Why Pizza is Dominating Over Other Quick Serve Restaurants
January 6, 2017
The new year is ringing in a little softer than most QSRs were anticipating. Changing tides around minimum wage legislation and labor relation standards are contributing to the uncertainty many food service groups are feeling. Though operation costs continue to skyrocket, consumers are holding onto their purse strings a little tighter than usual, and are less likely to patron restaurants.
It’s not all bleak. Emerging from the shadows, pizza brands are showing exceptional sales, as illustrated by Bloomberg’s article. While the overall number of people eating out is dwindling, pizza orders are trending upwards, particularly for the brands that focus on delivery.
To experts, that’s not a surprising revelation. If any food service segment can withstand a recession, convenience and perceived value has made pizza that segment. In fact, while most major QSR and restaurant brands are only reporting a 3.4% gain, pizza franchises are seeing numbers between 40 and 60 percent.
Convenient delivery and new options for web and mobile ordering make pizza an extremely easy choice for customers. The pizza chains seeing a real difference are those that invest heavily in digital channels and ordering solutions supported by technology powerhouses including Apple, Google, and Facebook.
The QSR brands and rival pizza franchises, that offer fewer delivery offerings are finding that providing an overall level of convince to consumers is difficult. The dual impact of starting late with convenience initiatives and a lack of necessary investment tools is leaving many brands struggling to keep up.
Franchises that see success this year will be those that optimize mobile and online delivery offerings. However, the overall experience offered to consumers will make or break chain QSRs, including the fail-safe pizza market.
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