Cici’s Enterprises was founded in Plano, Texas, in 1985. The firm operates and franchises a chain of Cici’s Pizza restaurants in the United States. Most locations can be found in strip malls in suburban areas of the Southeast and Southwest. Known for its “Hi, welcome to Cici’s” greeting, the restaurant chain seeks to offer a fun, economical, and family-oriented environment.

Cici’s is known for its all-you-can-eat buffet including pizza, salad, dessert, and other select items. Product selection is limited, typically with only several salad and specialty dessert options, but the price is usually around $6, consistently lower than buffets offered at competitors like Pizza Hut. Moreover, Cici’s offers its buffet all day, every day.

Patrons who choose to eat inside a Cici’s restaurant must order the buffet at the counter.

Customers can request special pizzas, but only as part of the buffet. Menu service is available for take-out, but delivery is not offered. Cici’s offers a number of unusual items from time to time, including macaroni and cheese pizza and Bavarian cream dessert pizza.

Cici’s success is built on the firm’s clearly defined business model. By offering only a selfservice buffet and limited nonpizza items, Cici’s keeps costs at a minimum. Cici’s low costs translate into low prices as well. In most markets, competitors offering pizza buffets do so only at lunch or on certain days and typically charge more. Although its pizza quality is widely viewed as modest, its simplicity, speed, and price is usually unmatched by its rivals.

The company’s growth rate has been extraordinary. Over 600 Cici’s Pizza locations are in operation, and the company plans to double this number over the next 10 years. Most units are franchised, a model Cici’s is likely to exploit in its continued growth effort.

Case Challenges

1. What is the basis for Cici’s cost leadership position? Can competitors duplicate this basis? Explain.

2. What is responsible for Cici’s rapid growth rate? Is this pace likely to continue in the future?

3. What competitive vulnerabilities does Cici’s face?