2018 Sales Weren’t Tasty for Pizzeria Owners As the restaurant industry has experienced less-than- robust overall sales, it shouldn’t be surprising total 2018 US pizza sales, according to PMQ Pizza Magazine, increased just 1.3%, from $45.3 billion for 2017 to $45.73 billion for 2018. Independent and small chain pizzerias contributed slightly more to total 2018 sales, increasing 1.5%, to $18.78 billion, or 41.07% of all sales, while sales at the top-50 chains increased 1.3%, to $26.95 billion, or 58.93% of the total. After the total number of US pizzerias declined during 2017 to 75,243, the number increased by 1,750 for 2018, to 76,993. Independent and small chain pizzerias accounted for 54.6% of total units, or 42,026, with 34,967 units for chains.

Independents Remain Competitive, But Must Embrace More Technologies The PMQ Pizza Magazine 2018 Reader Census is a valuable resource since 79% of the responses were from independent pizzerias, and 84% from owners in all categories. Sixty-percent stated their sales had increased during 2018, compared to 2017. Just more than 40% were standalone locations and another 37% were in strip malls, and 73% were operating a single location. The largest category of per- unit annual sales were $300K–$550K, at 22.9%, with another 21% at less than $300K. It’s important that pizzerias have a Website, and 88.1% of those responding to survey say they do; however, 42.9% of them said they do not offer online ordering. 45.3% do offer online ordering via a Website, 25.9% via a mobile app and 13.7% via Facebook.

Traditional Pies Remain Popular, But More Consumers Seek Alternatives The Survey Monkey/PMQ Pizza Magazine survey also found a majority, or 65.9%, do not offer delivery, which is becoming almost a requirement to succeed in the restaurant industry. Of those that do offer delivery, 34.1% don’t charge for the service. The largest percentage, or 39.8%, sell a New York style pizza, with other styles in single digits: Neapolitan, 8.1%; Detroit style, 4.3%; deep dish, 7.6%; and California, 8.5%. The remaining 31.8% sell other, unspecified styles. The vast majority (75.7%) of survey respondents said a large pizza is the size they sell the most. The largest percentage, or 64.5%, said they offer a gluten-free crust as an alternative; however, 32.2% said they don’t offer any alternate-crust choices.

Domino’s Takes Top Spot from Pizza Hut According to PMQ Pizza Magazine’s 2019 Pizza Power Report, Domino’s has grabbed the #1 position from Pizza Hut among the top-50 pizza chains, with an 11.1% sales increase for 2017, or $5.93 billion, and a 6.76% increase in average sales per unit, or $993,335. The remainder of the top 5 is the same as 2016, as Pizza Hut had a 4.2% decrease in 2017 sales; Little Caesars, a 2.1% increase; Papa John’s, a 2.8% increase; and Papa Murphy’s Pizza, a 5.9% decrease. Pizza Hut may have an opportunity to improve its position, as it is expanding its 2018 beer- delivery pilot program to 1,000 restaurants during summer 2019. Many Pizza Hut locations already have beer and wine licenses.

Understanding Consumer Choices Is Key to Selling More Pies According to research from Technomic, pizza consumers are becoming better educated and selective about the many pizza choices. Although taste is still the most important selection factor, fresh, high quality ingredients is first with 44% of consumers. Additional Technomic research found 25% of consumers would eat more pizza if there were more healthier choices, and this was particularly the case with young adults, women and consumers who considered themselves “super heavy” pizza eaters. Alpha, an on-demand user insights platform, surveyed 350 beer drinkers 21 years of age and older about Pizza Hut’s beer delivery service and 43% were extremely positive and 57% with a $100K+ household income were also extremely positive.

Tech Will Drive the Future of Pizza Not only are newer pizzerias, such as Zuma Pizza in California using a “cobot” process, or robots and humans working together, but also it, Pizza Hut, Domino’s and others are experimenting with delivery vehicles that finish the baking process. Of those pizzerias responding to the Survey Monkey/PMQ Pizza Magazine survey, 46.5% said they would never “consider using tabletop or freestanding ordering kiosks inside the pizzeria,” but they may have to reconsider as new technologies become more common. In an effort to compete with the big pizza chains’ online ordering systems, Ilir Sela, an Albanian immigrant and third-generation pizzeria owner, created what has become Slice, a pizza-ordering platform, which more than 8,200 pizzerias use.

Advertising Strategies Although National Pizza Month is not until October, invite a local pizzeria to appear on local programming and/or arrange for a news anchor to visit a pizzeria for a pizza-making session recorded for broadcast and/or posted on your station’s Website and social media pages. Pizzerias that serve alcoholic drinks can promote a late-night pizzata (Italian slang for a pizza party) with unique pizzas at special prices. Consider co- promoting with a local brewery or winery and featuring their beers and wines during these late- night pizzata. A potentially excellent market for pizzerias is women’s group luncheons, including nonprofits, social clubs or women working at the same company. Pizzeria owners can provide the groups’ leader(s) with free samples of a specially created menu.

New Media Strategies Use social media to promote a different specialty pizza every day or every week during National Pizza Month (October), at a “celebratory” price, as well as creating a Halloween-themed pizza for the end of the month. Pizzerias can host a contest on social media, asking local, amateur artists to submit their designs for the exterior of pizza-delivery boxes. Ask customers and social media visitors to vote for the best. Award the winner a free pizza once a month for a year. Help local pizzerias develop summer promotions, such as featuring local professionals/ businesses vital to the community: police, fire and EMS; healthcare; trash collection, etc. and deliver them free pizza and take plenty of photos and videos for social media.