1.Table of Contents. V. PROPOSED REBRANDING PLAN A. Objectives and rationale of the proposed rebranding plan B. Proposed activities and timelines

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1 1.Table of Contents I. EXECUTIVE SUMMARY One-page description of the project II. INTRODUCTION A. Description of the business or organization B. Description of the community (economic, geographic, demographic and socioeconomic factors) C. Description of the business or organization s mission, target market and existing branding efforts III. RESEARCH METHODS USED IN THE STUDY A. Description and rationale of research methodologies selected to conduct the research study B. Process of conducting the selected research methods IV. FINDINGS AND CONCLUSIONS OF THE STUDY A. FIndings of the research study B. Conclusions based on the findings V. PROPOSED REBRANDING PLAN A. Objectives and rationale of the proposed rebranding plan B. Proposed activities and timelines VI. VII. PROPOSED BUDGET A. Costs associated with proposed rebranding strategies B. Proposed metrics to measure return on investment BIBLIOGRAPHY

2 I. EXECUTIVE SUMMARY Business overview : Papa Murphy s is a Take N Bake pizza franchise business located in Council Bluffs, Iowa. Papa Murphy s restaurants are located across North America and now in the Middle East with more 1,380 locations. They have been ranked as the #1 rated pizza chain, along with being the world s largest and fastest-growing pizza chain. This business has had much success because of the freshness of their ingredients and their fast customer service. Purpose : To design research strategies, and to study the redesign and development of the Papa Murphy s brand by adding alternative menu options: gluten-free crust, online ordering, and delivery. From this research, we will develop a plan to restructure and enhance the Papa Murphy s brand based on the findings from our research, thus adding value to the brand and the organization. Research Methods : Key Findings : Papa Murphy s is number one in search engine results for the key words, Take N Bake Papa Murphy s isn t advertised as well as Pizza Hut. Proposed Strategies : Research indicated that adding a gluten-free crust, online ordering, and delivery would prove to be successful for the Papa Murphy s store. We propose the following strategies to improve the Papa Murphy s menu and customer services. 1. Restructure the store to make the kitchen gluten-free friendly 2. Create an option on the website to order online and to request delivery. Return on Investment :

3 II. INTRODUCTION A. DESCRIPTION OF THE BUSINESS OR ORGANIZATION Papa Murphy s is a take and bake pizza chain that traces back to the original pizza chain, Papa Aldo s, in Hillsboro, Oregon in In 1983, the first Papa Murphy s opened in Petaluma, California. In 1995, the two chains owned by Terry Collins, combined. In 2003, Papa Murphy s was voted Best Pizza Chain in America by Restaurants and Institutions Magazine and have continued to win this nomination every year since. Unlike other regular pizza companies, Papa Murphy s doesn t offer cooked pizza. The pizza is assembled at the store, and the customers bake it at their home using cooking instructions that come wrapped with the pizza. Papa Murphy s has also received the National Agency of the Year Award in 2012 and was ranked No. 5 on Forbes magazine s list of the top 20 restaurant franchises to buy in Adding to the varieties of their pizza, the business has come up with several inventive items like their signature double crusted and gourmet pizzas (located on the left). This has separated them from their top competitors which include: Pizza Hut, Godfathers, Papa Johns, and Dominos. They re also known for their sides and

4 desserts including cheesy bread, cookie dough, salads, cinnamon wheels, and their newest invention, the s more pizza, which was created at 1702 West Broadway Store in Council Bluffs, IA. This Papa Murphy s Franchise is owned by Tony Beck and Associates as a partnership. Mr. Beck is responsible for the day-to-day operations and employs 12 full-time and part-time employees at this location. B. DESCRIPTION OF THE COMMUNITY Council Bluffs, Iowa is home to approximately 62, 115 people. It is part of the largest county in Iowa, Pottawattamie County, which has 92,202 people. Many customers from smaller communities that are within 30 miles of Council Bluffs come to our city to shop every week, so these people would be part of our market also. Council Bluffs has 24,766 households, made up of an average of 2.4 people per household. Papa Murphy s on West Broadway is 1 of 21 other pizza establishments in Council Bluffs, but only 1 of 2 that provide take and bake pizzas. Studies have shown that American households eat out three to four times per week which would indicate pizza carryout and/or delivery would be perfect for these busy families. The median annual household income is $43,388, and the average cost of Papa Murphy s pizza is $10, which is very affordable for these families. Our target market includes women between the ages of 25 and 49 with families to feed every night. In Council Bluffs, 51 percent of the population are women, and 49 percent of this population is between the target market ages. We feel the demographics of Council Bluffs, Iowa make it an exceptional place to

5 effectively run a take n bake pizza restaurant. C. DESCRIPTION OF THE BUSINESS OR ORGANIZATION S MISSION, TARGET MARKET AND EXISTING BRANDING EFFORTS Mission Statement The mission statement of the Papa Murphy's take n bake pizza chain are really three core values, which are simple and common not only to all pizza restaurants, but to just about every company in the U.S. restaurant industry. The core values/mission of Papa Murphy's is: Great quality. Great value. Great customer service. These core values are so basic that it might not seem that they could possibly create effective results in guiding the actions and decisions of a retail organization, but Papa Murphy's clarifies how and why it has chosen to build its business around this simple mission in this way. "Papa Murphy's was built on these core values from day one and they continue to distinguish Papa Murphy's today. These values aren't revolutionary, but when they're done consistently they allow our guests to leave our stores with the best pizza and experience possible it's the reason we've been named the #1 Rated Pizza Chain.* Papa Murphy's will keep on evolving, but our foundation is set in stone." Target Market Information Papa Murphy s primary target market includes working women 25 to 49 years old, who want something home-cooked but convenient for themselves or their

6 families. The Council Bluffs, IA population of 62,115 people and 24,766 households with a median income of $43,388, should provide a sufficient target market for the store. We propose to include in that target market those families with members who have dietary restrictions, including gluten-free restrictions. This includes people who have been diagnosed with Celiac Disease, which prohibits their consumption of gluten altogether, and those that are eating a gluten-free diet by choice--a diet that was trending nationwide in Three million Americans have Celiac Disease and only 5% are diagnosed. This disease limits them to purchasing pizza at most food chains or simply eating no pizza at all. Our target market in Council Bluffs is always especially busy on a football game night (super bowl) and friday nights with families. Offering online ordering and delivery to our customers would benefit them, and help increase sales. Getting a take n bake pizza is a quick and easy way for families to have a dinner that can be prepared when they are ready to bake it. Branding Efforts Papa Murphys has built its brand on the take-and-bake concept. In which customers personalize their toppings in the store and bake the pizza at home at their convenience. This lends itself well to a customer-first mentality in all that Papa Murphy s does. Families get the exact pizza they want and it s ready whenever they are.

7 Surveys continually show that customers love the food and love the brand. Because Papa Murphy s has so much in-store action hand-making its dough, chopping ingredients, shredding cheese on site, and creating pizzas in front of the guest, the brand has enjoyed success, while giving guests the assurance that their food is fresh. The consumer today is a little suspicious about supply chain and where stuff comes from, If they can see the quality of the ingredients that go on their pizza, we think that that goes a long way. On top of that, ours is one of the only brands out there where the customer interacts with our product as it is cooked at home and as it is prepared at the store. This reinforces the fact that we re different and that we make our pizza with the highest-quality ingredients and we re so proud of them, we re going to do it right in front of you and show you everything. Research also shows if your brand isn t current, the younger generation of consumers are going to tend to shop somewhere else. Because they don t have the same connection to your brand that customers who have bought from you for years do. We feel it is important to make sure that the brand stays current and relevant to a broad range of ages. Offering online ordering is one way to stay current with today s trends and be competitive with other pizza brands. III. RESEARCH METHODS USED IN THE STUDY A. DESCRIPTION AND RATIONALE OF RESEARCH METHODOLOGIES SELECTED

8 TO CONDUCT THE RESEARCH STUDY The purpose of our research was to determine if changes in the menu selection--specifically gluten-free pizza crust, along with the addition of on-line ordering and delivery at the Council Bluffs Papa Murphy s store would be beneficial. Also if it would help in enhancing and/or re branding the store to meet the needs of its target market and stay competitive with other pizza stores in the city. To determine if these changes would be beneficial, we utilized both primary and secondary research methods including a SWOT Analysis. We had an interview with the local \owner of Papa Murphy s, a survey with Papa Murphy s customers, and research on Papa Murphy s competitors in the city of Council Bluffs. 1. SWOT Analysis Our first step in the research process was to conduct a SWOT Analysis to determine the strengths, weaknesses, opportunities, and threats of the Papa Murphy s store. Through this study, we have concluded that a strength of Papa Murphy s is speedy service and guaranteed freshness of the take and bake model. A significant threat comes from our competitors who offer online ordering and pizza delivery in the city of Council Bluffs. A weakness we identified was the lack of online ordering and delivery services for the Council Bluffs store that our competitors are offering. The SWOT Analysis highlighted the fact that customers with specific dietary needs, specifically a gluten intolerance, are currently unable to eat at Papa Murphy s because of the

9 menu restrictions. Through the identification of Papa Murphy s strengths, weaknesses, opportunities, and threats in the SWOT Analysis, we have concluded our research focus will be to further study adding a gluten-free crust, online ordering and delivery services at this store. Based on our SWOT Analysis, we have identified some goals for our primary and secondary research. Research Goals: To gain knowledge about the history of the company To gain knowledge on Papa Murphy s and how we can utilize on-line ordering and delivery services successfully. To find out how successful a gluten-free crust would be in the Council Bluffs Papa Murphy s store. To determine if pizza delivery, and/or online ordering would be a service our customers would like to see provided by the store. To determine the best way to market the new strategies for the store. To determine if the proposed enhancements would increase sales. To investigate the best way to alter the website s design by adding links for delivery options and online ordering section. 2. Primary Research

10 Rationale: We set up an interview and a meeting with Mr. Beck to gain insight on the company s history and it s current progress. We also wanted to learn more about the startup of the business and also asked about his goals for the company for the future. We inquired whether he plans on expanding his current number of stores, or adding new types of pizzas or side dishes to his menu. We were curious to see if the national Papa Murphy s organization is planning on revealing any new nation-wide additions to the franchise menus or stores anytime soon. Description: Interview and meetings were conducted personally with him in his office in Council Bluffs on December 21, We also met with him at his store at 1702 W Broadway, on December 30, 2013, and spoke to him over the phone on January 4, for some follow-up questions. Rationale: We created 100 customer surveys and placed them at the Papa Murphy s store for customers to fill out while ordering and/or picking up their pizza. We decided one week s time would be an appropriate length of time to collect our data. We felt this survey was one of the essential research methods that would enable us to find out if our proposed enhancements of adding a gluten-free crust, offering online ordering and delivery, would be something the customers would find valuable and useful. Thus creating increased revenue and adding new customers to the Papa Murphy s current customer base.

11 Description: We placed these survey s at the Broadway location in Council Bluffs on January 9th and collected them on January 13th. Clerks were instructed to ask customers if they would be willing to participate in a survey studying possible additions to the Papa Murphy s current offerings and services. We placed a receptacle at the site for customers to deposit their surveys so they would be kept safe and provide us accurate results. 3. Secondary Research Rationale: To conduct research to determine if our planned enhancements and rebranding would be beneficial. Our secondary research began with reviewing websites, articles, and a variety of marketing studies. Description: Marketing textbooks were used to provide us with information with regard to conducting primary and secondary marketing research and types of tools to use to conduct that research. We created our survey based on this research. We searched for current articles from a variety of publications to determine if our proposed additions would be beneficial and provide the return on investment we predicted. The articles we found included facts about Papa Murphy s progressive company and discussing ways to improve it. Research studies from secondary sources report that Papa Murphy's Pizza, which built its business around a take n bake pizza model, was ranked the No. 1 pizza chain in the county in Zagat's Fast-Food Survey. It's the third-straight year the Vancouver-based chain has won

12 the top honor. In addition, among fast food chains with up to 5,000 U.S. locations, Papa Murphy's ranked No. 2 for Top Service and Top Food. It ranked No. 3 in those categories last year. The recognition comes just over a month after Papa Murphy's won nine of 10 categories included in a survey conducted by Nation's Restaurant News. The survey measured the preferences of 10,500 consumers for 274 national restaurant chains. Papa Murphy's is the fifth-largest U.S. pizza chain with 1,300 franchised and corporate-owned locations in 37 states and Canada. We were also able to find additional facts about Papa Murphy s competitors through their websites. This gave us ideas on how to improve the company s website, sales, and different marketing techniques by comparing it to other companies. We also researched the competitors of Papa Murphy s to see how their delivery and online ordering service function; trying to discover how successful these two options have been for those stores. We discovered a new report from Cornell University reveals that online ordering is catching on fast with pizza customers in the United States. The research sponsored by Cornell and Nation's Restaurant News trade magazine was published in the March edition of the Cornell Hospitality Report. After looking at the electronic ordering systems and practices of 326 different restaurant chains, the researchers found that fast-casual restaurants, especially pizza chains, led the trend with nearly 50% now accepting orders online. From the restaurant's point of view, online ordering is an additional distribution channel that helps to reduce costs and allows them make better use of their production capacities.

13 We looked to see if any of the companies offer a gluten-free crust. and if this is indeed trending nationwide. We found the U.S. continues to see growth in gluten-free pizza offerings. According to Mintel, a leading market research company, gluten-free menu items increased 280% from Q to Q3 2011, and the gluten-free industry is exploding. Growing 27% since 2009 and exceeding $6 billion in The latest PMQ Reader Census reveals that 25% of operators now offer gluten-free crusts to customers (up from 16% last year). It was interesting to note that we found gluten-free crust is now expected by the consumer, but staff must be trained to understand how to prevent or minimize cross-contamination, says Peter Reinhart, author, baking instructor at Johnson & Wales University and founder of PizzaQuest.com from Charlotte, North Carolina. He encourages the use of local ingredients whenever possible and reminds operators to acknowledge vendors and sources on store literature. But it needs to taste good. Flavor always wins over healthfulness. In 2013, after experiencing a 114-percent growth rate on menus throughout the past three years, the gluten-free diet broke into the mainstream this year, thanks in large part to the pizza segment. Among our competitors in Council Bluffs, Iowa, we found Domino's launched its gluten-free crust. Also, other stores that offer gluten-free crusts include Pizza Ranch, Godfathers, Sam and Louie s Pizza. B. PROCESS USED TO CONDUCT THE SELECTED RESEARCH METHODS Papa Murphy s Local Business Owner Interview:

14 Before meeting with the Owner of our local Papa Murphy s stores, Tony Beck, our team determined what information we needed from him about the Papa Murphy s store, its menu and any upcoming changes already planned. To prepare ourselves, we reviewed the store s current websites, menu options, articles regarding the company s history, and their competitors services. We applied this knowledge to develop questions for our interviews. We then met Tony Beck at his Broadway store. The interview questions follow on the next page. PAPA MURPHY S OWNER, TONY BECK WITH ALLIE MOATS & KAYLA BECK

15 Interview Questions for Papa Murphy s Owner:

16 Papa Murphy s Customer Preferences: Prior to conducting our customer survey, we carefully examined what type of questions would help us decide if our ideas of rebranding the company would be something our customers would see as beneficial and something they would actually use. We wanted to determine the proposed percent of use of our new services and then ask if the customer had any additional suggestions. The following questions were used in our customer survey. Papa Murphy s Customer Survey :

17 IV. FINDINGS AND CONCLUSIONS OF THE STUDY A. FINDINGS OF THE RESEARCH After conducting all of the primary and secondary research, the data was compiled and the results of the questions proposed in our rebranding were: 1. Delivery Service 27% of those surveyed stated that they would use our delivery service. 2. Online Ordering

18 50% of those surveyed indicated they use online ordering when they order pizza or other food items from restaurants. Of those surveyed, 40% indicated that they would use online ordering 3. Gluten-free crust 43% of those surveyed responded yes, they would like a gluten free option. B. CONCLUSIONS BASED ON THE FINDINGS The purpose of our research was to determine if changes in the menu selection--specifically gluten-free pizza crust, along with the addition of on-line ordering and delivery at the Council Bluffs Papa Murphy s store, would be beneficial. Also if this would help in enhancing and/or re branding the store to meet the needs of its target market and stay competitive with other pizza stores in the city. To determine if these changes would be beneficial, we utilized both primary and secondary research methods including a SWOT Analysis, an interview with the owner of Papa Murphy s, a survey with Papa Murphy s customers, and research on Papa Murphy s competitors in the city of Council Bluffs. Our conclusion and suggestion to Papa Murphys, after examining the research results from our three rebranding proposals, include that online ordering and offering a gluten-free crust on their menu would be the most successful rebranding tools to use. We concluded that offering a delivery service would not offer a sufficient ROI based on the research results and the fact that the owner felt it would defeat the Papa Murphy s mission of Always Fresh. He was very concerned that since the pizzas are take n bake variety, (that is not cooked in the store) that

19 they would not be delivered to customers in a time frame that would keep them fresh. V. PROPOSED REBRANDING PLAN A. OBJECTIVES AND RATIONALE OF THE PROPOSED REBRANDING PLAN Many things go into a brand your logo, color scheme, tagline and even your product packaging and offerings. However, at the end of the day, a brand is really what your customers think of your company and the experiences they have with you, and even the tiniest details count. Companies, yes, you can easily spend $100,000 on rebranding, but also make sure your customer service, product/service quality, etc. is top notch. Rebranding can give a company a shot in the arm and create enthusiasm and excitement. Keep the tone positive, enthusiastic and open. Use your employees who are on social media to help both share their enthusiasm and interact with fans. Our objective and plan for the website is to create the option of an online ordering tab on our main website. A new way for customers, specifically families who don t have time to wait around for a pizza to be made, to order quicker and be more beneficial. To rebrand our menu we will offer our gluten-free crust, making our pizza available to a broader range of customers. Our plan to re brand our store is to use our back make line, which currently is used for call-in orders, for the gluten free crust to be made at another location from the other pizzas. This is so that the gluten-free crust will not be exposed to other products that have gluten in it through

20 spatulas, cups, and other dishes. Our objective to offer a gluten-free crust is for people who have diseases that limit their menu choices when they go to Papa Murphy s. We decided to not offer delievery because the majority of our surveys answered that they wouldn t be interested in it and it would defeat the purpose of our Always Fresh motto. We will rebrand our store through our website and menu. B. PROPOSED ACTIVITIES AND TIMELINES Papa Murphy s Website: Structure and Capabilities: The Papa Murphy s website is laid out with options including menu, locations, deal, and e club information. It displays an image of one of the signature pizzas, the Herb Chicken Mediterranean Pizza. You can find your location in a link that will take you to the Council Bluffs store s website. On the website we will add the online ordering option link. Our plan is to have the website illustrate our rebranding that includes the option of online ordering available to the viewer. We found that other Papa Murphy s stores in the United States offer online ordering. Below is a picture of what the tab would look like on our website:

21 Offerings: The most popular aspect on the Papa Murphy s website would be the menu. Choosing this option gives the customer a photo of the pizza, a description of each pizza, and the nutrition information on each pizza and side item. In this menu selection we will add the gluten-free crust option as a crust choice for the pizzas. Right now customers can choose pizzas assembled on regular crust, delite, stuffed, and pan crust. It is in this menu selection area where we will add the gluten-free crust option as a crust choice for the pizzas.

22 Papa Murphy s Retail Store Structure: When you walk in the store, the first thing you observe is the pizza makeline. The customer has the opportunity to watch his pizza being made fresh, from the sauce through all the toppings. This is one of the main draws of Papa Murphy s and it s Always Fresh slogan. The register is to the right of the makeline along with a rack of dough skins. Behind the makeline is a second makeline that was originally for call-in orders. It is here that the store will use that second line as their area for the gluten-free crusts so that they don t come in contact with the crusts that contain gluten. It will ease the minds of the gluten-free customers to see that Papa Murphy s takes special care to separate the gluten-free crusts from the regular crusts.

23 In our rebranding to include gluten-free options, we will make sure customers know that we are using proper precautions to keep them safe and healthy. Offerings: Above the makeline is the main menu for customers to use when choosing their pizza crust and toppings. Initially, the addition of gluten-free crusts will be by advertisements on posters and advertisements inside the store and on the outside windows. If the gluten-free crust option proves successful, a new menu can be printed and added to the large menu board. You can see examples of the advertisement posters and menu board illustrated in the pictures below.

24 VI. PROPOSED BUDGET A. COSTS ASSOCIATED WITH PROPOSED REBRANDING STRATEGIES After researching the costs to make our gluten-free crust available and add the online ordering option, we came up with our budget. After speaking to owner, Tony Beck, it was decided the start up of the gluten-free crust menu option, the store would order 100 pre made frozen gluten-free crusts to see how customers will respond. To keep the new crusts frozen, the store will have to add a freezer. It was determined that to add online ordering, we would need a webmaster to create the link on the current website and to help the workers at the store make the orders. We would need to add a printer to print the orders out for them to use in making the pizza. Papa Murphy s will advertise the online ordering option by using flyers that will be sent home with customers with their purchased pizzas. To advertise the gluten-free crust, new posters will be created to display in the store. It was decided not to add the gluten-free crust to the permanent menu in case it proves it isn t as popular as expected. After the first few months, the owner will then see how successful it is before making it a permanent crust option for pizzas. Here is the proposed budget:

25 . B. Proposed Metrics to Measure Return on Investment (ROI) Measuring ROI on each marketing/research activity is critical to proving the effectiveness of the options suggested to add/change in the business. To complete the additions/changes, we realize we are competing for scarce resources that could be used other places in the business. Any solid ROI calculation should measure revenue generated by the marketing/research campaign, profit margin on the items sold, and

26 marketing-related expenses. In its simplest form, the calculation looks like this: ROI = Campaign Revenue X Profit Margin / Cost of Campaign This formula is also useful for measuring pilot marketing campaigns, such as the one we are proposing by adding crust options and online ordering. Another indicator of a solid ROI will be in measuring the increase in the number of customers who use the proposed services. We realize that the gluten-free crust will only be used by a special population, but based on the research results, we feel it will bring in customers. There will be new Papa Murphy s customers coming because of the gluten free option and regular customers who will switch to a gluten free crust because of dietary restrictions or the trend in eating a gluten free diet. Based on our research, we estimate our customer base will increase at least 7% through the gluten-free pizza alone. Research shows that online-ordering services are very popular with pizza stores who are currently offering it. Our research survey also showed that 40% of our customers would use online ordering. Our estimate based on that research is that our store s pizza orders will grow 15-17% with new and current customers who find it easier to order online than other traditional ways. Papa Murphy s will determine the ROI each quarter by measuring the revenue generated by the marketing/research campaign, determining the profit margin on the items sold, less any marketing-related expenses, and determining the percentage of increase in orders for gluten free crusts and the number of orders placed online.

27 Timeline of events: Calendar 2014 March 2014 April 2014 May 2014 Investigate Information on gluten free crust Gluten Free options from Crust multiple vendors. Website Additions Advertising Mock up changes necessary for website. Meet with webmaster to discuss proposed changes to include online ordering. Determine budget how many gluten free crusts to order chosen supplier. Create ads to put in take out order pizzas. Testing of online ordering. Train employees on usage of online ordering through the website and the equipment used in the store. Go through Corporate to setup and design ads for store to promote both gluten free crusts and online ordering services. Set up procedures for employees on how to handle gluten free crusts; train employees on gluten free handling procedures. Debut May 21st. Insert online ordering flyer with all take out orders. Add online ordering promotion in mail ads. Debut on May 21st. Set up advertisements in the store and paper inserts for customers to take home with them wrapped in their pizzas.

28 Bibliography Personal Interview: Tony Beck, Papa Murphy s Franchise Owner Council Bluffs, IA Online Articles: "Papa Murphy's Pizza Mission Statement - 3 Core Values to Create "Great"" About.com Retail Industry. N.p., n.d. Web. 31 Jan QSR Magazine, The Pizza Prodigy, August 2012, by K. Hardy QSR Magazine, Papa Murphy s Puts Its Best Food Forward With New Design, September 2013 by M. Avant PMQ Magazine, Pizza Power 2013 State of the Industry Report, December 2012, by Liz Barrett Portland Business Journal, Zagat s : Papa Murphy s Top Pizza Chain, Oct 9, 2012, by S. Stevens "Online Ordering Activity Up." Online Ordering Activity Up. N.p., n.d. Web. 31 Jan Publications: "Council Bluffs (city) QuickFacts from the US Census Bureau." Council Bluffs (city) QuickFacts from the US Census Bureau. N.p., n.d. Web. 20 Jan Images: N.d. Photograph. Papa Murphy s. Web. 06 Jan N.d. Photograph. Papa Murphy s. Web. 28 Dec N.d. Photograph. Papa Murphy s. Web. 03 Feb Personal Pictures taken: Inside and outside of the Broadway store

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