Table of Contents
Scope and Themes
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- What you need to know
- Definition
- Resources used for consumer sections
- Abbreviations and terms
- Abbreviations
- Terms
Executive Summary
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- Pizza sales cool off
- Snapshot of the market
- Insights and opportunities
- Pizza is an indulgence
- Key demographics: 18-24s, families with children
- HH income and children drive purchase decisions
- Race matters
- Movies and promotions are standard fare
Insights and Opportunities
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- Mex-Italian, anyone?
- Turning the tide on healthfulness
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- Figure 1: Health attitudes toward pizza, July 2008
- Make it a destination
Fast Forward Trends
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- Trend 1: Fit or Fat
- What's it about?
- What we've seen
- Applications
- Implications
- Trend 2: Nostalgia
- What's it about?
- What we've seen
- Applications
- Implications
Competitive Context
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- Pizza chains getting their lunch eaten
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- Figure 2: U.S. sales growth per restaurant segment: pizza, family, QSR, and fast casual chains, 2005-07
- Figure 3: Consumer attitudes toward pizza value, 2007 versus 2008
- Frozen pizzas may steal momentum during tougher times
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- Figure 4: Purchase of frozen pizza by respondents who eat at pizza restaurants, Simmons 2008
Market Size and Forecast
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- Key points
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- Figure 5: U.S. systemwide sales of 16 leading pizza chains, at current and constant prices, 2005-09
- Broader “all pizza restaurant” sales trend suggests convenience momentum
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- Figure 6: Total U.S. pizza restaurant sales, at current and constant prices, 2003-07
- “Consumer market size” suggests broad pizza restaurant acceptance
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- Figure 7: Usage of pizza restaurants by share of U.S. population, by age, 2008
Segment Performance
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- Key points
- Overview
- All channels suffer losses
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- Figure 8: Pizza restaurant delivery, pick up, and dine-in purchases and frequency of purchase in the past month, 2007 versus 2008
- Dining out prevails over dining in; usage momentum favors dining in
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- Figure 9: Pizza restaurant delivery, pick up, and dine-in: purchases, purchase frequency, and percent of purchase in past month, 2007 versus 2008
Segment Performance: Delivery
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- Key points
- 18-34s are home delivery fans
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- Figure 10: Deliveries from a pizza restaurant by age, June/July 2008
- Presence of children drives home deliveries
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- Figure 11: Deliveries from a pizza restaurant, by presence of children in HH, June/July 2008
- More people in the HH equals more deliveries
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- Figure 12: Deliveries from a pizza restaurant, by number of people in HH, June/July 2008
Segment Performance: Takeout
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- 18-34 year-olds go almost twice a month
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- Figure 13: Incidence of picking up food/drink from a pizza restaurant, by age, June/July 2008
- Presence of children drives sales
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- Figure 14: Incidence of picking up food/drink from a pizza restaurant, by presence of children in HH, June/July 2008
- Online is in
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- Figure 15: Attitudes related to pizza delivery, 2007 versus 2008
Segment Performance: Dining In
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- Figure 16: Pizza dine-in purchases and frequency of purchase in the past month, 2007 versus 2008
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Market Drivers
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- Key points
- Restaurant industry in recession
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- Figure 17: Restaurant Performance Index: All-items, current situation, and expectations, January 2006-June 2008*
- Dining out on the chopping block
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- Figure 18: Spending at restaurants, by household income, January 2008
- Consumers under pressure
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- Figure 19: Consumer Price Index, key consumer items, January 2006-June 2008*
- Rising food costs pressure foodservice margins
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- Figure 21: Average price for medium pizza, Q1 2007-Q1 2008
- QSRs stealing customers?
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- Figure 22: Average dollars per online ordering transaction among major pizza chains
- Hold the pepperoni: New York passes calorie count law
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- Figure 23: Caloric and fat count of fast foods, 2008
- Children critical to growth of category
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- Figure 24: Population by age, 2002-12
- Super Bowl means super sales
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- Figure 25: Percent increase in purchasers at home/work/universities on Super Bowl Sunday, 2007
- Hispanics love pizza
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- Figure 26: Population by race and Hispanic origin, 2007-12
- Figure 27: Purchase of pizza, by ethnicity, 2008
Leading Companies
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- Key points
- Minimal growth at major chains
- A taste for trendier pizza
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- Figure 28: U.S. systemwide sales of leading pizza restaurant chains, 2005 and 2007
- Unit growth
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- Figure 29: U.S. systemwide units and sales per unit of leading pizza restaurant chains, 2005 and 2007
- Marketing claims
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- Figure 30: Marketing claims at top 16 chains, 2006-08
- Menu trends
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- Figure 31: Trends in menu items at top 16 pizza restaurants, 2006-08
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- Figure 32: Changes in ingredient claims, 2006-08
Restaurant Analysis: Pizza Hut
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- New pizzas modestly lift sales
- New products may help
- Incremental growth likely
- Strategies to promote growth
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- Figure 33: Favorite pizza restaurant, 2007 versus 2008
Restaurant Analysis: Domino’s Pizza
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- Domino’s feels the heat
- A new brand strategy—of sorts
- No new pizza products
- Noteworthy marketing efforts
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- Figure 34: Teen usage of leading pizza restaurants, 2006 versus 2007
- Figure 35: Domino’s change in ingredients on menu, 2006-08
Restaurant Analysis: Papa John’s
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- Papa John’s sticks to its message: quality pizza
- Unit expansions and marketing initiatives stimulate growth
- Unit expansions
- Marketing initiatives
- New products
- Looking ahead
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- Figure 36: Papa John’s change in ingredients, 2006-08
Restaurant Analysis: California Pizza Kitchen
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- Robust growth compared to rest of category
- Distinctive menu and new additions
- Growth plans
- Successful marketing efforts
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- Figure 37: CPK change in ingredients, 2006-08
Restaurant Analysis: Independents
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- Key point
- Independent, local pizza chains on usage upswing
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- Figure 38: Favorite pizza restaurant, 2007 versus 2008
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- Figure 39: Independent pizza restaurant preferences, 2007 versus 2008
- Leading independents
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- Figure 40: Top 10 independent pizza restaurants, 2008
Restaurant Brand Qualities
Innovation and Innovators
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- Overview of moves by the 16 top chains
- Creativity flourishes at independents
- Pizza ordering goes high tech
Advertising and Promotion
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- Key points
- Declines in ad spends by leaders
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- Figure 41: Advertising expenditures for leading pizza chains, 2006-07
- Movie tie-ins a key strategy
- Promotions are popular
- Trends in coupons
- Analysis of commercials
- Taste
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- Figure 42: Papa John’s whole wheat pizza, 2008
- Figure 43: Giordano’s and local loyalty, 2008
- Price
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- Figure 44: Pizza Hut Pizza Mia, 2008
- Figure 45: Domino’s taste and price, 2008
- Immediate gratification
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- Figure 46: Domino’s and quick delivery, 2008
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- Figure 47: Cici’s and sweet deliciousness, 2008
The Consumer: Usage of Pizza Restaurants
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- Key points
- Pizza usage decline raises red flag
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- Figure 48: Purchase incidence from a pizza restaurant, by gender, 2007 verus 2008
- 18-24 year-olds: the key demographic
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- Figure 49: Purchases from a pizza restaurant by age, June/July 2008
- Decline in usage by key demographics
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- Figure 50: Purchase of pizza from a restaurant, by age 2007—2008
- Respondents on budgets cut pizza purchases
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- Figure 51: Purchase incidence from a pizza restaurant, by household income, 2007 verus 2008
Usage of Leading Pizza Restaurant Chains
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- Key points
- Affluent respondents skew to local independents
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- Figure 52: Favorite pizza restaurant, by HH income, July 2008
- Children’s influence is a big deal
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- Figure 53: Favorite pizza restaurant, by children under 18 in HH, July 2008
Consumer Attitudes Toward Pizza Healthfulness
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- Key points
- Indulgence is in
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- Figure 54: Health attitudes toward pizza, 2007 versus 2008
- Females could value healthier pizza
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- Figure 55: Attitudes about nutritional attributes of pizza, by gender, June/July 2008
- Pizza Hut wins as a healthy/value option
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- Figure 56: Brands preferred by type of restaurant preferred, July 2008
- Adding vegetables makes it healthy to pizza fans
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- Figure 57: Attitudes about health benefits of pizza by type of restaurant preferred, July 2008
Race and Ethnicity
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- Key points
- Blacks are partial to big chains, Asians to California Pizza Kitchen
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- Figure 58: Percentage of population that visits any fast food and drive-in restaurants who have visited pizza restaurants in past 30 days, by race/Hispanic origin, Feb 2007-March 2008
- Blacks and Hispanics think pizza is expensive
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- Figure 59: Attitudes about pizza restaurants, by race/Hispanic origin, June/July 2008
Reasons for Dining Out at Pizza Restaurants
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- Key points
- Overview
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- Figure 60: Reasons for dining out at a pizza restaurant, July 2008
- Social rationales
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- Figure 61: Reasons for dining out at a pizza restaurant, July 2008
- Gender matters
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- Figure 62: Reasons for dining out at a pizza restaurant, by gender, July 2008
- Pizza restaurants are intimate affairs for 18-24 year-olds
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- Figure 63: Reasons for dining out at a pizza restaurant, by age, July 2008
- Pizza restaurants a destination for the more affluent
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- Figure 64: Reasons for dining out at a pizza restaurant, by household income, July 2008
- Treating rationales
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- Figure 65: Treating rationales, by age, July 2008
- Value and convenience rationales
- Pizza a convenient option for females
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- Figure 66: Treating rationales, by gender, July 2008
- Impulse drives purchases for 18-24s
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- Figure 67: Treating rationales, by household income, July 2008
Custom Consumer Groups
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- 18-24 year-old males and females
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- Figure 68: Pizza restaurant delivery, pick up, and dine-in: purchases and purchase frequency, by age and gender, June/July 2008
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- Figure 69: Attitudes about nutritional attributes of pizza, by age and gender, June/July 2008
- The kid factor
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- Figure 70: Incidence of picking up food/drink from a pizza restaurant, by marital and parental status, June/July 2008
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- Figure 71: Incidence of picking up food/drink from a pizza restaurant, by marital and parental status, June/July 2008
Cluster Analysis
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- Health-averse
- Health-conscious infrequents
- Heaviest pizza-lovers
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- Figure 72: Pizza delivery clusters, July 2008
- Figure 73: Pizza restaurant delivery, pick up, and dine-in: purchases in last 30 days, by pizza delivery clusters, July 2008
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- Figure 74: Attitudes related to pizza delivery, by pizza delivery clusters, July 2008
- Figure 75: Favorite pizza restaurant, by pizza delivery clusters, July 2008
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- Figure 76: Health attitudes toward pizza, by pizza delivery clusters, July 2008
- Figure 77: Attitudes about pizza restaurants, by pizza delivery clusters, July 2008
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- Figure 78: Pizza restaurant ordering preferences, by pizza delivery clusters, July 2008
- Figure 79: Pizza delivery clusters, by gender, July 2008
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- Figure 80: Pizza delivery clusters, by age group, July 2008
- Figure 81: Pizza delivery clusters, by household income group, July 2008
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- Figure 82: Pizza delivery clusters, by race, July 2008
- Figure 83: Pizza delivery clusters, by Hispanic origin, July 2008
Appendix: Trade Associations
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