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- He launched a $3.6M pizza empire on a credit card… In a global crisis
He launched a $3.6M pizza empire on a credit card… In a global crisis
Today's newsletter tells the story of a pizzeria that launched during all the lockdowns... on a credit card... and grew into a $3.6M business.
Hey UpFlipers,
Want to know the #1 killer of business dreams?
Waiting for everything to be “perfect”.
Newsflash: You’ll never be 100% “ready” to launch your company. Conditions will never be “ideal”. Obstacles will always arise.
Case in point:
Today’s newsletter details how a Seattle-based business owner launched a multi-million dollar pizza empire in the middle of a pandemic…
On his credit card…
And built a base of superfans so loyal that the brand’s pizza sells out 3 MONTHS IN ADVANCE.
If he can do it in a pandemic with nothing but a credit card…
There’s no reason to wait for the “perfect conditions”. A lot of valuable lessons to learn from his story.
So keep reading to learn how it happened…
Today in 5 minutes or less, you’ll learn:
✅ How Lee Kindell launched a wildly successful pizza shop during a global crisis… and sells out 3 months in advance
✅ The 3-step formula for building a biz on a shoe-string budget in a crisis
✅ How Lee hires and KEEPS the best employees
How Lee Kindell launched a $3.6M pizza empire… when the world was shut down
Lee Kindell, founder of Moto Pizza, doesn’t mind straying from the beaten path. Being different is what caused his business to explode…
Despite the pandemic and the economic chaos of the last few years.
Today, Moto has 4 locations across Seattle. Demand is so high that pizza sells out 3 months in advance.
Yeah, you read that right. Their pizza sells out.
Moto recently got a valuation of $3.6 million in their first seed round.
Let’s see how Lee and his team did it.
Bringing retirement dreams to life
Lee Kindell and his wife were running their boutique hotel when COVID forced them to shut down.
Now, Lee had always dreamed of owning a pizza shop. He didn’t want to swing golf clubs — he wanted to sling slices.
So instead of freaking out and giving up when disaster struck…
He decided it was now or never to pursue his pizzeria dreams.
Humble Beginnings
Lee had to keep costs to a bare minimum, and worked hard to do so.
“I didn’t have any money. I had to use my credit card. It was risky, but I didn’t want to get a job. I wanted to be an entrepreneur.”
Rather than buying a commercial location… He bought an old West Seattle house and converted it into a pizzeria.
It’s far from downtown, between two big buildings. But this gives it a unique appeal. It’s off the beaten path. Going to Moto is an adventure.
As for the conversion…
He had to do the electrical by permit, but built almost everything by hand to save money.
Total cost: $60,000… for equipment, his first customer orders, and the location + converting it. Not bad.
He just had to make sure he could start pulling in revenue ASAP to pay off his card…
Not just different… but BETTER
Lee’s pizza had to be radically different to compete with the big chains.
He blended elements of Roman, Midwest, and New York pizza…
Tying it together with his Filipino heritage to make it his own.
For example, he uses banana ketchup, a sweet and tangy Filipino condiment, in some pizzas. No traditional pizza offers quite the same flavor.
Not only do they taste great… but customers remember them. And come back for more.
“Just build a good pizza and word gets out.”
Logistical challenges… and “fail to scale.”
Word got out, alright. Almost too fast.
Growing pains showed themselves when business took off.
Lee couldn’t do everything himself, so he started to hire.
But there were physical challenges, too.
Moto’s stairs became a pain for employees and customers carrying premium pizzas.
At least the stairs are small!
How about power? Lee’s single-phase oven did the job, but he wanted to invest in better options.
And then the walls. They can get in the way when Lee’s sprinting back and forth between rooms.
Fortunately, these issues arose before expansion. Lee learned to minimize their impacts when less costly — he calls this “fail to scale.”
“When I have a single location, a mistake might be a couple thousand dollars. But down the road in 20 locations, it could be $2 million.”
Moto’s biggest test
Moto’s started taking online orders to expand. One day, Lee must’ve misclicked…
Because he accidentally erased $80,000 of orders.
Oops!
That’s enough to make many quit.
Not Lee. Moto was his dream. He took extreme ownership — he didn’t lay an ounce of blame on staff or tech.
He sent a heartfelt apology message to his customers and took full responsibility.
Some were mad. But Lee did whatever it took to make things right.
Many customers found it funny, though. People understand that things happen. That’s the power of building real customer relationships.
A month later, Moto was back on track.
What’s business look like now?
Moto Pizza now has close to 100 employees across 4 Seattle locations — including in T-Mobile Park, home of the Seattle Mariners.
Average numbers for one location:
Revenue: $90k/month ($1,080,000/year)
Food costs: 22%, or $19,800 ($237,600/year)
Profit margin: 15%, or $13,500 ($162,000/year)
Lee’s costs are predictable, thanks to always selling out. Makes it easier to avoid over or underspending on ingredients.
Now, despite being head of his empire…
Lee still kneads dough alongside his people.
“I’ll do between 10 and 16 hours a day easily.”
That’s not for everyone. But if you do what you love with great people, it’s hard to call it “work.”
What’s business look like now?
Moto’s got options for more growth:
Delivery
Alcohol sales (they have their permit but aren’t selling this yet)
Expanding mozzarella sticks and ice cream sales
But Lee’s being careful. He doesn’t need to hustle so hard for customers anymore.
So he can take his time and plan his next move.
Lee’s three-step formula for growing a biz on a budget… in a global crisis
Lee put his initial investments on a credit card. So he had to grow Moto on next to no $$$. And in a global crisis, no less.
Here’s the formula (applicable to many business models):
1. Talk to EVERYBODY about it
“Whatever you’re doing with your product, talk to EVERYBODY about it.”
That’s what Lee did… and Moto’s story reached the right people.
Sometimes, he reached out to journalists. Other times, they contacted him and asked to do a story.
Either way: Getting Moto in all the local papers caused business to EXPLODE.
We bet this brought more business to ALL locations, not just the ones mentioned
Many other businesses can do the same thing. Web designers, eCom brands, car washing, and the list goes on.
2. Say it with me: Social media
Hundreds of millions of people are on Instagram every day. That’s a HUGE potential audience.
So Lee hasn’t spent a DIME on paid ads. He studied Instagram and built a huge following on the platform for free.
The secret:
“You gotta get people to interact with you. You gotta get people involved and excited.”
When Moto sells out, Lee directs customers to his Instagram so they know immediately when pizza’s back in stock.
However, Instagram isn’t the only platform.
Lee’s exploring TikTok now. He sees potential there.
Still, he only started on TikTok after mastering Instagram.
Focus on one platform first. Learn the algorithm and build a following. Consider other platforms later if they serve your goals.
3. Get customers to do your marketing
Moto Pizza delivers a fantastic customer experience. Happy customers leave rave reviews and tell their friends.
Those friends are “warm” traffic, meaning they have more trust. Easier to sell them.
The happy customers themselves come back again, too. Moto’s becomes more than a pizza place… it’s an experience.
Repeat biz + referrals = biz success.
Hiring and managing like a pro
Many physical and online businesses need to hire at some point.
Lee has around 40 hard-working employees (and growing) across his locations.
Check out how Lee gets and KEEPS the best talent for Moto…
1. Market-leading compensation
Lee pays $24/hour PLUS tips — far higher than the average industry wage. He says that after tips, that averages around $32/hour.
Plus, employees get health insurance.
Taken together: That’s up to $60k/year + health insurance for a full-time employee.
That’s better pay and benefits than some white-collar jobs!
This attracts tons of candidates, but also a different level of candidates. Lee can look for the best. They stay on forever, enjoy their job, and do great work.
“You keep people longer… and your hiring, rehiring, training, and similar costs are down.”
2. Values alignment
Moto Pizza is known for its awesome customer service and environment — so Lee looks for candidates with kindness and communication skills.
He looks for people who have a team mentality, too. Those who want to put in the work, not just collect a paycheck.
This leads us to #3…
3. Supportive work culture/environment
Moto employees love their job and help each other when needed.
More productivity, better customer service, the whole nine yards.
Plus:
Lee encourages autonomy and personal responsibility to create a sense of “ownership”, so he doesn’t need to hire managers.
Employees are proud of their work and solve problems without Lee’s input. The $24 wage also makes employees fine with extra responsibilities.
Lee listens to employees, too… and they know he listens.
“If you just are quiet and listen, they'll give you enough to where you know what the needs are and you'll be able to find a place to meet them.”
To wrap it all up…
Being prepared to launch your business is important. Having a rough plan and some savings doesn’t hurt.
But you can’t wait for the stars to align before your launch. That’ll never happen. The person who starts beats the person who waits.
If Lee can build a thriving brick-and-mortar pizza chain during a pandemic…
We’re confident you can start and grow one today, physical or online.
You just have to start.
Woah, check these out…
🍔 Got a favorite food? Here are some food business ideas to consider for 2024.
🔥 For more inspiring success stories (and neat biz ideas), check out The UpFlip Podcast.
📈 Grow your Instagram following like Moto — Check out this guide on how to do it
📱 Mobile eCom is expected to hit insane numbers by 2025…
There are three ways to join UpFlip:
✔️ Get on the Start, Run & Grow a Business Course waitlist. You’ll learn exactly how to start, run, and grow your business from a serial entrepreneur.
✔️ Watch our interview with a cupcake company that launched during the 2008 Great Recession. The owner turned her last $5 into a $10,000,000 cupcake empire!
✔️ Subscribe to our YouTube channel for more awesome insights and inspiring business stories.
Weekly business trivia
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