Although Americans consume more than three billion pizzas each year, there is no single brand that stands out from the pack.
According to new research published in Vericast”™s 2023 Restaurant Trend Watch, 40% of consumers now have no preference when choosing a pizza place ”“ and thanks to inflation, 13% of recent pizza restaurant guests are now opting for frozen or non-restaurant pizza.
“Based on sales and traffic numbers, some believe the big four pizza brands (Dominos, Pizza Hut, Papa John’s and Little Caesars) are consumers’ first pick, but when we dig a little deeper, we found that the top choice is actually ‘no preference,'” said Dana Baggett, client strategy director in the restaurant division at Vericast. “This lack of preference and loyalty means consumers can be swayed to change brands with incentives.”
Indeed, Vericast determined that retailers have increased their frozen pizza brand promotions by 214% over the past two years. As a result, in a typical week 43% of recent pizza restaurant guests purchased frozen pizza, leading to a nearly 11% growth in frozen pizza sales over the last year.
“The pizza battle is on, and grocery stores are winning,” continued Baggett. “Consumers are shifting to at-home pizza, resulting in the big four pizza players losing 3% share of wallet compared to same time last year, according to Numerator. If they convert just 5% of their guests who purchase frozen pizza each month, they could earn roughly $500 million collectively. Brands who deliver targeted offers across digital and print channels will win loyalty and business.”
