita. After graduation, he and some friends bought several franchises in California and then sought a statewide development deal. Instead, the Canadian-based company asked them to take over all US operations. “They were ready to move on,” says Riggs. So he and several partners bought the business, grew it to 250 locations, and sold their stake in 2018. But during pandemicthe American brand shrank to 65 countries. So last March, Riggs (who would go on to become an Idaho state senator) returned as CEO of USA.
To save Pita Pit again, he knew he'd have to work with his remaining franchisees—but they were distrustful. “There wasn't a lot of corporate support in the years we were away,” he says. “The only way I could convince these franchisees that everything was going to be okay is if I said it to their faces.” So he bought a camper van and hit the road. Fifty thousand miles later, he has some lessons to share.
Were those difficult conversations with the remaining Pita Pit franchisees?
I was just listening for the most part. Some of them wanted to vent, even though I wasn't there when it happened and I wasn't responsible for the global pandemic. They needed a release valve, so I could be that. So I sat there and let them take it out on me.
What did you learn from them?
We are on many college campuses. One big problem was that Pita Pit started 25 years ago selling a $5 or $6 sandwich. Now it should be a $10 sandwich, but it's pricey for college kids. They wanted something smaller, and we had nothing. So we had to introduce more tasty and delicious foods like our Greek Grilled Cheese get those customers back. It's a half-grilled pita with limited ingredients for $6, depending on location.
Related: Use these 3 steps to find the perfect franchise opportunity for you
Did the franchises accept your ideas for the future?
We have a design we are prototyping for a drive-only unit and want to make our stores look better. Some franchisees disagreed – they wanted things back to the late 90s and 2000s. I said I couldn't do that and we were helpful with people who wanted out, finding new owners for their locations.
You also visited the distributors. Why?
You have to be very careful with the pita bread or it spoils and becomes unusable. Sometimes what we tell our food distribution network doesn't make it to the warehouse level. So I went to the warehouse and talked to the guys.
This sounds unusual.
They said no CEO ever goes there and asks for their feedback. They are also facing problems, including labor shortages. This made them feel valued. It's important because if something goes wrong, there's someone locally I can call.
How long were those warehouse visits?
An hour, maximum. If you think about how rarely anyone is recognized for their work – we are all human. Treat people with respect and it makes everything easier.
These sound like conversations full of life lessons.
Well, my marketing team asked me to document this journey, so I turned the inside of my van into a podcast studio. We launched the podcast Fantastic trip. I interviewed restaurant executives, marketing executives—I wanted to get a feel for broader topics of discussion across the industry. Just look where the conversations went. We think there's a really interesting opportunity to redefine the way we do the fast food business.
Related: How to know if a local business has franchise potential, from a guy who built one in 80 locations