Happy Joe's, A Pizza Chain That Delivers Breakfast?

After 30 Years of Below the Radar, Happy Joe’s Raises Profile with Unveiling of New Prototype, Day-Parts Menu, Franchise Expansion Plan

BETTENDORF, IOWA (Friday, July 01, 2005) - Happy Joe’s Pizza & Ice Cream, a sleeping giant of family quick casual restaurants for more than 30 years, is attracting renewed interest since unveiling its new prototype, “Happy Joe’s Caféz,” featuring new design elements, family fun centers, party rooms and an extended menu that includes breakfast to complement its lunch and dinner offerings for sit-down, takeout, delivery, or pickup window.

After intentionally keeping a low profile while testing and tweaking the new design and menu additions in its Midwest markets, where its famous taco pizza has a “cult-like” following, Happy Joe’s recently announced its newest concept called Happy Joe’s Caféz, featuring a new facility design and menu enhancement, to debut this fall in Rockford, IL.

In another strategic move aimed at future growth, the legendary Midwest family-owned and operated 65-unit chain hired Bob Thiess, a former VP for KFC and Papa John’s, as Executive Director of Franchise Development with the objective to drive growth and attract local and area developers to open multiple Happy Joe’s Caféz.

“When I first found Happy Joe’s, it was like discovering an unopened treasure,” Thiess said. “For restaurant developers seeking to expand their portfolios with a time-tested family-oriented restaurant concept, Happy Joe’s is an undiscovered gem. I jumped at the opportunity, knowing that I was joining an established company that is willing to accept the challenges involved to successfully expand the brand. They’ve got history and a loyal following, yet they embrace new ideas to stay current and move to the next level.”

With lively locations packed with loyal guests in Iowa, Illinois, Wisconsin, Minnesota, Missouri and North Dakota, and chain sales totaling $43 million in 2004, Happy Joe’s plans to focus on growing average unit volumes and opening new units.

Keeping it real, staying current

A passion for giving back to community, particularly special-needs children, is a pre-requisite for those investing in the Happy Joe’s concept. Ties to that cause go back to the chain’s roots. Before opening his first Happy Joe’s in 1972, founder “Happy Joe” Whitty was nearly let go from another pizza chain for sponsoring a party for special- needs children without first getting approval from his boss. An entrepreneur at heart, Whitty said he “was inspired rather than discouraged” by the experience.

“The night before opening my first Happy Joe’s restaurant in the Village of East Davenport, Iowa, I invited a local priest to bless my business, and that night I made a promise that if I could make enough money to feed my family, I would give back to the community – specifically to those with special needs,” Whitty said, noting that since then, Happy Joe’s franchisees are asked to host an annual holiday party for children with special needs. To date, the chain has hosted more than 140,000 special-needs children.

“This chain was built with a passion for family and community, and that will always be at the core of the Happy Joe’s concept,” said Larry Whitty, second-generation Happy Joe’s president. “At the same time, we realize that in order to continue his dream, we need to stay current with creative offerings and a lively fun atmosphere. While many pizza franchises offer only delivery or carryout, we provide our guests with a family quick-casual experience, including `fun centers’ for kids, world-class menus, and the convenience of delivery/carryout, and pickup window service for all menu items. Our concept has something to offer the whole family. We satisfy everyone’s taste, and build family memories.”

The new prototype building features a kid’s viewing window of the kitchen, fun centers, party corrals, enhanced dining rooms and outdoors patios. The re-innovated image is aimed at the

24-to-64 year-old demographic, with the main focus on moms, and how Happy Joe’s can make their lives more convenient.

“We hope to eliminate the ‘veto vote,’” said Marketing Director Kristel Whitty-Ersan, youngest daughter of founder “Happy Joe” Whitty. “We focus mainly on families, and in particular moms, who work hard to please everyone. By being open for breakfast, lunch, snack time and dinner, Happy Joe’s Caféz is a great place to go and feel comfortable, any time of the day.”

Happy Joe’s strategically tested its Caféz at various Midwest locations before cementing the Rockford deal, Larry Whitty said. “The approval rate has been phenomenal,” he said. “Our guests say they enjoy the new décor. We also enhanced our fun centers to provide kids with more entertainment options, and parents love it.”

Happy Joe’s is specifically targeting Madison and Milwaukee, WI; St. Louis and Kansas City, MO; Kansas City, KS; Minneapolis and Rochester, MN; Omaha and Lincoln, NE and the western Chicago suburbs for development, and is receptive to opening other multi-unit areas as well.

Good morning guests

Innovation has always been key to Happy Joe’s success. Before “Happy Joe” Whitty opened his first restaurant, he managed a local pizzeria, and noticed that after people ate, they would venture to the local ice cream parlor for dessert, That observation led “Happy Joe” to take the innovative step of offering ice cream to his guests, and eliminating the need for guests to go elsewhere.

Joe Whitty sat on the board of several local community organizations. He offered his restaurant as a meeting place and brought in donuts and coffee. One day, someone suggested that the group meet at a restaurant that offered a breakfast menu. That inspired “Happy Joe” to create an early morning breakfast line, including the popular omelet pizza, freshly baked cinnamon and carmel pecan nut rolls, breakfast skillet dishes and gourmet coffees.

Happy Joe’s menu features its famous original Taco Pizza, and other unique pizzas such as the BLT and Canadian bacon and sauerkraut pizzas. The new Happy Joe’s Caféz menu has been expanded to include hot Panini sandwiches, freshly made salads, upgraded bottled beers and wines and their new Mix’ns ice cream concept for dessert. In June, Happy Joe’s added a Chipolte line of pizzas, hot Panini sandwiches, salads and pastas to its menu.

“We have always been open to new menu ideas,” Happy Joe Whitty said. “Thirty years ago a Happy Joe’s franchisee wanted to add tacos to his menu. I told him he couldn’t because we’re not a taco place, but promised that I would come up with a better idea that fit our pizza concept. After a trip to the local grocery store and a little time in the kitchen, the first Taco Pizza was born.”

An ideal franchisee candidate for Happy Joe’s is committed to community and has an entrepreneurial spirit, Larry Whitty said. “We treat our franchisees the same as we do our communities – with respect and fairness,” Larry Whitty said. “A Happy Joe’s franchisee pays only a 4.5 percent royalty, furthering our dedication to our franchisees.”

About Happy Joe’s

Happy Joe’s is more than just a restaurant, it’s an experience. With 65 locations, most equipped for kids, world-class menus, and the convenience of delivery/carryout and pickup window service of all menu items, Happy Joe’s has been a leader in the family restaurant market for over 33 years.

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