A worker makes pizza crusts at Reggio’s Pizza headquarters and production facility, 340 W. 84rd. St. John Clark Jr., owner of the company, says that his staff may be downsized due to Reggio’s losing its $2.2 million contract with food service
John Clark Jr. said when he started Reggio’s Pizza Inc. in 1972 with his wife he did not anticipate having to fight so hard to keep the company’s identity in the Black community alive nearly 40 years later.
Now 66 years old, the entrepreneur started Reggio’s Pizza with $60,000 he raised after mortgaging nearly everything he and his wife owned. Currently, the privately held company employs 200 employees, and Reggio’s brands of frozen pizzas are sold in various stores, such as Jewel, Dominick’s, Aldi, Food 4 Less, Save-A-Lot, Moo & Oink, Ultra Foods, and Walgreens.
Its South Side headquarters, at 340 W. 83rd St., adjacent to Simeon Career Academy High School, doubles as its U.S. Department of Agriculture-inspected production facility as well. It is here where Reggio’s Pizza employees make the crust and sauce for its pizzas. The company has been headquartered there since 1991 where 100 employees work. Clark said $7 million has been invested to purchase some of the latest equipment for making pizzas.
However, after recently losing one of its biggest contracts, Clark said Reggio’s Pizza, Chicago’s only Black-owned frozen pizza manufacturer, may find itself in a tight, economic position that could lead to 40 people being laid off.
“It is never a good feeling when you have to lay someone off, especially when most of your employees are community residents,” Clark told the Defender. “But the sad reality is that cuts will have to be made to make up for the lost business.”
For the past eight years Clark’s company has provided Chicago Public Schools with pizzas that are sold by the slice to students. The current $2.2 million food service contract Reggio’s Pizza holds as a subcontractor with Chartwells-Thompson Hospitality, a North Carolina-based joint venture, expires June 18. Thompson Hospitality is minority-owned but Chartwells is not. Chartwells chose not to include Reggio’s as a subcontractor on the new $59 million contract awarded by CPS. According to Bob Bloomer, regional vice president for Chartwells-Thompson, the decision not to renew Reggio’s Pizza was for cost saving reasons and nothing more.
But Clark disputes that claim and said Chartwells’ decision caught him by surprise.
CPS said it is up to Chartwells to choose its subcontractors, not the school district.
“CPS has no input in the decision-making process regarding subcontractors,” said spokeswoman Monique Bond.
CPS sells the pizza by the slice for $2.10 to students who do not receive free or reduced lunch. The school district gets it from Reggio’s for about 61 cents a slice.
Clark recently met with, Ron Huberman, CEO of the public schools, to discuss what can be done to maintain his business relationship with the district.
Clark said Chartwells led him to believe that he would be included in next year’s contract. “It is my desire to continue providing pizzas to CPS. That is what I am fighting for,” Clark said. “At this point we are all waiting for the inspector general’s office to complete its investigation. I am open to negotiations but until the inspector general wraps up his investigation that may not happen.” Bond confirmed that the inspector general is looking into allegations Clark has made about flawed Minority and Women-owned Business Enterprise participation percentages.
In the interim Clark said he is reviewing all options before making what he considers a painful decision to lay off any employees. Those options include pursuing food service contracts at suburban and out of state school districts.
At the facility employees work two shifts that could soon be reduced to one shift to make up for the lost contract.
“There are employees here who have been with us for 20 years and I don’t think they would stay that long if they were not happy,” Clark said. “A lot of people depend on us for their livelihood. Our employees are paid competitive wages with benefits that allow them to take care of their families.” Layoffs will be determined based on seniority but regardless of who goes and who stays, Clark said it is still a loss for the Black community.
“I have been good to the Black community. I have hired high school and college students to work in our restaurants (140 W. 87th St. and 1339 S. Halsted St.) and have also provided college scholarships,” he said. “Our director of sales and marketing previously was one of our college interns. I believe in employing people from the community who has supported us all these years.”
Copyright 2010 Chicago Defender.
About Post Author
