14. LSR Pizza Restaurant Industry
Nominal Growth
Source: Technomic Top 500
Report(s)
2013 Industry Overview - Pizza
Sales ($B) $34
Units 62,914
AUVs (000s) $544
Top 500 Share 62%
15. Conclusion
LSR PIZZA CHAINS UNDERSCORE QUALITY
FAST-CASUALS GAIN SHARE BY HIGHLIGHTING
CUSTOMIZATION, SPEED AND AFFORDABILITY
NOVELTY HYBRIDS, BOXED DINNERS AND NON-PIZZA
ITEMS UNDERSCORE VALUE
PREPARATION STYLE IS INCREASINGLY IMPORTANT
PIZZA CONCEPTS RIDE THE LEADING EDGE OF
CONSUMER-FACING TECHNOLOGY
Editor's Notes
The pizza sector, always a leader in consumer-facing tech, continues to move more toward tech-based orders and marketing. Younger consumers utilize online and mobile ordering more often than older consumers do, but online and mobile ordering has also increased among those aged 35‒44.
Pizza Hut and Microsoft launched a new Xbox Live app that allows users to order from the chain’s menu directly through their Xbox 360 game console; in the first four months after its release, the new ordering option resulted in over $1 million in business. Now, Pizza Hut is testing an interactive table for ordering and entertainment. The entire table surface is a digital touchscreen that allows patrons to customize their pizza orders, including the size and toppings. Customers can play digital games on the table while waiting for their food to be served.
Domino’s updated its Domino’s Tracker app with a DJ, music and video of pizza prep, and tested a live video feed of a unit kitchen on its Tracker website. At the end of the year, Domino’s partnered with Ford on the Easy Order platform, allowing customers to order hands-free from their Ford cars via Ford’s voice-activated system. And it streamlined its mobile ordering process by adding Google Wallet Instant Buy as a payment option.
Little Caesars showcased promotions and products through Pandora’s iPhone app; the ads are expandable and include audio.
Papa John’s added a pizza meter to its Papa Rewards Apple iOS app, tracking every purchase and showing progress toward a free pizza; a new slice is added to the app’s virtual pizza with every $5 spent.
Implication: Everything about the limited-service pizza sector—including its takeout and delivery focus and its disproportionate appeal to younger diners—points to these concepts remaining on the leading edge of consumer-facing technology as well as mobile and social media-based marketing. Major chains will continue to invest in technology upgrades to drive efficiency as well as to appeal to tech-savvy Millennial consumers.
