Shaking Shakey's Up

The sorry state of the Shakey's Pizza chain -- which launched as the first nationwide pizza chain but has been a disaster for at least the past two decades -- is a cautionary tale in restaurant franchising. A series of neglectant owners nearly killed the chain -- which at one time boasted 325 stores in the U.S., now down to 62 (55 of which are in Southern California).

My parents first met at a Shakey's in Duluth, Minnesota. And later, when we lived in the Philippines, we'd head off base to the Shakey's in Angeles City. (Shakey's operation in the Philippines is now larger and better organized than in the U.S.) Now, there's a Shakey's location not too far from our Glendale home. And even though that location, like most Shakey's these days, is pretty rank (it clearly hasn't been updated since sometime in the 1980s), Blogger Baby Evan has taken a liking to the chain's signature Mojo potatoes -- so it too now holds special significance.

With all that history, it was at least good to read in this week's L.A. Business Journal that Shakey's is finally updating its image and operations:

Alhambra-based Shakey’s USA, owned by Jacmar Corp., has hired longtime Pizza Hut executive Tim Pulido, known for his marketing acumen, to work some magic. His charge is to put the chain back onto solid ground in the $30 billion-a-year pizza industry.

The plan is to reinvent the restaurants as family-friendly, fast-casual “Shakey’s Pizza & Grill,” with a new look and vibe and fresh menu items – while staying true to its “pizza first” roots. The parent company is infusing capital and launching its flagship outlet in Covina this week. Other corporate and franchise stores – including its Burbank and Alhambra sites – are scheduled to remodel soon.

“We’re not talking about dramatic re-positioning in the market, but we want to bring the brand with 52 years of heritage into the 21st Century,” Pulido said. “It’s going to be for today, not like something out of 1985, which is where many of our stores are now.”

The question is, are the changes too late?

“I’ll be the first to say this is not going to be easy,” Pulido said. “It is tough being late; other guys are trying to upgrade too, and everyone has recognized the dine-in side of the pizza business is very tough and competitive. High-end casual has been shrinking for a number of years and you need to find a unique position in the marketplace. If you don’t, you’ll die.”

The paper adds that the new Shakey's is "shifting to a more “family entertainment” motif. The newly-built sites will have a bright design, different staff uniforms, a retooled logo, slogan and a huge kids entertainment zone, complete with interactive 3-D video games. Menu boards will be on a brick wall, and the interior will have a more open feel than the dark Shakey’s of old. Most importantly, according to Pulido, the menu will be upgraded, too."

The new Shakey's has added six gourmet pizzas and several new hamburgers, sandwiches and high-end salads.

The history of Shakey's, via Wikipedia:

"Shakey" Johnson's nickname resulted from nerve damage following a bout of malaria suffered during World War II. The first weekend the parlor opened, only beer was served, and Shakey took the profits from beer sales and bought ingredients for pizza the following Monday.

The original store at 57th and J in Sacramento remained in business until the late 1990s. Shakey personally played dixieland jazz piano to entertain patrons. Shakey's initially became known outside Sacramento not for its pizza but for the jazz program it sponsored on a regional radio network. Shakey Johnson is honored in the Banjo Hall of Fame in Guthrie, Oklahoma. for his longtime use of banjo music at his pizza parlors. Other live music, including piano, was also a staple in the old Shakey's parlors.