Zalat Pizza’s Khanh Nguyen checks in to share insights on hiring, training, team building, and marketing a successful pizzeria
So you want to open a pizzeria. You’ve recipe tested, you’ve locked down a storefront or food hall stall, and now you’re ready to put a crew together—but where do you start?
Whether you’re starting from scratch or are in the beginning steps of your journey as a restaurateur, industry insights from an insider who is battle tested can save you from common beginner mistakes. That’s why we tapped Zalat Pizza founder and CEO Khanh Nguyen to share his best practices for building a pizza empire from scratch.
The Dallas-based concept made its debut in 2015 as a ghost kitchen. The brand currently boasts 32 locations spread throughout Dallas-Fort Worth, Houston and Austin. Nguyen prides himself on running his brand with an employee-first mindset. Zalat Pizza offers all employees full benefits, including health insurance, a 401(k) plan and even offers stock options.
The following interview digs into hiring, training, team building and marketing. Nguyen even discusses Zalat’s crowdfunding efforts and how offering his team company stock options cultivated a more dedicated and motivated workforce.
SPM: From recipe creation to front and back of house work, you’ve integrated yourself into every aspect of the restaurant business. Can you share your MOD for hiring?
Khanh Nguyen [KN]: As the CEO of Zalat Pizza, known as Morpheus within our Zalat family, our hiring MOD is deeply intertwined with our mission and culture. We’re not just making pizzas; we’re revolutionizing the takeout experience while nurturing a family of passionate individuals who have extreme GAS Factor “Give a Sh*t Factor.” Our hiring process starts with finding individuals who resonate with our missions—making the best takeout pizzas in the universe, making customers for life, and making our frontline workers wealthy through employee stock options. We look for candidates who are genuinely excited about these goals. The GAS Factor is crucial. We seek people who care deeply–about food excellence, the customer experience, and their team. It’s not just about skills; it’s about attitude and a commitment to excellence.
We embrace individuality with novel initiatives like our Call Sign program. Each member of our team adopts a call sign (like the Navy pilots use in Top Gun), a unique work identity that reflects their personality and individuality. This practice fosters a sense of belonging and creativity, allowing our team members to express themselves and contribute in their own unique ways. We prioritize inclusivity and offer growth opportunities. Our commitment to making our frontline workers wealthy through stock options is a testament to this. We hire people who are ambitious, not just for themselves, but for the collective success of Zalat.
SPM: You’ve hired team members off of Craigslist with little to no experience on the line. What do you look for in a ZaLat Pizza employee?
KN: In the early stages of Zalat Pizza, particularly with our first two locations in Dallas, our approach to hiring was quite different from what it is now. Initially, we used Craigslist to hire our team members. This method had its challenges, as many of the applicants had little to no experience in the restaurant industry. Unfortunately, a significant number of these hires didn’t work out, largely due to their lack of experience in the restaurant industry.
Recognizing this challenge, I took an innovative step to improve our hiring process and, concurrently, contribute to the broader restaurant community in the Dallas-Fort Worth metroplex. I created a private Facebook group exclusively for restaurant workers in the area. This platform has been a game-changer for Zalat Pizza and the industry at large. The group has grown tremendously, with over 37,000 members currently, including restaurant owners, general managers, cooks, servers, and bartenders. This journey from Craigslist to our private Facebook community exemplifies our innovative spirit and commitment to finding the right people who can thrive in our unique culture and contribute to our mission of making the best pizzas and creating a positive impact in the restaurant industry.
SPM: In terms of training, what does the process look like behind the scenes? What is your advice for a restauranteur looking to build up a team member from scratch?
KN: At Zalat Pizza, we’ve embraced the power of technology, particularly mobile technology, for training our team. Recognizing that most restaurant workers are more inclined to use their cell phones rather than sit in front of PCs for training, we spent years searching for the right Learning Management System (LMS) that caters to this preference. Our goal was to find a platform that wasn’t just an adaptation of a PC-based system, but rather one designed specifically for mobile use, tapping into the way the younger generation consumes media.
We’ve now implemented an exceptional mobile-first LMS that’s perfectly suited to our needs. This system has revolutionized the way we train our staff, making the process more accessible, efficient, and in tune with the modern lifestyle of our team members.
For other restaurateurs looking to build their team from scratch, my advice is to leverage technology in your training processes. Invest in a system that resonates with the habits and preferences of your workforce. A mobile-first approach is not just about convenience; it’s about meeting your team where they are and providing them with the tools they need in a format they are most comfortable with. This approach can significantly enhance the effectiveness of your training and contribute greatly to the success of your restaurant.
This is an article from the March issue of SPM Magazine
SPM: What are your best practices for team building?
KN: At Zalat Pizza, fostering a fun and inclusive culture is at the heart of our team-building practices. We believe that every team member should feel valued and have a voice in the decision-making process. To achieve this, we create an environment where open communication and collaboration are encouraged at all levels. Regular team meetings, brainstorming sessions, and open forums are integral parts of our culture. These practices not only enhance team cohesion but also foster a sense of ownership and responsibility among our staff. By actively involving everyone in various aspects of our operations, from recipe development to service enhancements, we ensure that each member feels a part of Zalat Pizza’s success and future.
Furthermore, having a noble mission as our ‘North Star’ is pivotal in our team-building efforts. Our clear and motivating mission, particularly the aspect of making our frontline workers wealthy through stock options, serves as a powerful unifying force. It’s not just about working in a pizza chain; it’s about being part of a movement that values and rewards its members. This approach has proven to be incredibly effective in building a dedicated and passionate team. The mission resonates with our employees, giving them a sense of purpose and a tangible stake in the company’s success. In essence, our team-building practices are about creating a community within Zalat Pizza where everyone is working towards a shared, meaningful goal, and reaping the rewards together
SPM: In regard to Zalat’s mission of Investing in People, can you share the catalyst for offering stock options to employees? What has the response been from the employees?
KN: The decision to offer stock options to our employees at Zalat Pizza is deeply rooted in my background as a former corporate and securities lawyer and my experience with tech startups, where stock options are a standard and expected benefit. In the tech industry, it’s common for early employees to share in the financial success of the company. However, when I transitioned to the restaurant industry, I noticed a stark contrast. Many restaurant chains grow from a single location to hundreds, yet the hardworking employees who contribute significantly to this growth rarely share in the financial rewards that are granted only to senior executives. This disparity struck me as profoundly unfair.
Determined to change this narrative, we introduced stock options for our employees at Zalat Pizza. This initiative is more than just a benefit; it’s a fundamental part of our mission to invest in people. By offering stock options, we’re not only providing a financial incentive but also fostering a sense of ownership and partnership among our team. The response from our employees has been overwhelmingly positive. They appreciate not just the potential financial gain but also the recognition of their hard work and contribution to our success. This approach has cultivated a more dedicated and motivated workforce, as our employees see themselves as true stakeholders in Zalat Pizza’s journey. It’s a testament to our belief that investing in our people is the key to building a sustainable and successful business.
SPM: How could other restaurant’s integrate this option if they are already up and running? And from scratch?
KN: Unfortunately, adding stock options in an already running restaurant or restaurant group, or even when starting fresh, isn’t an easy proposition, to be honest. There’s a whole bunch of legal hurdles involved. It is quite a bit of time and money on hiring attorneys who know their way around SEC and IRS rules to set up an employee stock incentive plan. And don’t forget about finding a solid software vendor to keep track of all the stock option details for your team. They handle the details like how long before the options vest, strike prices, and helping your crew turn those options into real shares if they want to. It’s a bit of a project, but if you’re up for it, it can really pay off for everyone involved.
SPM: What inspired you to go the crowdfunding route? What would you say you owe the success of the campaign to?
KN: Our decision to venture into crowdfunding was driven by a unique position we found ourselves in at Zalat Pizza. We’re fortunate to have a deeply loyal and enthusiastic customer base, many of whom are keenly aware of our mission to share success with our workers. This awareness sparked an idea: why not invite our customers to elevate their relationship with us? To go from being loyal patrons to becoming ‘Investomers’—a term we’ve recently trademarked.
This move was about aligning not just our employees but also extending this alignment to our customer base, creating a community of stakeholders who are invested in the success of Zalat Pizza. I’m thrilled to share that our campaign exceeded our expectations. We had to conclude it early due to overwhelming demand—it was completely sold out and oversubscribed. We offered $2 million in shares, and astonishingly, over 1,700 customers chose to become Zalat Investomers. It’s a testament to the strength of our community and the shared belief in our mission
SPM: What would you say or some of the key ways for marketing your brand and projects? Do they differ depending on the message? What advice would you give to a restaurant or looking to get press?
KN: When it comes to marketing your brand and various projects, my biggest piece of advice is: be ready to invest. The landscape has shifted dramatically, with most advertising budgets moving to social media. This has created a lot of noise, making it crucial to use your ad dollars smartly. For Zalat Pizza, success in this arena comes from having experts who really know their way around digital advertising. Marketing today is incredibly tech-dependent, and you need the right partners who have deep expertise in various segments of your strategy.
SPM: Over the next two years, you are looking to expand the brand outside of the state of Texas. What does that process look like? Can you share any of the details as to what goes on behind-the-scenes to make that happen?
KN: As we look to expand Zalat Pizza beyond Texas over the next two years, our focus is on setting up a robust infrastructure for franchising. Up until now, our 32 units have been 100% company-owned, but we’ve decided to start franchising our model. This shift comes after a thorough evaluation and conclusion that our model has reached a level where it can be replicated easily while maintaining our best-in-class pizza quality. Franchising is a strategic move that will likely propel our expansion outside of Texas, enabling us to grow at a faster rate.
However, it’s crucial for us to approach this expansion conservatively. Our plan is to manage our growth meticulously to avoid any compromise on quality, which is the cornerstone of our brand. Behind the scenes, this means a lot of planning and strategic decision-making to ensure that our franchise model upholds the standards we’ve set for Zalat Pizza. It involves creating detailed franchise guidelines, setting up support systems for franchisees, and developing quality control mechanisms that align with our core value of making amazing pizzas. We’re committed to growing our brand without losing sight of what makes Zalat special—the exceptional quality of our pizzas.
Zalat Pizza began as a ghost kitchen in 2015, and now boasts 32 locations spread throughout Dallas-Fort Worth, Houston and Austin.