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Marco's Pizza's chief development officer offers unique perspective with real estate background

Gerardo Flores is chief development officer for Marco's Pizza. With a background in real estate, Flores brings a unique perspective to the quickly growing brand.

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June 26, 2023 by Mandy Wolf Detwiler — Editor, Networld Media Group

Marco's Pizza's franchise expansion continues to surge. The brand has more than 1,100 locations. Last year alone, Marco's opened more than 90 units and awarded 140 franchises. It has doubled its store footprint in the last six years, and company leadership has identified 4,200 potential U.S. locations.

Leading that charge is Chief Development Officer Gerardo Flores. While most CDOs are focused on growth strategy, Flores is, too, but with a background in real estate, he brings a unique perspective to the Ohio-based pizza chain. Flores joined the company is 2022 and is responsible for developing U.S. and international growth strategies. He's held real estate positions with several companies, including Tropical Smoothie Café, Jersey Mike's Subs and Cold Stone Creamery.

Pizza Marketplace took a deep dive into Flores' position to learn how his unique background in real estate helps him in his position as chief development officer for Marco's Pizza.

Q: As chief development officer for Marco's Pizza, tell us what your job entails daily.

A: As the chief development officer for Marco's Pizza, my job entails overseeing the company's development and expansion efforts, in addition to franchise finance, sales and construction. My daily responsibilities involve identifying potential locations for new Marco's Pizza stores, evaluating market trends and competition, negotiating lease agreements, managing relationships with real estate developers and brokers, analyzing financial feasibility and collaborating with other teams within the company to ensure successful store openings.

Gerardo Flores is chief development officer for Marco's Pizza. Provided.

Q:Marco's is one of the fastest-growing companies in the restaurant industry. What are you looking for when selecting a site?

A: Some of the key factors we look for in site selection include demographic data such as population density, income levels and target market preferences. Other key factors include traffic patterns, visibility, accessibility, proximity to residential and business areas, competition analysis and local zoning regulations. The goal is to identify locations with a high potential for sales, profitability and community involvement.

Q: How is Marco's faring in a dynamic real estate market? There seems to be a lot of competition for the same locations.

A: In this dynamic real estate market with intense competition for prime locations, all franchise brands face some degree of challenges in securing ideal sites; however, Marco's leverages its growth momentum, brand recognition and market analysis to adapt and find suitable locations that align with our expansion strategy. We approach these challenges by exploring alternative areas, considering different store formats (such as smaller footprint stores) or utilizing technology to optimize operations and reach customers in high-demand areas.

Q:What kind of market research do you do before choosing a location?

A:Before choosing a location, we conduct market research to assess the viability of a potential site. This research involves studying the local market's demographics, competition analysis, economic trends, customer preferences and spending habits. Additionally, factors like local regulations, availability of skilled labor and transportation infrastructure may also be considered.

Q:How do you make sure the brand isn't growing too fast?

A:Marco's Pizza adopts a strategic approach to ensure steady growth. We establish growth targets and monitor key performance indicators to evaluate the success of new store openings. By analyzing sales data, customer feedback and operational efficiency, we can better assess the brand's ability to sustain growth without compromising quality or customer experience. Regular data collection and analysis allows us to make adjustments to our expansion plans based on this evaluation as needed. In addition to this, it really boils down to growing with the right operator. For this reason, we have a very structured and detailed process of meeting with prospects and determining a mutual fit.

In the last six years, Marco's has doubled its store footprint — validating our growth strategy.

Q:Marco's has ditched the one-size-fits-all mentality when it comes to locations. How do you keep the brand in line with others but still maintain individuality when it comes to local stores?

A:As markets shift and evolve, franchisees and franchisors may need to adjust their strategies and consider new locations or different types of properties. When it comes to real estate, a one-size-fits-all approach does not work. The industry has changed, as has the customer post COVID — such as eating habits, shopping habits etc. — and brands must adapt with it. Remaining nimble and adapting to market demands will provide solutions to franchisees looking for specific development opportunities.

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This might include new prototypes, smaller footprint builds, conversion opportunities, etc. Note that while there is huge potential with second generation real estate, it is critically important to discover why the brand there before did not succeed; ask the hard questions. If the space is a brand fit, there are many advantages to conversion opportunities – including reducing build-out costs.

Q:How does technology play into real estate selection?

A:Technology plays a significant role in real estate selection. We leverage data analytics, geographic information systems and market research tools so that we can gather valuable insights to identify optimal locations. Technology also assists in streamlining operations, optimizing delivery drive times, managing online ordering platforms and tracking customer behavior through geofencing. Utilizing advanced software and analytics has provided Marco's a competitive advantage in making informed decisions about real estate selection.

Q:What areas is Marco's looking to grow into?

A:Marco's is currently undergoing some of our greatest expansion to date. We now have more than 200 stores in various stages of development, and hundreds of agreements signed. We are looking to expand most aggressively in the mid-Atlantic, southeast, and southwest. As franchise expansion surges, we've identified 4,200 potential U.S. locations. We're also eyeing international development with several large master agreements in the works.

Q:What mistakes do you think some brands make when it comes to site selection?

A:I find that moving too quickly and failing to conduct thorough market research leads to an inadequate analysis of the local market, which often leads to poor site selection decisions. The highly competitive nature of today's real estate market brings with it a sense of urgency to move fast, but without the right analysis, many are jumping at opportunities and skipping key evaluations to make informed decisions. Another mistake in site selection is simply overlooking competition. It's important to never underestimate or ignore similar brands in local markets — regardless of the size and stature; do your due diligence.

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Q:If you had a piece of advice to give to a Marco's franchisee looking for his or her next location, what would you tell them?

A:Consider visibility and accessibility. Choose a location that offers high visibility and easy accessibility for your customers (and delivery drivers). Look for areas with good foot traffic, proximity to residential and commercial areas, and convenient parking options. Visibility plays a crucial role in attracting customers and promoting brand awareness. Use a brand-approved broker to help you with your site search.

Additionally, be sure to assess leasing terms and costs. Evaluate the leasing terms, rental costs and potential negotiation opportunities for the desired location. Use a qualified attorney to help negotiate your lease. Consider the financial feasibility and profitability of operating in that area. Factor in rent, utilities and other expenses to ensure that the location aligns with your business goals.

Finally, lean on us as a resource. Marco's provides a full development support system, including technology and tools to help identify the right territories for expansion plus expertise in financing, real estate, construction management and field operations, to assist franchisees and multi-unit operators. Our development team continues to find new, cost-saving opportunities to keep the initial up-front investment affordable including smaller footprints, pickup windows, tools that accelerate the new store opening process and more, creating operational efficiencies.

About Mandy Wolf Detwiler

Mandy Wolf Detwiler is the managing editor at Networld Media Group and the site editor for PizzaMarketplace.com and QSRweb.com. She has more than 20 years’ experience covering food, people and places.

An award-winning print journalist, Mandy brings more than 20 years’ experience to Networld Media Group. She has spent nearly two decades covering the pizza industry, from independent pizzerias to multi-unit chains and every size business in between. Mandy has been featured on the Food Network and has won numerous awards for her coverage of the restaurant industry. She has an insatiable appetite for learning, and can tell you where to find the best slices in the country after spending 15 years traveling and eating pizza for a living.

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