Pizza Restaurants - US - October 2007

SCOPE AND THEMES
What you need to know
Definition
Resources used for consumer sections
Abbreviations and terms
Abbreviations
Terms
EXECUTIVE SUMMARY
In a nutshell: by the numbers
The pizza players
Large chain growth slows to crawl
Which one’s your favorite?
Independents chains flex muscle
Key strength: value
Key strength: families
Key strength: convenience
Trends driving delivery/carryout
Desire for convenience drives decision to have it delivered
$60,000 question: indulgent or nutritious?
Like it or not—get ready for healthy pizza
Friendly advice: adapt to and leverage online ordering
Warning to the wise: QSR and fast casual encroach with pizza on menu
Warning to the wise: cheese prices may tip the applecart
MARKET DRIVERS
Key points
Pizza: Convenient and social
Figure 1: Pizza restaurant delivery, pickup, and dine-in: purchases, purchase frequency, and percent of purchase in past month, August 2007
High gas prices affect roadside restaurants
Economic indicators cause for concern
Figure 2: Key economic indicators (GDP, PDI, savings, unemployment), 2001-06
Demographics
Figure 3: Population by age, 2007-12
Figure 4: Household profile, January-September 2005
Figure 5: Population by race and Hispanic origin, 2007-12
Indulgent versus nutritious offerings
Figure 6: Health attitudes toward pizza, by gender, August 2007
Online ordering on the rise
Figure 9: U.S. broadband household projections, 2000-10
Cheese prices skyrocket
MARKET SIZE AND TRENDS
Key points
Market size
Figure 7: Total U.S. systemwide sales of leading pizza chains, at current and constant prices, 2004-06
Figure 8: Usage of pizza restaurants by share of U.S. population, by age, 2007
 MARKET TRENDS
Respondents conflicted over the desire for indulgent vs. healthier pizza
Trans fat challenge
Safe Food Act
Organic and all-natural increase traction
Online ordering
Delivery fees
Delivery organizes
MARKET SEGMENTATION
Key points
Overview
Figure 9: Where food was eaten, by restaurant type, April 2007
Delivery/carryout
Figure 10: Pizza restaurant delivery, pickup, and dine-in: purchases, purchase frequency, and percent of purchase in past month, August 2007
Dining in
Figure 11: Pizza restaurant delivery, pickup, and dine-in purchases in the past month, by HH income, August 2007
Figure 12: Pizza restaurant delivery, pickup, and dine-in purchase frequency in the past month, by HH income, August 2007
Figure 13: Pizza restaurant delivery, pickup, and dine-in purchases and frequency of purchase in the past month, children under 18 in HH, August 2007
Figure 14: Chuck E. Cheese
SUPPLY STRUCTURE
Key points
Pizza restaurant chains
Figure 15: U.S. systemwide sales of leading pizza restaurant chains, 2004 and 2006
Unit growth increases sales
Figure 16: U.S. systemwide units and sales per unit of leading pizza restaurant chains, 2004 and 2006
Pizza Hut
Domino’s
Papa John’s
Little Caesar’s
Independents chains flex muscle
Figure 17: Favorite pizza restaurant, by HH income, August 2007
Figure 18: Favorite pizza restaurant, by children under 18 in HH, August 2007
ADVERTISING AND PROMOTION
Overview
Domino’s Pizza
Figure 19: Domino’s Pizza, oven baked brownie squares
Figure 20: Domino’s Pizza, Cheesy Garlic Bread Pizza
Figure 21: Domino’s Pizza, Philly Cheese Steak and Brooklyn Style Pizzas
Pizza Hut
Figure 22: Pizza Hut, Sicilian Lasagna Pizza
Figure 23: Pizza Hut, Cheesy Bites Pizza
Figure 24: Pizza Hut, The P’zone
Papa John’s
Figure 25: Papa John’s, Italian Trio Meats Pizza
Figure 26: Papa John’s, Sausage Sensation Pizza
THE CONSUMER: USAGE OF PIZZA RESTAURANTS
Summary
Purchase incidence at pizza restaurants
Pickup, delivery, and dine-in
Usage of leading pizza restaurant chains
Favorite pizza restaurant
Purchase incidence at pizza restaurants
Figure 27: Purchase incidence of drinks/food from a pizza restaurant, by key demographics, 2007
Delivery, pickup, and dining in at pizza restaurants
Figure 28: Pizza restaurant delivery, pickup, and dine-in purchases and frequency of purchase in the past month, August 2007
Figure 29: Pizza restaurant delivery, pickup, and dine-in purchases and frequency of purchase in the past month, by gender, August 2007
Figure 30: Pizza restaurant delivery, pickup, and dine-in purchases in the past month, by HH income, August 2007
Figure 31: Pizza restaurant delivery, pickup, and dine-in purchases and frequency of purchase in the past month, children under 18 in HH, August 2007
Usage of leading pizza restaurant chains
Figure 32: Adult usage of leading pizza restaurants, by race/ethnicity, January-October 2006
Figure 33: Teen usage of leading pizza restaurants, by race/ethnicity, January-October 2006
Favorite pizza restaurant
Figure 34: Favorite pizza restaurant, by gender, August 2007
Figure 35: Favorite pizza restaurant, by HH income, August 2007
Figure 36: Favorite pizza restaurant, by race/ethnicity, August 2007
Figure 37: Favorite pizza restaurant, by children under 18 in HH, August 2007
THE CONSUMER: ATTITUDES ABOUT PIZZA
Summary
Health attitudes toward pizza
Value and independent pizza restaurant preferences
Attitudes related to pizza delivery
Parents and pizza
Health attitudes toward pizza
Figure 38: Health attitudes toward pizza, by gender, August 2007
Figure 39: Health attitudes toward pizza, by age, August 2007
Figure 40: Health attitudes toward pizza, by gender, August 2007
Value and independent pizza restaurant preferences
Figure 41: Value and independent pizza restaurant preferences, by gender, August 2007
Figure 42: Value and independent pizza restaurant preferences, by gender, August 2007
Figure 43: Value and independent pizza restaurant preferences, by children under 18 in HH, August 2007
Attitudes related to pizza delivery
Figure 44: Attitudes related to pizza delivery, by gender, August 2007
Parents and pizza
Factors related to parents selecting a pizza restaurant
Figure 45: Factors related to selecting a pizza restaurant, by HH income, August 2007
Kids’ influence on decision to go to pizza restaurant
Figure 46: Kids’ influence on decision to go to pizza restaurant, by gender, August 2007
Reasons for dining out at a pizza restaurant
Figure 47: Reasons for dining out at a pizza restaurant, by gender, August 2007
Figure 48: Reasons for dining out at a pizza restaurant, by HH income, August 2007
FUTURE AND FORECAST
 FUTURE TRENDS
Healthy pizza is here to stay
Small chains and independents to enjoy more market share
QSR and fast casual encroach with pizza offerings
 MARKET FORECAST
Leading pizza chains
Figure 49: Forecast of total U.S. systemwide sales of leading pizza chains, at current and constant prices, 2006-08
Forecast factors
APPENDIX: TRADE ASSOCIATIONS