General Assembly Holdings Limited (the “Company” or “GA Pizza”) (TSXV: GA), a Toronto pizza restaurant turned omnichannel consumer packaged goods (“CPG”) brand, is pleased to announce the opening of its “expanded kitchen”: a 42,060 square-foot master production facility in Vaughan, Ontario.
The new facility equips the Company to meet surging demand for its freshly frozen, naturally leavened premium pizzas. It also allows the flagship General Assembly restaurant in downtown Toronto—which has been producing frozen pizzas since the advent of COVID-19 restrictions in March 2020—to reopen to diners as a refreshed and expanded hospitality experience.
The Company secured the new production facility in July and commenced production on September 9. Located on Marycroft Avenue and emblazoned with GA Pizza’s signature pizza siren, the facility has increased the Company’s monthly output of frozen units to 100,000, with greater output to come in the months ahead.
“On September 9, our first day of production at the new facility, we made 600 pizzas. Within three weeks, we were making more than 4,000 per day—more than double our maximum capacity at the restaurant,” said Hormis Tharakan, Chief Operating Officer of GA Pizza. “We now have the capacity and the technology to not only meet consumer demand, but to further grow our output. And we have a clear plan to do it.”
The Company’s plan to scale its frozen pizza output at the new facility has three phases:
- Phase I: Launch (September and October 2021). Prior to opening the facility on September 9, 2021, the company sourced equipment, commissioned the construction of its first production line and hired a full staff. The site was certified by Toronto Public Health, as well as by the Canadian Food Inspection Agency, which allows the Company to sell throughout Canada. The facility is currently operating between two shifts, five days a week.
- Phase II: Optimization (Q1 2022). GA Pizza will install new equipment, including a bigger oven and the capacity to produce more dough. This new equipment will add a greater degree of automation. This will increase production to 300,000 pizza units per month.
- Phase III: Automation (2023). The Vaughan facility will be fully automated enabling monthly production of up to 600,000 units.
The opening of the dedicated facility enables GA Pizza to support its fast-evolving omnichannel business model, which now includes:
- Retail sales. The Company’s new production capacity allows it to pursue enhanced distribution capabilities in retail channels—specifically, through large grocery banners. GA Pizza is currently available in more than 100 stores.
- A five-store pilot program with Fortinos Supermarket, a grocery chain owned by Loblaw Companies Ltd., is expected to expand to 23 stores in Q4 2021.
- A sales partnership with national CPG food broker Propel Natural Foods provides the Company with infrastructure and expertise to sell into natural, grocery, mass merchandise and club retail channels.
- Direct-to-consumer sales. Building on successes in several key Ontario markets (including the Greater Toronto Area, Ottawa, Muskoka, Prince Edward County, Kingston and the Windsor corridor), the Company’s new e-commerce website offers an enhanced customer experience and a new one-time purchase option.
- Restaurant sales. The restaurant’s takeout and delivery channels re-opened in the latter half of Q3. In Q4, the Company will officially welcome guests back to where it all began: the flagship General Assembly restaurant on Adelaide Street West in Toronto.
- Led by former Alo Group manager Quentin Meloff—who has joined GA Pizza to help elevate and redefine premium fast casual dining—the fully renovated space will reflect the Company’s refreshed brand, include expanded food and beverage offerings and feature a curated bodega for take-home shopping.
- The restaurant has been closed to diners since the advent of the COVID-19 pandemic; its reopening will allow GA Pizza to operate on all cylinders for the first time in nearly two years.
“Get ready: coming off a record-setting Q2, we’re about to see real scale,” said Ali Khan Lalani, Founder and Chief Executive Officer of GA Pizza. “We plan to produce 270,000 frozen units in Q4, giving more pizza-lovers than ever what they have come to crave: a convenient and delicious frozen option. This capacity, paired with our work to deepen our retail and direct-to-consumer sales channels, is unlocking economies of scale that lead us on a clear path to profitability.”
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