Each year, franchise industry publications and restaurant industry research organizations publish reports on the pizza industry. Each year the research consistently points to the strengths of franchised pizza chains compared to ‘mom and pop’ pizza shops. From the findings in the reports the four best reasons to buy a pizza franchise are:
Franchised pizza outlets sell more!
The numbers don’t lie. The retail pizza industry has annual sales of $30B. Franchise chains account for the minority of pizza shops, yet account for roughly half of the annual sales volume around the country! The strengths of brand identification, purchasing power, and operating systems allow franchises to sell more.
According to “Pizza Power”, PMQ magazine’s (Pizza Marketing Quarterly) Annual Industry Analysis, of the 67,554 pizza stores in the US, 59% are independently-owned and control 51% of total pizza sales. Franchises and chains account for 41% of the market and for nearly half the sales. *FD10
93% of Americans eat pizza monthly!
Everybody eats pizza! Well, almost everybody, but 9 out of 10 Americans eat it on a monthly basis. Adults with children are one of the largest demographics of pizza eaters. The conveniences that pizza franchises offer such as free delivery and online ordering, along with consistent quality, are top reasons why families order more pizza from franchised pizza outlets.
Pizza is enjoyed by people from all walks of life and eating out at restaurants is an essential part of the American lifestyle. According to the National Restaurant Association, 45% of adults say that restaurants are still a major part of their lifestyle and that they will continue to frequent their favorite restaurants. According to a survey completed by Mintel, 93% of Americans eat at least one pizza per month and 21% of 18 – 24 year olds purchase pizza more than three times per month. This is compared to only 7% of those over the age 65 eating at least one pizza per month. Pizza also proved popular with parents. About 20% of the parents surveyed said that they purchase pizza more than three times per month, compared to 12% of adults with no children. *FD10
Takeout and Delivery meals are appealing when times are tight!
These days who has money to eat out all the time? Quick-service is in and sit-down is out! The lower cost and quicker ordering time of pizza- compared to traditional restaurants- is a big reason why pizza sales are so strong. Pizza franchises that can use marketing horsepower to deliver the messages of convenience and cost-savings will thrive in this economy.
“Additionally, Americans have started to trend away from dining out and towards take out and fast-delivery foods. These quick-service pizza concepts allow people to take advantage of the new technologies that are available at home, all the while subtracting the extra fees from tips, drinks, and gas.” *FHELP
Mobile and Social Marketing works for Pizza!
Franchise pizza chains have the marketing resources to run full-scale social media programs effectively. Social sites such as Facebook, Twitter, and Foursquare can be powerful, low-cost marketing tools that bring customers in again and again.
“Social media has become very important to the [entire restaurant] industry and social media users are much more active and likely to dine-out, to connect with restaurants online and post reviews,” says Hudson Riehle, senior vice president of the Research and Knowledge Group for the National Restaurant Association. *FD11
Customers today crave individualized attention, and social media interaction provides an ideal outlet for both marketing and customer conversations! By utilizing websites such as Facebook and Twitter, pizza franchises are more able to effectively market to and broaden their customer base through special promotions along with the back-and-forth interaction social media was designed for.*FD11
Email marketing systems can drive sales through the roof but managing the systems can be time-consuming. Franchisors with dedicated marketing staff can not only afford to invest in tools such as email marketing, but also have the resources to measure the effectiveness of the program through statistics and real-world results at the cash registers.
Previously, coupons and promotions were sent via large mailing lists and were not targeted at a specific audience. Franchises found it difficult to track the effectiveness of mailing lists as they provided little to no information on local trends, or marketing information. Pizza franchises are now able to take advantage of analytics provided by social media outlets to gather important marketing insights to fine tune campaigns. As Riehle noted from survey results, “more than eight out of 10 operators say social media is becoming a more important marketing tool. And there is much more acceptance of restaurateurs emailing and texting their consumers.”*FD11
Want more information on buying a pizza franchise? Contact the franchise sales office for Teresa’s Pizza today!
FD10 – Franchise Direct “Pizza Franchise Industry Report 2010” http://www.franchisedirect.com/foodfranchises/pizzafranchises/pizzafranchiseindustryreport2010/80/275 FD11 – Franchise Direct “Pizza Industry Report 2011 – Trends” http://www.franchisedirect.com/foodfranchises/pizzafranchises/pizzaindustryreport2011trends3/80/295 FHELP – Franchisehelp.com “Pizza Industry Analysis 2012 – Cost & Trends“ http://www.franchisehelp.com/industry-reports/pizza-industry-report