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Happy Joe’s is an iconic, global restaurant franchise that was founded in 1972 by Joe Whitty in Davenport, Iowa. The idea behind the brand was to create a restaurant that focused on serving pizza and ice cream – two of America’s favorite foods – all in a family-focused and festive environment. In 2022, the chain continues to win numerous awards, from being named a Top 50 Contender by QSR Magazine and a Top 200 Concept by FastCasual to a Top 400 Business by Franchise Times and a Top 500 Restaurant by Nation’s Restaurant News. The rapidly growing brand has dozens of company-owned and franchise locations across the Midwest, with more in the pipeline both nationally and internationally.
Happy Joe’s Remarkable 2022
2022 marks the 50th anniversary of Happy Joe’s, and same-store sales and year-on-year revenue have grown considerably over 2020 and 2021 figures. New franchise openings have also contributed to the company’s success in 2022, not to mention the roll-out of a new loyalty rewards program, the use of technology to streamline processes, and the introduction of mobile orders to drive sales and customer acquisition in new markets.
Over the last year or so, the chain signed almost 30 new franchise agreements – a 60%+ increase in store count – and closed out one of its strongest development years in 2021. Happy Joe’s heavy investments in new digital efforts to deliver its gourmet menu to customers across the country – combined with a steadfast commitment to the company’s core values of Servant’s Heart, Warrior Spirit, and Be Passionate about What You Do– have also helped the chain maintain strong on-site and delivery orders.
Sales in Q1 of 2022 were 4.7% higher than a year prior and were over 10% higher than 2020 figures. Q4 of 2022 increased sales results of 3.3% also marked the eighth consecutive quarter that Happy Joe’s experienced positive sales growth across all delivery channels, including in-house, curbside, drive-thru, and dine-in. All of these delivery modes are set up to make it easier for customers to enjoy their favorite pizza creations, whether for breakfast, lunch, dinner, or dessert.
Speaking about digital transformation and franchise growth, CEO and Chief Happiness Officer Tom Sacco said, “Improving our digital capabilities has been a top priority for our team heading into our 50th anniversary year. We want to give our operators the best tools and environment to excel, and, in today’s world, that means keeping our technology up to date. We’re excited to see our numbers continue to grow in 2022 and look forward to what’s to come during the year of our biggest birthday yet.”
A 30-year industry veteran, Mr. Sacco has been keen on bringing the Happy Joe’s experience to a new generation of customers while adapting the company to a new way of doing business – one that combines technology with franchise-driven expansion. “The fast-paced franchise momentum we’ve built this past year cannot be slowed down,” Mr. Sacco said. “At this rate, I have no doubt that on the year of our biggest birthday yet, we’ll be celebrating much more than our milestone anniversary. Happy Joe’s will be experiencing a record-breaking year. We have plans to open internationally and in new areas across the country in 2022. We can’t wait to create magical moments that last a lifetime in more cities throughout the world.”
New Tech and Design Initiatives
So, what kinds of tech-driven initiatives and design themes has Happy Joe’s implemented to stay ahead of the pack, and what do the company’s expansion plans look like?
The first tech initiative implemented by the company was a customer loyalty, offers, and engagement solution powered by renowned developer Punchh, recently acquired by ParTech, Inc. Punchh built an app for mobile ordering and customer rewards. The third was the relaunch of a revamped website built by design partner White Unicorn that came with new features, a revamped look and feel, a better, more streamlined ordering portal, and a better online experience for visitors. The fourth was a new partnership with the nationwide delivery service Goldbelly. Finally, Happy Joe’s teamed up with Harrison, a global design consultancy, to leverage Harrison’s award-winning branding, interior design, and architectural expertise to create a new image and brand design that would combine storytelling and a look and feel that effectively connected the company’s 50-year history with new elements of modern dining and the concept of “eatertainment” dining.
These efforts helped lay the foundation for Happy Joe’s planned expansion across the US, and even internationally, since the new technologies and design work across locations and cultures and anywhere Happy Joe’s may expand to in the future. While plans are not written in stone, early discussions are considering new outlets and franchises in a handful of states, including South Carolina, Colorado, Florida, Arizona, and Texas.
“All of the branding and technological advancements we have undertaken during 2021 and early 2022 were a necessary part of setting Happy Joe’s development and rapid growth up for success,” Mr. Sacco said. “We are well-positioned in our quest to be “Best-in-Class” as we broaden our reach, building ‘Happy Places’ domestically and internationally. Our hard-working franchisees and our corporate team members appreciate the passion that has been brought back to the brand in this next phase of our expansion.”
Franchise-Driven Expansion
Based on recent developments, much of the expansion will be driven by new franchises. However, despite strong growth and the potential for local and international expansion, Happy Joe’s leadership team is relentlessly focused on setting up its franchisees and operators for success by building out cautiously and on a sure footing.
Notable examples of this approach are the launch of new franchises in Illinois, Florida, and Missouri. New franchise deals have been inked as well for new locations in Arizona and Texas.
In Galesburg and Kewanee, IL., two long-term Happy Joe’s managers joined the company ranks as new franchisees. Leslie Boynton and Heather Avery – who have almost 20 years of leadership and supervisory experience between them – are two of Happy Joe’s newest franchisees. “We are so honored to have veteran Happy Joe’s management take over our two Illinois locations,” Mr. Sacco said about the development. “They truly understand our business and have the passion to create a fun family atmosphere that brings smiles to the community every day. We look forward to the future of Happy Joe’s with them and plan to continue our expansion across the state soon.”
Boynton started at Happy Joe’s as an assistant manager and said the interactions she, her team, and her customers had with Founder Joe Whitty – along with Tom Sacco’s support – motivated her to open a Happy Joe’s location of her own. She said: “Every day for the past eight years, I’ve been grateful to be part of inspiring so many smiles from our valued guests and community members. I adored Happy Joe’s founder and learned a lot from watching how he treated people. I want to ensure everyone who comes into our Galesburg location feels the same way Joe made everyone feel – welcomed, taken care of, and happy!”
Avery’s career trajectory had a similar path. She started as a Happy Joe’s server at the age of 14 and worked her way up to becoming a shift coach at the age of 26. She was then promoted to general manager and believes that hard work and dedication always pay off. She said: “I’m excited to show my children that it’s possible to be a strong female owning a business while balancing a family, homework, and play dates. While working at Happy Joe’s, I learned the value of good customer service and how to treat people well. I am beyond honored to be a franchisee for a company that makes people happy and contributes to the community.”
Also, in Illinois, brothers Dave and Doug Vandergist continue their long story as well. With 25+ years of experience in the pizza and party business, the duo began their Happy Joe’s journey at age 16, and today, they operate numerous locations, including in Illinois’ Quad City area, in Milan, Coal Valley, and Aledo.
One thing they say that sets Happy Joe’s apart from other restaurants is the ambiance. The brothers said: “The culture is a huge part of it. Happy Joe’s is in the sweet spot of being a booming franchise concept with a mom-and-pop feel. It’s also nice hearing from people who worked for us 15 to 20 years ago. It’s great to hear how fun it was for them to work at Happy Joe’s and how it’s been their favorite job.”
In Florida, Happy Joe’s signed a franchise agreement with the Harding family to bring Happy Joe’s outlets to the Florida Panhandle. “We’re thrilled to expand our presence in the Sunshine State,” Mr. Sacco said. “The Panhandle region of Florida will soon be able to experience Happy Joe’s version of a slice of paradise with our one-of-a-kind, gourmet pizza creations and celebratory, family-friendly atmosphere. We’re excited to work with the Harding’s and look forward to bringing magic memories to Navarre and surrounding communities starting in just a few months!”
Jennifer Harding, who grew up in Dubuque, Iowa, fell in love with the brand at an early age and said: “The Happy Joe’s experience is second to none, so we’re beyond excited to join this franchise family. When I brought [my husband] Jeff back to Dubuque for the first time, Happy Joe’s was at the top of my list as a place to show him. We can’t wait to bring the most delicious pizza to the Panhandle and help create more fun memories for families here!”
Happy Joe’s International Expansion
With local expansion progressing so smoothly and at such a rapid rate, it’s no wonder that Happy Joe’s has tentatively laid out plans for further expansion internationally as well. The company has already launched successfully in the upscale Cairo suburb of Roxy, Heliopolis, where families queued up outside on the opening weekend to get their first bite of Happy Joe’s iconic pizza and ice cream. The new location recently tracked over 20% higher guest traffic than its U.S. counterpart on similar orders over the same timeframe.
Regarding the performance of the Cairo franchise, Tom Sacco said: “We couldn’t be prouder of the work that [the team] have done on this incredible opening in Roxy. We’ve even been able to learn from this experience and will be testing out some changes the Middle East team made to [menu items] in select U.S. markets. Now, we’re fully expecting Ahmed [the Cairo franchisee] and his team to produce record sales on their next opening in SODIC, West Giza, starting with a fabulous pre-opening party, including U.S. and Egypt government dignitaries, professional athletes, and a strong media buzz.”
Based on the success of the Cairo outlet, Happy Joe’s is considering taking its restaurant concept to half a dozen new countries in the Middle East, including Bahrain, Jordan, Oman, Kuwait, Morocco, Qatar, Saudi Arabia, and the U.A.E. over the next decade.
Tom Sacco summed up the motivation of many new franchisees by saying: “Everyone who’s been to Happy Joe’s knows we have the most creative, legendary pizzas around. Happy Joe’s is the hidden gem of the Midwest, and our loyal fanbase extends throughout the country as those who grew up in our areas have moved to other parts of the U.S.”
The brand’s expansion throughout the Midwest, the Florida Panhandle, and other markets across the country certainly seem to be driven by the same factors. Combined with new tech-powered outreach and aggressive plans for expansion, Happy Joe’s – steered by its seasoned and visionary leadership team – hopes to continue to break its already record-breaking year in 2023 and beyond.
