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Capriotti's

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Capriotti's Sandwich Shop is a Delaware-based group of submarine sandwich stores located throughout the United States. The chain has more than 50 stores in eight states, including 22 in Nevada (21 in Las Vegas), plus 17 in Delaware and stores in Pennsylvania, Maryland, New Jersey, Arizona, Utah, Wisconsin and Florida.

Traditional deli sandwiches and cheesesteaks are available, as well as specialty sandwiches. Their signature sandwich is the "Bobbie", a sub made with turkey, cranberry sauce, stuffing and mayonnaise.

Capriotti’s Sandwich Shop (Capriotti’s) is a Las Vegas-based group of submarine sandwich restaurants located throughout the United States. It was founded in Wilmington, Delaware in 1976. The chain has more than 60 stores in 11 states. Its largest market is in Las Vegas, Nevada, which features 26 stores. After almost four decades, Capriotti’s has delivered an east coast family tradition to sandwich lovers all over the country.22 Named the most successful sandwich shop born to the state of Delaware, the chain has maintained a small-town feel while expanding nationally and acquiring large amounts of customers over the years.21 Capriotti’s has also been included in the [www.technomic.com Technomic] Top 100 Limited Service Sandwich Chains and received a Sandelman and Associates award of excellence, tying fast food chain In-N-Out Burger for first place in 2009.1, 23 One of its signature sandwiches, “The Bobbie®,” was named “The Greatest Sandwich in America” in a reader poll by AOL.com in May 2010.20 In the past, Capriotti’s designed their stores with a black, white, and red interior. Newer stores feature an updated design with a brick wall and dark wood floors. Most of the stores consist of tall deli counters and several tables and chairs for dining.2 At around 1,200-1,600 square feet, Capriotti’s store locations are usually situated in big-box complexes with adequate street visibility.3


History

Capriotti’s Sandwich Shop was originally founded by Lois Margolet in 1976. After Margolet quit her full-time job, borrowed money, and purchased an abandoned building on North Union Street in the Little Italy section of Wilmington, Delaware, she joined forces with her brother, Alan Margolet, to open the first Capriotti’s store. The Margolets decided to name their restaurant after their grandfather, Philip Capriotti.16 In 1987, the Margolets began partnership with their cousin, Diane Rizzo. Shortly thereafter, a second Capriotti’s store in New Castle, DE and a third in Newark, DE were opened. Also at this time, Capriotti’s started introducing their signature sandwiches, such as “the Bobbie,” which are still widely recognized today. A year after opening the Newark, DE store, Lois Margolet sold the store’s interest to Rizzo’s sister, Kathy. The Newark location became the first franchised Capriotti’s store.17 The family eventually relocated to Las Vegas, NV, the site that would become home to dozens of Capriotti’s restaurants. The first Las Vegas Capriotti’s store opened in April of 1993.17

Corporate

Operations

The Margolets had managed to expand the company to 44 stores since they began franchising. In 2008, the original owners sold the company to an investment group led by Ashley Morris, a Capriotti’s franchisee since 2004.15 Morris currently stands as the President and Chief Executive Officer (CEO) of Capriotti’s. Morris’ background in finance and his love for the product made him a primary candidate for the task. His former roommate at University of Nevada, Las Vegas, Jason Smylie, who is actually credited with introducing Morris to Capriotti’s food, is the company’s Executive Vice President and Chief Information Officer (CIO).18 In 2009, Capriotti’s appointed Patrick Walls Chief Operations Officer (COO) and General Counsel. To date, Walls oversees the company’s operations and development.19

Franchising

Statistically, Capriotti’s represents itself as a lucrative franchising opportunity. Although Capriotti’s had grown slowly and steadily during the first 30 years of operation, the chain began to grow more rapidly in 2008 and unveiled a franchising strategy that projected opening up to 500 more chain stores in 20 major cities by 2015.4 CEO Ashley Morris officially announced this expansion in June 2008.5 He is quoted as saying, “For the last 34 years, we’ve just focused on a couple of areas. Our goal is to be in as many neighborhoods as possible throughout the country.”6 Despite a weak economy, Capriotti’s has not only survived but thrived in it. In fact, Capriotti’s had its best sales year in 2009 and the franchise was listed among Entrepreneur Magazine’s Top 500 Franchises in 2009.5,7 As of 2010, franchise stores have opened as far north as Milwaukee, Wisconsin and as far west as Los Angeles, California.8,9 The cost to open a Capriotti’s restaurant depends on location, but a franchisee will typically invest between $194,000 and $409,500.6

Products

Nationally renowned for their specialty subs and delicatessen-style sandwiches, Capriotti’s offers a number of menu options that vary by location. Capriotti’s signature sandwich, the Bobbie®, is a unique sub consisting of hand-pulled turkey, cranberry sauce, stuffing, and mayonnaise. Often considered “Thanksgiving dinner on a roll,” this sandwich is admired by many of the chain’s loyal customers and was named “The Greatest Sandwich in America” in a reader poll by AOL.com in May 2010.20 “The Bobbie” is named after the Margolets’ and Rizzo’s Aunt Bobbie, with whom they celebrated Thanksgiving dinner with every year.16 Capriotti’s slow-roasts their beef and turkey overnight and applies the tender hand-pulled meat to their sandwiches.10 The chain uses same-day prepared meats, vegetables, and breads sourced by local providers to ensure the freshest product.11 The sub sizes range from 9 inches to twenty inches.11 The average cost of a nine-inch specialty sandwich is $6.50.2

“Hot Stuff”

Capriotti’s also offers hot, grilled alternatives. Some sandwiches on their “Hot Stuff” list include steak, Italian meats, meatball, and sausage. At some locations, customers can even order hamburgers, cheeseburgers, and hotdogs. The newest addition to the chain’s menu, is the chicken cheese steak.5

“Cap’s Specials”

Other than “the Bobbie,” Capriotti’s menu includes other trademark sandwiches, namely “the Capastrami.” “The Capistrami” is comprised of hot pastrami, Swiss cheese, Russian dressing, and coleslaw. Russian dressing and coleslaw are two common ingredients found in “Cap’s Specials” sandwiches.

Sandwiches

Customers can choose from turkey, roast beef, ham or tuna coupled with either white or wheat bread or a Kaiser roll. All sandwiches at Capriotti’s are made to order.

Subs

Cold subs at Capriotti’s come complete with provolone cheese, lettuce, tomato, onion and seasonings. Customers are able to decide among a selection of proteins, such as slow cooked turkey or roast beef, various Italian deli meats, or store-made tuna, and can add supplementary condiments upon request. Requested ingredients are piled high on a fresh roll.

Vegetarian

Capriotti’s menu is vegetarian-friendly. Select locations provide up to five meatless options for vegetarians, including the eggplant parmesan sandwich. All items on the vegetarian menu are made with soy products.

Other Menu Items

Capriotti’s sells side items to compliment their sandwiches. Stores in the chain’s Mid-Atlantic region offer a soup of the day, French fries, and potato chips. Most stores nationwide provide an assortment of deserts, such as fresh-baked cookies.

Media

Capriotti’s has gained much attention in the past decade. In 2009, the chain was featured over 100 times in print, online and television advertisements combined. The chain was chosen as the official sandwich of the 2008 and 2009 World Series of Poker tournaments in Las Vegas.12,13 When asked his opinion of Capriotti’s Sandwich Shop, Delaware native and Hollywood actor Ryan Phillippe was quoted by the press, “For some inexplicable reason, they cannot make those sandwiches anywhere else on the planet. That was so much a staple of my youth. Whenever I get back [to Delaware], my Mom either has it waiting for me or we go and pick it up.”14 Most recently, Capriotti’s CEO Ashley Morris was featured in the April 2010 issue of Entrepreneur Magazine.15

Marketing

The Capriotti’s marketing plan is locally focused. "We come from the fundamental belief that 80 percent of your business comes from three square miles, so we focus on neighborhood marketing plans," Morris said.6 With little usage of traditional advertising methods, Capriotti’s primarily relies on customers’ testimonials.15 In 2008, the company launched a social media marketing campaign, utilizing both Facebook and Twitter accounts that were originally established by customers of Capriotti’s.6 The sites feature thousands of Capriotti’s fans.

Slogans

In 2008, Capriotti’s changed its slogan from “Quality is our only gimmick – Simply the best since 1976” to “Extraordinary food for those unwilling to settle,” which is still in use today.

A logo featuring the Capriotti’s namesake in front of hand-sketched turkey represented the company since its establishment until 2008, when the original logo was replaced by insignia sans the turkey. The terms, “Est. 1976” and “Sandwich Shop” were added to the logo currently used by Capriotti’s.

Nationwide Locations

Capriotti’s operates 63 stores in the United States.

State Capriotti’s Stores
Arizona 1
California 2
Delaware 17
Florida 1
Iowa 1
Maryland 2
New Jersey 2
Pennsylvania 6
Utah 1
Nevada 28
Wisconsin 2
Total 63