Table of Contents
Overview
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- What you need to know
- Key issues covered in this Report
- Definition
- COVID-19: US restaurant industry context
Executive Summary
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- Top takeaways
- Market overview
- Impact of COVID-19 on pizza restaurants is largely positive
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- Figure 1: Short-, medium- and long-term impact of COVID-19 on the foodservice industry and pizza restaurants, September 2020
- Challenges and Opportunities
- Dine-in-focused pizza restaurants struggle along with rest of foodservice industry
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- Figure 2: Indoor dining comfort level, August 27- September 8, 2020
- Young consumers drive retail pizza competition
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- Figure 3: Pizza restaurant visitation, by generation, June 2020
- Consumers prefer pizza during the pandemic
- Americans also crave pizza menu innovation
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- Figure 6: Pizza restaurant attitudes, by generation, June 2020
- Pizza delivery can struggle in a recession
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- Figure 4: Pizza restaurant attitudes, by household income, June 2020
- Pizza is also a preferred choice during recessions
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- Figure 5: Pizza restaurant attitudes, by household income, June 2020
- Young consumers drive interest in AI pizza innovation
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- Figure 7: Pizza restaurant attitudes, by generation, June 2020
The Market – Key Takeaways
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- Pizza restaurants are not recession-proof, but they’re close
- Dine-in pizza restaurants must focus on off-premise innovation
- Capture consumers’ interest with innovative pizza flours
Impact of COVID-19 on Pizza Restaurants
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- Impact of COVID-19 on pizza restaurants is largely positive
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- Figure 8: Short-, medium- and long-term impact of COVID-19 on the foodservice industry and pizza restaurants, September 2020
- COVID-19: US context
Market Factors
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- Pizza sales slumped only briefly during Great Recession
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- Figure 9: Total US pizza restaurant sales, at current prices, 2007-14
- Dine-in pizza hurt as consumers look to minimize COVID-19 risk
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- Figure 10: Indoor dining comfort level, August 27, 2020-September 8, 2020
- Frozen pizza sales boom during pandemic
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- Figure 11: Total US retail sales and forecast of frozen pizza, at current prices, 2015-25
- Pizza restaurant ordering systems must be ADA compliant
- Third-party delivery regulation will benefit pizza operators
- Pepperoni prices rise for operators
Market Opportunities
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- The pandemic raises robotic relevance
- Mobile kitchens as next-generation food trucks
- Consumers are now flour experts, and pizza restaurants should pay heed
- Pinsa pizza
- Sourdough pizza
- Sicilian pizza
Companies and Brands – Key Takeaways
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- Pandemic revives struggling fast food pizza chains
- Everyone is taking a piece of the pie, much to pizza restaurants’ dismay
- Chicken is a highly relevant pizza restaurant offering in 2020 and beyond
Pizza Restaurant Sales
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- Pizza’s growth is slower than rest of Top 200 restaurant industry in 2019
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- Figure 12: top 10 pizza chain sales, 2018-19*
- Pandemic gives needed sales boost to top fast food pizza players
Competitive Strategies
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- Off-premise innovation helps pizza restaurants thrive during crisis
- Automated pizza pickup cubbies
- Contactless delivery and curbside pickup
- Ghost restaurants deliver
- Everyone is a pizza restaurant
- Plant-based pizzas continue to liven up menus
- Pizza chains haven’t forgotten about chicken
The Consumer – Key Takeaways
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- Sit-down pizza restaurants suffer during pandemic
- Quality is most important value trait, but budgeting will play larger role as recession continues
- Young consumers crave pizza innovation on the menu
Pizza Restaurant Visitation
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- Sit-down pizza chains lost the most business due to COVID-19
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- Figure 13: Pizza restaurant visitation year over year, September 2019-June 2020
- Men drive restaurant pizza consumption
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- Figure 14: Pizza restaurant visitation, by gender, June 2020
- Most Gen X and younger consumers eat fast food chain pizza
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- Figure 15: Pizza restaurant visitation, by generation, June 2020
- Hispanic consumers drive consumption of retailer prepared pizza
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- Figure 16: Pizza restaurant visitation, by race and Hispanic origin, June 2020
Pizza Purchasing Decision
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- Quality is the leading pizza purchasing motivator
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- Figure 17: Pizza purchasing decision – NET any rank, June 2020
- Younger consumers prioritize delivery speed and online ordering capability
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- Figure 18: Pizza purchasing decision – NET any rank, by generation, June 2020
- Black consumers care the most about pizza topping options
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- Figure 19: Pizza purchasing decision – NET any rank, by race and Hispanic origin, June 2020
- Lowest-income consumers consider non-pizza menu items when choosing a pizza restaurant
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- Figure 20: Pizza purchasing decision – NET any rank, by household income, June 2020
Pizza Value Definition
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- Quality is most top of mind to the pizza value proposition
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- Figure 21: Pizza value definition – NET any rank, June 2020
- Customizability is an expectation for young consumers
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- Figure 22: Pizza value definition – NET any rank, by generation, June 2020
- Family meal deals are vital during recession
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- Figure 23: Pizza value definition – NET any rank, by income, June 2020
- Moms associate friendly service with a good value
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- Figure 24: Pizza value definition – NET any rank, by parental status, June 2020
Pizza Sauce
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- Consumers are interested in garlic sauces covering the entire pizza
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- Figure 25: Correspondence Analysis – Symmetrical map – Pizza sauce innovation, June 2020
- Restaurant pizza customers express huge interest in pizza sauce drizzles and dips
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- Figure 26: Pizza sauce interest – NET any sauce, June 2020
- 18-34 year olds drive demand for pizza sauce drizzles
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- Figure 27: Pizza sauce interest – NET any sauce, by age, June 2020
- Most restaurant pizza consumers prefer garlic butter or garlic sauces on or with their pizza
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- Figure 28: Pizza sauce interest – NET any sauce application, June 2020
- Men prefer a variety of sauce options for pizza
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- Figure 29: Pizza sauce interest – NET any sauce application, by gender, June 2020
- Millennials drive demand for garlic butter and ranch dressing with pizza
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- Figure 30: Pizza sauce interest – NET any sauce application, by generation, June 2020
Pizza Crust
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- Hand-tossed thin crust is slightly preferred to thin and crispy pizza crust
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- Figure 31: Pizza crust, June 2020
- Young consumers drive demand for stuffed, seasoned and veggie crusts
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- Figure 32: Pizza crust, by age, June 2020
Pizza Toppings
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- Cheddar cheese remains a top-preferred non-Italian pizza cheese
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- Figure 33: Pizza cheese, June 2020
- Young consumers will help make burrata a popular pizza topping
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- Figure 34: Pizza cheese, by age, June 2020
- Most consumers enjoy mushrooms and onions on pizza
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- Figure 35: Pizza toppings – fruits and vegetables, June 2020
- Young consumers want operators to turn the heat up on pizzas
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- Figure 36: Pizza toppings – vegetables, by age, June 2020
- Pork reigns supreme as pizza protein preference
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- Figure 37: Pizza proteins, June 2020
- Women are less likely than men to want protein toppings on pizza
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- Figure 38: Pizza proteins, by gender, June 2020
- Young consumers want to see fried chicken on pizza
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- Figure 39: Pizza proteins, by age, June 2020
Pizza Restaurant Attitudes
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- Pizza will continue to sell well in the recession
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- Figure 40: Pizza restaurant attitudes, Part I, June 2020
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- Figure 41: Pizza restaurant attitudes, Part II, June 2020
- Young consumers want to enjoy fun new pizza options
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- Figure 42: Pizza restaurant attitudes, by generation, June 2020
- Many consumers earning under $75K a year would cut back on pizza delivery in a recession
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- Figure 43: Pizza restaurant attitudes, by Household income, June 2020
- Fathers overwhelmingly prefer pizza to other foods during the pandemic
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- Figure 44: Papa John’s email, “A Papa John's Father's Day Special Awaits You Inside!,” June 14, 2020
- Figure 45: Pizza restaurant attitudes, by parental status, June 2020
Appendix – Data Sources and Abbreviations
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- Data sources
- Consumer survey data
- Consumer qualitative research
- Direct marketing creative
- Abbreviations and terms
- Abbreviations
Appendix – The Consumer
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- Figure 46: Pizza purchasing decision, by pizza restaurant visitation, June 2020
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- Figure 47: Pizza restaurant visitation, by household income, June 2020
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- Figure 48: Pizza sauce interest – NET any sauce, by race and Hispanic origin, June 2020
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- Figure 49: Restaurant value definition, any rank, among Gen Z teens and adults, February 2020; May 2020
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- Figure 50: Restaurant value definition, any rank, by generation, May 2020
- Correspondence Analysis Methodology
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- Figure 51: Pizza sauce interest, June 2020
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