Want To Beat The recession? Take A Slice Out Of Pizza’s Playbook With These 5 Takeaways

Posted by Karen Erdelac on Apr 8, 2022

Want To Beat The recession? Take A Slice Out Of Pizza’s Playbook With These 5 TakeawaysThroughout the COVID-19 Pandemic, pizza was one of the few bright spots in the hard-hit restaurant industry.

Sales of pizza grew as much as 4 percent last year, according to Technomic, a food industry research and consulting firm. Even frozen pizza performed well, with sales climbing nearly 21 percent to more than $6 billion. For large pizza chains like Domino’s, Pizza Hut, Papa John's, and your neighborhood independent pizza parlor, the Pandemic proved to be a sales boon.

Many Americans went from occasionally ordering pizza to ordering several times a week. Pizza, it turned out, was the perfect pandemic food. According to the New York Times, over the first nine months of 2020, Domino's and Papa John's combined revenue grew so much that it was roughly equivalent to their selling about 30 million more large cheese pizzas than they had the year before.

The forecast remains strong for 2022, with one restaurant trends research firm predicting a growth rate of 4.84%. "This myth that everyone ordered pizza four times a week during the Pandemic and now they won't do that coming out of the Pandemic isn't factual. It's been all new customer acquisition driving growth," says Rob Lynch, Papa John’s CEO.

Now, as we move from the Pandemic to a possible recession, what can struggling restaurant owners learn from the humble pizza pie? Here are some suggestions.

1.  Optimize online ordering – There are many online apps and software programs that can help restaurants get online ordering and delivery up and running quickly. Don't forget to keep your website updated. Post your menu and daily specials, and integrate loyalty/reward programs and order ahead capabilities. One survey found that “easy ordering” was the No.1 must-have consumers looked for in a restaurant.

2.  Promote convenience and customization– Along with a very reasonable price point, pizza is one of the most convenient meal options for busy individuals and families. Pizza is also easy to customize. Why not promote flexibility on your menu by adding vegan and gluten-free options?

3.  Focus on value – Belt-tightening has been the norm for most families during the Pandemic and now through these tough economic times. Try bundling meals "family style" offer grab and go, takeout, and cook at home options. Create a unique subscription service with the delivery of a family meal, including salad and beverages delivered on the same day and time each week.

4.  Create a community – There's nothing like the casual vibe of a neighborhood restaurant where "everybody knows your name." Make your restaurant the go-to place for families, schools, local businesses, and sports teams. Help support community groups by hosting a fundraiser night. Make friends with community influencers – the mayor, police chief, and school board members.

5.  Devote time to brand building – You can't stop marketing when times are tough, and you don't have to spend big on advertising campaigns. Offer specials to neighborhood associations, first responders, and PTAs – they'll do a great job of promoting your restaurant. Also, capture your patrons' email addresses and send them a newsletter with a coupon for a special occasion, and don't forget social media.

Since 2005, Quikstone Capital Solutions has helped thousands of merchants build their businesses with easy, fast, and flexible working capital. 80% of our merchants are repeat customers, and we have an A+ rating from the Better Business Bureau. We're here for you when you need us to help with your business needs. Contact us today for a no-cost or obligation prequalification.

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