Building better businesses - Permira

Investment
overview
Telepizza is a Spanish home delivery and take away
pizza business that was founded in 1987 in a small
Madrid pizza restaurant. Today, Telepizza operates
around 650 outlets in Spain (both owned and
franchised) that reach 12 million households. The
company also has a presence in Portugal, Chile, Poland
and Central America, where it operates over 400 stores.
According to DBK, Telepizza is the market leader in the
pizza delivery market in Spain, with a 70% share.
The global economic downturn meant that
2009 was a relatively tough year for Telepizza.
Private consumption was severely impacted
in most markets. The Spanish food service
market declined by 6%, while the quick
service sector declined by 3%. Outside
of Spain, Telepizza has experienced a
combination of falling consumer demand
and foreign exchange pressures.
In Spain, Telepizza took a series of important
steps to combat the effects of the recession.
A new product range, which includes burgers,
pastas and salads, was launched to increase
customer spending and to target new
consumption events – weekday lunch
and dinner as well as weekend lunch.
Furthermore, Telepizza’s Spanish outlets
have introduced individual menus as well as
new pricing and promotions. As a result of
these changes, Telepizza continued to gain
market share and strengthen its leadership
position in the Spanish home delivery market.
Telepizza has proven resilient in the face of
this severe downturn; it is now well positioned
for growth as the economy starts to recover.
The business has appointed a new chief
executive, Pablo Juantegui, who has
extensive experience in marketing, sales
and management in the consumer sector.
In 2010, Mr Juantegui will focus on rolling
out an updated business plan with a focus
on new price positioning and store-by-store
price differentiation; leveraging of the take
away channel as a low-cost option for
customers; reinforcing positioning in
weekdays by targeting ‘convenience
customers’ and office delivery; a new
CRM strategy with the aim of generating
customer retention and up-selling
opportunities and reinforcing leadership
through product innovation.
In 2010, Telepizza will also continue its
process of international expansion. The
Polish business will be restructured while
new stores will be opened in Chile and
Portugal. Telepizza will also examine new
opportunities to enter new markets that
offer attractive growth prospects.
Permira Annual Review 2009 Our Portfolio 79