Pizza sales dropped a little last year, with total servings from commercial foodservice decreasing 2.8%, stated David Portalatin, senior vice president and food industry advisor at Circana. However, in convenience stores, he pointed out, serving sales increased 1.5% during that same time period.
“Before the pandemic, more than half of all food deliveries would have been from quick-service restaurants (QSR); now it’s only about one-third,” Portalatin explained. “It’s not that we have lost our love for pizza, but now there is a whole lot of variety and a whole other world of different cuisines available through third-party platforms such as DoorDash, Uber Eats and Grubhub.”
Today, 85% of pizza servings are still served at QSRs and 4.5% from convenience stores, Portalatin added. He attributed the adoption of digital ordering technologies as one of the major reasons why QSRs are still so far ahead.
“C-store retailers have the opportunity to close that gap by developing apps to make ordering easier for customers,” Portalatin said.
Variety is also a draw because, he noted, “American consumers love to try new things in familiar territory like pizza.”
According to Circana, the fastest-growing topping is jalapeño peppers. Portalatin added that over the past decade, a growing number of consumers have been seeking gluten-free crusts.
“The demand is not increasing as rapidly as a few years ago, but gluten-free has carved out its space and will always be relevant,” he said.
Instead of just appealing to consumers on restricted diets, these products have a broader health benefit halo that make them more universally attractive, he stated.
LTOs Drive Sales
Dandy Mini Marts, which has 63 locations in Pennsylvania and New York, offers at least 10 to 12 topping options on its pizzas, including a build-your-own, according to James Fry, Dandy’s foodservice director. The menu also features some interesting creations, such as pickle pizza and the multitoppings Bomber.
“Limited-time offers (LTO) are really important for the most frequent buyers because they deliver something new, fresh and different,” Portalatin pointed out.
At Dandy, different LTOs, such as a recent taco-inspired Mexican pizza, appear on the menu every two months.
“We hear from our regular customers that they want to try something different,” Fry said. “We used to offer new LTOs quarterly, but, again at customer request, we lengthened the time they are available.”
Fry expects to see the stores’ grab-and-go pizza slice business continue to grow and breakfast pizza sales to at least continue to hold steady. Dandy is also looking at promotions to run throughout the year to drive dinner whole pie purchases.