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CICI’s Pizza CEO Mike Shumsky on what the company is doing to minimize the impact of the rising cost of food.
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You buddy well no better understand a recovery that it's hard to swallow that a guy in the business is feeding millions he's got a pretty good job at a CDs and CEO Mike -- here right now.
Mike of course -- basic commodities that S he was talking about and I suspect -- about a way is not a pizza -- strikes is like a whole foods shopper you know move very healthy stuff and not the -- -- but.
I digress.
It's real all those ingredients ago in -- in the -- is that.
They're they're they're they're they're -- -- and aren't.
Yeah you know -- we we've seems a lot of commodities go up but we've also seen a lot of commodities go down for example one of our largest commodities.
Is that she's commodity that got -- 122%.
From six months ago so.
There's a variety of issues within the commodity market and most of them we've been able to deal with up till now this point -- from now and what you do.
Well hello a lot of things that we do the CC's business model is a rather unique business model.
It's a -- the model that really I think we started value in the consumer mindset so.
We do a lot of things for example we have an in house purchasing function that centralize -- all of our purchasing FCC's.
We also own our own store delivery system which allow the -- -- economies around the store delivery process which.
After raising if you price your kids strategy your customers are fairly loyal or -- so they might -- -- but there's a limit that is.
What yeah I think there's a limit to -- but obviously our our job is to continue to create value for our consumer and and certainly it at the very last resort we would increase prices so we've been able to amount to absorb a lot of those costs.
Within our business and you'll see that in the industry as well -- I think you see you -- a lot of my daughter managing that.
I -- you know Mike is an aggressive audits of but I wonder about this when I hear the Federal Reserve's say.
Just as it did this fancy place instead saying we keep rates -- everyone loves low interest -- -- -- -- interest but I do remember well enough.
Getting.
Behind the curve as a country on that.
And then there's -- the day when these things that you're noticing now that the Fed either isn't or is lying about Newton missing -- And then boom -- -- it it it's -- right to worry about that.
You know we worry about a little bit I think the most important part from our business perspective is that we run restaurants.
And ultimately we -- -- our job is to provide a value for consumers so.
Inside of that value equation required us to be very efficient and manage her food.
-- commodity cost we do future buying an -- and some form of advanced buying of our cut our upper proper product.
We also try to keep our costs low we have a very low overhead for example -- CC's.
In a week -- we think we created value so had hello operating costs a lot operating it infrastructure.
Is really really -- in -- thing I'd add to this -- -- systems are now in the restaurant business are pretty sophisticated so.
Food costs inventory control system labor management systems all those systems are -- help us absorb those.
Commodity costs as they as they come on our way but certainly raising prices is is a last resort.
For our brand and from many other restaurant chains as well all right we'll watch closely thank you -- very very much.
