Dan Dizio, an East Stroudsburg University Alum, is also the founder and president of the Philly Pretzel Factory Franchise. Dizio and his franchises are known to be the "home of the real soft pretzel."
Dizio graduated from ESU in ‘95 with a Bachelor in Business Management and Finance and became a financial advisor. Shortly after, he realized that he was unsatisfied with his career choice and founded Soft Pretzel Factory in ‘98 with his partner and college roommate, Len Lehman. Lehman graduated in '94, first becoming a counselor.
According to the two ESU graduates, neither felt fulfilled with what they were doing in life. So, the roommates began another adventure together: opening the factory and franchising the business, Philly Pretzel Factory, in 2004 to other fellow ESU alumni.
According to Dizio, the people, many of which are still his best friends today, were what he enjoyed most about ESU.
Today, the Philly Pretzel Factory is the world's largest Philly-style pretzel bakery, with over 100 franchised locations. Philly Pretzel Factory items are guaranteed fresh and served "hot outta the oven," according to the company logo. Pretzel sales are over 100 million a year. Customers pay $1 for four pretzels, as little as $3.50 for lunch specials and at some locations $20 for 100 pretzels.
The secret to Philly Pretzel Factory success is quantity. Dizio sells a large volume of pretzels for cheap.
Dizio, also a Philadelphian, began selling pretzels at the age of 11 on street corners, bringing in $200 a day on average.
"I had always dreamed about owning my own pretzel factory as a young boy. While in college, I loved projects that would let you create a business plan. It gave me a better understanding and made me hopeful that one day I could put them to good use," states Dizio.
At first, the success did not come as fast. Dizio and Lehman started their business two years after college and both invested $17,000 before opening. Dizio was determined to sell only "the best, most delicious soft pretzels." The two partners drove over 1,000 miles to pick up what they called "prized pretzel machinery" down in a Florida garage. Shortly after, in May, Dizio and Lehman opened their first storefront (Soft Pretzel Factory) in the Mayfair Section of Philadelphia on Frankford Ave.
The storefront on Frankford became successful fast, and it was difficult for the owners to keep up.
"It was very difficult to get started in the pretzel business because I was still learning on the go. I took a huge risk," states Dizio.
According to Dizio, "We would run to Sam's Club at 5 a.m. for ingredients, work all day, split up the money Indian-style on the floor, and we'd put aside $50 a day for utilities and rent. Then we'd go home and shower and come back to the bakery to sleep from 9 p.m. to midnight." The partners did not have a business plan and had no time to hire employees.
"I'd fall asleep at a red light back then," states Dizio.
Dizio finally managed to hire his college buddies to help open another storefront in West Chester. Then their business plan immensely expanded. Michael Gabbett '96, Ron Heil '94, Max Barajas '96, and Carl Mancini '97 are franchise owners to some of Philly Pretzel Factory's "prime performing locations." All were once college roommates and fraternity brothers in Phi Sigma Kappa. At one time, they lived in the fraternity house off-campus formerly known as "The Dungeon."
Today, the storefront is now headquarters to the growing franchise with over 45 employees designated to business, capital, labor and distribution.
Dizo has learned that working in the franchise business is not as easy as it seems. He tries to grant freedom to owners while still imposing order and structure.
"A lot of people look for our advice, but then it seems they don't want to take it," he says.
According to Dizio, "This franchise wins on simplicity. Sell pretzels and soda. But the franchises always want to add something new. We really have no interest in adding more products. We know it is ‘keeping things simple' that is helping us to be successful."
Today, Dizio's franchise setup costs up to $20,000 in fees, and the franchisees are expected to front $180,000 per store for machinery and other equipment.
Their menu consists of pretzel trays, soft pretzels, pretzel dogs and newly introduced cheese steak pretzels. But their goal is to keep things simple and sell in high volume.
Dizio no longer spends the majority of his time in the bakery; he is in charge of franchising. Dizio even gives out his number to franchise owners and spends his days checking in at shops. He feels that putting a name and face to selling franchises is important. According to Dizio, he should also be the one to help out new owners and regulate new storefronts.
According to Dizio, ESU business classes taught him a lot about management and cash flow, "which are very critical aspects in any business industry."
He also never dreamed of his business to be successful: "I was just hoping I could pay my share of my apartment, which was $250."
Dizio hopes to branch out his business with other simple brands, and he stresses that simple can produce success.
"Don't over think your decisions. You will always talk yourself out of taking a business risk. If I can make it, anyone can."
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