Headquarters of pizza firm moves south

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Captain Tony’s Pizza Inc. has relocated its headquarters to Florida, a move designed to facilitate the pizza outlet’s expansion to the Sunshine State, Vice President Michael J. Martella said.
He said the move also is an indication of a flat market in Rochester.
“There’s room for growth in Rochester,” Martella said from his office in Orange City, “but the growth (in pizza) is here in the South.”
Captain Tony’s has one store in Rochester, on North Winton Road, but three other locations have closed in the past year.
The move south comes a year after Martella and his partner, cousin Michael H. Martella, considered selling 80 percent of the company to Phone Club International, a move that would have facilitated sports wagering via an 800 phone number to the Dominican Republic. Neither the stock sale nor the betting arrangement came to pass, and the Martellas retained controlling interest in Captain Tony’s.
Martella places most of the blame for the closings of the East Ridge Road, Monroe Avenue and Denise Road Captain Tony’s pizza stores on mismanagement. He added that pizza sales nationwide have declined because of market saturation and poor product.
“Don’t get me wrong, there’s still room for five or six stores in the Rochester area,” he said. “But the competition here in Florida is all chains, so Captain Tony’s will be unique here.
“In Rochester more so than anywhere else,” he said, “the quality of pizza has dropped. Ten years ago Rochester was quality-oriented. The (national) chains wouldn’t come in here because they couldn’t compete with the quality of the mom-and-pop shops. Now people will go to chains. Chains advertise and people get brainwashed.”
The firm has franchised 11 other Captain Tony’s Pizzas, including two in London and one in Liverpool, England. Other stores are in Ohio (two), California (four), Arizona and Pennsylvania.
Martella insists the firm has a unique franchising arrangement that will appeal to potential entrepreneurs. After an initial fee of $9,500, Captain Tony’s franchisees pay a flat weekly fee instead of a percent of the gross revenues.
The payment ranges from $100 a week for a restaurant that seats 20 people or fewer to $400 a week for a seating capacity of 121 or more.
“Franchisees sign a 20-year contract and the (weekly) rate never goes up,” Martella said. “I’m looking for exceptional people who want to be in business. We want our franchisees to be our partners.”
Craig Tregillus, a staff attorney in the Washington, D.C., office of the Federal Trade Commission, agreed that Martella’s franchise-fee structure is not the most common.
“Most fast-food franchises do base their royalties on gross sales,” Tregillus said.